Foster City, California-based Gilead Sciences, Inc. (GILD) is a biopharmaceutical company that discovers, develops, and commercializes medicines in the areas of unmet medical need. Valued at a market cap of $129.1 billion, the company is renowned for its antiviral therapies, particularly in the treatment of HIV/AIDS, hepatitis B and C, and COVID-19, and is advancing treatments in oncology, inflammatory and respiratory diseases. 

This healthcare giant has considerably outpaced the broader market over the past 52 weeks. Shares of GILD have rallied 58.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.3%. Moreover, on a YTD basis, the stock is up 12.2%, compared to SPX’s 3.3% decline. 

Zooming in further, GILD’s outperformance looks pronounced when compared to the Invesco Pharmaceuticals ETF’s (PJP) 4.2% rise over the past 52 weeks and marginal downtick on a YTD basis. 

On Apr. 24, GILD released weaker-than-expected Q1 earnings results, prompting its share price to plunge 2.8% in the following trading session. The company’s revenue declined marginally year-over-year to $6.7 billion and fell short of the forecasted figure by 2.5%. This decline was mainly due to lower product sales, driven by reduced revenue from its COVID-19 treatment Veklury and weaker Oncology segment performance. 

On the earnings front, its adjusted EPS of $1.81 improved significantly from an adjusted loss of $1.32 per share recorded in the same quarter last year, largely due to prior year IPR&D expenses related to the CymaBay acquisition. However, it still came in slightly below the consensus estimates. Adding to the downtick, the company lowered its full-year 2025 EPS guidance, though it maintained its product sales outlook between $28.2 billion and $28.6 billion, with adjusted EPS projected to fall within the $7.70 to $8.10 range.

For the current fiscal year, ending in December, analysts expect GILD’s EPS to grow 71.2% year over year to $7.91. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.

Among the 28 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 19 “Strong Buy,” and nine “Hold” ratings. 

This configuration is slightly more bullish than a month ago, with 18 analysts suggesting a “Strong Buy” rating. 

On May 2, Salim Syed from Mizuho Financial Group, Inc. (MFG) maintained a “Buy” rating on GILD with a price target of $117, which indicates a 12.8% potential upside from the current levels. 

The mean price target of $111.88 represents a 7.9% premium from GILD’s current price levels, while the Street-high price target of $140 suggests an upside potential of 35%.