Gilead Sciences (GILD) closed a strong second quarter, and Wall Street noticed.
The drugmaker beat sales expectations across its biggest franchises, raised its full-year outlook, and gave analysts fresh reasons to stay bullish heading into the back half of 2026.
Bank of America was one of them. The bank reiterated its Buy rating and kept its $162 price target after the report, well above where the stock trades today.
One prevention number in particular caught BofA’s attention, and it speaks directly to whether Gilead’s next growth engine can last.
Why Bank of America is standing by Gilead stock after earnings
Gilead reported second-quarter product sales of $7.6 billion, ahead of Wall Street estimates, driven by strength across its HIV, liver, and oncology franchises.
Bank of America Global Research kept its Buy rating and $162 price target after the print, according to a research report shared with TheStreet.
With the stock near $135, that target implies meaningful room to climb.
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The company raised full-year product sales guidance to $29.8 billion to $30.1 billion, up from a prior range of $29.4 billion to $29.8 billion.
Gilead now expects its HIV franchise to grow 9% to 10% this year, up from an earlier forecast of 8%.
The 70% number driving Gilead’s HIV prevention story
The figure BofA zeroed in on comes from Yeztugo, Gilead’s twice-yearly HIV prevention shot.
Roughly a year after launch, more than 70% of patients were still on the drug, a measure the industry calls persistence.
Persistence simply tracks how many patients stay on a medicine over time. High persistence means fewer people quit, which supports steadier long-term revenue.
Gilead’s management said the rate is the highest across available PrEP options, the class of drugs taken to prevent HIV infection.
That matters because persistence had been a live debate among investors. BofA said the strong number supports what it sees as a large commercial opportunity for the drug.
On the earnings call, Gilead added that more than 70% of Yeztugo users returned for their six-month reinjection, extending protection for a full year, Investing.com reported.
Yeztugo and Descovy push Gilead’s PrEP sales past $1 billion
Yeztugo posted second-quarter sales of $232 million, up 40% from the prior quarter.
Gilead still expects about $1 billion in Yeztugo sales for the full year, and the drug has become the leading choice for patients switching PrEP regimens.
The broader prevention business hit a milestone, too.
Gilead’s total PrEP franchise topped $1 billion in quarterly sales for the first time, helped by Yeztugo and continued demand for Descovy.
What the PrEP franchise delivered
- Yeztugo sales of $232 million, up 40% quarter over quarter.
- Descovy PrEP sales of about $801 million, up 60% year over year.
- Total PrEP business now running at roughly a $4 billion annual rate.
Prevention has moved from a side story to a core driver of Gilead’s growth, and the company is leaning into it with several long-acting drugs in development.
How Gilead’s liver and oncology drugs add a second growth lane
HIV prevention is not the only franchise gaining ground.
Gilead pointed to strong momentum for Livdelzi, its treatment for primary biliary cholangitis, a chronic liver disease. It remains the leading second-line option in that market.
The company also flagged positive results from its late-stage IDEAL trial, which could widen the drug’s use.
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On the cancer side, Gilead’s Trodelvy won FDA approval in first-line metastatic triple-negative breast cancer across PD-L1 status, a marker doctors use to guide treatment.
Management said the first-line setting is nearly twice the size of the second-line market and comes with longer treatment durations, giving Trodelvy a larger runway.
Trodelvy sales rose 26% year over year to $457 million in the quarter, according to Yahoo Finance.
The catalysts Gilead investors should track next
Gilead’s pipeline gives investors several dates to watch in the coming months.
The company is preparing to launch anito-cel, a cell therapy for heavily pretreated multiple myeloma, ahead of a Dec. 23 FDA decision date.
It also expects an FDA decision by Aug. 27 on a once-daily oral HIV regimen for virally suppressed patients.
Key events still ahead for Gilead
- An Aug. 27 FDA decision on its bictegravir plus lenacapavir oral HIV regimen.
- A Dec. 23 decision date for anito-cel in relapsed or refractory multiple myeloma.
- A potential 2027 launch for a once-weekly islatravir and lenacapavir combination developed with Merck.
Each represents a possible new revenue stream, though drug approvals are never guaranteed and timelines can slip.
How Gilead stock stacks up against the broader market
Gilead shares trade near $135, off slightly on the session but up more than 6% year to date.
That gain runs alongside a rising S&P 500, so Gilead has kept pace rather than lagged the broader market in 2026.
GILD share-price snapshot
- Recent price: About $135, with a 52-week range of $108.46 to $157.27.
- Up more than 6% year to date.
- Quarterly base business sales grew 10% year over year, the fastest second-quarter pace in three years.
The stock still sits well below its 52-week high, which leaves room to recover if the newer launches deliver.
What could still go wrong for Gilead’s bullish case
The setup is encouraging, but a few things need to hold for the thesis to work.
Gilead’s headline earnings showed a reported loss, driven by $11.2 billion in acquisition-related research charges tied to recent deals.
Those charges are one-time in nature, though they weighed on the quarter’s reported profit.
The company also cut its full-year forecast forVeklury, its Covid treatment, to about $300 million as hospitalizations fell.
For investors, Gilead’s growth now depends on execution across several launches at once, and any single delay could slow the momentum BofA is counting on.
Anyone considering the stock should weigh the pipeline’s promise against that execution risk and size any position to their own tolerance.
Gilead’s second quarter gave the bulls plenty to point to, and Bank of America’s reiterated Buy shows at least one major bank thinks the run can go further.
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