Gilead Sciences Inc. (GILD) shares dropped in Tuesday's extended trading session despite beating earnings expectations, as investors focused on the company's underwhelming fiscal 2026 guidance.
The Numbers: Gilead posted fourth-quarter earnings of $1.86 per share, topping the consensus estimate of $1.81. Revenue came in at $7.93 billion, comfortably ahead of the $7.69 billion Wall Street was expecting.
So what's the problem? The future, apparently.
Segment Performance: The quarter showed a mixed bag across Gilead's portfolio. HIV products remained the star performer, with sales climbing 6% to $5.8 billion compared to the same quarter last year. The growth came from increased demand for both HIV prevention and treatment options.
Liver Disease portfolio sales surged 17% to $844 million, powered largely by Livdelzi (seladelpar). Meanwhile, Cell Therapy sales slipped 6% to $458 million as competitive pressures continue to bite.
CEO Daniel O'Day highlighted the company's achievements: "Our fourth quarter and full-year results close out a very strong year for Gilead overall, including the successful U.S. launch of Yeztugo, the world's first twice-yearly HIV prevention therapy, and continued growth for Biktarvy and Descovy."
The Guidance Problem: Here's where things got dicey. Gilead expects fiscal 2026 adjusted earnings between $8.45 and $8.85 per share, compared to analyst expectations of $8.74. Revenue guidance of $29.6 billion to $30 billion also missed the Street's $30.22 billion estimate.
Gilead stock fell 2.87% to $143 in after-hours trading.
