Analyst Conference Summary

biotechnology

conference date: May 7, 2026 @ 1:30 PM Pacific Time
for quarter ending: March 31, 2026 (first quarter, Q1 2026)

Forward-looking statements

Overview: Good quarter, but guiding to 2026 losses due to acquisition expenses.

Basic data (GAAP):

Revenue was $6.96 billion, down 12% sequentially from $7.93 billion and up 4% from $6.67 billion in the year-earlier quarter.

Net income was $2.01 billion, down 8% sequentially from $2.18 billion and up 52% from $1.32 billion year-earlier.

Earnings per share (EPS, diluted) were $1.61, down 7% sequentially from $1.74, and up 55% from $1.04 in the year-earlier quarter.

Guidance:

Raised revenue for full year 2026, but lowered EPS. Revenue now $30.0 to $30.4 billion. GAAP EPS negative $3.25 to negative $2.85. Non-GAAP EPS negative $1.05 to negative $0.65. Loss due to acquired IPRD charges of $11.8 billion plus financing costs for the three acquisitions.

Conference Highlights:

Daniel O'Day, CEO, said "Gilead teams have delivered another strong quarter with 8% year-over-year growth in our base business and 10% growth in HIV, supported by the successful launch of Yeztugo. We have raised our full year revenue guidance as a reflection of our performance. Building on the strongest pipeline in Gilead’s history, we are adding potentially best-in-disease assets and platforms in oncology and inflammation from our acquisitions of Arcellx, Ouro Medicines and Tubulis. With up to four potential launches and five Phase 3 updates anticipated in 2026, Gilead is well-positioned for sustained growth in the near and long term." Gilead now has no major LOEs (loss of exclusivity) until 2036.

The dividend is $0.82 per share, is to be paid on June 29, 2026 to shareholders of record as of June 15, 2026.

Arcellx acquisition completed in Q2 2026 for $7.8 billion.

Ouro Medicines acquisition announced in Q2 2026. Will bring T cell engagers for autoimmune diseases. Closing data uncertain.

Tubulis acquisition announced in Q2 2026. Is developing next-gen ADCs.

Combination of lenacapavir and Bictegravirfor HIV BLA accepted by FDA with PDUFA date of 8/27/2026. In Q2 2026 also announced U.S. would invest in PEPFAR to deliver lenacapivir to an additional 1 million people. The US PrEP business grew 87% y/y.

Anito-cel for fourth line multiple myeloma FDA filing acceptence in Q1 2026, PDUFA 12/23/2026.

Later in Q2 expects the FDA decision on Bulevirtide (Hepcludex) for Hepatitis D. Already approved in EU.

Trodelvy for first line metastatic triple negative breast cancer FDA decision is expected in 2026.

Non-GAAP numbers: Net income was $2.55 billion, up 9% sequentially from $2.33 billion and up 11% from $2.29 billion year-earlier. Non-GAAP EPS was $2.03, 9% sequentially from $1.86 and up 12% from $1.81 year-earlier.

Product sales were $6.95 billion, down 12% sequentially from $7.9 billion and up 5% from $6.61 billion in the year-earlier quarter.

Royalty, contract and other revenue was $14 million, down sequentially from $22 million, and down from $54 million year-earlier.

Cash and equivalents ended at $8.6 billion, down sequentially from $10.0 billion. $2.54 billion cash flow from operations. Capital expense $117 million. $2.43 billion free cash flow. $419 million was used to repurchase shares. $1.0 billion paid in dividends. Long term liabilities were $23 billion. $2.8 billion was used for debt repayment in the quarter.

Numerous other studies are underway or planned; see Gilead pipeline.

Expenses were $4.37 billion, consisting of $1.45 billion for cost of goods sold; $1.37 billion for R&D; $107 million acquired in-process R&D; $1.45 billion SG&A. Leaving income from operations of $2.59 billion. Interest expense $240 million. Other income $235 million. Income tax $559 million.

Q&A selective summary:

Tubulis deal drivers? We have a strong portfolio, Tubulis strengthens our platform. Unprecedented ovarian cancer data, despite not a biomarker selected population. DC program in dose escalation is promising. P5 linker tech is promising. Ability to link different types of payloads, using either Tubulis or Gilead agents. We wanted more ADC technology. We believe it is transformational.

Yeztugo? All sorts of good data and potential, so updated 2026 sales guidance to $1 billion.

DTC for Yeztugo has really helped with awareness and compliance. Social media awareness is ramping up.

We are excited about BIC/LEN with possible launch in August. It should really be attractive with its ease of compliance. Could pick up those patients switching off Biktarvy. But revenue in 2026 would be modest, the main ramp will be in 2027.

Anito-cel launch, safety? We believe in the potential to go into early lines of MM. Working on trial design for newly diagnosed MM.

Margins? In Q1 47% operating margin. $400 million in incremental expenses from acquisitions, we can offset them. In 2027 can navigate the incremental expenses, will be wrapping up several Phase 3 trials. So expect continued strong financial performance, possible better margins over time.

Trodelvy coming competition? Growth is driven by physician confidence. Guidelines upgraded Trodelvy. Our overall profile, data speaks for itself.

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