GILD · Q2 2026 Earnings

Cautious

Gilead Sciences

Reported August 4, 2026

30-second summary

30-second take: Gilead delivered Q2 FY2026 revenue of $7.80B (+10% YoY) on HIV +12% and Descovy +48%, and raised FY2026 product sales guidance modestly ($100M at low end, high end unchanged at $30.4B). The clean signals are HIV momentum and Yeztugo/Descovy trajectory; the messy ones are a Veklury guide cut in half to ~$300M and a $10.5B GAAP net loss that management continues to bridge to Arcellx/Ouro/Tubulis IPR&D. Non-GAAP EPS of $(6.75) and GAAP EPS of $(8.45) both reflect the $(9.08) per-share IPR&D and tax hit from the recent acquisitions — and with the EPS basis switched from GAAP to non-GAAP in the current guide vs prior-quarter GAAP framing, apples-to-apples comparability requires the 10-Q.

Headline numbers

EPS

Q2 FY2026

$-6.75

-6.8% vs est.

Revenue

Q2 FY2026

$7.80B

+10.0% YoY

+5.4% vs est.

Gross margin

Q2 FY2026

79.3%

Free cash flow

Q2 FY2026

$3.43B

Operating margin

Q2 FY2026

-133.2%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$7.80B	$7.08B	+10.2%	$6.96B	+12.1%
EPS	$-6.75	$2.01	-435.8%	$2.03	-432.5%
Gross margin	79.3%	78.7%	+60bps	79.2%	+10bps
Operating margin	-133.2%	34.9%	-16810bps	37.2%	-17040bps
Free cash flow	$3.43B	$0.72B	+376.7%	$2.43B	+41.4%

Guidance

Gilead raised full-year product sales guidance and improved non-GAAP EPS outlook, but Veklury guidance was slashed 50% to ~$300M following a 81% revenue decline in Q2.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Product Sales Excluding Veklury	FY 2026	$29,400 to $29,800 million	$29,800 to $30,100 million	+$400M at low end, +$300M at midpoint	Raised
Veklury	FY 2026	$600 million	~$300 million	-$300M (-50%)	Lowered
Non-GAAP Diluted EPS	FY 2026	$(1.05) to $(0.65)	$(0.65) to $(0.30)	Range narrowed and shifted +$0.40 at low end, +$0.35 at high end	Lowered
Total Product Sales (Revenue)	FY 2026	$30,000 to $30,400 million	$30,100 to $30,400 million	+$100M at low end; high end reaffirmed	Raised

Segment KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
HIV	$5.693B	$5.088B	+11.9%
Liver Disease	$0.877B	$0.795B	+10.3%
Oncology	$0.873B	$0.849B	+2.8%
Cell Therapy	$0.417B	—	-14.0%
Trodelvy	$0.457B	$0.364B	+25.5%
Veklury	$0.023B	$0.121B	-81.0%
Biktarvy	$3.772B	$3.53B	+6.9%
Descovy	$0.967B	$0.653B	+48.1%
Product Sales Excluding Veklury	$7.604 billion	$6.934 billion	—
HIV Sales Growth	12% YoY	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Non-GAAP Product Gross Margin	86.9%	86.9%	—
Operating Cash Flow (Q2)	$3.573 billion	—	—
Free Cash Flow (Q2)	$3.432 billion	—	—
Cash Position	$3.2 billion	—	—
Dividend Paid (Q2)	$1.0 billion	—	—
Share Repurchases (Q2)	$355 million	—	—

Management tone

No earnings call transcript was available for this print; tone analysis is limited to the press release and guidance framing. The multi-quarter arc is inferred from disclosure choices.

Narrative arc: Q3 FY2025 "ramp execution" → Q4 FY2025 "portfolio re-platforming" → Q1 FY2026 "acquisition wave, IPR&D bridge" → Q2 FY2026 "base business validation, but narrower pipeline framing."

Pipeline publicity narrowed from "four potential launches" to "two." Last quarter management framed "up to four potential launches and five Phase 3 updates" for 2026; this quarter's press-release language is "another two potential launches in oncology and HIV" in the back half. Two of the launches referenced at Q1 have presumably already happened in H1 (Yeztugo maturation and BICLEN progressing to its August PDUFA), but the narrowing of forward publicity from "four" to "two" is a subtle recalibration that deserves note — especially paired with the Veklury cut.

Language on trajectory got less muscular. Q1's framing was "well-positioned for sustained growth"; Q2 leans on "delivered a very strong second quarter" and "many opportunities in the second half." The tense shift from durable positioning to quarterly execution is a small tell that management is guiding investors to focus on near-term proof points rather than long-duration confidence.

EPS basis switch from GAAP-only prior to non-GAAP current is a framing choice. The Q1 headline guide was GAAP $(3.25)–$(2.85); the Q2 headline is non-GAAP $(0.65)–$(0.30). This is legitimate — non-GAAP is the operational earnings-power view once IPR&D charges are known — but it does mean side-by-side comparability with pre-acquisition guidance is broken. Investors modeling FY2026 EPS need to anchor on the non-GAAP path forward.

High-end unchanged despite strong H1. FY2026 product sales high-end held at $30.4B despite Q2 revenue growing +10% YoY and HIV accelerating to +12%. Either management is genuinely conservative on H2 (Yeztugo ramp, Descovy sustainability, Cell Therapy floor before anito-cel) or there are H2 headwinds not yet disclosed. The Veklury cut absorbs the base-business raise on total product sales — the net FY revenue guide midpoint moved only ~$50M.

Answers to last quarter's watch list

The IPR&D/financing-cost bridge disclosure in the 10-Q. The Q2 press release confirms the framework: non-GAAP EPS guide now sits at $(0.65)–$(0.30), a ~$0.375 midpoint improvement vs Q1's $(1.05)–$(0.65). GAAP guide widened to $(3.75)–$(3.40), implying non-GAAP add-backs of ~$3.10 per share for FY2026, consistent with the $11.1B IPR&D disclosed for Arcellx/Tubulis/Ouro (net of Lakefront) plus financing costs. Direction is clear — non-GAAP is the operational metric management wants investors to underwrite. Status: Resolved (framework validated; line-item schedule pending 10-Q filing)

Yeztugo Q2 print vs. the implied $1B FY trajectory. Yeztugo Q2 = $232M ($223M U.S., $9M RoW); H1 = $397M. Annualizing at roughly an $800–950M FY run-rate, on track vs the ~$1B implied path. Descovy printed $967M (+48% YoY) alongside, indicating the broader PrEP franchise is compounding without cannibalization. Status: Resolved

Veklury Q2 vs $600M FY reaffirmation. Veklury printed $23M in Q2 (-81% YoY), catastrophically below the ~$140M threshold that would have preserved the $600M FY line. Management responded by cutting the FY guide in half to ~$300M. The mid-year test the Q1 brief flagged was failed decisively, and the reset removes the overhang. Status: Resolved negatively

anito-cel early-2027 revenue ramp readiness. No site-activation count, manufacturing turnaround disclosure, or IMAGINE-3 enrollment-completion update in the press release. December 23, 2026 PDUFA remains the operative date but Q2 disclosure adds nothing new. Status: Continue monitoring

BICLEN August 2026 PDUFA and launch trajectory. No BICLEN-specific quantification of complex-regimen or switch-market share in the press release. The August 27, 2026 PDUFA is proximate but Gilead did not use the Q2 print to size the opportunity. Status: Continue monitoring

TUB-40 ASCO update and TUB-30 basket trial readout cadence. No mention of TUB-40 or TUB-30 data updates in the press release. The multi-asset ADC platform thesis remains an open question without transcript commentary. Status: Continue monitoring

What to watch into next quarter

Yeztugo Q3 progression vs the ~$1B FY path. H1 at $397M sets up a required H2 of ~$600M+ to clear $1B; watch for continued sequential acceleration and any European launch commentary. A Q3 above ~$275M would set up an explicit raise; deceleration would raise questions about PrEP-market TAM assumptions.

Non-GAAP EPS trajectory into the new $(0.65)–$(0.30) FY range. H1 non-GAAP diluted EPS is $(4.70) as disclosed. To hit the FY midpoint of $(0.475), H2 must contribute ~$+4.23 in non-GAAP EPS — a very back-loaded implied trajectory that will draw scrutiny on whether Q3 and Q4 can each deliver ~$2.10+ absent further deal-related noise.

Cash rebuild pace. Cash fell from $10.6B at Dec 31, 2025 to $3.2B at June 30, 2026 absorbing $11.3B of YTD acquisition outflows plus $2.9B of dividend/buyback return, partially offset by $4.1B net debt proceeds. Watch whether Gilead moderates buybacks or slows M&A cadence to rebuild balance-sheet flexibility.

Cell Therapy pre-anito-cel base rate. Q2 -14% (Yescarta -12%, Tecartus -24%). If Q3 deepens the decline, anito-cel launches into a franchise base materially below where it started FY2026.

BICLEN August PDUFA outcome and initial launch commentary at Q3. With the PDUFA date roughly 3 weeks after the Q2 print, Q3 will be the first opportunity for management to quantify the switch-market opportunity. Silence at Q3 would echo the concerning pattern with anito-cel disclosure.

Whether the FY high-end holds or lifts. Management left $30.4B unchanged despite +10% Q2 revenue growth. If Q3 delivers another strong print and HIV holds double-digit growth, either the high end moves or management is confirming H2 headwinds.

Sources

Gilead Sciences Q2 FY2026 press release and financial tables (SEC EDGAR exhibit 99.1), 2026-08-04: https://www.sec.gov/Archives/edgar/data/882095/000088209526000028/exhibit991earningspressrel.htm
Gilead Sciences Q1 FY2026 Tapebrief, 2026-05-07 (prior-quarter guidance baseline, watch list, and prior-quarter segment YoY comparators)
Gilead Sciences Q4 FY2025 Tapebrief, 2026-02-10 (FY2026 initial guidance baseline)
Gilead Sciences Q3 FY2025 Tapebrief, 2025-10-30 (prior-year Q3 baseline: $7.77B revenue)

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