Key Highlights

  • Gilead Sciences reported second-quarter revenue of 7.8 billion dollars, up 10% year over year and ahead of the 7.4 billion dollar consensus estimate.
  • HIV product sales grew 12% to 5.7 billion dollars, with Biktarvy sales up 7% to 3.8 billion dollars, though GAAP diluted loss per share was 8.45 dollars, driven by 9.08 dollars per share in acquisition-related IPR&D and tax expenses.
  • The company raised its full-year 2026 product sales guidance to a range of 30.1 billion to 30.4 billion dollars, up from a prior range of 30.0 billion to 30.4 billion dollars.
  • Cash and marketable securities fell to 3.2 billion dollars from 10.6 billion dollars at year-end 2025, reflecting 11.3 billion dollars in year-to-date acquisition-related cash outflows.

Strong Underlying Growth Obscured by Acquisition-Related Accounting Charges

Gilead Sciences (NASDAQ:GILD) reported second-quarter revenue of 7.8 billion dollars, up 10% year over year and ahead of the 7.4 billion dollar consensus estimate, driven primarily by higher HIV product sales alongside growth in Trodelvy and Livdelzi. Despite this revenue strength, the company reported a GAAP diluted loss per share of 8.45 dollars, compared with earnings of 1.56 dollars per share a year earlier, a reversal driven almost entirely by a 9.08 dollar per share impact from acquired in-process research and development expenses tied to the company's recent acquisitions.

Product sales excluding Veklury, the company's COVID-19 treatment that continues to see declining demand, increased 10% to 7.6 billion dollars, while HIV product sales specifically grew 12% to 5.7 billion dollars on higher average realized pricing and demand. This underlying operational strength stands in sharp contrast to the headline loss figure, illustrating the importance of distinguishing between acquisition-related accounting charges and the company's core business performance when assessing the quarter.

HIV Portfolio Continues to Anchor Overall Growth

Biktarvy, Gilead's leading HIV treatment, generated sales of 3.8 billion dollars, up 7% year over year, driven by higher average realized pricing, favorable inventory dynamics and increased demand. Descovy, used for HIV prevention, saw sales surge 48% to 967 million dollars, while the company's newer PrEP treatment Yeztugo contributed 232 million dollars in sales, up sharply from just 15 million dollars in the prior-year period, reflecting rapid early adoption of the company's expanding HIV prevention portfolio.

The Liver Disease portfolio grew 10% to 877 million dollars, supported by higher Livdelzi demand, while oncology product Trodelvy grew 26% to 457 million dollars on increased demand following recent regulatory approvals. Cell Therapy sales declined 14% to 417 million dollars, reflecting ongoing competitive pressure across both Yescarta and Tecartus, illustrating that growth across Gilead's portfolio remains uneven even as the company's overall revenue trajectory continues trending higher.

Acquisition Spending Reshapes the Balance Sheet and Full-Year Outlook

Gilead's cash, cash equivalents and marketable debt securities fell to 3.2 billion dollars as of June 30, down sharply from 10.6 billion dollars at the end of 2025, reflecting 11.3 billion dollars in year-to-date cash outflows related to acquisitions, alongside debt repayments, dividend payments and share repurchases. The company completed acquisitions of Tubulis for 3.15 billion dollars and Ouro Medicines for 1.675 billion dollars during the quarter, adding next-generation antibody-drug conjugate and T-cell engager technology platforms to its pipeline, following its earlier acquisition of Arcellx.

The company raised its full-year 2026 product sales guidance to a range of 30.1 billion to 30.4 billion dollars, up from a prior range of 30.0 billion to 30.4 billion dollars, while also widening its projected GAAP diluted loss per share guidance to a range of 3.75 to 3.40 dollars, reflecting the continued full-year impact of acquisition-related IPR&D charges. Gilead's chief executive pointed to 10% year-over-year base business growth and three recent FDA approvals as evidence of the company's underlying momentum heading into the second half of the year, including anticipated launches in oncology and HIV.

Conclusion

Gilead's second quarter illustrates a company generating strong underlying revenue growth across its HIV, oncology and liver disease portfolios, even as substantial one-time charges tied to recent acquisitions produced a significant headline net loss. The raised full-year product sales guidance suggests management remains confident in the durability of this operational growth, distinct from the accounting impact of the company's recent dealmaking activity. Whether Gilead's expanded pipeline from its Tubulis and Ouro Medicines acquisitions translates into meaningful future revenue contribution is likely to become a key focus for investors evaluating the long-term return on this quarter's substantial acquisition spending.