Gilead lifts 2026 product sales outlook to $31B–$31.3B
Gilead raised full-year product-sales guidance to $31.0 billion–$31.3 billion and projects a GAAP diluted loss of $(4.40)–$(4.05) per share.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Gilead Sciences, Inc. reported third-quarter 2026 total revenue of $8.3 billion, up 7% year over year, and product sales of $8.289 billion, up 13%. Product sales excluding Veklury increased 16% to $8.203 billion; HIV sales rose 18% to $6.249 billion. GAAP diluted EPS was $1.94 versus $2.43 a year earlier, while non-GAAP diluted EPS was $2.55 versus $2.47.
Operating cash flow was $5.035 billion, compared with $4.109 billion. Cash, cash equivalents and marketable debt securities were $6.437 billion as of September 30, 2026, versus $10.605 billion as of December 31, 2025. Updated 2026 guidance calls for product sales of $31.0 billion–$31.3 billion, versus $30.1 billion–$30.4 billion previously, and GAAP diluted loss per share of $(4.40)–$(4.05), versus $(3.75)–$(3.40).
The FDA approved Bixlenvo as a single-tablet HIV regimen for adults virologically suppressed on a stable antiretroviral regimen with no known or suspected resistance to bictegravir or lenacapavir. The board declared a $0.82-per-share fourth-quarter dividend, payable December 30, 2026.
2 points · 0 major1 major · 2 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointProduct sales increased 13% to $8.289 billion year over year.
- Moderate pointOperating cash flow was $5.035 billion, compared with $4.109 billion.
Negative
- Major point. Forward-looking: it has not happened yet and may not happen.2026 GAAP loss-per-share guidance changed to $(4.40)–$(4.05) from $(3.75)–$(3.40).
- Moderate pointGAAP diluted EPS fell to $1.94 from $2.43 year over year.
Insights
Analyzing...
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenue: $8.300 billion
Product sales: $8.289 billion
GAAP diluted EPS: $1.94
+5 more
8 metrics
Total revenue
$8.300 billion
Third quarter 2026; $7.769 billion in third quarter 2025; reported change 7%
Product sales
$8.289 billion
Third quarter 2026; $7.345 billion in third quarter 2025; reported change 13%
GAAP diluted EPS
$1.94
Third quarter 2026, compared with $2.43 in third quarter 2025
Non-GAAP diluted EPS
$2.55
Third quarter 2026, compared with $2.47 in third quarter 2025
Operating cash flow
$5.035 billion
Third quarter 2026, compared with $4.109 billion in third quarter 2025
Cash, cash equivalents and marketable debt securities
$6.437 billion
As of September 30, 2026; $10.605 billion as of December 31, 2025
Full-year product sales guidance
$31.0 billion to $31.3 billion
Updated October 29, 2026; previously $30.1 billion to $30.4 billion
Full-year GAAP diluted loss per share guidance
$(4.40) to $(4.05)
Updated October 29, 2026; previously $(3.75) to $(3.40)
Key Terms
Non-GAAP diluted EPS, Acquired in-process research and development expenses, Maximum Fair Price, effective tax rate
4 terms
Non-GAAP diluted EPS financial
"Non-GAAP diluted EPS was $2.55"
Non-GAAP diluted EPS (Earnings Per Share) is a measure of a company's profit allocated to each share of stock, calculated using adjusted earnings that exclude certain items like one-time expenses or gains. It provides a view of ongoing performance by removing irregular or non-recurring factors. Investors use it to better understand the company's core profitability and compare performance across different periods or companies.
Acquired in-process research and development expenses financial
"Acquired in-process research and development expenses were $18 million"
Maximum Fair Price regulatory
"setting the Maximum Fair Price for Biktarvy under Medicare"
The maximum fair price is the highest price that a seller, buyer, or valuation assessor considers reasonable for a security or asset based on its financials, market conditions, and comparable transactions. It matters to investors because it sets an upper boundary for deals, offers, or valuations—like a ceiling on what would be considered a fair trade—helping market participants judge whether a quoted or proposed price is within an acceptable range.
effective tax rate financial
"The effective tax rate (“ETR”) was 20.7%"
The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.
Earnings Snapshot
Total revenue: $8.300 billion · Guidance included
Third quarter 2026
Total revenue
$8.300 billion
7% year over year
Product sales
$8.289 billion
13% year over year
GAAP diluted EPS
$1.94
Compared with $2.43 in third quarter 2025
Non-GAAP diluted EPS
$2.55
Compared with $2.47 in third quarter 2025
Operating cash flow
$5.035 billion
Compared with $4.109 billion in third quarter 2025
Guidance
For full-year 2026, product sales of $31.0 billion to $31.3 billion; GAAP diluted loss per share of $(4.40) to $(4.05); and non-GAAP diluted loss per share of $(1.20) to $(0.85).
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were GILD's third-quarter 2026 revenue and earnings?
Gilead reported total revenue of $8.3 billion, up 7% year over year, and product sales of $8.289 billion, up 13%. GAAP diluted EPS was $1.94, compared with $2.43 a year earlier; non-GAAP diluted EPS was $2.55, compared with $2.47.
What is GILD's 2026 financial guidance?
Gilead expects full-year product sales of $31.0 billion to $31.3 billion, compared with its previous range of $30.1 billion to $30.4 billion. GAAP diluted loss per share guidance is $(4.40) to $(4.05), versus $(3.75) to $(3.40) previously.
When is GILD's fourth-quarter 2026 dividend payable?
Gilead declared a quarterly dividend of $0.82 per common share, payable December 30, 2026, to stockholders of record at the close of business on December 15, 2026. Future dividends are subject to Board approval.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): October 29, 2026
(Exact name of registrant as specified in its charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices)
(Zip Code)
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2026 , Gilead Sciences, Inc., a Delaware corporation (“Gilead”), announced its financial results for the quarter ended September 30, 2026. A copy of the press release is filed as Exhibit 99.1 to this report.
Gilead has presented certain financial information in accordance with U.S. generally accepted accounting principles (“GAAP”) and also on a non-GAAP basis. Management believes this non-GAAP information is useful for investors, when considered in conjunction with Gilead’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under GAAP. Non-GAAP measures may be defined and calculated differently by other companies in the same industry. A reconciliation between GAAP and non-GAAP financial information is provided in the tables on pages 10, 11, 12 and 13 of the press release filed as Exhibit 99.1 to this report.
The information in Item 2.02 and Item 9.01 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
99.1 | Press Release, issued by Gilead Sciences, Inc. on October 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| GILEAD SCIENCES, INC. | ||
| (Registrant) | ||
| /s/ ANDREW D. DICKINSON | ||
| Andrew D. Dickinson Chief Financial Officer | ||
Date: October 29, 2026
Exhibit Index
| Exhibit Number | Description | |||||||
99.1 | Press Release, issued by Gilead Sciences, Inc. on October 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
October 29, 2026 | 1 | |||||||
GILEAD SCIENCES ANNOUNCES THIRD QUARTER 2026 FINANCIAL RESULTS
Product Sales Excluding Veklury Increased 16% Year-Over-Year to $8.2 Billion
Biktarvy Sales Increased 10% Year-Over-Year to $4.1 Billion
Foster City, CA, October 29, 2026 - Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of operations for the third quarter 2026.
“Gilead delivered an exceptional third quarter, with our strongest year-over-year base business growth in more than a decade, reflecting the strength, breadth and durability of our business,” said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer. “Our performance enabled us to raise our full year base business revenue guidance again this quarter, bringing the total increase to $1.6 billion since the start of 2026. Our HIV business grew 18% and HIV prevention sales nearly doubled year-over-year. With multiple ongoing and potential launches across HIV and Oncology, important progress in Inflammation and a disciplined operating model, Gilead is well positioned for business growth and impact for patients.”
Third Quarter 2026 Financial Results
•Total third quarter 2026 product sales increased 13% to $8.3 billion compared to the same period in 2025, primarily driven by higher sales of HIV products, Trodelvy® (sacituzumab govitecan-hziy) and Livdelzi® (seladelpar), partially offset by lower sales of Veklury® (remdesivir) and Cell Therapy products. Higher product sales were partially offset by lower royalty, contract and other revenues, primarily driven by revenues recognized in the prior year related to a previous sale of intellectual property, which did not repeat in the current year.
•Diluted earnings per share (“EPS”) was $1.94 in the third quarter 2026 compared to $2.43 in the same period in 2025. The decrease was primarily driven by net losses from equity securities in the current year compared to net gains in the prior year, higher operating expenses, higher income tax expense and lower royalty, contract and other revenues, partially offset by higher product sales and lower acquired in-process research and development (“IPR&D”) expenses.
•Non-GAAP diluted EPS was $2.55 in the third quarter 2026 compared to $2.47 in the same period in 2025. The increase was primarily driven by higher product sales and lower acquired IPR&D expenses, partially offset by higher operating expenses, higher income tax expense and lower royalty, contract and other revenues.
•As of September 30, 2026, Gilead had $6.4 billion of cash, cash equivalents and marketable debt securities compared to $10.6 billion as of December 31, 2025. The decrease was primarily driven by year-to-date cash outflows of $11.3 billion related to acquisitions, $2.8 billion of debt repayments, $3.1 billion of dividend payments and $1.1 billion of common stock repurchases, partially offset by $11.2 billion of operating cash flow and $4.1 billion of net proceeds from debt financing.
•During the third quarter 2026, Gilead generated $5.0 billion in operating cash flow.
•During the third quarter 2026, Gilead paid dividends of $1.0 billion and repurchased $370 million of common stock.
October 29, 2026 | 2 | |||||||
Third Quarter 2026 Product Sales
As noted in the section above, total third quarter 2026 product sales increased compared to the same period in 2025. Total third quarter 2026 product sales excluding Veklury increased 16% to $8.2 billion compared to the same period in 2025, primarily due to higher sales of HIV products, Trodelvy and Livdelzi, partially offset by lower sales of Cell Therapy products.
HIV product sales increased 18% to $6.2 billion in the third quarter 2026 compared to the same period in 2025, primarily driven by higher average realized price, higher demand in HIV prevention and favorable inventory dynamics.
•Biktarvy® (bictegravir 50mg/emtricitabine (“FTC”) 200mg/tenofovir alafenamide (“TAF”) 25mg) sales increased 10% to $4.1 billion in the third quarter 2026 compared to the same period in 2025, primarily driven by higher demand, higher average realized price and favorable inventory dynamics.
•Descovy® (FTC 200mg/TAF 25mg) sales increased 49% to $1.0 billion in the third quarter 2026 compared to the same period in 2025, primarily driven by higher average realized price and favorable inventory dynamics.
The Liver Disease portfolio sales increased 13% to $927 million in the third quarter 2026 compared to the same period in 2025, primarily reflecting higher demand for Livdelzi, as well as higher average realized price for chronic hepatitis C virus (“HCV”) and chronic hepatitis B virus products, partially offset by lower demand for HCV products.
Veklury sales decreased 69% to $86 million in the third quarter 2026 compared to the same period in 2025, primarily driven by lower rates of COVID-19-related hospitalizations.
Cell Therapy product sales decreased 18% to $355 million in the third quarter 2026 compared to the same period in 2025, reflecting ongoing competitive headwinds.
Trodelvy® (sacituzumab govitecan-hziy) sales increased 42% to $506 million in the third quarter 2026 compared to the same period in 2025, primarily driven by higher demand.
Third Quarter 2026 Product Gross Margin, Operating Expenses and Effective Tax Rate
•Product gross margin was 81.0% in the third quarter 2026 compared to 78.6% in the same period in 2025. Non-GAAP product gross margin was 88.1% in the third quarter 2026 compared to 86.5% in the same period in 2025. These increases were primarily driven by the expiration of a royalty-related obligation.
•Research and development (“R&D”) expenses and non-GAAP R&D expenses increased to $1.6 billion in the third quarter 2026 compared to $1.3 billion in the same period in 2025, primarily driven by higher employee-related and clinical materials costs.
•Acquired IPR&D expenses were $18 million in the third quarter 2026.
•Selling, general and administrative (“SG&A”) expenses increased to $1.6 billion in the third quarter 2026 compared to $1.4 billion in the same period in 2025, primarily driven by higher HIV promotional activities, integration costs related to our recent acquisitions, higher expenses related to legal matters and higher employee-related costs. Non-GAAP SG&A expenses increased to $1.5 billion in the third quarter 2026 compared to $1.4 billion in the same period in 2025, primarily due to higher HIV promotional activities, higher expenses related to legal matters and higher employee-related costs.
•The effective tax rate (“ETR”) was 20.7% in the third quarter 2026 compared to 16.2% in the same period in 2025, primarily driven by a settlement with a tax authority and remeasurement of certain deferred tax liabilities in the prior year, which did not repeat in the current year. The non-GAAP ETR was 19.0% in the third quarter 2026 compared to 17.5% in the same period in 2025, primarily due to the settlement with a tax authority in the prior year.
October 29, 2026 | 3 | |||||||
Guidance and Outlook
For the full year 2026, Gilead now expects:
| (in millions, except per share amounts) | October 29, 2026 Guidance | |||||||||||||||||||
| Low End | High End | Comparison to August 4, 2026 Guidance | ||||||||||||||||||
| Product sales | $ | 31,000 | $ | 31,300 | Previously $30,100 to $30,400 | |||||||||||||||
| Product sales excluding Veklury | $ | 30,700 | $ | 31,000 | Previously $29,800 to $30,100 | |||||||||||||||
| Veklury | ~ $300 | Unchanged | ||||||||||||||||||
| Diluted loss per share | $ | (4.40) | $ | (4.05) | Previously $(3.75) to $(3.40) | |||||||||||||||
| Non-GAAP diluted loss per share | $ | (1.20) | $ | (0.85) | Previously $(0.65) to $(0.30) | |||||||||||||||
Our full year 2026 GAAP and non-GAAP diluted loss per share guidance includes the impact of approximately $9.88 due to acquired IPR&D charges of $12.4 billion related to the Arcellx, Tubulis, Ouro Medicines and PepStar transactions announced this year, net of the impact of the Lakefront collaboration and related taxes.
Additional information and a reconciliation between GAAP and non-GAAP financial information for the 2026 guidance is provided in the accompanying tables. The financial guidance is subject to a number of risks and uncertainties. See the Forward-Looking Statements section below.
Key Updates Since Our Last Quarterly Release
Virology
•Received U.S. Food and Drug Administration (“FDA”) approval for Bixlenvo™ (bictegravir 75 mg/lenacapavir 50 mg) for the treatment of HIV in adults who are virologically suppressed on a stable antiretroviral regimen, including those switching from complex multi-tablet regimens. Bixlenvo is a complete single-tablet regimen indicated for the treatment of HIV to replace current antiretroviral regimens in people with virological suppression with no known or suspected resistance to bictegravir or lenacapavir.
•Announced the expansion of the six royalty-free voluntary licensing agreements for twice-yearly lenacapavir to include the investigational once-yearly lenacapavir for HIV prevention, if approved. This agreement covers 120 high-incidence countries and will support manufacturing readiness, technology transfer and future supply while the Phase 3 PURPOSE-365 trial is ongoing. If approved, once-yearly lenacapavir could provide a full year of HIV prevention with a single annual dose, expanding prevention choice and helping address barriers that can limit HIV pre-exposure prophylaxis (“PrEP”) uptake and persistence.
•Announced a new agreement with the Pan American Health Organization (“PAHO”) to accelerate access for twice-yearly lenacapavir for HIV prevention across all PAHO Member States in Latin America and the Caribbean. This agreement is part of Gilead’s broader global access strategy for lenacapavir which combines voluntary licensing, technology transfer, no-profit supply, regional access pathways and partnerships in providing access to HIV prevention.
Oncology
•Announced European Commission (“EC”) marketing authorization 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). This decision follows the recent EC approval of Trodelvy as a monotherapy for the treatment of adults with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitors. Trodelvy is now the only approved Trop-2 directed ADC and backbone therapy for 1L mTNBC across PD-L1 status.
October 29, 2026 | 4 | |||||||
Inflammation
•Announced a definitive agreement with PepStar Therapeutics Limited (“PepStar”), a privately held, clinical-stage biotechnology company, to acquire PepStar’s oral IL-23R inhibitor program. This includes lead asset HCXT-2001, an investigational, oral, macrocyclic peptide inhibitor of IL-23R, currently in Phase 1 development for immune-mediated inflammatory diseases. Closing of the transaction is subject to certain customary conditions.
•Presented new positive results from the Phase 2 SWIFT study evaluating emvistegrast, a once-daily oral alpha-4-beta-7 inhibitor, in adults with moderately-to-severely active ulcerative colitis (“UC”) at the United European Gastroenterology Week. Emvistegrast 200mg met its primary endpoint of clinical response at Week 12, with a generally well-tolerated safety profile. These findings support Gilead’s plans to initiate a Phase 3 study of emvistegrast 200mg as a monotherapy for UC in 2027. Emvistegrast is an investigational product that is not approved anywhere globally, and the safety and efficacy of its use is not yet established.
Corporate
•Announced opening of new Research Center to expand capabilities in oncology, inflammation and research data science. The Research Center is the first of three projects supporting the $32 billion investment in U.S. research, development and manufacturing through 2030.
•In October 2026, the Centers for Medicare and Medicaid Services completed the process of setting the Maximum Fair Price for Biktarvy under Medicare. The new price will be effective and impact our Biktarvy revenue starting January 1, 2028.
•The Board declared a quarterly dividend of $0.82 per share of common stock for the fourth quarter of 2026. The dividend is payable on December 30, 2026, to stockholders of record at the close of business on December 15, 2026. Future dividends will be subject to Board approval.
Certain amounts and percentages in this press release may not sum or recalculate due to rounding.
Conference Call
At 1:30 p.m. Pacific Time today, Gilead will host a conference call to discuss Gilead’s results. A live webcast will be available on http://investors.gilead.com and will be archived on www.gilead.com for one year.
Non-GAAP Financial Information
The information presented in this document has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), unless otherwise noted as non-GAAP. Management believes non-GAAP information is useful for investors, when considered in conjunction with Gilead’s GAAP financial information, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under GAAP. Non-GAAP financial information generally excludes acquisition-related expenses including amortization of acquired intangible assets, restructuring charges and other items that are considered unusual or not representative of underlying trends of Gilead’s business, fair value adjustments of equity securities, the related tax charges or benefits associated with such exclusions and other discrete tax charges or benefits not representative of underlying trends such as changes in tax laws, transfers of intangible assets between certain legal entities, and effects of legal entity restructurings. Although Gilead consistently excludes the amortization of acquired intangible assets from the non-GAAP financial information, management believes that it is important for investors to understand that such intangible assets were recorded as part of acquisitions and contribute to ongoing revenue generation. Non-GAAP measures may be defined and calculated differently by other companies in the same industry. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the accompanying tables.
October 29, 2026 | 5 | |||||||
About Gilead Sciences
Gilead Sciences, Inc. 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. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer and inflammation. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, California.
Forward-Looking Statements
Statements included in this press release that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gilead’s ability to achieve its full year 2026 financial guidance and future projected financial results; impacts resulting from regulatory or legislative policies or processes, including the impact from pricing reform in the Inflation Reduction Act (such as Medicare Part D pricing reform and the Biktarvy Maximum Fair Price determination), the expiration of subsidies related to the Affordable Care Act, our most-favored-nation pricing agreement with the U.S. government and tariffs; Gilead’s ability to make progress on any of its long-term ambitions or priorities laid out in its corporate strategy; Gilead’s ability to accelerate or sustain revenues for its virology, oncology, inflammation and other programs; Gilead’s ability to manage, execute and realize the potential benefits of acquisitions, collaborations or licensing arrangements, including the announced PepStar acquisition; the risk that Gilead’s U.S. manufacturing and R&D investment may not achieve their intended benefits; patent protection and estimated loss of exclusivity for our products and product candidates; Gilead’s ability to initiate, progress or complete clinical trials within currently anticipated timeframes or at all, the possibility of unfavorable results from ongoing and additional clinical trials, including those involving anito-cel, emvistegrast, lenacapavir and HCXT-2001 (such as PURPOSE-365 and SWIFT), and the risk that safety and efficacy data from clinical trials may not warrant further development of Gilead’s product candidates or the product candidates of Gilead’s strategic partners; Gilead’s ability to resolve the issues cited by the FDA in pending clinical holds to the satisfaction of the FDA and the risk that FDA may not remove such clinical holds, in whole or in part, in a timely manner or at all; Gilead’s ability to submit new drug applications for new product candidates or expanded indications in the currently anticipated timelines; Gilead’s ability to receive or maintain regulatory approvals in a timely manner or at all, and the risk that any such approvals, if granted, may be subject to significant limitations on use and may be subject to withdrawal or other adverse actions by the applicable regulatory authority; Gilead’s ability to successfully commercialize its products; the risk of potential disruptions to the manufacturing and supply chain of Gilead’s products; pricing and reimbursement pressures from government agencies and other third parties, including required rebates and other discounts; a larger than anticipated shift in payer mix to more highly discounted payer segments; market share and price erosion caused by the introduction of generic versions of Gilead products; the risk that physicians and patients may not see advantages of Gilead’s products over other therapies, including Bixlenvo and Trodelvy; Gilead’s ability to effectively manage, execute and realize the anticipated benefits of the access strategy relating to lenacapavir for HIV PrEP, including voluntary licensing arrangements and external partnerships relating to lenacapavir; and other risks identified from time to time in Gilead’s reports filed with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. There may be other factors of which Gilead is not currently aware that may affect matters discussed in the forward-looking statements and may also cause actual results to differ significantly from these estimates. Further, results for the quarter ended September 30, 2026 are not necessarily indicative of operating results for any future periods. Gilead directs readers to its press releases, annual reports on Form 10-K, quarterly reports on Form 10-Q and other subsequent disclosure documents filed with the SEC. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation
October 29, 2026 | 6 | |||||||
Reform Act of 1995 for forward-looking statements.
The reader is cautioned that forward-looking statements are not guarantees of future performance and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead and Gilead assumes no obligation to update or supplement any such forward-looking statements other than as required by law. Any forward-looking statements speak only as of the date hereof or as of the dates indicated in the statements.
Additional information is available on our Investor Relations 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 (10) days after the end of each quarter.
# # #
Gilead owns or has rights to various trademarks, copyrights and trade names used in its business, including the following: GILEAD®, GILEAD SCIENCES®, KITE®, AMBISOME®, ATRIPLA®, BIXLENVO™, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, JYSELECA®, LIVDELZI®/LYVDELZI®, LETAIRIS®, ODEFSEY®, SOVALDI®, STRIBILD®, SUNLENCA®, TECARTUS®, TRODELVY®, TRUVADA®, TRUVADA FOR PREP®, TYBOST®, VEKLURY®, VEMLIDY®, VIREAD®, VOSEVI®, YESCARTA®, YEZTUGO®/YEYTUO® and ZYDELIG®. Other trademarks and trade names are the property of their respective owners.
For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).
| CONTACTS: | Investors: | Jacquie Ross, CFA | investor_relations@gilead.com | ||||||||||||||
| Media: | Ashleigh Koss | public_affairs@gilead.com | |||||||||||||||
October 29, 2026 | 7 | |||||||
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (in millions, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Product sales | $ | 8,289 | $ | 7,345 | $ | 22,862 | $ | 21,013 | ||||||||||||||||||
| Royalty, contract and other revenues | 11 | 424 | 201 | 505 | ||||||||||||||||||||||
| Total revenues | 8,300 | 7,769 | 23,063 | 21,518 | ||||||||||||||||||||||
| Costs and expenses: | ||||||||||||||||||||||||||
| Cost of goods sold | 1,571 | 1,569 | 4,595 | 4,610 | ||||||||||||||||||||||
| Research and development expenses | 1,608 | 1,346 | 4,744 | 4,215 | ||||||||||||||||||||||
| Acquired in-process research and development expenses | 18 | 170 | 11,307 | 485 | ||||||||||||||||||||||
| In-process research and development impairments | — | — | 1,750 | 190 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 1,641 | 1,357 | 5,013 | 3,980 | ||||||||||||||||||||||
| Total costs and expenses | 4,838 | 4,442 | 27,409 | 13,480 | ||||||||||||||||||||||
| Operating income (loss) | 3,462 | 3,327 | (4,346) | 8,038 | ||||||||||||||||||||||
| Interest expense | 269 | 256 | 756 | 769 | ||||||||||||||||||||||
| Other (income) expense, net | 130 | (569) | (492) | (449) | ||||||||||||||||||||||
| Income (loss) before income taxes | 3,063 | 3,641 | (4,610) | 7,718 | ||||||||||||||||||||||
| Income tax expense | 634 | 589 | 1,435 | 1,391 | ||||||||||||||||||||||
| Net income (loss) | $ | 2,429 | $ | 3,052 | $ | (6,045) | $ | 6,327 | ||||||||||||||||||
| Basic earnings (loss) per share | $ | 1.96 | $ | 2.46 | $ | (4.87) | $ | 5.08 | ||||||||||||||||||
| Diluted earnings (loss) per share | $ | 1.94 | $ | 2.43 | $ | (4.87) | $ | 5.04 | ||||||||||||||||||
| Shares used in basic earnings (loss) per share calculation | 1,242 | 1,243 | 1,242 | 1,245 | ||||||||||||||||||||||
| Shares used in diluted earnings (loss) per share calculation | 1,251 | 1,254 | 1,242 | 1,256 | ||||||||||||||||||||||
| Supplemental Information: | ||||||||||||||||||||||||||
| Cash dividends declared per share | $ | 0.82 | $ | 0.79 | $ | 2.46 | $ | 2.37 | ||||||||||||||||||
| Product gross margin | 81.0 | % | 78.6 | % | 79.9 | % | 78.1 | % | ||||||||||||||||||
| Research and development expenses as a % of revenues | 19.4 | % | 17.3 | % | 20.6 | % | 19.6 | % | ||||||||||||||||||
| Selling, general and administrative expenses as a % of revenues | 19.8 | % | 17.5 | % | 21.7 | % | 18.5 | % | ||||||||||||||||||
| Operating margin | 41.7 | % | 42.8 | % | (18.8) | % | 37.4 | % | ||||||||||||||||||
| Effective tax rate | 20.7 | % | 16.2 | % | (31.1) | % | 18.0 | % | ||||||||||||||||||
October 29, 2026 | 8 | |||||||
GILEAD SCIENCES, INC.
TOTAL REVENUE SUMMARY
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||||
| Product sales: | ||||||||||||||||||||||||||||||||||||||
| HIV | $ | 6,249 | $ | 5,277 | 18% | $ | 16,972 | $ | 14,952 | 14% | ||||||||||||||||||||||||||||
Liver Disease | 927 | 819 | 13% | 2,571 | 2,372 | 8% | ||||||||||||||||||||||||||||||||
| Oncology | 860 | 788 | 9% | 2,543 | 2,395 | 6% | ||||||||||||||||||||||||||||||||
| Other | 167 | 184 | (9)% | 524 | 594 | (12)% | ||||||||||||||||||||||||||||||||
| Total product sales excluding Veklury | 8,203 | 7,068 | 16% | 22,610 | 20,313 | 11% | ||||||||||||||||||||||||||||||||
| Veklury | 86 | 277 | (69)% | 253 | 700 | (64)% | ||||||||||||||||||||||||||||||||
| Total product sales | 8,289 | 7,345 | 13% | 22,862 | 21,013 | 9% | ||||||||||||||||||||||||||||||||
| Royalty, contract and other revenues | 11 | 424 | (97)% | 201 | 505 | (60)% | ||||||||||||||||||||||||||||||||
| Total revenues | $ | 8,300 | $ | 7,769 | 7% | $ | 23,063 | $ | 21,518 | 7% | ||||||||||||||||||||||||||||
October 29, 2026 | 9 | |||||||
GILEAD SCIENCES, INC.
NON-GAAP FINANCIAL INFORMATION(1)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||||||||
| (in millions, except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change | ||||||||||||||||||||||||||||||||
| Non-GAAP: | ||||||||||||||||||||||||||||||||||||||
| Cost of goods sold | $ | 983 | $ | 992 | (1)% | $ | 2,851 | $ | 2,875 | (1)% | ||||||||||||||||||||||||||||
| Research and development expenses | $ | 1,591 | $ | 1,334 | 19% | $ | 4,375 | $ | 4,123 | 6% | ||||||||||||||||||||||||||||
| Acquired in-process research and development expenses | $ | 18 | $ | 170 | (89)% | $ | 11,307 | $ | 485 | NM | ||||||||||||||||||||||||||||
| Selling, general and administrative expenses | $ | 1,539 | $ | 1,351 | 14% | $ | 4,423 | $ | 3,931 | 13% | ||||||||||||||||||||||||||||
| Other (income) expense, net | $ | (34) | $ | (87) | (61)% | $ | (171) | $ | (251) | (32)% | ||||||||||||||||||||||||||||
| Diluted earnings (loss) per share | $ | 2.55 | $ | 2.47 | 3% | $ | (2.14) | $ | 6.29 | NM | ||||||||||||||||||||||||||||
| Shares used in non-GAAP diluted earnings (loss) per share calculation | 1,251 | 1,254 | —% | 1,242 | 1,256 | (1)% | ||||||||||||||||||||||||||||||||
| Product gross margin | 88.1 | % | 86.5 | % | 165 bps | 87.5 | % | 86.3 | % | 121 bps | ||||||||||||||||||||||||||||
| Research and development expenses as a % of revenues | 19.2 | % | 17.2 | % | 200 bps | 19.0 | % | 19.2 | % | (19) bps | ||||||||||||||||||||||||||||
| Selling, general and administrative expenses as a % of revenues | 18.5 | % | 17.4 | % | 115 bps | 19.2 | % | 18.3 | % | 91 bps | ||||||||||||||||||||||||||||
| Operating margin | 50.2 | % | 50.5 | % | (25) bps | 0.5 | % | 47.0 | % | NM | ||||||||||||||||||||||||||||
| Effective tax rate | 19.0 | % | 17.5 | % | 149 bps | (455.0) | % | 17.6 | % | NM | ||||||||||||||||||||||||||||
________________________________
NM - Not Meaningful
(1) Refer to Non-GAAP Financial Information section above for further disclosures on non-GAAP financial measures. A reconciliation between GAAP and non-GAAP financial information is provided in the tables below.
October 29, 2026 | 10 | |||||||
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (in millions, except percentages and per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Cost of goods sold reconciliation: | ||||||||||||||||||||||||||
| GAAP cost of goods sold | $ | 1,571 | $ | 1,569 | $ | 4,595 | $ | 4,610 | ||||||||||||||||||
Acquisition-related – amortization(1) | (587) | (577) | (1,742) | (1,735) | ||||||||||||||||||||||
| Restructuring | (1) | — | (1) | — | ||||||||||||||||||||||
| Non-GAAP cost of goods sold | $ | 983 | $ | 992 | $ | 2,851 | $ | 2,875 | ||||||||||||||||||
| Product gross margin reconciliation: | ||||||||||||||||||||||||||
| GAAP product gross margin | 81.0 | % | 78.6 | % | 79.9 | % | 78.1 | % | ||||||||||||||||||
Acquisition-related – amortization(1) | 7.1 | % | 7.9 | % | 7.6 | % | 8.3 | % | ||||||||||||||||||
| Restructuring | — | % | — | % | — | % | — | % | ||||||||||||||||||
| Non-GAAP product gross margin | 88.1 | % | 86.5 | % | 87.5 | % | 86.3 | % | ||||||||||||||||||
| Research and development expenses reconciliation: | ||||||||||||||||||||||||||
| GAAP research and development expenses | $ | 1,608 | $ | 1,346 | $ | 4,744 | $ | 4,215 | ||||||||||||||||||
Acquisition-related – other costs(2) | (8) | (4) | (344) | (41) | ||||||||||||||||||||||
| Restructuring | (8) | (8) | (25) | (52) | ||||||||||||||||||||||
| Non-GAAP research and development expenses | $ | 1,591 | $ | 1,334 | $ | 4,375 | $ | 4,123 | ||||||||||||||||||
| IPR&D impairment reconciliation: | ||||||||||||||||||||||||||
| GAAP IPR&D impairment | $ | — | $ | — | $ | 1,750 | $ | 190 | ||||||||||||||||||
| IPR&D impairment | — | — | (1,750) | (190) | ||||||||||||||||||||||
| Non-GAAP IPR&D impairment | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Selling, general and administrative expenses reconciliation: | ||||||||||||||||||||||||||
| GAAP selling, general and administrative expenses | $ | 1,641 | $ | 1,357 | $ | 5,013 | $ | 3,980 | ||||||||||||||||||
Acquisition-related – other costs(2) | (69) | — | (454) | — | ||||||||||||||||||||||
| Restructuring | (33) | (5) | (73) | (49) | ||||||||||||||||||||||
Other(3) | — | — | (63) | — | ||||||||||||||||||||||
| Non-GAAP selling, general and administrative expenses | $ | 1,539 | $ | 1,351 | $ | 4,423 | $ | 3,931 | ||||||||||||||||||
| Operating income (loss) reconciliation: | ||||||||||||||||||||||||||
| GAAP operating income (loss) | $ | 3,462 | $ | 3,327 | $ | (4,346) | $ | 8,038 | ||||||||||||||||||
Acquisition-related – amortization(1) | 587 | 577 | 1,742 | 1,735 | ||||||||||||||||||||||
Acquisition-related – other costs(2) | 77 | 4 | 798 | 41 | ||||||||||||||||||||||
| Restructuring | 42 | 14 | 99 | 101 | ||||||||||||||||||||||
| IPR&D impairment | — | — | 1,750 | 190 | ||||||||||||||||||||||
Other(3) | — | — | 63 | — | ||||||||||||||||||||||
| Non-GAAP operating income | $ | 4,168 | $ | 3,921 | $ | 107 | $ | 10,104 | ||||||||||||||||||
| Operating margin reconciliation: | ||||||||||||||||||||||||||
| GAAP operating margin | 41.7 | % | 42.8 | % | (18.8) | % | 37.4 | % | ||||||||||||||||||
Acquisition-related – amortization(1) | 7.1 | % | 7.4 | % | 7.6 | % | 8.1 | % | ||||||||||||||||||
Acquisition-related – other costs(2) | 0.9 | % | — | % | 3.5 | % | 0.2 | % | ||||||||||||||||||
| Restructuring | 0.5 | % | 0.2 | % | 0.4 | % | 0.5 | % | ||||||||||||||||||
| IPR&D impairment | — | % | — | % | 7.6 | % | 0.9 | % | ||||||||||||||||||
Other(3) | — | % | — | % | 0.3 | % | — | % | ||||||||||||||||||
| Non-GAAP operating margin | 50.2 | % | 50.5 | % | 0.5 | % | 47.0 | % | ||||||||||||||||||
| Other (income) expense, net reconciliation: | ||||||||||||||||||||||||||
| GAAP other (income) expense, net | $ | 130 | $ | (569) | $ | (492) | $ | (449) | ||||||||||||||||||
| (Loss) gain from equity securities, net | (164) | 483 | 321 | 198 | ||||||||||||||||||||||
| Non-GAAP other (income) expense, net | $ | (34) | $ | (87) | $ | (171) | $ | (251) | ||||||||||||||||||
October 29, 2026 | 11 | |||||||
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (in millions, except percentages and per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Income (loss) before income taxes reconciliation: | ||||||||||||||||||||||||||
| GAAP income (loss) before income taxes | $ | 3,063 | $ | 3,641 | $ | (4,610) | $ | 7,718 | ||||||||||||||||||
Acquisition-related – amortization(1) | 587 | 577 | 1,742 | 1,735 | ||||||||||||||||||||||
Acquisition-related – other costs(2) | 77 | 4 | 798 | 41 | ||||||||||||||||||||||
| Restructuring | 42 | 14 | 99 | 101 | ||||||||||||||||||||||
| IPR&D impairment | — | — | 1,750 | 190 | ||||||||||||||||||||||
| Loss (gain) from equity securities, net | 164 | (483) | (321) | (198) | ||||||||||||||||||||||
Other(3) | — | — | 63 | — | ||||||||||||||||||||||
| Non-GAAP income (loss) before income taxes | $ | 3,933 | $ | 3,752 | $ | (479) | $ | 9,586 | ||||||||||||||||||
| Income tax expense reconciliation: | ||||||||||||||||||||||||||
| GAAP income tax expense | $ | 634 | $ | 589 | $ | 1,435 | $ | 1,391 | ||||||||||||||||||
| Income tax effect of non-GAAP adjustments: | ||||||||||||||||||||||||||
Acquisition-related – amortization(1) | 121 | 120 | 357 | 360 | ||||||||||||||||||||||
Acquisition-related – other costs(2) | 16 | — | 95 | — | ||||||||||||||||||||||
| Restructuring | 9 | 3 | 18 | 18 | ||||||||||||||||||||||
| IPR&D impairment | — | — | 415 | 51 | ||||||||||||||||||||||
| Loss (gain) from equity securities, net | 30 | (43) | (78) | (33) | ||||||||||||||||||||||
Discrete and related tax charges(4) | (62) | (11) | (64) | (101) | ||||||||||||||||||||||
| Non-GAAP income tax expense | $ | 747 | $ | 657 | $ | 2,177 | $ | 1,686 | ||||||||||||||||||
| Effective tax rate reconciliation: | ||||||||||||||||||||||||||
| GAAP effective tax rate | 20.7 | % | 16.2 | % | (31.1) | % | 18.0 | % | ||||||||||||||||||
Income tax effect of above non-GAAP adjustments and discrete and related tax adjustments(4) | (1.7) | % | 1.3 | % | (423.8) | % | (0.4) | % | ||||||||||||||||||
| Non-GAAP effective tax rate | 19.0 | % | 17.5 | % | (455.0) | % | 17.6 | % | ||||||||||||||||||
| Net income (loss) reconciliation: | ||||||||||||||||||||||||||
| GAAP net income (loss) | $ | 2,429 | $ | 3,052 | $ | (6,045) | $ | 6,327 | ||||||||||||||||||
Acquisition-related – amortization(1) | 467 | 457 | 1,385 | 1,374 | ||||||||||||||||||||||
Acquisition-related – other costs(2) | 61 | 4 | 703 | 41 | ||||||||||||||||||||||
| Restructuring | 33 | 11 | 81 | 83 | ||||||||||||||||||||||
| IPR&D impairment | — | — | 1,335 | 139 | ||||||||||||||||||||||
| Loss (gain) from equity securities, net | 134 | (440) | (243) | (165) | ||||||||||||||||||||||
Discrete and related tax charges(4) | 62 | 11 | 64 | 101 | ||||||||||||||||||||||
Other(3) | — | — | 63 | — | ||||||||||||||||||||||
| Non-GAAP net income (loss) | $ | 3,186 | $ | 3,095 | $ | (2,656) | $ | 7,901 | ||||||||||||||||||
| Diluted earnings (loss) per share reconciliation: | ||||||||||||||||||||||||||
| GAAP diluted earnings (loss) per share | $ | 1.94 | $ | 2.43 | $ | (4.87) | $ | 5.04 | ||||||||||||||||||
Acquisition-related – amortization(1) | 0.37 | 0.36 | 1.11 | 1.09 | ||||||||||||||||||||||
Acquisition-related – other costs(2) | 0.05 | — | 0.57 | 0.03 | ||||||||||||||||||||||
| Restructuring | 0.03 | 0.01 | 0.07 | 0.07 | ||||||||||||||||||||||
| IPR&D impairment | — | — | 1.07 | 0.11 | ||||||||||||||||||||||
| Loss (gain) from equity securities, net | 0.11 | (0.35) | (0.20) | (0.13) | ||||||||||||||||||||||
Discrete and related tax charges(4) | 0.05 | 0.01 | 0.05 | 0.08 | ||||||||||||||||||||||
Other(3) | — | — | 0.05 | — | ||||||||||||||||||||||
| Non-GAAP diluted earnings (loss) per share | $ | 2.55 | $ | 2.47 | $ | (2.14) | $ | 6.29 | ||||||||||||||||||
October 29, 2026 | 12 | |||||||
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION - (Continued)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (in millions, except percentages and per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Non-GAAP adjustment summary: | ||||||||||||||||||||||||||
| Cost of goods sold adjustments | $ | 588 | $ | 577 | $ | 1,744 | $ | 1,735 | ||||||||||||||||||
| Research and development expenses adjustments | 16 | 12 | 369 | 93 | ||||||||||||||||||||||
| IPR&D impairment adjustments | — | — | 1,750 | 190 | ||||||||||||||||||||||
| Selling, general and administrative expenses adjustments | 102 | 5 | 590 | 49 | ||||||||||||||||||||||
Total non-GAAP adjustments to costs and expenses | 706 | 594 | 4,453 | 2,067 | ||||||||||||||||||||||
| Other (income) expense, net, adjustments | 164 | (483) | (321) | (198) | ||||||||||||||||||||||
| Total non-GAAP adjustments before income taxes | 870 | 112 | 4,132 | 1,868 | ||||||||||||||||||||||
| Income tax effect of non-GAAP adjustments above | (175) | (79) | (807) | (396) | ||||||||||||||||||||||
Discrete and related tax charges(4) | 62 | 11 | 64 | 101 | ||||||||||||||||||||||
| Total non-GAAP adjustments to net income | $ | 757 | $ | 43 | $ | 3,389 | $ | 1,573 | ||||||||||||||||||
________________________________
(1) Relates to amortization of acquired intangibles.
(2) Adjustments include integration expenses and contingent consideration fair value adjustments associated with Gilead’s recent acquisitions.
(3) Adjustments include donations of equity securities to the Gilead Foundation, a California nonprofit organization, during the first quarter of 2026.
(4) Represents discrete and related deferred tax charges or benefits primarily associated with acquisition-related adjustments and transfers of intangible assets from a foreign subsidiary to Ireland and the United States.
October 29, 2026 | 13 | |||||||
GILEAD SCIENCES, INC.
RECONCILIATION OF GAAP TO NON-GAAP 2026 FULL-YEAR GUIDANCE(1)
(unaudited)
| (in millions, except percentages and per share amounts) | Provided February 10, 2026 | Updated May 7, 2026 | Updated August 4, 2026 | Updated October 29, 2026 | ||||||||||||||||||||||
| Projected product gross margin GAAP to non-GAAP reconciliation: | ||||||||||||||||||||||||||
| GAAP projected product gross margin | ~ 79.0% | ~ 79.0% | ~ 79.0% | ~ 79.0% | ||||||||||||||||||||||
| Acquisition-related expenses | ~ 8.0% | ~ 8.0% | ~ 8.0% | ~ 8.0% | ||||||||||||||||||||||
| Non-GAAP projected product gross margin | ~ 87.0% | ~ 87.0% | ~ 87.0% | ~ 87.0% | ||||||||||||||||||||||
| Projected operating income (loss) GAAP to non-GAAP reconciliation: | ||||||||||||||||||||||||||
| GAAP projected operating income (loss) | $11,400 - $11,900 | $(1,000) - $(500) | $(2,250) - $(1,850) | $(3,150) - $(2,750) | ||||||||||||||||||||||
| Acquisition-related, IPR&D impairment, restructuring and other expenses | ~ 2,400 | ~ 3,400 | ~ 5,150 | ~ 5,150 | ||||||||||||||||||||||
| Non-GAAP projected operating income | $13,800 - $14,300 | $2,400 - $2,900 | $2,900 - $3,300 | $2,000 - $2,400 | ||||||||||||||||||||||
Projected effective tax rate GAAP to non-GAAP reconciliation:(2) | ||||||||||||||||||||||||||
| GAAP projected effective tax rate | ~ 21% | ~ (150%) - (220%) | ~ (80%) - (90%) | ~ (50%) - (55%) | ||||||||||||||||||||||
| Income tax effect of above non-GAAP adjustments and fair value adjustments of equity securities, and discrete and related tax adjustments | (~ 1%) | NM | NM | NM | ||||||||||||||||||||||
| Non-GAAP projected effective tax rate | ~ 20% | ~ 190% - 140% | ~ 140% - 115% | ~ 220% - 165% | ||||||||||||||||||||||
| Projected diluted earnings (loss) per share GAAP to non-GAAP reconciliation: | ||||||||||||||||||||||||||
| GAAP projected diluted earnings (loss) per share | $6.75 - $7.15 | $(3.25) - $(2.85) | $(3.75) - $(3.40) | $(4.40) - $(4.05) | ||||||||||||||||||||||
| Acquisition-related, IPR&D impairment, restructuring and other expenses, fair value adjustments of equity securities and discrete and related tax adjustments | ~ 1.70 | ~ 2.20 | ~ 3.10 | ~ 3.20 | ||||||||||||||||||||||
| Non-GAAP projected diluted earnings (loss) per share | $8.45 - $8.85 | $(1.05) - $(0.65) | $(0.65) - $(0.30) | $(1.20) - $(0.85) | ||||||||||||||||||||||
________________________________
NM - Not Meaningful
(1) Our full-year guidance excludes the potential impact of any (i) acquisitions or business development transactions that have not been executed, (ii) future fair value adjustments of equity securities and (iii) discrete tax charges or benefits associated with changes in tax related laws and guidelines that have not been enacted, as Gilead is unable to project such amounts. The non-GAAP full-year guidance includes non-GAAP adjustments to actual current period results as well as adjustments for the known future impact associated with events that have already occurred, such as future amortization of our intangible assets and the future impact of discrete and related deferred tax charges or benefits primarily associated with transfers of intangible assets from a foreign subsidiary to Ireland and the United States.
(2) The GAAP and non-GAAP projected effective tax rates for the October 29, 2026 update include the impact of Acquired IPR&D expenses related to the acquisitions of Arcellx, Tubulis and Ouro Medicines, which are not deductible for tax purposes. Without these Acquired IPR&D expenses, the GAAP and non-GAAP projected effective tax rate for FY26 would be ~21% and ~20%, respectively.
October 29, 2026 | 14 | |||||||
GILEAD SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
| September 30, | December 31, | |||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||
| Assets | ||||||||||||||
| Cash, cash equivalents and marketable debt securities | $ | 6,437 | $ | 10,605 | ||||||||||
| Accounts receivable, net | 5,007 | 4,913 | ||||||||||||
Inventories(1) | 4,424 | 4,368 | ||||||||||||
| Property, plant and equipment, net | 5,945 | 5,606 | ||||||||||||
| Intangible assets, net | 13,424 | 16,978 | ||||||||||||
| Goodwill | 8,314 | 8,314 | ||||||||||||
| Other assets | 7,858 | 8,239 | ||||||||||||
| Total assets | $ | 51,408 | $ | 59,023 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||
| Current liabilities | $ | 12,002 | $ | 11,813 | ||||||||||
| Long-term liabilities | 26,451 | 24,592 | ||||||||||||
Stockholders’ equity(2) | 12,955 | 22,618 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 51,408 | $ | 59,023 | ||||||||||
________________________________
(1) Includes current and long-term inventories, which are disclosed separately in the notes to our financial statements in Form 10-K and Form 10-Q.
(2) As of September 30, 2026 and December 31, 2025, there were 1,241 of shares of common stock issued and outstanding.
October 29, 2026 | 15 | |||||||
GILEAD SCIENCES, INC.
SELECTED CASH FLOW INFORMATION
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net cash provided by operating activities | $ | 5,035 | $ | 4,109 | $ | 11,152 | $ | 6,692 | ||||||||||||||||||
| Net cash used in investing activities | (244) | (427) | (8,821) | (2,958) | ||||||||||||||||||||||
| Net cash used in financing activities | (1,528) | (1,490) | (3,423) | (6,482) | ||||||||||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (4) | (5) | (34) | 87 | ||||||||||||||||||||||
| Net change in cash and cash equivalents | 3,259 | 2,187 | (1,126) | (2,661) | ||||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 3,179 | 5,144 | 7,564 | 9,991 | ||||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 6,437 | $ | 7,330 | $ | 6,437 | $ | 7,330 | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net cash provided by operating activities | $ | 5,035 | $ | 4,109 | $ | 11,152 | $ | 6,692 | ||||||||||||||||||
| Purchases of property, plant and equipment | (237) | (147) | (494) | (358) | ||||||||||||||||||||||
Free cash flow(1) | $ | 4,798 | $ | 3,962 | $ | 10,657 | $ | 6,335 | ||||||||||||||||||
________________________________
(1) Free cash flow is a non-GAAP liquidity measure. Please refer to our disclosures in the Non-GAAP Financial Information section above.
October 29, 2026 | 16 | |||||||
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| HIV | ||||||||||||||||||||||||||||||||
| Biktarvy | U.S. | $ | 3,284 | $ | 2,940 | $ | 8,837 | $ | 8,212 | |||||||||||||||||||||||
| Europe | 442 | 427 | 1,347 | 1,231 | ||||||||||||||||||||||||||||
| Rest of World | 333 | 320 | 1,009 | 922 | ||||||||||||||||||||||||||||
| 4,059 | 3,686 | 11,193 | 10,366 | |||||||||||||||||||||||||||||
| Descovy | U.S. | 998 | 652 | 2,680 | 1,791 | |||||||||||||||||||||||||||
| Europe | 22 | 23 | 69 | 67 | ||||||||||||||||||||||||||||
| Rest of World | 26 | 25 | 71 | 81 | ||||||||||||||||||||||||||||
| 1,046 | 701 | 2,820 | 1,939 | |||||||||||||||||||||||||||||
| Genvoya | U.S. | 301 | 323 | 752 | 950 | |||||||||||||||||||||||||||
| Europe | 27 | 34 | 97 | 114 | ||||||||||||||||||||||||||||
| Rest of World | 12 | 19 | 44 | 54 | ||||||||||||||||||||||||||||
| 339 | 377 | 892 | 1,118 | |||||||||||||||||||||||||||||
| Odefsey | U.S. | 226 | 206 | 550 | 642 | |||||||||||||||||||||||||||
| Europe | 52 | 61 | 170 | 184 | ||||||||||||||||||||||||||||
| Rest of World | 8 | 10 | 27 | 30 | ||||||||||||||||||||||||||||
| 286 | 277 | 747 | 857 | |||||||||||||||||||||||||||||
Symtuza - Revenue share(1) | U.S. | 103 | 95 | 315 | 265 | |||||||||||||||||||||||||||
| Europe | 26 | 26 | 85 | 88 | ||||||||||||||||||||||||||||
| Rest of World | 3 | 3 | 8 | 9 | ||||||||||||||||||||||||||||
| 132 | 124 | 407 | 362 | |||||||||||||||||||||||||||||
| Yeztugo | U.S. | 294 | 39 | 676 | 54 | |||||||||||||||||||||||||||
| Europe | — | — | — | — | ||||||||||||||||||||||||||||
| Rest of World | 10 | — | 26 | — | ||||||||||||||||||||||||||||
| 305 | 39 | 702 | 54 | |||||||||||||||||||||||||||||
Other HIV(2) | U.S. | 55 | 43 | 114 | 144 | |||||||||||||||||||||||||||
| Europe | 22 | 22 | 72 | 85 | ||||||||||||||||||||||||||||
| Rest of World | 5 | 8 | 24 | 28 | ||||||||||||||||||||||||||||
| 82 | 73 | 211 | 256 | |||||||||||||||||||||||||||||
| Total HIV | U.S. | 5,261 | 4,299 | 13,924 | 12,059 | |||||||||||||||||||||||||||
| Europe | 591 | 592 | 1,839 | 1,769 | ||||||||||||||||||||||||||||
| Rest of World | 397 | 386 | 1,209 | 1,124 | ||||||||||||||||||||||||||||
| 6,249 | 5,277 | 16,972 | 14,952 | |||||||||||||||||||||||||||||
October 29, 2026 | 17 | |||||||
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY - (Continued)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Liver Disease | ||||||||||||||||||||||||||||||||
| Livdelzi | U.S. | 176 | 93 | 437 | 207 | |||||||||||||||||||||||||||
| Europe | 26 | 11 | 65 | 16 | ||||||||||||||||||||||||||||
| Rest of World | 1 | — | 1 | — | ||||||||||||||||||||||||||||
| 203 | 105 | 503 | 223 | |||||||||||||||||||||||||||||
Sofosbuvir / Velpatasvir(3) | U.S. | 139 | 146 | 422 | 497 | |||||||||||||||||||||||||||
| Europe | 59 | 65 | 200 | 227 | ||||||||||||||||||||||||||||
| Rest of World | 76 | 97 | 237 | 273 | ||||||||||||||||||||||||||||
| 274 | 309 | 860 | 996 | |||||||||||||||||||||||||||||
| Vemlidy | U.S. | 170 | 136 | 385 | 358 | |||||||||||||||||||||||||||
| Europe | 13 | 12 | 40 | 36 | ||||||||||||||||||||||||||||
| Rest of World | 151 | 132 | 435 | 389 | ||||||||||||||||||||||||||||
| 333 | 280 | 860 | 783 | |||||||||||||||||||||||||||||
Other Liver Disease(4) | U.S. | 39 | 39 | 74 | 100 | |||||||||||||||||||||||||||
| Europe | 62 | 70 | 219 | 218 | ||||||||||||||||||||||||||||
| Rest of World | 16 | 17 | 56 | 52 | ||||||||||||||||||||||||||||
| 117 | 126 | 349 | 370 | |||||||||||||||||||||||||||||
| Total Liver Disease | U.S. | 524 | 414 | 1,319 | 1,162 | |||||||||||||||||||||||||||
| Europe | 161 | 158 | 523 | 496 | ||||||||||||||||||||||||||||
| Rest of World | 243 | 247 | 729 | 714 | ||||||||||||||||||||||||||||
| 927 | 819 | 2,571 | 2,372 | |||||||||||||||||||||||||||||
| Veklury | ||||||||||||||||||||||||||||||||
| Veklury | U.S. | 63 | 140 | 188 | 390 | |||||||||||||||||||||||||||
| Europe | 12 | 43 | 28 | 84 | ||||||||||||||||||||||||||||
| Rest of World | 11 | 93 | 36 | 225 | ||||||||||||||||||||||||||||
| 86 | 277 | 253 | 700 | |||||||||||||||||||||||||||||
| Oncology | ||||||||||||||||||||||||||||||||
| Cell Therapy | ||||||||||||||||||||||||||||||||
| Tecartus | U.S. | 24 | 40 | 83 | 122 | |||||||||||||||||||||||||||
| Europe | 31 | 35 | 102 | 107 | ||||||||||||||||||||||||||||
| Rest of World | 5 | 8 | 21 | 25 | ||||||||||||||||||||||||||||
| 60 | 83 | 206 | 254 | |||||||||||||||||||||||||||||
| Yescarta | U.S. | 114 | 123 | 366 | 444 | |||||||||||||||||||||||||||
| Europe | 107 | 151 | 392 | 455 | ||||||||||||||||||||||||||||
| Rest of World | 73 | 75 | 215 | 228 | ||||||||||||||||||||||||||||
| 294 | 349 | 973 | 1,127 | |||||||||||||||||||||||||||||
| Total Cell Therapy | U.S. | 139 | 163 | 450 | 566 | |||||||||||||||||||||||||||
| Europe | 138 | 186 | 494 | 562 | ||||||||||||||||||||||||||||
| Rest of World | 78 | 83 | 235 | 253 | ||||||||||||||||||||||||||||
| 355 | 432 | 1,179 | 1,381 | |||||||||||||||||||||||||||||
| Trodelvy | ||||||||||||||||||||||||||||||||
| Trodelvy | U.S. | 336 | 221 | 896 | 626 | |||||||||||||||||||||||||||
| Europe | 98 | 89 | 285 | 259 | ||||||||||||||||||||||||||||
| Rest of World | 71 | 47 | 183 | 128 | ||||||||||||||||||||||||||||
| 506 | 357 | 1,364 | 1,013 | |||||||||||||||||||||||||||||
| Total Oncology | U.S. | 475 | 384 | 1,346 | 1,192 | |||||||||||||||||||||||||||
| Europe | 236 | 275 | 779 | 821 | ||||||||||||||||||||||||||||
| Rest of World | 149 | 129 | 418 | 381 | ||||||||||||||||||||||||||||
| 860 | 788 | 2,543 | 2,395 | |||||||||||||||||||||||||||||
October 29, 2026 | 18 | |||||||
GILEAD SCIENCES, INC.
PRODUCT SALES SUMMARY - (Continued)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| AmBisome | U.S. | 3 | 2 | 14 | 15 | |||||||||||||||||||||||||||
| Europe | 52 | 69 | 158 | 201 | ||||||||||||||||||||||||||||
| Rest of World | 44 | 52 | 175 | 175 | ||||||||||||||||||||||||||||
| 99 | 123 | 347 | 391 | |||||||||||||||||||||||||||||
Other(5) | U.S. | 36 | 34 | 97 | 125 | |||||||||||||||||||||||||||
| Europe | 8 | 7 | 24 | 23 | ||||||||||||||||||||||||||||
| Rest of World | 25 | 20 | 57 | 55 | ||||||||||||||||||||||||||||
| 68 | 61 | 177 | 204 | |||||||||||||||||||||||||||||
| Total Other | U.S. | 39 | 36 | 111 | 140 | |||||||||||||||||||||||||||
| Europe | 59 | 76 | 181 | 225 | ||||||||||||||||||||||||||||
| Rest of World | 69 | 72 | 232 | 230 | ||||||||||||||||||||||||||||
| 167 | 184 | 524 | 594 | |||||||||||||||||||||||||||||
| Total product sales | U.S. | 6,361 | 5,274 | 16,888 | 14,943 | |||||||||||||||||||||||||||
| Europe | 1,058 | 1,144 | 3,350 | 3,395 | ||||||||||||||||||||||||||||
| Rest of World | 869 | 928 | 2,624 | 2,674 | ||||||||||||||||||||||||||||
| $ | 8,289 | $ | 7,345 | $ | 22,862 | $ | 21,013 | |||||||||||||||||||||||||
________________________________
(1) Represents Gilead’s revenue from cobicistat (“C”), FTC and TAF in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company.
(2) Includes Atripla, Bixlenvo, 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.