Gilead Sciences (GILD) Earnings Date & Reports

Key Takeaways

• Revenue beat: Gilead reported total revenue of $7.8 billion, up 10% year-over-year, exceeding Wall Street consensus of $7.4 billion.
• Acquisition-driven loss: Non-GAAP diluted earnings per share (EPS) came in at negative $6.75, better than the expected loss of roughly $7.31, weighed down by $11.2 billion in acquired in-process research and development (IPR&D) charges tied to the acquisitions of Arcellx, Tubulis, and Ouro Medicines.
• HIV franchise leads: HIV sales rose 12% to $5.7 billion, with Biktarvy generating $3.8 billion and the PrEP (pre-exposure prophylaxis) business surpassing $1 billion in quarterly sales for the first time.
• Yeztugo momentum: The long-acting injectable PrEP drug posted $232 million in sales, up 40% sequentially, reinforcing its path toward approximately $1 billion in full-year 2026 revenue.
• Oncology and liver growth: Trodelvy sales grew 26% to $457 million, while Livdelzi more than doubled to $167 million, contributing to a 10% rise in the liver disease portfolio.
• Raised full-year outlook: Management lifted HIV growth guidance to 9-10% and increased its base business sales forecast, while narrowing the projected adjusted loss per share range to between $0.30 and $0.65.

Earnings Context and Why It Matters

Gilead Sciences' second-quarter 2026 results landed at a pivotal moment for the biopharmaceutical giant. Coming off a first quarter defined by a flurry of high-profile acquisitions — including cell therapy leader Arcellx, autoimmune-focused Ouro Medicines, and antibody-drug conjugate developer Tubulis — investors were braced for a rare quarterly loss. The headline numbers confirmed those expectations, with massive IPR&D charges overwhelming the income statement. Beneath that noise, however, the core commercial engine delivered its strongest second-quarter growth in three years. This report mattered because it tested whether Gilead's HIV dominance, rising PrEP franchise, and expanding oncology footprint could sustain momentum while the company absorbs the financial impact of its most ambitious dealmaking sprint in years.

Reported Results

Gilead posted total second-quarter revenue of $7.8 billion, a 10% increase from $7.08 billion in the prior-year period and comfortably above the $7.4 billion analyst consensus. Total product sales reached $7.6 billion, up 8% year-over-year. On a GAAP (Generally Accepted Accounting Principles) basis, the company recorded a net loss of $10.5 billion, or $8.45 per share, compared with a profit of $1.96 billion, or $1.56 per share, a year earlier. The swing reflected $11.2 billion in acquired IPR&D expenses and a $1.75 billion IPR&D impairment charge related to the Arcellx, Tubulis, and Ouro Medicines transactions.

Non-GAAP diluted EPS, which strips out certain items but still includes the acquisition-related IPR&D charges, came to negative $6.75 per share, narrower than the FactSet consensus estimate of a $7.26 loss. Excluding those acquisition charges and non-recurring other revenue, management presented an illustrative non-GAAP EPS of $2.27, representing approximately 13% growth year-over-year.

HIV remained the standout performer. Total HIV sales climbed 12% to $5.69 billion, driven by Biktarvy ($3.77 billion, up 7%) and Descovy ($967 million, up 48%). The PrEP business — spanning Yeztugo and Descovy for PrEP — surpassed $1 billion in quarterly revenue for the first time. Oncology drug Trodelvy delivered $457 million, up 26%, while Livdelzi in liver disease surged 115% to $167 million. Cell therapy was a soft spot, with sales declining 14% to $417 million amid intensifying competition. Veklury, Gilead's COVID-19 antiviral, plummeted 81% to just $23 million as hospitalization rates continued to decline.

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Market Reaction and Investor Sentiment

Investors appeared to look past the headline losses and focus on the underlying commercial strength. Gilead shares rose 3.14% during the August 4 regular trading session to close at $135.27, before easing 0.84% to $134.11 in after-hours trading following the earnings release. The modest post-market dip suggested that while the results and guidance raise were well received, some profit-taking occurred after the regular-session run-up. Entering the report, sentiment had been cautiously optimistic — 22 of 29 analysts maintained buy ratings with a consensus price target of approximately $157, implying roughly 20% upside from pre-earnings levels near $131. Investor focus remained squarely on whether Yeztugo and Trodelvy could deliver enough growth to justify the near-term earnings dilution caused by the acquisition spree. The market's initial answer appeared to be a qualified yes.

Forward Outlook and Key Factors to Monitor

Gilead enters the second half of 2026 with strengthened commercial momentum but no shortage of variables for investors to track. Management raised full-year HIV growth guidance to 9-10%, up from 8%, and now expects base business product sales of $29.8 billion to $30.1 billion, representing 6-7% year-over-year growth. Total product sales are projected in the $30.1 billion to $30.4 billion range, while full-year non-GAAP diluted EPS is expected between negative $0.65 and negative $0.30 — an improvement from the prior range of negative $1.65 to negative $0.65. On an illustrative basis excluding acquisition impacts, EPS guidance stands at $8.50 to $8.85.

Several near-term catalysts merit close attention. The FDA decision on BIC/LEN, a once-daily oral combination of bictegravir and lenacapavir for virally suppressed individuals with HIV, is expected by August 27 and could open a new addressable patient segment. Further out, the December 23 PDUFA (Prescription Drug User Fee Act) date for anito-cel in relapsed/refractory multiple myeloma represents a potentially significant entry into a competitive but high-value oncology market.

On the competitive front, Yeztugo's trajectory in the rapidly expanding PrEP market will remain a central narrative, particularly as rival long-acting options from competitors such as GSK advance through development. The cell therapy franchise, facing ongoing competitive headwinds, will need the anticipated anito-cel launch to reinvigorate growth. Additionally, Veklury sales — now downgraded to approximately $300 million for the full year from $600 million previously — are no longer a meaningful contributor, removing a pandemic-era tailwind. With management signaling no plans for additional sizable acquisitions in the near term as it integrates recently acquired platforms, the focus shifts squarely to execution: converting a historically rich pipeline into commercial reality while maintaining the disciplined capital allocation that has supported eleven consecutive years of dividend growth.

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