375558AP8 Filings — Gilead Sciences, Inc. - FilingSpy
375558AP8
Gilead Sciences, Inc.
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A biopharmaceutical company making medicines for HIV, liver disease, and cancer, Gilead's products include HIV treatments like Biktarvy and Descovy, liver therapies Epclusa and Livdelzi, and CAR T-cell cancer therapies Yescarta and Tecartus. Founded in 1987 in Foster City, California, it was originally named Oligogen before being renamed after the "Balm of Gilead," an ancient healing resin mentioned in the Bible—a nod its founder picked up from a play he read in medical school.
Gilead posts $10.5B Q2 net loss on $11.2B acquisition IPR&D charges and a $1.75B impairment, while revenue rose 10% to $7.8B.
A wave of acquisition-related charges pushed Gilead to a $10.5 billion quarterly loss. rose 10% to $7.8 billion as HIV product sales grew 12% to $5.7 billion, but $11.2 billion in and a $1.75 billion from a discontinued oncology study overwhelmed the operating result. The underlying HIV and oncology franchises are growing, but the company now expects a full-year net loss.
Key takeaways
Net loss reached $10.5 billion, driven by $11.2 billion in non-cash from the Arcellx, Tubulis, and Ouro Medicines acquisitions and a $1.75 billion for a discontinued NSCLC study.
Total rose 10% to $7.8 billion, with HIV product sales up 12% to $5.7 billion on higher demand and pricing for , , and .
sales increased 26% to $457 million on higher demand, while Cell Therapy sales fell 14% to $417 million due to competitive headwinds.
Section summaries
Management's Discussion and Analysis
Gilead Q2 2026 revenue rose 10% to $7.8B driven by HIV and Trodelvy, but net loss reached $10.5B on acquisition-related IPR&D charges and a $1.75B impairment.
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Total revenues grew 10% to $7.8B, led by 12% growth in HIV product sales to $5.7B from higher demand and pricing for , , and .
was stable at 79.3%, while SG&A expenses rose 41% to $1.9 billion from acquisition integration costs and higher HIV promotional spending.
was $3.6 billion for the quarter, bringing the first-half total to $6.1 billion, supported by higher product sales collections and a collaboration payment from Lakefront.
The company declared a quarterly of $0.82 per share and stated its liquidity is sufficient for the next 12 months, ending the quarter with $3.2 billion in cash and equivalents.
What changed
The ~$11.5 billion in Q2 2026 acquired IPR&D charges flagged in Q1 materialized at $11.2 billion, driving the expected swing to a net loss.
's 26% increase to $457 million follows the 37% increase in Q1, confirming demand held after the November 2025 ASCENT-07 missed endpoint.
The FDA decision on twice-yearly lenacapavir for HIV prevention, unresolved through all of 2025 and Q1 2026, remains unmentioned in this quarter's risk factors and MD&A, suggesting no decision has been reached.
sales fell to $144 million in Q1; the Q2 figure was not separately disclosed in the provided sections, but the narrative focus on HIV and growth suggests its decline continued as COVID-19 hospitalizations fell.
Cash and equivalents dropped to $3.2 billion from $7.6 billion at Q1-end, reflecting the cash impact of the quarter's acquisition activity and a $1.1 billion term loan drawn in April 2026.
What to watch
Full-year 2026 net loss figure when reported, incorporating the full impact of the $11.2 billion in Q2 IPR&D charges.
Q3 2026 sales to see if the 26% Q2 increase is sustained post-ASCENT-07.
Any update on the FDA decision for twice-yearly lenacapavir for HIV prevention, now long-delayed.
Q3 2026 cash and equivalents against the $3.2 billion Q2 level after the quarter's heavy acquisition spending.
sales increased 26% to $457M on higher demand, while Cell Therapy sales fell 14% to $417M due to competitive headwinds.
Net loss of $10.5B was driven by $11.2B in acquired IPR&D expenses from the Arcellx, Tubulis, and Ouro Medicines acquisitions and a $1.75B for a discontinued NSCLC study.
was stable at 79.3%, while SG&A expenses rose 41% to $1.9B due to acquisition integration costs and higher HIV promotional spending.
improved to $6.1B for the first half of 2026, supported by higher product sales collections and a collaboration payment from Lakefront.
The company declared a quarterly of $0.82 per share and believes its liquidity and capital resources are sufficient for the next 12 months.
Quantitative and Qualitative Disclosures About Market Risk
Information about our market risk is presented in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in Notes 3. Fair Value Measurements, 4. Investments, 5. Derivatives and 9. Debt and Credit Facilities of the Notes t…
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Information about our market risk is presented in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in Notes 3. Fair Value Measurements, 4. Investments, 5. Derivatives 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, there were no material changes to these disclosures.
For a description of our significant pending legal proceedings, please see Note 10. Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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For a description of our significant pending legal proceedings, please see Note 10. Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Gilead faces material risks from U.S. drug pricing reforms, IRA Medicare price negotiations on Biktarvy, and new tariffs on pharmaceuticals.
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The Inflation Reduction Act subjects to Medicare price negotiation starting in 2028, which is expected to substantially lower its price and increase rebate obligations.
A new 100% tariff on patented pharmaceuticals, effective H2 2026, threatens to increase manufacturing costs and disrupt supply chains, though Gilead has a temporary exemption agreement.
Gilead's heavy reliance on HIV product is at risk from generic competition and the inability to launch new HIV medications.
CAR T-cell therapies and face manufacturing complexity, safety concerns including a for T-cell malignancies, and inadequate hospital reimbursement.
The discontinuation of the Phase 3 EVOKE-03 study for a key oncology candidate resulted in an , highlighting pipeline failure risk.
A $32 billion U.S. manufacturing and R&D investment plan is subject to construction delays, cost inflation, and regulatory hurdles that may prevent achieving intended benefits.