Shares of Gilead Sciences (NASDAQ:GILD) fell more than 3% in premarket trading after the drugmaker issued a conservative full-year outlook, overshadowing better-than-expected fourth-quarter results.
The company also announced a 3.8% increase to its quarterly dividend, raising the payout to $0.82 per share starting in the first quarter of 2026.
For the fourth quarter, the biotech group reported adjusted earnings of $1.86 per share, beating consensus forecasts by $0.01.
Revenue came in at $7.93 billion, ahead of analyst expectations of $7.68 billion, supported by ongoing strength in its HIV portfolio and contributions from recently launched treatments.
Management described 2025 as a strong year overall, citing the U.S. debut of Yeztugo — a twice-yearly HIV prevention therapy — along with continued expansion of flagship HIV drugs Biktarvy and Descovy.
Chief Executive Officer Daniel O’Day said Gilead enters 2026 with several potential product launches on the horizon, including two oncology treatments and another HIV therapy, as well as the continued rollout of Livdelzi for liver disease.
Looking ahead, Gilead projected fiscal 2026 earnings in the range of $8.45 to $8.85 per share. The midpoint falls below Wall Street’s consensus estimate of $8.76.
The company expects total product sales of $29.6 billion to $30 billion in fiscal 2026. While the upper end of that range is broadly aligned with analyst forecasts, the overall guidance leans toward the lower end of the Street’s $30 billion expectation.
Gilead anticipates roughly $800 million in Yeztugo sales next year, largely in line with market estimates, and forecast HIV franchise growth of 6% year over year.
The increased dividend will be paid on March 30, 2026, to shareholders on record as of March 13. The boost reflects management’s confidence in the company’s cash generation and capital return strategy, though future dividend payments remain subject to board approval.