Gilead Sciences (GILD) Is Up 5.5% After Earnings Beat and EU Lenacapavir Milestone – What's Changed

• Gilead Sciences recently reported second-quarter earnings that exceeded analyst expectations, raised its full-year financial outlook, announced a new US$6.0 billion share repurchase program, and received a positive regulatory recommendation in Europe for its long-acting HIV prevention injection, lenacapavir.
• This series of developments, paired with the successful launch of Yeztugo in the US and upgrades from multiple analysts, highlights growing momentum in Gilead’s HIV franchise and near-term business confidence.
• We’ll explore how the upgraded earnings guidance and regulatory progress for lenacapavir influence Gilead’s overall investment case.

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Gilead Sciences Investment Narrative Recap

For Gilead Sciences shareholders, the investment case rests on the strength of its HIV franchise and the ability to expand in oncology and cell therapy, especially as new products like lenacapavir and Yeztugo gain traction. The recent EMA recommendation for lenacapavir and the raised full-year outlook bolster the primary near-term catalyst, growth in HIV prevention and treatment. However, the company remains exposed to policy-driven pricing risks and margin uncertainties in the U.S. HIV market, which remain relevant despite recent positive headlines.

Among recent announcements, the launch of Gilead’s new US$6.0 billion share repurchase program stands out. This move underscores confidence in cash generation, and links directly to the company’s accelerating HIV portfolio momentum, highlighted by regulatory wins for lenacapavir and Yeztugo. It also suggests ongoing capital deployment that could support shareholder returns while the company pursues new product launches.

But with these positives, investors should also consider the potential for future margin pressure if U.S. reimbursement or drug price policies shift...

Read the full narrative on Gilead Sciences (it's free!)

Gilead Sciences’ outlook projects $31.7 billion in revenue and $9.8 billion in earnings by 2028. This implies a 3.3% annual revenue growth and a $3.8 billion earnings increase from the current $6.0 billion.

Uncover how Gilead Sciences' forecasts yield a $118.16 fair value, in line with its current price.

Exploring Other Perspectives

The most optimistic analysts believed Gilead could reach US$33.9 billion in annual revenue by 2028, expecting future launches to far surpass consensus. If you think expanded HIV and oncology therapies will drive much higher growth, realize that others still see real threats from intensifying pricing pressures and competition. These high-end forecasts had not yet factored in the recent European regulatory approval or upgraded company earnings guidance, so perspectives may shift as the story unfolds.

Explore 9 other fair value estimates on Gilead Sciences - why the stock might be worth 21% less than the current price!

Build Your Own Gilead Sciences Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Gilead Sciences research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Gilead Sciences research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gilead Sciences' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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