- Total Product Sales (excluding Veklury): $7.6 billion, up 10% year-over-year.
- Total Product Sales (including Veklury): $7.6 billion, up 8% year-over-year.
- HIV Sales: $5.7 billion, up 12% year-over-year.
- Biktarvy Sales: $3.8 billion, up 7% year-over-year.
- PrEP Business Sales: Exceeded $1 billion in quarterly sales for the first time, doubling year-over-year.
- Yeztugo Sales: $232 million, up 40% sequentially.
- Descovy PrEP Sales: Approximately $801 million, up 60% year-over-year.
- Livdelzi Sales: $167 million, more than doubled year-over-year.
- Liver Disease Sales: $877 million, up 10% year-over-year.
- Trodelvy Sales: $457 million, up 26% year-over-year.
- Cell Therapy Sales: $417 million, down 14% year-over-year.
- Product Gross Margin: 87%, flat year-over-year.
- R&D Expenses: $1.4 billion, relatively flat year-over-year.
- SG&A Expenses: $1.5 billion, up 12% year-over-year.
- Operating Margin: Negative 94%, reflecting acquisitions; excluding acquired IP R&D, approximately 49%.
- Non-GAAP Diluted EPS: Negative $6.75; excluding acquisitions and nonrecurring other revenue, $2.27.
- Full Year Base Business Sales Guidance: $29.8 billion to $30.1 billion, up 6% to 7% year-over-year.
- Full Year Total Product Sales Guidance: $30.1 billion to $30.4 billion.
- Full Year HIV Sales Growth Guidance: 9% to 10% year-over-year.
- Full Year Non-GAAP EPS Guidance: Negative $0.65 to negative $0.30.
Release Date: August 04, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gilead Sciences Inc GILD delivered another quarter of commercial excellence with base business sales up 10% year-over-year, its strongest second-quarter growth in 3 years.
- HIV sales grew 12% year-over-year, driven by impressive Biktarvy and PrEP business growth, with quarterly PrEP sales doubling year-over-year to exceed $1 billion for the first time.
- Yeztugo has quickly become the leading long-acting PrEP option for new patient starts, with more than 70% persistency rate at 6 months and sales of $232 million, up 40% sequentially.
- Trodelvy delivered an exceptional quarter with sales of $457 million, up 26% year-over-year, and received back-to-back FDA approvals in first-line metastatic triple-negative breast cancer.
- The company raised its full-year HIV growth expectations to 9% to 10% year-over-year from prior guidance of 8%, and raised its base business sales guidance by $350 million at the midpoint.
- Positive Phase III data for Livdelzi (IDEAL study) and ISL/LEN (ISLEND-1 and 2) strengthen the pipeline, with potential launches for BIC/LEN and anito-cel expected before year-end.
Negative Points
- Cell therapy sales were down 14% year-over-year, reflecting expected ongoing in and out-of-class competition across regions.
- The company reported a negative non-GAAP diluted EPS of $6.75 for the second quarter, primarily due to $11.2 billion in acquired IPR&D expenses from the Arcellx, Tubulis, and Ouro Medicines acquisitions.
- Veklury sales guidance was significantly reduced to approximately $300 million from approximately $600 million previously, reflecting lower COVID-19-related hospitalizations.
- HIV treatment market growth slowed in the second quarter due to a greater-than-expected impact from changes in the Affordable Care Act, leading to some patients falling out of insurance plans.
- The full-year non-GAAP effective tax rate is now expected to be between 140% and 115%, reflecting nondeductible acquired IPR&D expenses, which will negatively impact reported earnings.
- The company does not anticipate pursuing additional sizable M&A transactions this year, which may limit near-term portfolio expansion opportunities.
Q & A Highlights
Q: Can you help us better understand the growing delta in recent Yeztugo prescription trends versus sales reported by outlets like IQVIA, and what do you believe are the biggest growth drivers for Yeztugo through the end of the year?
A: Johanna Mercier (Chief Commercial Officer) stated that Gilead will not comment on how IQVIA captures data, focusing instead on their own comprehensive data. She highlighted that the strong first-half performance is expected to continue, driven by robust uptake in both the naive and switch markets, growing confidence from healthcare professionals regarding access and logistics, and a PrEP market growing at 14%. She also cited the impressive >70% persistency rate for Yeztugo, where patients return for a second injection, and reaffirmed confidence in the ~$1 billion full-year sales guidance.
Q: Given the strength of Yeztugo and the 70% persistency rate, what are you doing to get that rate higher, and what factors could make it lower?
A: Johanna Mercier (Chief Commercial Officer) explained that the team is actively working to improve persistency through programs at the HCP level, such as leveraging EMR/EHR systems for reminders. She announced the recent launch of a patient support program called "Ready to Go," designed with PrEP consumers, which includes SMS reminders, educational resources, and a nurse inbound/outbound call center. She believes these initiatives, combined with awareness campaigns, will positively support and drive persistency rates higher.
Q: Is lowering the concentration of HIV still an intentional long-term goal at Gilead, or has that become less of a priority given strong growth and cash flow?
A: Daniel O'Day (CEO) confirmed that diversification remains a key objective, both within virology and outside of it. He detailed the strategy to diversify the HIV business with multiple options (daily, weekly, monthly, twice-yearly, yearly) and to expand in oncology and immunology through acquisitions like Tubulis and Arcellx. Andrew Dickinson (CFO) added that the PrEP business is at a $4 billion run rate and growing, while Trodelvy is approaching a $2 billion run rate, demonstrating progress in diversification alongside HIV growth.
Q: How should we think about ISL/LEN's net economics relative to Biktarvy or your next-gen BIC/LEN? Could migration from wholly owned regimens be dilutive?
A: Johanna Mercier (Chief Commercial Officer) stated that ISL/LEN, in partnership with Merck, represents a significant opportunity in the switch market. She noted that while Biktarvy leads in the naive market, ISL/LEN and BIC/LEN are key to expanding leadership in the switch space, where patients cannot switch back to Biktarvy. She expressed excitement about the launch preparations for 2027 and believes this expands Gilead's leadership in HIV treatment rather than being dilutive.
Q: On Descovy, should we expect the level of year-over-year price benefit seen in the first half to continue, and do you see weekly Yeztugo as a product that can more meaningfully cannibalize Descovy next year?
A: Johanna Mercier (Chief Commercial Officer) explained that Descovy's 60% year-over-year growth is driven by favorable pricing due to channel mix and demand growth. She believes Descovy can maintain this momentum as Yeztugo expands the overall market. Regarding cannibalization, she noted that Yeztugo is currently picking up about one-third each from Apretude, Descovy, and generics in the switch market. She views the once-weekly oral as a complementary opportunity, particularly for patients on daily orals who prefer not to use injectables, potentially moving Descovy and generic users to the weekly option.
Q: On GS-3242, your long-acting integrase, can you confirm the dosing interval in the Phase II trial? Is it exploring 4 months or 6 months?
A: Dietmar Berger (Chief Medical Officer) clarified that the ambition is to bring GS-3242 to a once-every-6-months dosing interval. However, the program is currently in a dose escalation study. While they are confident in the 4-month dosing interval at this point, they are testing higher doses in Phase I and need to see that data before confirming the 6-month interval. The goal remains to achieve the 6-month dosing paradigm.
Q: Are you still planning on sharing a Phase II update for your alpha 4 beta 7 program in IBD, and what level of data should we expect?
A: Dietmar Berger (Chief Medical Officer) confirmed that an update will be shared at a medical conference later this year. He indicated it will be a standard Phase II update with data on clinical remission and histological remission, which are typical IBD endpoints. He noted that alpha 4 beta 7 is a validated target and expressed hope that the data will demonstrate the program's potential.
Q: On GS-8824, can you give us your thoughts on the potential in non-squamous non-small cell lung cancer, given NaPi2b expression seems disproportionately in areas where checkpoint inhibitors perform less well?
A: Dietmar Berger (Chief Medical Officer) agreed with the assessment, noting that NaPi2b is expressed in the non-squamous setting of non-small cell lung cancer. He stated it is early days, but the efficacy and tolerability seen with GS-8824 in ovarian cancer are encouraging. He believes there is an opportunity for the drug in non-small cell lung cancer, but more data needs to be generated.
Q: It sounds like the earlier line anito-cel study enrolled quickly and filing could happen as early as next year. How consistent have your regulatory interactions been, and what are your latest impressions of filing requirements for earlier lines?
A: Cindy Perettie (EVP, Kite) stated that interactions with the FDA have been consistent as part of normal course of business, with no major changes seen. She confirmed that for earlier lines of therapy, the program has a dual primary endpoint of minimal residual disease (MRD) and progression-free survival (PFS). They plan to file based on these dual primary endpoints with the FDA and have had no conversations indicating a different requirement.
Q: On the HIV treatment strength, we saw Biktarvy performance beyond consensus despite insurance coverage losses in the US. Can you provide context on the drivers of volume dynamics relative to mix and pricing?
A: Johanna Mercier (Chief Commercial Officer) explained that
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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