GILD Stock Slips After Hours On Sharp Earnings Guidance Hit From Massive M&A Spree

• The company, however, raised its full-year 2026 product sales guidance to $30.0–$30.4 billion, from its previous guidance of $29.6–$30.0 billion.
• Gilead is currently pursuing an aggressive acquisition strategy to bolster its oncology and inflammation pipeline, even as the underlying HIV franchise continues to show resilience.
• Since the start of 2026, the company has announced deals to buy Arcellx, Ouro Medicines, and Tubulis.  

Shares of Gilead Sciences (GILD) fell 3% in after-hours trading on Thursday despite a solid first-quarter beat and an upward revision to full-year revenue guidance, as investors reacted negatively to a dramatic cut in the company’s 2026 earnings outlook tied to nearly $11.5 billion in acquisition-related charges.

Gilead reported first-quarter revenues of $7.0 billion, up 4% from a year earlier, with product sales rising 5% to $6.9 billion. Adjusted and diluted earnings per share came in at $2.03, beating consensus estimates around $1.91 and rising 12% year-over-year. HIV product sales, the company’s largest franchise, grew 10% to $5.0 billion, led by its pills called Biktarvy and Descovy. Cancer drug Trodelvy sales jumped 37% to $402 million, while cell therapy sales slipped 12% amid competitive pressure.

The company raised its full-year 2026 product sales guidance to $30.0–$30.4 billion, from its previous guidance of $29.6–$30.0 billion. However, it slashed adjusted loss guidance to a loss of $1.05–$0.65 per share, compared to its previous estimate of earnings per share of $8.45 to $8.85 — a roughly $9.50 per-share reduction — primarily due to anticipated charges and financing costs from its recent acquisitions of Arcellx, Ouro Medicines, and Tubulis.

Gilead’s M&A Spree

Gilead is currently pursuing an aggressive acquisition strategy to bolster its oncology and inflammation pipeline, even as the underlying HIV franchise continues to show resilience.

“...we are carefully strengthening our early-stage pipeline to position Gilead well for the long term, typically investing about $1 billion annually in smaller licensing deals, partnerships, and acquisitions,” the company said during its fourth quarter earnings call in February. “We're very ready, we're very proactive and disciplined, but we may not have the urgency of other companies in this sector, so we're gonna be disciplined around that. But I would say that we very much want to continue to add to our pipeline with appropriate, M&A over the course of the coming years as well.”

In February, the company agreed to buy longtime partner Arcellx for approximately $7.8 billion, securing full rights to the late-stage CAR-T therapy anito-cel for multiple myeloma. In March, it acquired Ouro Medicines for up to $2.2 billion, adding a pipeline of bispecific T-cell engagers aimed at autoimmune and inflammatory diseases. Most recently, in April, Gilead announced the purchase of German biotech Tubulis for $3.15 billion upfront plus up to $1.85 billion in milestones, gaining next-generation antibody-drug conjugate technology and the clinical-stage asset TUB-040 for ovarian and other solid tumors.

How Did GILD Retail Traders React?

On Stocktwits, retail sentiment around GILD stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

GILD stock has gained 36% over the past 12 months. 

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