Analyst Conference Summary

biotechnology

conference date: August 4, 2026 @ 1:30 PM Pacific Time
for quarter ending: June 30, 2026 (second quarter, Q2 2026)

Forward-looking statements

Overview: Strong sales, but profit numbers hit by very large IPRD charge of $11.2 billion.

Basic data (GAAP):

Revenue was $7.80 billion, up 12% sequentially from $6.96 billion and up 10% from $7.08 billion in the year-earlier quarter.

Net income was negative $10.5 billion, down sequentially from $2.01 billion and down from $2.47 billion year-earlier.

Earnings per share (EPS, diluted) were negative $8.45, down sequentially from $1.61, and down from $1.56 in the year-earlier quarter. Losses were due to a very large IPRD charge.

Guidance:

Updated 2026 guidance: product sales $30.1 to $30.4 billion. Diluted GAAP EPS loss $3.75 to $3.40. Non-GAAP diluted EPS loss $0.65 to $0.30. Loss includes about $9.08 per share due to acquisitions.

Conference Highlights:

Daniel O'Day, CEO, said "Gilead delivered a very strong second quarter, with 10% year-over-year revenue growth in our base business driven by our HIV portfolio, Trodelvy and Livdelzi. HIV sales grew 12%, reflecting continued strength in treatment and the rapid expansion of our PrEP business, supporting an increase in our base business revenue expectations for 2026." Gilead has no major LOEs (loss of exclusivity) until 2036. IPRD expenses were from the acquisitions of Arcellx, Tubulis, Ouro, and Lakefront, and Immunomedics assets.

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

In Q2 2026 Yeztugo (lenacapavir) 300 mg tablet sNDA accepted by FDA, for PrEP, PDUFA February 2, 2027. Yeztugo sales have grown rapidly.

In Q2 2026 Lenacapavir with Merck's islatrivir had positve Phase 3 results for HIV.

In Q2 2026 Gilead received FDA approval for Hepcludex for HDV.

In Q2 2026 Trodelvy for first line unresectable metastatic triple negative breast cancer was approved, including as a single agent or combined with Keytruda.

In Q2 2026 TUB-040, now GS8824, started a Phase 1 study in 2L and 3L PSOC (ovarian cancer). Already in a Phase 1/2 PROC (platinum resistant) trial. It also is being evaluated for lung cancer.

Arcellx acquisition completed in Q2 2026 for $7.8 billion. This gives Gilead full control of the Anito-Cel program. Multiple myeloma FDA decision expected in December.

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

Tubulis acquisition completed in Q2 2026 for 3.15 billion. 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 14% y/y.

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

In Q2 2026 the FDA approved Bulevirtide (Hepcludex) for Hepatitis D. Already approved in EU.

In Q2 2026 Livelzi Phase 3 positive data was presented for primary biliary cholangitis.

Non-GAAP numbers: Net income was negative $8.39 billion, down sequentially from $2.55 billion and down from $2.52 billion year-earlier. Non-GAAP EPS was negative $6.75, down sequentially from $2.03 and down from $2.01 year-earlier.

Product sales were $7.63 billion, up 19% sequentially from $6.95 billion and up 8% from $7.05 billion in the year-earlier quarter.

Royalty, contract and other revenue was $176 million, down sequentially from $na million, and up from $27 million year-earlier.

Cash and equivalents ended at $3.2 billion, down sequentially from $8.6 billion, driven by use for acquisitions. $3.6 billion cash flow from operations. Capital expense $140 million. $3.43 billion free cash flow. $355 million was used to repurchase shares. $1.0 billion paid in dividends. Long term liabilities were $26.6 billion. In 1H $2.8 billion was used in debt payments. But in Q2 Issued $3.0 billion in senior unsecured notes; also borrowed $1.1 billion with a one-year term loan facility.

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

Expenses were $18.2 billion, consisting of $1.58 billion for cost of goods sold; $1.76 billion for R&D; $11.18 billion acquired in-process R&D; $1.92 billion SG&A. Leaving income from operations of negative $10.39 billion. Interest expense $247 million. Other income $387 million. Income tax $242 million.

Q&A selective summary:

Prescriptions v. sales for Yeztugo? Exciting performance. Yeztugo growth is expected to continue, partly because Prep market itself is growing due to education of communities. Seeing good returns for second injections.

Lack of enthusiasm for Yeztugo? On contrary, incredible excitement for long-acting Prep. But about 80% of the market is on daily oral. A weekly oral could also capture part of the market. Sees continued Gilead leadership in HIV prevention.

We are working to get the persistency rate for Prep up. We launched the Ready to Go program for Prep, including Yeztugo, which includes reminders for persistency.

Focus on HIV v. other areas? We want to continue to diversify the business, both within virology and outside. We want to continue to diversify in oncology and immunology.

FDA attitude towards CAR-T filings? We continue to interact with the FDA, have seen no major changes there. We plan to file based on the dual primary, no FDA conversations to the contrary.

Some HIV patients have lost insurance, we did see that in Q2 softness in the market.

GS-8824 lung cancer setting? Non-squamous specifically. Encouraged by what we see in ovarian cancer.

Descovy pricing? We have been seeing nice growth, partly from pricing. We think we can retain Descovy demand even as we move forward with Yeztugo. The weekly oral should be a good opportunity for Yeztugo, including from generics.

GS-3242? Looking for weekly, but also for longer-acting, up to twice yearly injectable.

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