Gilead Sciences Stock Surges on Impressive Quarterly Performance

Investors are closely watching Gilead Sciences following the biotechnology company's unexpectedly strong quarterly earnings report. The pharmaceutical giant not only surpassed market expectations but demonstrated particularly robust growth within its HIV treatment division, though questions remain about whether this momentum can be sustained.

A significant strategic development emerged as a key driver for future performance: Biktarvy's market exclusivity has been extended until April 2036, providing three additional years of protection beyond initial projections. This extension secures the company's most profitable product for the coming decade, offering substantial revenue visibility.

Concurrently, the newly launched Yeztugo is showing promising early traction. The prevention medication achieved 75% insurance coverage in the United States within just three months, significantly ahead of schedule. Additional positive developments include European Union approval and recognition through a prestigious pharmaceutical industry award.

Financial Performance Exceeds Expectations

Gilead delivered a clear earnings beat with both revenue and profit surpassing forecasts. The company reported $7.8 billion in quarterly revenue, representing 3% year-over-year growth. Even more impressive was the adjusted earnings per share of $2.47, substantially higher than the $2.15 consensus estimate.

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

The HIV franchise continues to drive performance:
- Biktarvy revenues expanded 6% to $3.7 billion
- Descovy sales increased 20% to $701 million
- Newcomer Yeztugo generated $39 million in its initial launch period

Market Analysts Respond with Upward Revisions

Financial institutions quickly adjusted their outlooks following the strong results:
- JP Morgan raised its price target from $145 to $150
- RBC Capital increased its target from $100 to $105
- Goldman Sachs adjusted upward from $108 to $110

While COVID therapeutic Veklury experienced a 60% revenue decline, growth segments including oncology and liver diseases showed solid progress. Trodelvy sales grew 7%, while Livdelzi surpassed the $100 million milestone for the first time.

Future Outlook Appears Promising

Can Gilead maintain this momentum through the fourth quarter? The company's revised annual guidance suggests confidence, with management now projecting 5% growth in the HIV business and raising the lower end of revenue projections. With multiple Phase III trials scheduled to complete this year and regulatory decisions expected in 2026, the development pipeline remains well-stocked with future opportunities.