GILD Q2 2026 Earnings Call Summary

Gilead Sciences Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Total Product Sales: $7.6 billion, up 8% year-over-year and 10% sequentially.
Base Business Sales: Grew 10% year-over-year, marking the strongest second quarter growth in three years.
HIV Sales: $5.7 billion, up 12% year-over-year, driven by Biktarvy, Descovy, and Yeztugo.
Trodelvy Sales: $457 million, up 26% year-over-year.
Livdelzi Sales: $167 million, more than doubled year-over-year.
Cell Therapy Sales: $417 million, down 14% year-over-year.
Non-GAAP Diluted EPS: Negative $6.75, primarily due to $11.2 billion in acquired IPR&D expenses.
Operating Margin: Negative 94%, but approximately 49% when excluding acquisition-related expenses.

2. Strategic Updates and Business Highlights

HIV Portfolio: Strong growth driven by Biktarvy and the PrEP business, particularly Yeztugo, which has become the leading long-acting PrEP option.
Oncology: Trodelvy received additional approvals for first-line metastatic triple-negative breast cancer, expanding its market potential.
Acquisitions: Completed acquisitions of Tubulis and Arcellx, enhancing Gilead's capabilities in antibody-drug conjugates and cell therapy.
Liver Disease: Launch of Hepcludex as the first FDA-approved treatment for chronic hepatitis delta virus (HDV).
Pipeline Expansion: Continued progress in clinical trials across various therapeutic areas, including HIV, oncology, and liver disease.

3. Forward Guidance and Outlook

HIV Sales Growth: Raised full-year growth expectations to 9%-10% from 8%.
Total Product Sales Guidance: Now expected to be between $30.1 billion and $30.4 billion for the full year.
Veklury Sales: Expected to decline to approximately $300 million due to lower COVID-19-related hospitalizations.
Cell Therapy: Anticipated to decline mid-teens percentage year-over-year.
Non-GAAP EPS Guidance: Expected to be between negative $0.65 and negative $0.30, with adjusted EPS (excluding acquisition impacts) projected at $8.50 to $8.85.

4. Bad News, Challenges, or Points of Concern

Cell Therapy Sales Decline: A 14% year-over-year drop in cell therapy sales, attributed to increased competition.
Impact of ACA Changes: Slower growth in the HIV treatment market due to changes in insurance coverage, affecting patient access.
Regulatory Environment: Ongoing uncertainty regarding FDA requirements for CAR T therapies, which could impact future filings.
Acquisition Costs: Significant expenses related to recent acquisitions impacting overall profitability and margins.

5. Notable Q&A Insights

Yeztugo Performance: There is a discrepancy between prescription trends and reported sales, with Gilead focusing on its internal data for a clearer picture of performance.
Weekly Oral PrEP Options: Gilead is investing in a once-weekly oral option for PrEP to capture a broader market segment, indicating confidence in long-acting injectables while acknowledging the need for oral alternatives.
Biktarvy Dynamics: Despite challenges from insurance coverage changes, Biktarvy remains a leading choice in HIV treatment, with expectations of market recovery.
Pipeline Confidence: Gilead remains optimistic about the potential of its HIV pipeline, including new treatment regimens and ongoing clinical trials.
Market Diversification: Gilead's long-term goal remains to diversify its revenue sources beyond HIV, with ongoing developments in oncology and inflammation.

Overall, Gilead reported a strong quarter with significant growth in key therapeutic areas, while also facing challenges in cell therapy and market dynamics due to regulatory and insurance landscape changes. The company remains focused on strategic initiatives to enhance its portfolio and drive future growth.

GILD — Gilead Sciences, Inc.