Gilead Sciences saw its shares decline following the release of its fourth-quarter results, despite narrowly surpassing earnings and revenue expectations. The company also issued its full-year 2026 guidance, which aligned with Wall Street's forecasts, but the market reaction was muted. Investors appear concerned about the outlook despite some positive developments. The stock decreased by 5% after the announcement.

Gilead reported adjusted earnings of $1.86 per share, slightly exceeding estimates by $0.01. Revenue reached $7.93 billion, exceeding the $7.68 billion analysts predicted. The company's HIV franchise and recent product launches drove this growth. Gilead also declared a 3.8% increase in its quarterly dividend, raising the payout to $0.82 per share, beginning in the first quarter of 2026, signaling confidence.

For 2026, Gilead anticipates earnings between $8.45 and $8.85 per share, falling slightly below the consensus estimate of $8.76. Management highlighted the strong close of 2025, which included the U.S. launch of Yeztugo, along with continued growth in existing HIV treatments. Upcoming launches of oncology therapies and an additional HIV option are also planned. The dividend increase reflects management's confidence in cash generation.

This mixed performance and the slightly conservative guidance have led to investor caution. While Gilead shows strength in its HIV business and has a promising pipeline, the market appears to be waiting for more substantial growth. The dividend increase, while positive, wasn't enough to offset concerns about the future earnings trajectory, leading to the stock's decline.