Gilead Sciences (GILD) Stock Falls After Earnings as Acquisition Costs Hit Guidance

TLDR

• Gilead beat Q1 revenue expectations with $6.96 billion, topping the $6.91 billion consensus.
• Adjusted EPS came in at $2.03, above the $1.91 forecast.
• Full-year EPS guidance was slashed to a loss of $0.65–$1.05, down from prior guidance of $8.45–$8.85.
• The guidance cut was driven by $11.5 billion in IPR&D charges tied to recent acquisitions.
• GILD stock fell roughly 2% in after-hours trading and was down 1% to $132.60 in Friday premarket.

Gilead Sciences beat Wall Street’s Q1 estimates but its stock dropped anyway. The culprit? A dramatic revision to full-year earnings guidance that caught investors off guard.

Gilead Sciences, Inc., GILD

The stock fell close to 2% in after-hours trading on Wednesday, and was down 1% to $132.60 in Friday premarket trading.

Gilead posted Q1 revenue of $6.96 billion, edging past the $6.91 billion consensus. Adjusted EPS came in at $2.03, beating the $1.91 forecast from analysts polled by FactSet.

On the back of those results, Gilead raised its full-year revenue guidance to $30 billion–$30.4 billion, up from a prior range of $29.6 billion–$30 billion.

But the EPS picture told a different story.

The company now expects a full-year adjusted loss of $0.65 to $1.05 per share. That’s a sharp reversal from prior guidance of $8.45 to $8.85 in earnings. Analysts had been expecting $8.65.

Gilead tied the revision to $11.5 billion in in-process research and development (IPR&D) charges, along with additional financing costs from a string of recent acquisitions.

HIV Portfolio Carries the Quarter

Biktarvy, Gilead’s flagship HIV drug, once again did the heavy lifting. Sales rose 8% to $3.4 billion, accounting for nearly half of total revenue. The broader HIV portfolio posted 10% year-over-year growth.

Gilead also raised its revenue forecast for Yeztugo, its twice-daily HIV prevention injection, to $1 billion — up sharply from an earlier estimate of $200 million.

Not everything performed. Veklury, Gilead’s COVID-19 antiviral, saw sales fall 52% to $144 million, which Gilead attributed to lower COVID-19 hospitalization rates.

Epclusa, its hepatitis C treatment, brought in $283 million versus $346 million in the same period last year. The cell therapy portfolio also softened, dropping roughly 12% to $407 million from $464 million.

Excluding Veklury, product sales rose 8% to $6.8 billion.

Acquisition Spree Drives the Guidance Hit

Gilead has been buying aggressively in 2026. In February, it agreed to acquire Arcellx for $7.8 billion. Gilead already had an existing collaboration with the Maryland-based biotech to co-develop anitocabtagene autoleucel.

At the end of March, Gilead agreed to buy privately held Ouro Medicine to strengthen its autoimmune pipeline. Last month, it struck a deal to acquire Tubulis GmbH, expanding its antibody-drug conjugate capabilities.

The $11.5 billion IPR&D charge tied to these deals is what’s driving the EPS guidance reversal.

Gilead’s market cap sits at approximately $164.57 billion. Its P/E ratio is currently at 19.8x. Insiders sold $10.6 million in stock over the past three months, with no reported purchases during that period.

The post Gilead Sciences (GILD) Stock Falls After Earnings as Acquisition Costs Hit Guidance appeared first on CoinCentral.