HIV product sales growth driven by Biktarvy and Descovy
HIV product sales rose 12% in Q2 FY2026, with Biktarvy up 7% and Descovy up 48%, primarily due to higher demand and average realized prices.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Gilead Sciences' second quarter of fiscal 2026 was defined by a massive net loss stemming from over $12.9 billion in one-time charges related to acquisitions and an asset impairment, despite solid double-digit revenue growth. Higher sales of HIV products like Biktarvy and Descovy, along with oncology treatment Trodelvy, drove a 10% increase in total revenues. The company completed acquisitions of Arcellx, Tubulis, and Ouro Medicines, incurring $11.2 billion in acquired IPR&D expenses, while discontinuing a Trodelvy lung cancer study led to a $1.75 billion write-down. Underlying product gross margin improved to 79.3% and operating cash flow reached $6.1 billion for the first half, highlighting the core business's health. The results underscore a period of heavy strategic investment that weighed on reported earnings but left the fundamental product portfolio growing.
Revenue
$7.8B
+10.18% YoY
EPS (Diluted)
-$8.45
-641.67% YoY
Operating Income
-$10.39B
-520.13% YoY
Source: SEC XBRL
Gilead Sciences (GILD) reported Q2 FY2026 revenue of $7.8B, up 10.2% year over year. Operating margin was -133.2%, against 34.9% a year earlier. GILD's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | -6.75 | -7.38 | Beat +8.5% |
| Mar 2026 | 2.03 | 1.95 | Beat +4.0% |
| Dec 2025 | 1.86 | 1.85 | Beat +0.7% |
| Sep 2025 | 2.47 | 2.17 | Beat +13.7% |
Adjusted (non-GAAP) EPS of -$6.75 versus the -$7.38 analyst consensus — a +8.5% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$8.45.
Compiled by AI from 10-Q Item 2 of this filing
HIV product sales rose 12% in Q2 FY2026, with Biktarvy up 7% and Descovy up 48%, primarily due to higher demand and average realized prices.
Source: 10-Q Item 2 MD&A
Acquired IPR&D expenses totaled $11.2 billion, mainly from the acquisitions of Arcellx ($7.0B), Tubulis ($3.1B), and Ouro Medicines ($1.0B net).
Source: 10-Q Item 2 MD&A
A $1.75 billion impairment was recorded for the Trodelvy non-small cell lung cancer (NSCLC) IPR&D asset following discontinuation of the Phase 3 EVOKE-03 study.
Source: 10-Q Item 2 MD&A
Product gross margin improved to 79.3%, largely due to the expiration of a royalty-related obligation, offsetting higher costs.
Source: 10-Q Item 2 MD&A
Net cash provided by operating activities was $6.1 billion for the first six months, more than double the prior year, driven by lower tax payments and higher product collections.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Gilead relies heavily on HIV product sales (over 70% of total product revenue). Loss of market share to generics or new competitors, or any disruption in the HIV portfolio, could materially harm the company.
Source: 10-Q Item 1A Risk Factors
Government actions such as the Inflation Reduction Act, potential most-favored-nation pricing mandates, and 340B program changes could force significant price reductions and higher rebates, squeezing margins.
Source: 10-Q Item 1A Risk Factors
Yescarta and Tecartus face manufacturing complexities, dependency on apheresis centers, and a class-wide boxed warning for T-cell malignancies. Reimbursement challenges may limit hospital and patient adoption.
Source: 10-Q Item 1A Risk Factors
The failure of Trodelvy in NSCLC and the large-scale integration of Arcellx, Tubulis, and Ouro Medicines elevate execution risk and could impair future growth if new products do not materialize.
Source: 10-Q Item 1A Risk Factors
Proposed 100% tariffs on patented pharmaceuticals under Section 232, if imposed and not exempted for Gilead, could increase manufacturing costs and disrupt global supply chains.
Source: 10-Q Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.80 $B | 7.08 $B | +10.18% |
Cost of Revenue $B | 1.58 $B | 1.50 $B | +5.20% |
Operating Income $B | -10.39 $B | 2.47 $B | -520.13% |
Net Income $B | -10.50 $B | 1.96 $B | -635.51% |
EPS (Basic) $ | -8.45 $ | 1.57 $ | -638.22% |
EPS (Diluted) $ | -8.45 $ | 1.56 $ | -641.67% |
SG&A Expense $B | 1.92 $B | 1.37 $B | +40.73% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Gilead Sciences delivered a strong Q1 FY2026 with revenue up 4.4% to $6.96B, net income surging 53.7% to $2.02B, and operating cash flow jumping 44.8% to $2.54B, driven by lower cost of revenue and improved operating leverage.
Gilead Sciences delivered a dramatic FY2025 turnaround, with net income surging 1,673% to $8.51B and operating margin expanding to 34% as prior-year charges reversed, while revenue grew modestly 2.4% to $29.44B driven by continued HIV and oncology franchise strength.
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