What Management Said

Read the full Q2 2026 transcript ↗

Just after market close today, we issued a press release with earnings results for the second quarter of 2026. Our strongest second quarter growth in three years, driven by our HIV portfolio, Trodelvy and Livdelzi. Turning to HIV performance this quarter, sales grew 12% year-over-year, driven by impressive Biktarvy and PrEP business growth. With a $4 billion annual run rate for our PrEP business and Biktarvy's continued strength, we are raising our full-year HIV growth expectations to 9%-10% year-over-year from prior guidance of 8% growth.

We continue to advance our extensive HIV pipeline with potential new daily, weekly, monthly, twice yearly, and yearly options. In oncology, Trodelvy sales were up 26% year-over-year, reflecting strong demand across both triple-negative and pre-treated HR+/HER2- metastatic breast cancer. The acquisition of Tubulis has now closed, providing Gilead with an industry-leading ADC platform and promising clinical-stage ADCs. In summary, it's been a very strong first half and second quarter with impressive revenue growth across therapeutic areas, two commercial launches, and three positive phase III readouts.

Starting on slide seven, total product sales, excluding Veklury, of $7.6 billion increased 10% year-over-year, driven by strong growth in Biktarvy, Descovy, and Yeztugo in HIV, Trodelvy in oncology, and Livdelzi in liver disease. Sequentially, Biktarvy sales increased 12%, driven by typical seasonality, partially offset by lower demand due to market dynamics, including a greater-than-expected impact associated with changes in the Affordable Care Act. PrEP market grew approximately 14% year-over-year, marking another quarter of double-digit percentage growth on an increasingly larger base of users. Gilead PrEP sales growth of over 100% has once again significantly outpaced the market, driven by strong commercial execution.

What went well
  • Base business grew 10% year-over-year to $7.6 billion, the strongest second-quarter growth in three years, led by HIV, Trodelvy and Livdelzi.
  • HIV sales rose 12% year-over-year; PrEP sales doubled year-over-year to exceed $1 billion for the first time (a $4 billion annual run rate), with Yeztugo the leading long-acting PrEP option for new starts.
  • Excluding acquisition charges and a non-recurring item, non-GAAP diluted EPS was $2.27, and illustrative EPS grew about 13% year-over-year for both the quarter and the first half, at an underlying ~49% operating margin.
  • Gilead raised full-year HIV growth expectations to 9%-10% (from 8%), and Trodelvy sales rose 26% year-over-year with new first-line metastatic TNBC approvals across PD-L1 status.
  • Livdelzi sales more than doubled year-over-year with positive phase III IDEAL data, and the company launched Hepcludex in the U.S. as the first and only FDA-approved treatment for chronic hepatitis delta.
  • The Tubulis and Arcellx acquisitions closed (anito-cel PDUFA about five months out), and positive ISLEND-1/2 data support a potential 2027 launch of the first once-weekly oral HIV regimen.
What went wrong
  • On a reported non-GAAP basis the quarter showed an operating margin of -94% and diluted EPS of -$6.75, driven by $11.2 billion of acquired IP R&D expense from the Arcellx, Tubulis and Ouro Medicines acquisitions.
  • The non-GAAP effective tax rate was -11.4% because of the non-deductible acquisition charges (versus roughly 19% excluding them).
  • Cell therapy and HCV product sales were lower year-over-year, partially offsetting base-business growth.
  • SG&A expenses rose 12% year-over-year on expected Yeztugo promotional activity.

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Q2 2026 call
Reported 2026-08-04 · figures from the Gilead Sciences, Inc. Q2 2026 earnings call.

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