Zacks Research Predicts Lower Earnings for Gilead Sciences

Key Points

• Zacks Research trimmed Gilead’s near‑term earnings outlook, cutting Q1 2026 EPS to $1.74 (from $1.76) and lowering FY2026 to $8.29, below the street consensus of roughly $8.63.
• Despite the modest downgrade, multiple brokers have raised price targets and maintain positive ratings (MarketBeat average: Moderate Buy, avg target $157.35); Gilead also beat the last quarter’s EPS ($1.86 vs. $1.83), set FY2026 guidance of $8.45–$8.85, and raised its quarterly dividend to $0.82.
• Corporate and sentiment drivers are mixed: regulatory approval of the Arcellx acquisition and expanded access for lenacapavir support growth, but an Arcus‑partnered trial halt and notable insider selling (≈294,280 shares in 90 days) could pressure near‑term sentiment.

Gilead Sciences, Inc. (NASDAQ:GILD - Free Report) - Zacks Research cut their Q1 2026 earnings per share estimates for shares of Gilead Sciences in a report issued on Monday, April 20th. Zacks Research analyst Team now anticipates that the biopharmaceutical company will earn $1.74 per share for the quarter, down from their prior forecast of $1.76. The consensus estimate for Gilead Sciences' current full-year earnings is $8.63 per share. Zacks Research also issued estimates for Gilead Sciences' Q2 2026 earnings at $1.99 EPS, Q3 2026 earnings at $2.24 EPS, Q4 2026 earnings at $2.33 EPS and FY2026 earnings at $8.29 EPS.

Gilead Sciences (NASDAQ:GILD - Get Free Report) last announced its earnings results on Tuesday, February 10th. The biopharmaceutical company reported $1.86 earnings per share for the quarter, topping analysts' consensus estimates of $1.83 by $0.03. The business had revenue of $7.93 billion for the quarter, compared to analyst estimates of $7.68 billion. Gilead Sciences had a return on equity of 49.46% and a net margin of 28.90%.The company's quarterly revenue was up 4.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.90 EPS. Gilead Sciences has set its FY 2026 guidance at 8.450-8.850 EPS.

A number of other equities analysts have also weighed in on the company. Morgan Stanley upped their target price on Gilead Sciences from $171.00 to $175.00 and gave the stock an "overweight" rating in a research note on Friday, April 10th. UBS Group increased their price objective on Gilead Sciences from $145.00 to $155.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Royal Bank Of Canada increased their price objective on Gilead Sciences from $118.00 to $123.00 and gave the company a "sector perform" rating in a research report on Tuesday, April 7th. Leerink Partners increased their price objective on Gilead Sciences from $146.00 to $148.00 and gave the company an "outperform" rating in a research report on Wednesday, February 11th. Finally, Barclays assumed coverage on Gilead Sciences in a research report on Friday, February 20th. They set an "equal weight" rating and a $155.00 price objective on the stock. Twenty-four research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $157.35.

Gilead Sciences Price Performance

Shares of NASDAQ GILD opened at $135.87 on Tuesday. The firm has a market capitalization of $168.64 billion, a P/E ratio of 20.07, a P/E/G ratio of 1.82 and a beta of 0.39. The company has a quick ratio of 1.40, a current ratio of 1.55 and a debt-to-equity ratio of 0.98. The stock's 50-day simple moving average is $144.03 and its two-hundred day simple moving average is $131.74. Gilead Sciences has a twelve month low of $93.37 and a twelve month high of $157.29.

Gilead Sciences Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 30th. Investors of record on Friday, March 13th were issued a dividend of $0.82 per share. The ex-dividend date was Friday, March 13th. This represents a $3.28 annualized dividend and a yield of 2.4%. This is a boost from Gilead Sciences's previous quarterly dividend of $0.79. Gilead Sciences's dividend payout ratio (DPR) is currently 48.45%.

Insider Activity at Gilead Sciences

In related news, CEO Daniel Patrick O'day sold 10,000 shares of the stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $144.79, for a total transaction of $1,447,900.00. Following the completion of the sale, the chief executive officer directly owned 642,308 shares in the company, valued at $92,999,775.32. This represents a 1.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Johanna Mercier sold 3,000 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $140.96, for a total value of $422,880.00. Following the sale, the insider owned 128,779 shares of the company's stock, valued at $18,152,687.84. This represents a 2.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 294,280 shares of company stock worth $42,302,950 in the last ninety days. 0.30% of the stock is owned by company insiders.

Institutional Investors Weigh In On Gilead Sciences

Several institutional investors have recently bought and sold shares of GILD. Csenge Advisory Group lifted its holdings in Gilead Sciences by 319.0% in the 3rd quarter. Csenge Advisory Group now owns 21,394 shares of the biopharmaceutical company's stock worth $2,375,000 after buying an additional 16,288 shares during the period. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in Gilead Sciences by 52.1% in the 3rd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 78,494 shares of the biopharmaceutical company's stock worth $8,713,000 after buying an additional 26,882 shares during the period. Cookson Peirce & Co. Inc. lifted its holdings in Gilead Sciences by 249.1% in the 3rd quarter. Cookson Peirce & Co. Inc. now owns 10,045 shares of the biopharmaceutical company's stock worth $1,115,000 after buying an additional 7,168 shares during the period. Railway Pension Investments Ltd lifted its holdings in Gilead Sciences by 3.1% in the 3rd quarter. Railway Pension Investments Ltd now owns 1,415,665 shares of the biopharmaceutical company's stock worth $157,139,000 after buying an additional 42,200 shares during the period. Finally, TriaGen Wealth Management LLC purchased a new stake in Gilead Sciences in the 3rd quarter worth approximately $1,274,000. 83.67% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Gilead Sciences

Here are the key news stories impacting Gilead Sciences this week:

• Positive Sentiment: Gilead completed regulatory approvals for its acquisition of Arcellx, strengthening its cell‑therapy oncology footprint, and announced expanded international access programs/partnerships for long‑acting HIV prevention drug lenacapavir — supports longer‑term growth strategy. Gilead Deepens Oncology Reach And HIV Prevention
• Positive Sentiment: Zacks piece highlighting Gilead as a long‑term value play reiterates confidence in the company’s cash flow, dividend and pipeline diversification — supportive for patient, income‑oriented investors. Why Gilead Sciences (GILD) is a Top Value Stock for the Long-Term
• Neutral Sentiment: An analyst price target was published at $130 — the change in street targets can influence sentiment but this target sits near/below recent trading levels, so its immediate impact is mixed. Price Target Raised to $130.00
• Neutral Sentiment: Opinion pieces (e.g., Seeking Alpha) discuss tactical investor decisions ahead of quarterly results — useful for sentiment but not hard news. Why I'm Tempted To Sell Ahead Of Q1 Earnings - But Won't
• Negative Sentiment: Zacks Research trimmed several 2026 estimates: small downgrades to Q1–Q4 quarterly EPS and cut FY2026 to $8.29 from $8.34 (Zacks’ model vs. street consensus ~ $8.63). The downward revisions are modest but signal slightly weaker near‑term earnings assumptions. Zacks EPS Estimate Revisions (summary)
• Negative Sentiment: Arcus Therapeutics halted a Gilead‑partnered late‑stage lung cancer trial — clinical setbacks tied to partnered programs can pressure sentiment around oncology exposure. Arcus halts Gilead-partnered late-stage trial
• Negative Sentiment: Headline coverage noting shares “declined more than the market” reinforces negative intraday sentiment; watch upcoming earnings and any further analyst revisions for follow‑through. Gilead Declines More Than Market

About Gilead Sciences

Gilead Sciences, Inc, founded in 1987 and headquartered in Foster City, California, is a biopharmaceutical company focused on the discovery, development and commercialization of medicines in areas of high unmet medical need. The company initially built its reputation in antiviral therapies and has since expanded into oncology, cell therapy and inflammatory diseases. Gilead operates a global research and commercial organization, conducting clinical development and selling medicines in markets around the world.

Gilead's product portfolio is anchored by antiviral therapies for HIV and viral hepatitis.

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