Gilead Sciences, Inc. (GILD) Earnings & Analysis

Latest quarter

Gilead’s filing reports Q2 FY2026 revenue of $7.8 billion, above the consensus of $7.4 billion, with revenue exceeding the consensus by 5.92%. Adjusted EPS, as the consensus counts it, was −$6.75, compared with the consensus estimate of −$7.07, exceeding the consensus by 4.53%.

The filing says revenue increased 10.2% from Q2 FY2025, primarily reflecting higher HIV-product, Trodelvy and Livdelzi sales, plus higher royalty, contract and other revenue. It says lower Veklury, cell-therapy and chronic hepatitis C product sales partly offset those increases. HIV-product sales rose 12% to $5.7 billion, while Trodelvy sales increased 26% to $457 million; Veklury sales fell 81% to $23 million and cell-therapy sales declined 14% to $417 million.

Gilead reported a Q2 FY2026 diluted loss per share of −$8.45, versus diluted EPS of $1.56 a year earlier, and the filing attributes the change primarily to higher operating expenses. Gilead reported $10.5 billion of acquired research costs in research and development during the second quarter. Gross margin was 79.8%, operating margin was −133.2%, and free cash flow was $3.4 billion.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On Gilead’s Q1 2026 earnings call, Chief Commercial Officer Johanna Mercier said Yes2Go’s launch metrics reflected easier access pathways, more prescribers and experience with treatment delivery. Responding to analyst questions about uptake and persistence, she said the company had about 95% coverage, with 95% of covered patients facing $0 copay, and that it was tracking appointment logistics and scheduling. Mercier said the company expected Yes2Go persistence to increase over time, while noting that the prevention market would not reach 100% persistence.

Mercier also addressed competition and switching in HIV treatment. She said Gilead saw annual switching of about 20% in the relevant market and viewed Biclen as an option for people who switch from Biktarvy and other regimens. She said Gilead expected 2026 Biclen revenue to be modest following a late-August approval, with access needing time to ramp.

Chief Financial Officer Andrew Dickinson said Q1 base-business revenue rose 8% to $6.8 billion, driven by HIV products, Trodelvy and Livdelzi, partly offset by lower HCV and cell-therapy sales. He said product gross margin was 87% and Q1 operating margin was 47%. Dickinson attributed the gross-margin change to the expiration of a royalty-related obligation and product mix.

On investment and expenses, Dickinson said the acquisitions of Arcellx, Oral Medicines and Tubulis were reflected in guidance through upfront acquired-I PR&D and transaction-financing costs. When analysts asked whether revenue and expense discipline could absorb those costs, he said the company expected revenue outperformance and expense management to offset incremental expenses on a comparable EPS basis excluding acquired IPR&D. He also said policy-related changes were expected to create a roughly 2% growth headwind for the base business in 2026.

Guidance

Gilead’s current FY2026 guidance calls for a diluted loss of $3.40 to $3.75 per share. A later management disclosure said the FY2026 loss outlook was about $3.58 per share at the midpoint, compared with $3.05 at the midpoint in May.