Gilead Sciences Expects Loss This Year on Acquired R&D Expenses

By Elias Schisgall

Gilead Sciences said it expects to swing to a loss this year, driven by anticipated research-and-development costs and acquisition financing.

The biopharmaceutical company on Thursday said it expects a 2026 adjusted loss of between $1.05 and 65 cents a share, compared with prior guidance of adjusted earnings between $8.45 and $8.85 a share.

The guidance includes Gilead's expectation of $11.5 billion in acquired in-process research-and-development charges, which are expected to impact adjusted earnings by about $9.50 a share.

Analysts polled by FactSet are expecting adjusted earnings of $8.55 a share.

The guidance was also reduced by financing costs from a string of acquisitions Gilead announced this year.

The company said last month that it agreed to acquire Tubulis, a German biotechnology firm, for $3.15 billion in a bid to expand its oncology portfolio. Earlier in the year, it agreed to acquire Oura Medicines for roughly $1.68 billion and Arcellx for $7.8 billion.

Shares fell 3% to $130.07 in after-hours trading on Thursday.

Gilead lifted its revenue guidance, projecting product sales between $30 billion and $30.4 billion for the year. The company had previously guided for product sales between $29.6 billion and $30 billion, and analysts are expecting $29.97 billion in product sales.

The company reported a first-quarter profit of $2.02 billion, or $1.61 a share, compared with $1.32 billion, or $1.04 a share, a year earlier.

Stripping out certain one-time items, the company reported adjusted earnings of $2.03 a share. Analysts polled by FactSet were expecting $1.91 a share.

Revenue rose to $6.96 billion from $6.67 billion in the quarter, beating analyst estimates of $6.91 billion.

Product sales, which account for the bulk of Gilead's revenue, rose to $6.95 billion from $6.61 billion a year earlier. The growth was driven by strong sales of products for treatment of HIV, or human immunodeficiency virus, which rose 10% to $5 billion, as well as the drugs Trodelvy and Livdelzi. That was partially offset by lower sales of products for HCV, or chronic hepatitis C virus, and cell therapy, the company said.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires

May 07, 2026 16:49 ET (20:49 GMT)