Q2 2026 Gilead Sciences, Inc Earnings Call Transcript
Key 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.
- 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.
Good afternoon, everyone, and welcome to Gilead's second quarter 2026 earnings conference call. My name is Rebecca, and I'll be today's host. In a moment, we'll begin our prepared remarks followed by our Q&A session. (Operator Instructions) Now I'll hand the call over to Jacquie Ross, Senior Vice President, Treasurer and Head of Investor Relations.
Thank you, Rebecca. Just after market closed today, we issued a press release with earnings results for the second quarter of 2026. The press release, slides and supplementary data are available on the Investors section of our website at gilead.com. The speakers on today's call will be our Chairman and Chief Executive Officer, Daniel O'Day; our Chief Commercial and Corporate Affairs Officer, Johanna Mercier; our Chief Medical Officer, Dietmar Berger; and our Chief Financial Officer, Andrew Dickinson. After that, we'll open the call to Q&A, where the team will be joined by Cindy Perettie, the Executive Vice
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