Gilead Sciences 8-K
EarningsGuidance loweredImpairment / charge
Acquired IPR&D charges, led by Arcellx, drove a GAAP loss despite HIV, Trodelvy and Livdelzi sales growth.
Filed 2026-08-04 16:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with revised FY2026 guidance. Revenue grew 10%, led by HIV products, Trodelvy and Livdelzi, while acquired in-process research and development (IPR&D) charges drove a GAAP net loss. Gilead also reported FDA approvals for Hepcludex and first-line Trodelvy, and FDA acceptance of a supplemental Yeztugo application with a 2/2/2027 action date.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $7.80B | $7.08B | +10% |
| Operating income (loss) | $(10.4)B | $2.47B | n/m |
| Net income (loss) | $(10.5)B | $1.96B | n/m |
| Diluted EPS | $(8.45) | $1.56 | n/m |
| Diluted EPS, non-GAAP | $(6.75) | $2.01 | n/m |
| Operating cash flow | $3.57B | $827M | +332% |
| Free cash flow, non-GAAP | $3.43B | $720M | +377% |
- Product sales excluding Veklury rose 10% to $7.6B; HIV sales increased 12% to $5.7B, including Biktarvy growth of 7% to $3.8B. Veklury sales fell 81% to $23M, and cell therapy sales declined 14% to $417M amid competition.
- GAAP results included $11.2B of acquired IPR&D expense and a $1.75B IPR&D impairment. The acquired IPR&D charge was primarily associated with Arcellx ($7.0B), Tubulis ($3.1B) and Ouro Medicines ($1.0B), net of the Lakefront collaboration.
- Cash, cash equivalents and marketable debt securities were $3.18B at 6/30/2026, down from $10.6B at 12/31/2025. Q2 dividends paid were $1.0B and common stock repurchases were $355M; diluted weighted-average shares were 1,243M vs 1,255M. Gilead issued $3.0B of senior unsecured notes and borrowed $1.1B under a one-year term loan facility.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Product sales | FY2026 | $30.1B-$30.4B | $30.0B-$30.4B | Raised |
| Product sales excluding Veklury | FY2026 | $29.8B-$30.1B | $29.4B-$29.8B | Raised |
| Veklury sales | FY2026 | ≈$300M | ≈$600M | Lowered |
| Diluted loss per share, GAAP | FY2026 | $(3.75)-$(3.40) | $(3.25)-$(2.85) | Lowered |
| Diluted loss per share, non-GAAP | FY2026 | $(0.65)-$(0.30) | $(1.05)-$(0.65) | Raised |
| Operating income (loss), GAAP | FY2026 | $(2.25)B-$(1.85)B | $(1.0)B-$(0.5)B | Lowered |
| Operating income, non-GAAP | FY2026 | $2.9B-$3.3B | $2.4B-$2.9B | Raised |
| Product gross margin, GAAP | FY2026 | ≈79.0% | ≈79.0% | Reaffirmed |
| Product gross margin, non-GAAP | FY2026 | ≈87.0% | ≈87.0% | Reaffirmed |
| Effective tax rate, GAAP | FY2026 | ≈(80%)-(90%) | ≈(150%)-(220%) | Raised |
| Effective tax rate, non-GAAP | FY2026 | ≈140%-115% | ≈190%-140% | Lowered |
Investor Takeaways
- Track FY2026 product sales against the revised ranges, particularly whether growth excluding Veklury offsets continued Veklury declines.
- Watch the FDA’s decision on Yeztugo’s potential once-weekly oral formulation by 2/2/2027.
The summary is written by an AI model reading the filing.
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