Gilead lifts 2026 outlook after Q2 beat

Gilead Sciences (GILD) reported total second-quarter 2026 revenues of $7,803 million, representing 10% year-over-year growth. This performance exceeded Wall Street expectations for $7.4 billion in sales, reflecting robust demand across the company’s base portfolio. The quarter marked a solid top-line expansion despite pressure from declining COVID-19-related sales.

Total product sales reached $7,627 million, up 8% compared with the same period in 2025. When excluding sales of Veklury, product revenue increased 10% to $7,604 million, underscoring the strength of Gilead’s underlying business outside of pandemic-related therapies.

HIV products were the main growth engine in the quarter, with sales rising 12% year-over-year to $5,693 million. Quarterly sales of HIV prevention medicines surpassed $1 billion for the first time, highlighting rapid expansion in pre-exposure prophylaxis (PrEP) and other prevention offerings.

Within the HIV portfolio, flagship treatment Biktarvy generated $3,772 million in sales during the quarter. Descovy contributed $967 million, while Yeztugo added $232 million, reflecting broad-based momentum across key brands. Management cited the strength of HIV treatment and prevention as a key driver of higher base business revenue expectations for 2026.

The company’s performance was also shaped by changes in its product mix. Veklury, the COVID-19 treatment, recorded $23 million in sales in the quarter and was down 81% year-over-year. This decline contrasted with growth from oncology therapy Trodelvy, liver disease treatment Livdelzi and the HIV franchise, which collectively drove the increase in base business revenue.

Beyond product sales, higher royalty, contract and other revenues related to a previous sale of intellectual property contributed to overall revenue growth. These factors helped offset lower sales in cell therapy and chronic hepatitis C virus (HCV) products.

Despite the strong revenue performance, Gilead reported a GAAP diluted loss per share of $8.45 for the second quarter of 2026. On a non-GAAP basis, diluted loss per share was $6.75. Both figures were significantly affected by acquired in-process research and development expenses and related tax items.

The company noted a $9.08 per-share impact from IPR&D expenses associated with acquisitions of Arcellx, Tubulis and Ouro Medicines, net of related taxes, as well as an impairment of IPR&D assets previously acquired from Immunomedics. These charges weighed heavily on profitability even as the operating business posted solid growth.

In light of the second-quarter performance, Gilead raised the lower end of its full-year 2026 revenue guidance. The company now expects total sales between $30.1 billion and $30.4 billion, supported by momentum in its HIV portfolio and other base business products. Management also narrowed its adjusted loss outlook for the year, reflecting greater visibility into acquisition-related expenses.

During the quarter, Gilead also reported clinical progress, including three U.S. Food and Drug Administration approvals and three positive Phase 3 updates. These developments, together with strong HIV and oncology contributions, frame the company’s strategy to balance near-term earnings pressure from R&D investments with longer-term growth from its pipeline and marketed products.