Gilead dips as ‘strong’ earnings outweighed by high expectations for new HIV drug

Core Insights - Gilead Sciences' shares declined after the release of its earnings report, despite exceeding Wall Street forecasts for its top products [1] Financial Performance - Gilead reported $7.9 billion in product sales for Q4 2025, marking a 5% increase year-over-year [2] - The HIV business saw a 6% year-over-year growth, contributing to a strong commercial quarter [2] - Key products Biktarvy and Descovy generated $4 billion and $819 million in sales, respectively, surpassing analyst expectations of approximately $3.84 billion and $720 million [3] Future Projections - For 2026, Gilead anticipates product sales between $29.6 billion and $30 billion, with non-GAAP diluted earnings per share projected at $8.45 to $8.85 [4] - The company expects manageable financial impacts from "most-favored-nation" pricing agreements established with the Trump Administration [4] Market Reactions - Following the earnings release, Gilead's share price fell by as much as 6% before recovering some losses [4] - Analyst Brian Abrahams suggested that the stock dip may be attributed to unmet expectations for the newly launched HIV prevention drug Yeztugo, which generated $96 million in Q4, below the anticipated $106 million [5] Competitive Landscape - Gilead's cell therapy portfolio experienced a 6% decline in Q4 sales, totaling $458 million, due to competitive pressures [7] - The flagship products Yescarta and Tecartus saw mid- to high-single digit declines in sales [7]