Gilead Sciences: A Market Reassessment Gains Momentum

A significant market reappraisal is underway for Gilead Sciences, fueled by robust quarterly performance and promising clinical advancements within its HIV franchise. While analysts have responded with a wave of upward revisions, the sustainability of this positive momentum hinges on the upcoming full-year results.

The company's recent quarterly report provided a solid foundation for the renewed optimism. Gilead posted revenue of $7.77 billion, surpassing the consensus estimate of $7.42 billion. Earnings per share (EPS) came in at $2.47, significantly ahead of the expected $2.14—a beat of approximately 15.4%. The firm's financial strength is further highlighted by a net margin of 27.88% and a return on equity of 51.86%, indicating highly efficient capital utilization. Investors also benefit from an annual dividend of $3.16 per share, yielding around 2.6%.

This operational strength triggered notable action from major financial institutions in early January:
* UBS upgraded its rating from "Neutral" to "Buy," raising its price target from $112 to $145.
* Citi maintained a "Buy" rating with a $140 target.
* Morgan Stanley assigned an "Overweight" rating and a $151 valuation.
* The consensus view is bullish, with an average price target of $133.20; 25 out of 28 covering analysts recommend "Buy" or "Strong Buy."

From a technical perspective, the share price currently trades at €104.76, situated about 5.7% below its 52-week high of €111.10 and roughly 1.06% under its 50-day moving average.

Should investors sell immediately? Or is it worth buying Gilead Sciences?

Clinical Advances in HIV Drive Long-Term Value

The core of Gilead's revaluation lies in the expansion and innovation of its HIV portfolio. The long-acting injectable Lenacapavir (marketed as Sunlenca) is a key growth driver. Recent data, while showing HIV can develop resistance mutations against the drug, also revealed these mutations come with a substantial fitness cost for the virus, reducing its replication capacity to below 20%. This profile enhances the therapy's clinical appeal for both treatment and prevention.

Concurrently, the Phase 3 ARTISTRY-1 trial successfully met its primary endpoints for a once-daily, single-tablet regimen combining bictegravir and lenacapavir. Such simplified treatment options are crucial for improving patient adherence and securing long-term market share, providing Gilead's antiviral division with a structural competitive edge.

The Path Forward for Sustained Growth

The next critical test for this reassessment will be the release of the complete annual figures on February 10, 2026. Analysts are forecasting a Q4 EPS of $1.88. For the upward trend to solidify, these results must confirm the company's raised guidance for 2025, now set at $8.05–8.25 per share, and validate the growth narrative powered by its HIV portfolio and new single-tablet options.

Should the February report meet or exceed expectations, the current positive reappraisal is likely to persist, supporting further share price advancement. However, any earnings disappointment or lack of clear commercial signals from ongoing studies could lead to a period of consolidation. In the near term, the clinical progress of HIV programs and the upcoming financial release remain the decisive factors for Gilead's trajectory.