Gilead Sciences Shows Strong Stock Growth Despite Q1 Earnings Decline

Foster City, California-based Gilead Sciences, Inc. (GILD) is a biopharmaceutical company focused on discovering, developing, and commercializing medicines for unmet medical needs. With a market capitalization of $129.1 billion, Gilead is notable for its antiviral therapies, particularly in treating HIV/AIDS, hepatitis B and C, and COVID-19, and is also working on advances in oncology, inflammatory, and respiratory diseases.

Stock Performance Overview

Over the past 52 weeks, GILD has significantly outperformed the broader market. Its shares have climbed 58.7%, while the S&P 500 Index ($SPX) has seen a more modest gain of 12.3%. Year-to-date, GILD is up 12.2%, standing in contrast to the S&P 500’s 3.3% decline.

When comparing Gild to the Invesco Pharmaceuticals ETF (PJP), which rose only 4.2% over the same period, Gilead’s performance becomes even more impressive.

Quarterly Earnings Review

On April 24, Gilead reported weaker-than-expected Q1 earnings, causing its stock to fall by 2.8% in the next trading session. The company’s revenue declined slightly to $6.7 billion, missing forecasts by 2.5%. Lower product sales, particularly from its COVID-19 treatment Veklury and disappointing performance in its Oncology segment, contributed to the revenue drop.

However, Gilead’s adjusted earnings per share (EPS) improved to $1.81, a significant turnaround from an adjusted loss of $1.32 per share in the same quarter last year, primarily due to prior-year IPR&D expenses related to the CymaBay acquisition. Despite this improvement, earnings still fell short of consensus estimates. Additionally, Gilead lowered its full-year EPS guidance for 2025, but kept its product sales outlook stable at $28.2 billion to $28.6 billion, with adjusted EPS anticipated to range between $7.70 and $8.10.

For the current fiscal year ending in December, analysts forecast GILD’s EPS to grow 71.2% year over year, predicting a figure of $7.91. Gilead’s recent earnings surprise history has been mixed, with three out of the last four quarters exceeding consensus estimates and one falling short.

Analyst Ratings and Price Targets

The consensus rating among the 28 analysts covering GILD stands at “Moderate Buy,” founded on 19 “Strong Buy” and nine “Hold” ratings. This is a slight improvement compared to a month ago when the count of analysts recommending a “Strong Buy” was 18.

On May 2, analyst Salim Syed from Mizuho Financial Group, Inc. (MFG) retained a “Buy” rating on GILD, setting a price target of $117, suggesting a 12.8% increase from current levels. The average price target now sits at $111.88, implying a 7.9% premium from Gilead’s current prices, while the highest target of $140 indicates a potential upside of 35%.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.