# Gilead Sciences (GILD) Q2 2026 earnings

Results filed 2026-08-04 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/gild/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/882095/000088209526000028/0000882095-26-000028-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Total second quarter 2026 revenues increased 10% to $7.8 billion, while diluted loss per share was $(8.45) and non-GAAP diluted loss per share was $(6.75).

Gilead's revenue rose 10% to $7.8 billion, led by HIV, Trodelvy and Livdelzi. HIV sales grew 12% to $5.7 billion, helped by Descovy and the new Yeztugo PrEP product. Product sales excluding Veklury also rose 10%. The company still posted a diluted loss of $(8.45) per share, because $11.2 billion of acquired IPR&D expenses for the Arcellx, Tubulis and Ouro Medicines deals hit the quarter. Operating cash flow was $3.6 billion.
Management raised its 2026 product sales excluding Veklury guidance to $29,800 to $30,100 million and cut its Veklury expectation to about $300 million. Full-year non-GAAP diluted loss per share is now expected at $(0.65) to $(0.30). The main tension is the deal spending. Cash fell to $3.2 billion from $10.6 billion at year-end, and Cell Therapy sales kept falling amid competition.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Total revenues | $7.8 billion | up 10% from a year ago | GAAP |
| Net (loss) income | $(10,496) | compared with $1,960 a year ago | GAAP |
| Diluted (loss) earnings per share | $(8.45) | compared to $1.56 in the same period in 2025 | GAAP |
| Non-GAAP diluted (loss) EPS | $(6.75) | compared to $2.01 in the same period in 2025 | non-GAAP |
| Product gross margin | 79.3% | compared to 78.7% in the same period in 2025 | GAAP |
| Non-GAAP product gross margin | 86.9% | flat versus the same period in 2025 | non-GAAP |
| Operating (loss) income | (10,394) | compared with 2,474 a year ago | GAAP |
| Operating margin | (133.2)% | compared with 34.9% a year ago | GAAP |
| Operating cash flow | $3.6 billion |  | GAAP |
| Free cash flow | $3,432 | compared with $720 a year ago | non-GAAP |
| Product sales excluding Veklury | $7.6 billion | up 10% from a year ago | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| HIV product sales | $5.7 billion | up 12% |
| Biktarvy | $3.8 billion | up 7% |
| Descovy | $967 million | up 48% |
| Yeztugo | 232 | compared with 15 a year ago |
| Trodelvy | $457 million | up 26% |
| Liver Disease portfolio | $877 million | up 10% |
| Livdelzi | 167 | compared with 78 a year ago |
| Cell Therapy | $417 million | down 14% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Product sales (millions) | full year 2026 | $30,100 | $30,400 |
| Product sales excluding Veklury (millions) | full year 2026 | $29,800 | $30,100 |
| Veklury sales (millions) | full year 2026 | ~ $300 |
| GAAP diluted loss per share | full year 2026 | $(3.75) | $(3.40) |
| Non-GAAP diluted loss per share | full year 2026 | $(0.65) | $(0.30) |
| Non-GAAP projected product gross margin | full year 2026 | ~ 87.0% |
| Non-GAAP projected operating income (millions) | full year 2026 | $2,900 - $3,300 |
| Non-GAAP projected effective tax rate | full year 2026 | ~ 140% - 115% |
| Quarterly dividend per share | third quarter of 2026 | $0.82 per share |

## Key takeaways

1. **HIV growth drove the base business** HIV product sales increased 12% to $5.7 billion, with Descovy up 48% to $967 million and Biktarvy up 7% to $3.8 billion. Yeztugo contributed 232 million in the quarter, compared with 15 a year ago.
2. **Acquired IPR&D charges caused the loss** Acquired IPR&D expenses were $11.2 billion, primarily $7.0 billion for Arcellx, $3.1 billion for Tubulis and $1.0 billion for Ouro Medicines. These charges drove a $(9.08) per share impact.
3. **Full-year base business guidance was raised** Product sales excluding Veklury guidance is now $29,800 to $30,100 million, previously $29,400 to $29,800. Veklury is now expected at about $300 million, previously about $600 million.
4. **Cash fell sharply after acquisitions** Cash, cash equivalents and marketable debt securities were $3.2 billion as of June 30, 2026, versus $10.6 billion at December 31, 2025. Year-to-date acquisition outflows were $11.3 billion.
5. **Oncology and cell therapy diverged** Trodelvy sales increased 26% to $457 million, and it received FDA approval for first-line mTNBC. Cell Therapy sales decreased 14% to $417 million amid competition.

## Questions

**What were Gilead's headline results for Q2 2026?** Total revenues increased 10% to $7.8 billion, while diluted loss per share was $(8.45) and non-GAAP diluted loss per share was $(6.75). The loss reflects $(9.08) per share of acquired IPR&D and tax expenses tied to recent acquisitions.
**Why did Gilead report a loss despite revenue growth?** Acquired IPR&D expenses of $11.2 billion for the Arcellx, Tubulis and Ouro Medicines acquisitions, plus a $1,750 million IPR&D impairment related to Immunomedics assets, pushed operating loss to $(10,394) million. Those charges were largely non-deductible, so the effective tax rate was (2.4)%.
**Which products drove growth?** HIV sales rose 12% to $5.7 billion, including Descovy up 48% to $967 million and Biktarvy up 7% to $3.8 billion. Trodelvy rose 26% to $457 million, and the Liver Disease portfolio rose 10% to $877 million.
**How did Gilead change its 2026 guidance?** Product sales excluding Veklury guidance rose to $29,800 to $30,100 million from $29,400 to $29,800 million, and Veklury was cut to about $300 million from about $600 million. Non-GAAP diluted loss per share is now $(0.65) to $(0.30), versus a prior $(1.05) to $(0.65).
**What is Gilead's cash and capital return position?** Cash, cash equivalents and marketable debt securities were $3.2 billion at June 30, 2026, versus $10.6 billion at year-end. In the quarter Gilead generated $3.6 billion of operating cash flow, paid dividends of $1.0 billion and repurchased $355 million of stock.