The following discussion and analysis is intended to provide material information around events and uncertainties known to management that are relevant to an assessment of the financial condition and results of operations of Gilead and should therefore be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto and other disclosures included as part of our Annual Report on Form 10-K for the year ended December 31, 2025 and our unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and the related notes thereto and other disclosures (including the disclosures under Part II, Item 1A. Risk Factors) included in this Quarterly Report on Form 10-Q. Management Overview Gilead Sciences, Inc. (including its consolidated subsidiaries, referred to as “Gilead,” the “company,” “we,” “our” or “us”) is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. We are committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19 and cancer. We operate in more than 35 countries worldwide, with headquarters in Foster City, California. Key Business Updates The following represents a summary of notable business updates and events since the filing of our Annual Report on Form 10-K for the year ended December 31, 2025, including certain items from our press releases, which readers are encouraged to review in full as available on our website at www.gilead.com. The content on the referenced website does not constitute a part of and is not incorporated by reference into this Quarterly Report on Form 10-Q. Virology •Announced U.S. Food and Drug Administration (“FDA”) accepted a supplemental New Drug Application (“NDA”) submission for Yeztugo 300-mg tablet as a potential once-weekly oral formulation for HIV pre-exposure prophylaxis, with a Prescription Drug User Fee Act (“PDUFA”) target action date of February 2, 2027. •Received FDA accelerated approval for Hepcludex for the treatment chronic hepatitis delta virus (“HDV”) infection in adults without cirrhosis or with compensated cirrhosis, which is now the first and only FDA-approved treatment for HDV in the U.S. •Announced FDA accepted an NDA for bictegravir and lenacapavir for virologically suppressed people with HIV under priority review, with a PDUFA target action date of August 27, 2026. Oncology •Received a positive opinion from the European Medicines Agency’s Committee for Medicinal Products for Human Use for Trodelvy in combination with Keytruda® (pembrolizumab) for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (“mTNBC”) who have not received prior systemic therapy for metastatic disease and whose tumors express PD-L1 (CPS≥10). •Received FDA approval of Trodelvy for the first-line treatment of adult patients with locally advanced or mTNBC as either a single agent for patients who are not candidates for PD-(L)1 inhibitor-based therapy or in combination with Keytruda® (pembrolizumab) or Keytruda Qlex™ (pembrolizumab and berahyaluronidase alfa-mph) for patients whose tumors express PD-L1 (CPS ≥10). •Announced European Commission marketing authorization for Trodelvy as a monotherapy for the treatment of adult patients with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitor therapy. •Announced the discontinuation of the Phase 3 EVOKE-03 study, in partnership with Merck & Co., Inc., evaluating Trodelvy in combination with Keytruda® for the investigational treatment of first-line metastatic non-small cell lung cancer (“NSCLC”) with high PD-L1 expression (TPS ≥50%). The decision was based on the recommendation of the external Data Monitoring Committee, following review of data from a pre-specified final analysis of progression-free survival and interim analysis of overall survival. •Completed the acquisition of Tubulis GmbH (“Tubulis”), which brings Gilead next-generation antibody-drug conjugate (“ADC”) assets, including TUB-040, a NaPi2b-directed topoisomerase-I inhibitor ADC, and a platform to develop novel ADCs. 28 •Completed the acquisition of Arcellx, Inc. (“Arcellx”), which builds on an existing collaboration agreement with Arcellx for the development of anitocabtagene autoleucel (“anito-cel”) in relapsed or refractory (“R/R”) multiple myeloma (“MM”), and also adds Arcellx’s D-Domain BCMA binder that has the potential to strengthen Gilead’s portfolio in oncology and inflammation. •Announced that the Biologics License Application for anito-cel in 4L+ R/R MM has been accepted by FDA, with a PDUFA target action date of December 23, 2026. •Received FDA full approval for Tecartus in adult patients with R/R mantle cell lymphoma, following an accelerated approval in this setting in July 2020. The Tecartus label now includes efficacy, safety and pharmacokinetic data from Cohort 3 of the ZUMA-2 study in patients who are R/R after one or more lines of therapy and who are Bruton tyrosine kinase inhibitor-naïve. Inflammation •Completed the acquisition of Ouro Medicines, LLC (“Ouro Medicines”), which adds gamgertamig, a clinical stage BCMAxCD3 T cell engager for autoimmune diseases, to Gilead’s inflammation portfolio. The acquisition was completed in collaboration with Lakefront Biotherapeutics NV (“Lakefront”) (formerly known as Galapagos NV), which equally shared the upfront payment and will equally share contingent milestone payments, subject to customary adjustments. Key Financial Results The following table summarizes our key financial results for the period and period-over-period changes: Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages and per share amounts) 2026 2025 Change 2026 2025 Change Total revenues $ 7,803 $ 7,082 10 % $ 14,763 $ 13,749 7 % Net (loss) income $ (10,496) $ 1,960 NM $ (8,475) $ 3,275 NM Diluted (loss) earnings per share $ (8.45) $ 1.56 NM $ (6.82) $ 2.61 NM _______________________________ NM - Not Meaningful Total revenues increased 10% and 7% to $7.8 billion and $14.8 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher sales of HIV products, Trodelvy and Livdelzi, as well as higher royalty, contract and other revenues, partially offset by lower sales of Veklury as well as Cell Therapy and chronic hepatitis C virus (“HCV”) products. Net loss was $10.5 billion and diluted loss per share was $8.45 for the three months ended June 30, 2026, compared to net income of $2.0 billion and diluted earnings per share of $1.56 for the same period in 2025. The decrease was primarily due to: •Higher acquired in-process research and development (“IPR&D”) expenses related to our acquisitions of Arcellx, Tubulis and Ouro Medicines; •A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics, Inc. (“Immunomedics”); and •Higher operating expenses; partially offset by •Higher revenues; •Lower income tax expense; and •Higher net gains from equity securities. Net loss was $8.5 billion and diluted loss per share was $6.82 for the six months ended June 30, 2026, compared to net income of $3.3 billion and diluted earnings per share of $2.61 for the same period in 2025. The decrease was primarily due to: •Higher acquired IPR&D expenses related to our acquisitions of Arcellx, Tubulis and Ouro Medicines; •A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics; and •Higher operating expenses; partially offset by •Higher revenues; and •Net gains from equity securities compared to net losses in 2025. Please refer to “Results of Operations” below for further information on results for the three and six months ended June 30, 2026. 29 Results of Operations Revenues The following table summarizes our Total revenues and period-over-period changes: Three Months Ended June 30, 2026 Three Months Ended June 30, 2025 (in millions, except percentages) U.S. Europe Rest of World Total U.S. Europe Rest of World Total Change Product sales: HIV Biktarvy $ 2,981 $ 468 $ 323 $ 3,772 $ 2,799 $ 429 $ 302 $ 3,530 7 % Descovy 921 23 23 967 601 24 28 653 48 % Genvoya 236 37 16 289 322 40 16 377 (23) % Odefsey 171 58 10 239 221 66 11 298 (20) % Symtuza - Revenue share(1) 105 30 3 138 88 33 3 124 11 % Yeztugo 223 — 9 232 15 — — 15 NM Other HIV(2) 23 24 10 56 50 33 9 92 (39) % Total HIV 4,659 640 393 5,693 4,096 624 368 5,088 12 % Liver Disease Livdelzi 147 20 — 167 74 4 — 78 NM Sofosbuvir/Velpatasvir(3) 142 81 80 303 184 81 76 342 (11) % Vemlidy 124 13 152 289 122 13 117 252 15 % Other Liver Disease(4) 20 79 19 118 33 72 19 123 (4) % Total Liver Disease 433 193 251 877 413 170 211 795 10 % Veklury 14 2 7 23 51 19 50 121 (81) % Oncology Cell Therapy Tecartus 29 34 8 70 41 41 9 92 (24) % Yescarta 132 139 75 346 162 154 77 393 (12) % Total Cell Therapy 161 173 83 417 203 196 86 485 (14) % Trodelvy 307 92 57 457 224 96 44 364 26 % Total Oncology 468 265 140 873 427 291 131 849 3 % Other AmBisome 4 47 59 110 7 65 56 129 (14) % Other(5) 22 8 21 51 44 8 21 73 (30) % Total Other 26 55 80 161 52 73 77 202 (20) % Total product sales 5,601 1,155 872 7,627 5,038 1,178 838 7,054 8 % Royalty, contract and other revenues 2 169 4 176 13 10 4 27 NM Total revenues $ 5,603 $ 1,324 $ 876 $ 7,803 $ 5,051 $ 1,189 $ 842 $ 7,082 10 % 30 Six Months Ended June 30, 2026 Six Months Ended June 30, 2025 (in millions) U.S. Europe Rest of World Total U.S. Europe Rest of World Total Change Product sales: HIV Biktarvy $ 5,553 $ 905 $ 675 $ 7,133 $ 5,272 $ 804 $ 603 $ 6,679 7 % Descovy 1,682 46 46 1,774 1,139 45 55 1,239 43 % Genvoya 451 70 32 553 627 79 35 741 (25) % Odefsey 324 117 19 461 436 123 20 579 (21) % Symtuza - Revenue share(1) 211 59 5 275 170 62 6 238 16 % Yeztugo 382 — 16 397 15 — — 15 NM Other HIV(2) 59 51 19 129 101 63 19 183 (30) % Total HIV 8,663 1,248 812 10,723 7,760 1,177 738 9,675 11 % Liver Disease Livdelzi 261 39 — 300 114 4 — 118 NM Sofosbuvir/Velpatasvir(3) 283 141 162 586 351 161 175 687 (15) % Vemlidy 215 27 284 526 222 24 257 504 4 % Other Liver Disease(4) 35 157 40 232 61 148 35 244 (5) % Total Liver Disease 795 363 486 1,644 748 338 467 1,553 6 % Veklury 126 17 25 167 250 41 132 423 (60) % Oncology Cell Therapy Tecartus 59 71 16 146 82 72 17 171 (15) % Yescarta 252 285 142 679 321 304 154 779 (13) % Total Cell Therapy 311 356 157 824 403 376 171 949 (13) % Trodelvy 560 187 112 859 405 171 81 657 31 % Total Oncology 871 543 269 1,683 808 547 252 1,606 5 % Other AmBisome 11 106 131 248 13 132 123 268 (7) % Other(5) 61 16 32 109 91 16 35 143 (24) % Total Other 72 122 163 357 104 149 158 410 (13) % Total product sales 10,527 2,292 1,755 14,574 9,669 2,251 1,747 13,668 7 % Royalty, contract and other revenues 2 177 10 189 49 21 10 81 NM Total revenues $ 10,529 $ 2,469 $ 1,765 $ 14,763 $ 9,719 $ 2,273 $ 1,757 $ 13,749 7 % _______________________________ NM - Not Meaningful (1) Represents our revenue from cobicistat (“C”), emtricitabine (“FTC”) and tenofovir alafenamide (“TAF”) in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company. (2) Includes Atripla, Complera/Eviplera, Emtriva, Stribild, Sunlenca, Truvada and Tybost. (3) Includes Epclusa and the authorized generic version of Epclusa sold by Gilead’s separate subsidiary, Asegua Therapeutics LLC (“Asegua”). (4) Includes ledipasvir/sofosbuvir (Harvoni and the authorized generic version of Harvoni sold by Asegua), Hepcludex, Sovaldi, Viread and Vosevi. (5) Includes Cayston, Jyseleca, Letairis and Zydelig. HIV HIV product sales increased 12% to $5.7 billion for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to higher average realized price and demand. In particular: •Biktarvy sales increased 7% primarily due to higher average realized price, favorable inventory dynamics and higher demand, including patients switching from Genvoya and other Gilead HIV products; •Descovy sales increased 48% primarily due to higher average realized price and demand; and •Yeztugo sales increased primarily due to higher demand. 31 HIV product sales increased 11% to $10.7 billion for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to higher demand and average realized price. In particular: •Biktarvy sales increased 7% primarily due to higher demand, including patients switching from Genvoya and other Gilead HIV products, and average realized price; •Descovy sales increased 43% primarily due to higher average realized price and demand; and •Yeztugo increased primarily due to higher demand. Liver Disease Liver Disease product sales increased 10% and 6% to $877 million and $1.6 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand for Livdelzi, as well as chronic hepatitis B virus products and Hepcludex, partially offset by lower sales for HCV products. Veklury Veklury product sales decreased 81% and 60% to $23 million and $167 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower rates of COVID-19-related hospitalizations. Oncology Cell Therapy Cell Therapy product sales decreased 14% and 13% to $417 million and $824 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower demand reflecting ongoing competitive headwinds. Trodelvy Trodelvy product sales increased 26% and 31% to $457 million and $859 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand. Foreign Currency Exchange Impact We generally face exposure to movements in foreign currency exchange rates, primarily in the Euro. We use foreign currency exchange contracts to hedge a portion of our foreign currency exposures. Approximately 25% and 27% of our product sales were denominated in foreign currencies during the three months ended June 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $23 million for the three months ended June 30, 2026, based on a comparison using foreign currency exchange rates from the three months ended June 30, 2025. Approximately 26% and 27% of our product sales were denominated in foreign currencies during the six months ended June 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $135 million for the six months ended June 30, 2026, based on a comparison using foreign currency exchange rates from the six months ended June 30, 2025. Royalty, Contract and Other Revenues Royalty, contract and other revenues increased to $176 million and $189 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to recognition of $156 million of previously constrained revenues from the sale of certain intellectual property. 32 Costs and Expenses The following table summarizes our costs and expenses and period-over-period changes: Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2026 2025 Change 2026 2025 Change Cost of goods sold $ 1,579 $ 1,501 5 % $ 3,023 $ 3,041 (1) % Product gross margin 79.3 % 78.7 % 58 bps 79.3 % 77.7 % 150 bps Research and development expenses $ 1,764 $ 1,491 18 % $ 3,136 $ 2,870 9 % Acquired in-process research and development expenses $ 11,183 $ 61 NM $ 11,290 $ 315 NM In-process research and development impairments $ 1,750 $ 190 NM $ 1,750 $ 190 NM Selling, general and administrative expenses $ 1,921 $ 1,365 41 % $ 3,372 $ 2,623 29 % _______________________________ NM - Not Meaningful Product Gross Margin Product gross margin remained relatively flat at 79.3% for the three months ended June 30, 2026, compared to the same period in 2025. Product gross margin increased to 79.3% for the six months ended June 30, 2026, compared to the same period in 2025, primarily driven by the expiration of a royalty-related obligation. Research and Development Expenses Research and development expenses consist primarily of personnel costs, including salaries, benefits and stock-based compensation expense, infrastructure, materials and supplies and other support costs, research and clinical studies performed by contract research organizations and our collaboration partners and other outside services. We manage these expenses by identifying the research and development (“R&D”) activities we expect to be performed during a given period and then prioritizing efforts based on scientific data, probability of successful technical development and regulatory approval, market potential, available human and capital resources and other considerations. We regularly review our R&D activities based on unmet medical need and, as necessary, reallocate resources among our internal R&D portfolio and external opportunities that we believe will best support the long-term growth of our business. We do not track total R&D expenses by product candidate, therapeutic area or development phase. The following table summarizes our Research and development expenses and period-over-period changes: Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2026 2025 Change 2026 2025 Change Personnel, infrastructure and other support costs $ 1,146 $ 855 34 % $ 2,007 $ 1,709 17 % Clinical studies and other costs 618 636 (3) % 1,128 1,160 (3) % Research and development expenses $ 1,764 $ 1,491 18 % $ 3,136 $ 2,870 9 % Research and development expenses increased 18% and 9% to $1.8 billion and $3.1 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Personnel, infrastructure and other support costs increased primarily due to integration expenses, including $229 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. Clinical studies and other costs decreased primarily due to lower oncology clinical study activity. Acquired In-Process Research and Development Expenses Acquired in-process research and development expenses are recorded when incurred and reflect costs of externally-developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use, including upfront and pre-commercialization milestone payments related to various collaborations and the costs of rights to IPR&D projects. 33 Acquired in-process research and development expenses were $11.2 billion for the three months ended June 30, 2026, primarily related to the following transactions: •$7.0 billion Arcellx acquisition; •$3.1 billion Tubulis acquisition; and •$1.0 billion Ouro Medicines acquisition, comprised of $1.9 billion for our acquisition of Ouro Medicines, partially offset by $860 million related to Lakefront’s share of the upfront consideration. Acquired in-process research and development expenses were $11.3 billion for the six months ended June 30, 2026, primarily related to the same transactions as in the three months ended June 30, 2026 as well as $80 million for the Suzhou Genhouse Bio Co., Ltd. collaboration. Acquired in-process research and development expenses were $61 million for the three months ended June 30, 2025. Acquired in-process research and development expenses were $315 million for the six months ended June 30, 2025, primarily related to $250 million associated with the LEO Pharma A/S collaboration upfront payment. See Note 6. Acquisitions, Collaborations and Other Arrangements of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information. In-Process Research and Development Impairment 2026 Impairment In June 2026, we announced the discontinuation of our Phase 3 EVOKE-03 study of Trodelvy evaluating sacituzumab govitecan-hziy in combination with pembrolizumab in certain patients with previously untreated metastatic NSCLC. In consideration of this decision, and in connection with the preparation of the financial statements for the second quarter of 2026, we determined that no future cash flows were expected to be generated in relation to the NSCLC IPR&D intangible asset, and therefore, no value was attributed to the asset. As a result, we recognized an impairment charge of the remaining balance of $1.75 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended June 30, 2026. 2025 Impairment During the three months ended June 30, 2025, additional data became available indicating a more competitive market for bulevirtide where it was not yet approved. Based on our evaluation of the data, and in connection with the preparation of the financial statements for the second quarter of 2025, we performed an interim impairment test and determined that the revised estimated fair value of the bulevirtide IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $190 million in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended June 30, 2025. To arrive at the revised estimated fair value as of June 30, 2025, we used a probability-weighted income approach that discounts expected future cash flows to present value, which requires the use of Level 3 fair value measurements and inputs, including critical estimated inputs, such as: revenues and operating profits related to the planned utilization of bulevirtide outside of the European Union (“EU”), which includes inputs such as addressable patient population, projected market share, treatment duration, and the life of the potential commercialized product; the probability of technical and regulatory success; the time and resources needed to complete the development and approval of bulevirtide outside of the EU; an appropriate discount rate based on the estimated weighted-average cost of capital for companies with profiles similar to our profile; and risks related to the viability of and potential alternative treatments in any future target markets. Our revised discounted cash flows for the June 30, 2025 fair value estimation primarily reflected the updated expectations for bulevirtide’s potential market share outside of the EU. Selling, General and Administrative Expenses Selling, general and administrative expenses are recorded when incurred and consist primarily of personnel costs, facilities and overhead costs, and selling, marketing and advertising expenses, as well as other general and administrative costs related to finance, human resources, legal and other administrative activities. The following table summarizes our Selling, general and administrative expenses and period-over-period changes: Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2026 2025 Change 2026 2025 Change Selling and marketing expenses $ 1,011 $ 864 17 % $ 1,910 $ 1,617 18 % General and administrative expenses 910 501 82 % 1,463 1,006 45 % Selling, general and administrative expenses $ 1,921 $ 1,365 41 % $ 3,372 $ 2,623 29 % 34 Selling, general and administrative expenses increased 41% and 29% to $1.9 billion and $3.4 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses, including $332 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. General and administrative expenses also increased for the six months ended June 30, 2026 due to donations of equity securities made to the Gilead Foundation. Interest Expense and Other (Income) Expense, Net The following table summarizes our Interest expense and Other (income) expense, net and period-over-period changes: Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2026 2025 Change 2026 2025 Change Interest expense $ 247 $ 254 (3) % $ 487 $ 513 (5) % Other (income) expense, net $ (387) $ (208) 86 % $ (621) $ 120 NM (Gain) loss from equity securities, net $ (343) $ (142) NM $ (485) $ 284 NM Interest income $ (45) $ (73) (37) % $ (140) $ (166) (16) % Other, net $ 1 $ 6 (79) % $ 3 $ 2 NM _______________________________ NM - Not Meaningful Interest expense was $247 million and remained relatively flat for the three months ended June 30, 2026, compared to the same period in 2025. Interest expense decreased 5% to $487 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower average debt balances, partially offset by a higher weighted-average interest rate on the debt. Favorable movements in Other (income) expense, net for the three months ended June 30, 2026, compared to the same period in 2025, primarily related to higher net gains from equity securities. Favorable movements in Other (income) expense, net for the six months ended June 30, 2026, compared to the same period in 2025, primarily related to net gains from equity securities compared to net losses in 2025. Income Taxes The following table summarizes our Income tax expense and period-over-period changes: Three Months Ended Six Months Ended June 30, June 30, (in millions, except percentages) 2026 2025 Change 2026 2025 Change (Loss) income before income taxes $ (10,254) $ 2,429 NM $ (7,674) $ 4,077 NM Income tax expense $ 242 $ 468 (48) % $ 801 $ 802 — % Effective tax rate (2.4) % 19.3 % NM (10.4) % 19.7 % NM _______________________________ NM - Not Meaningful Our effective tax rate decreased for the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to non-deductible acquired IPR&D expense in connection with our acquisitions of Arcellx, Tubulis and Ouro Medicines. The Organisation for Economic Co-operation and Development (“OECD”) has developed a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as “Pillar Two”), with certain aspects effective January 1, 2024 and other aspects effective January 1, 2025. Certain countries in which we operate have enacted Pillar Two legislation, and other countries are in the process of introducing legislation to implement Pillar Two. In January 2026, the OECD announced additional administrative guidance, including a “side-by-side” framework intended to coordinate the application of Pillar Two with existing minimum tax regimes in certain jurisdictions. We do not expect Pillar Two, including the side-by-side framework, to have a material impact on our results of operations, liquidity or capital resources. 35 Liquidity and Capital Resources We regularly analyze our ability to generate and obtain adequate amounts of cash to meet our short-term and long-term requirements and plans. Our capital priorities include: (i) investing in our business and R&D pipeline, (ii) continuing select partnerships and business development transactions, (iii) growing our dividend over time and (iv) repurchasing shares to offset dilution and opportunistically reduce share count. Based on our evaluation of our current position of liquidity, available capital resources and our material cash requirements, we believe that we can satisfy our capital needs for the next 12 months and the foreseeable future. Liquidity Cash and cash equivalents were $3.2 billion as of June 30, 2026. The table below summarizes our cash flow activities, followed by our analysis of changes and trends: Six Months Ended June 30, (in millions, except percentages) 2026 2025 Change Net cash provided by (used in): Operating activities $ 6,117 $ 2,584 NM Investing activities (8,577) (2,531) NM Financing activities (1,895) (4,993) (62) % Effect of exchange rate changes on cash and cash equivalents (30) 92 NM Net change in cash and cash equivalents $ (4,385) $ (4,848) (10) % _______________________________ NM - Not Meaningful Operating Activities Net cash provided by operating activities is our primary source of funds, driven mainly by collections on product sales, partially offset by operating spend. Changes in working capital balances, generally associated with the timing of collections and payments, as well as unanticipated payments related to litigation, taxes or other matters, may create some variation in any given year. Net cash provided by operating activities increased for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower income tax payments, collections on higher product sales, receipt of the Lakefront collaboration payment and lower inventory spend, partially offset by higher operating spend. Investing Activities The change in Net cash used in investing activities for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to payments made in 2026 related to the acquisitions of Arcellx, Tubulis and Ouro Medicines, partially offset by the liquidation of our marketable securities portfolio to fund the acquisitions, compared with cash used in 2025 to build up our marketable securities portfolio. Net cash used in investing activities may vary in any given year depending on the favorability of strategic opportunities for the business. Financing Activities The change in Net cash used in financing activities for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to proceeds from debt offerings in 2026, which did not occur in 2025, and lower common stock repurchases, partially offset by higher debt repayments and a contingent consideration payment made in 2026, which did not occur in 2025. See Notes 3. Fair Value Measurements and 9. Debt and Credit Facilities of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information. Net cash used in financing activities may vary in any given year depending primarily on the timing of debt repayments and proceeds from debt offerings and the amount of common stock repurchases. In August 2026, we announced that our Board of Directors declared a quarterly dividend of $0.82 per share of our common stock, with a payment date of September 29, 2026 to all stockholders of record as of the close of business on September 15, 2026. Future dividends are subject to declaration by our Board of Directors. 36 Capital Resources A summary of our capital resources and material cash requirements is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in the Liquidity section above and in Notes 4. Investments, 6. Acquisitions, Collaborations and Other Arrangements, 9. Debt and Credit Facilities, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our capital resources and material cash requirements during the six months ended June 30, 2026. Critical Accounting Estimates A summary of our critical accounting estimates is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in Notes 2. Revenues, 7. Intangible Assets, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting estimates during the six months ended June 30, 2026. Information Available on Our Website Our company website is www.gilead.com. We routinely post important information for investors in the “Investors” section of our website, https://investors.gilead.com. Among other things, an estimate of Acquired IPR&D expenses is expected to be made available on the Quarterly Results page within the first ten days after the end of each quarter. The content on the referenced websites does not constitute a part of and is not incorporated by reference into this Quarterly Report on Form 10-Q.