Gilead Sciences, Inc.

Total product sales excluding Veklury were $7.6 billion, up 10% year over year; including Veklury, total product sales were $7.6 billion, up 8% year over year. HIV sales were $5.7 billion, up 12%; Biktarvy sales were $3.8 billion, up 7%; PrEP sales were more than $1 billion for the first time in a quarter, with Yeztugo sales of $232 million, up 40% sequentially, and Descovy PrEP sales of approximately $801 million, up 60% year over year. Livdelzi sales were $167 million, more than doubling year over year; Trodelvy sales were $457 million, up 26%; and cell therapy sales were $417 million, down 14% year over year. Product gross margin was 87%, flat year over year; non-GAAP diluted EPS was negative $6.75, or $2.27 excluding the acquired IPR&D and nonrecurring other revenue; operating margin was negative 94%, or approximately 49% excluding acquired IPR&D. For full-year 2026, Gilead now expects base business sales to grow approximately 6% to 7% to a range of $29.8 billion to $30.1 billion, total product sales of $30.1 billion to $30.4 billion, HIV sales growth of 9% to 10%, Yeztugo sales of approximately $1 billion, and cell therapy sales to decline mid-teens percentage year over year. Management also lowered expected Veklury sales to approximately $300 million from approximately $600 million and guided full-year non-GAAP EPS to between negative $0.65 and negative $0.30, with illustrative EPS of $8.50 to $8.85 excluding acquisition-related items and nonrecurring other revenue.

Daniel O’Day framed the quarter as evidence that Gilead is executing well commercially and clinically, calling it a quarter of “commercial excellence” and “clinical execution.” He emphasized the company’s strategy of broadening HIV options across daily, weekly, monthly, twice-yearly, and yearly regimens, while also building outside virology through oncology and future inflammation opportunities. His tone was upbeat and focused on momentum, with several near-term catalysts highlighted for the second half.

Andrew Dickinson said the quarter showed the durability of the portfolio, with base business sales up 10% and gross margin at 87%, flat year over year and in line with full-year guidance. He detailed the large acquired IPR&D charge of $11.2 billion tied to Arcellx, Tubulis, and Ouro Medicines, which drove reported non-GAAP EPS to negative $6.75 and operating margin to negative 94%; excluding those items, operating margin was approximately 49% and EPS was $2.27. He also noted shareholder returns of close to $1.4 billion in the quarter, including $355 million of share repurchases, and said the company does not currently anticipate additional sizable M&A this year because integration is the near-term priority.

Analyst questions focused heavily on Yeztugo adoption, the apparent gap between Gilead’s sales and third-party prescription data, and whether the company’s investment in a once-weekly oral PrEP option signals weaker-than-expected demand for twice-yearly injection. Management said it would comment on its own data rather than IQVIA’s capture methodology and argued that weekly oral, injectable, and future yearly options are complementary because a large share of the market still uses daily orals. Other questions addressed Biktarvy’s U.S. volume softness after ACA subsidy changes, where management said the HIV treatment market was temporarily softer but should return to its usual 2% to 3% annual growth trend, and anito-cel regulatory expectations, where management said FDA interactions have been routine and it has not seen major changes in filing requirements.