Oct. 2 at 2:11 PM
Gilead Sciences’ stock is recovering after a decade of underperformance, fueled by its strong HIV and oncology franchises and a more diversified business model. The company recently raised its sales guidance, with analysts projecting a 75% rise in earnings per share and gross margins above 83%. Whereas over 90% of revenue came from hepatitis C drugs like Sovaldi and Harvoni in 2015, liver disease now accounts for just 10% of sales, HIV treatments make up about two-thirds, and oncology has more than doubled since 2020.
Gilead’s second-quarter results exceeded expectations, and management remains optimistic about the core HIV segment. Although the new HIV drug Yeztugo was launched too recently to impact quarterly results, early demand indicators are positive. Truist Securities upgraded the stock to Buy and raised the price target to
$127 from
$108, with shares recently trading at
$111. With a 2026 P/E of 13 and a 2.8% dividend.
$GILD