Abstract
Gilead Sciences will report fourth-quarter results on February 10, 2026, Post Market; this preview compiles recent financial data and forecasts to frame expectations for revenue, profitability, and earnings momentum into the print.
Market Forecast
Consensus forecasts for the current quarter anticipate total revenue of $7.69 billion, EBIT of $3.10 billion, and adjusted EPS of $1.81, implying year-over-year growth of 07.70% in revenue, 06.69% in EBIT, and 06.31% in EPS. Margin commentary from estimates suggests a broadly stable gross profit margin profile near recent levels, while the net profit trajectory implies a steady earnings conversion and an adjusted EPS recovery pace consistent with modest revenue acceleration.
The company’s core revenue mix in the prior quarter was driven primarily by product sales at $7.35 billion and royalty, contract and other revenue at $0.42 billion, pointing to a product-led top line carrying through into the current quarter with incremental operating leverage. The segment with the highest near-term growth potential is expected to remain the therapeutic portfolio embedded in product sales, with the product line continuing to account for the majority of revenue and forming the basis for year-over-year gains.
Last Quarter Review
In the last reported quarter, Gilead Sciences delivered revenue of $7.77 billion, a gross profit margin of 79.80%, GAAP net income attributable to common shareholders of $3.05 billion, a net profit margin of 39.28%, and adjusted EPS of $2.47, with revenue growing 02.97% year over year and adjusted EPS increasing 22.28% year over year. Quarter on quarter, net income rose by 55.71%, highlighting a material sequential improvement in profitability alongside healthy gross margin resilience.
A key financial highlight was the earnings outperformance, as adjusted EPS of $2.47 exceeded the $2.13 consensus estimate, supported by EBIT of $3.92 billion outpacing the $3.48 billion estimate and contributing to solid operating income conversion. Main business performance was led by product revenue of $7.35 billion and $0.42 billion from royalties, contracts and other, maintaining a revenue base concentrated in marketed therapies that underpinned consistent cash generation.
Current Quarter Outlook (with major analytical insights)
Main commercial portfolio momentum
The company’s top line remains anchored by its product portfolio, which accounted for approximately 94.54% of revenue in the last quarter at $7.35 billion. The forecasted revenue of $7.69 billion for the current quarter indicates a continuation of product-led growth with an expected 07.70% year-over-year increase aligned with sustained demand across key therapies. With the prior quarter’s gross profit margin at 79.80%, the product mix supports strong contribution margins and cushions against pricing or volume volatility. Operating leverage is also reflected in the anticipated EBIT of $3.10 billion, which, even with incremental spending on launches and R&D, implies healthy conversion of gross profit into operating income. Given the previous net profit margin of 39.28% and the estimated EPS of $1.81, the earnings cadence appears consistent with a balanced expansion in revenue and disciplined expense control.
Largest growth-potential business within product revenue
Within the product revenue bucket, the growth vector is expected to come from the marketed therapies that continue to shape the majority of the company’s sales base. The combination of high gross margin and recurring demand provides the framework for the forecasted 06.31% year-over-year uplift in adjusted EPS to $1.81. The stability of product revenue at $7.35 billion last quarter and the projected total revenue of $7.69 billion this quarter suggest incremental volume and mix benefits. Additionally, EBIT is projected at $3.10 billion, up 06.69% year over year, indicating that operating expenses are likely pacing below gross profit growth, which is favorable for operating margin progression and cash generation dynamics.
Key stock price drivers this quarter
The interplay between revenue growth and margin durability is the primary near-term determinant of share performance into and after the print. With consensus calling for revenue of $7.69 billion and adjusted EPS of $1.81, deviation from these benchmarks will shape short-term price reaction. Sustained gross profit margin near the last quarter’s 79.80% would underpin confidence in the earnings quality, while any signs of operating expense discipline could drive upside to EBIT relative to the $3.10 billion forecast. Conversely, any signals of pricing pressure within product revenue or an unfavorable revenue mix shift toward lower-margin components could compress operating income and weigh on the EPS trajectory.
Analyst Opinions
Across the previews reviewed, the prevailing stance is constructive, with a majority leaning positive into the results based on expectations for mid-single-digit revenue and earnings growth and stable margin quality. Analysts emphasize that the company’s product-driven revenue base and the prior quarter’s execution—where adjusted EPS of $2.47 and EBIT of $3.92 billion surpassed estimates—set a favorable reference point, while the current quarter’s consensus for revenue of $7.69 billion and EPS of $1.81 is viewed as achievable. The positive camp highlights the combination of high gross margins near 79.80% and expected EBIT growth of 06.69% year over year as indicating resilient demand and efficiency, with particular attention to cash conversion patterns and operating discipline into year-end. On balance, the majority perspective anticipates an in-line to modest beat outcome with limited downside risk if gross margin and operating expense run-rate remain near recent levels.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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