Gilead Sciences, Inc.
GILD · Nasdaq
Next quarter
Expected to report Feb 9, 2027 — estimated from last year’s reporting date.
Consensus is $1.58 EPS for Dec 2026 across 6 estimates, ranging $1.05 to $2.22.
GILD Sep 2026
- 17.51%
- +3.06%
- $2.17
- $2.55
- —
- $8.30B
Reported results
- $8.30B
- 81.07%
- $3.46B
- 41.71%
- $2.43B
- $1.94
Highlights
- Adjusted earnings Non-GAAP diluted EPS was $2.55, up 3% year over year and 17.5% above the $2.17 consensus; GAAP diluted EPS was $1.94, down from $2.43 a year earlier.
- Base-business growth Product sales excluding Veklury rose 16% to $8.2 billion; total product sales increased 13% to $8.3 billion.
- HIV strength HIV sales climbed 18% to $6.2 billion, led by Biktarvy at $4.1 billion, up 10%, and Descovy at $1.0 billion, up 49%; Yeztugo contributed $305 million.
- Revenue and sequential trend Total revenue was $8.30 billion, up 7% from $7.77 billion a year ago and about 6% from $7.80 billion in Q2.
- Higher 2026 sales outlook Gilead raised product-sales guidance by $900 million at both ends to $31.0–$31.3 billion, including $30.7–$31.0 billion excluding Veklury.
- Other product trends Trodelvy sales rose 42% to $506 million and Livdelzi sales nearly doubled to $203 million; Cell Therapy fell 18% to $355 million and Veklury fell 69% to $86 million.
- Acquisition-related GAAP drag GAAP net income was $2.43 billion versus $3.05 billion a year earlier; the nine-month GAAP loss was $6.05 billion, reflecting $11.3 billion of acquired IPR&D expense and a $1.75 billion impairment.
- Cash generation and deployment Operating cash flow was $5.0 billion in Q3 and $11.2 billion year to date; cash and marketable debt securities fell to $6.4 billion from $10.6 billion at year-end, after acquisition outflows and shareholder returns.
Analysis
Gilead’s third quarter paired strong underlying product growth with a more muted GAAP comparison. Revenue of $8.30 billion rose 7% year over year from $7.77 billion and about 6% sequentially from $7.80 billion. Non-GAAP diluted EPS of $2.55 grew 3% from $2.47 and exceeded the $2.17 consensus by 17.5%. GAAP diluted EPS was $1.94, down from $2.43 a year ago, while GAAP net income declined to $2.43 billion from $3.05 billion. Compared with Q2’s $8.45 diluted loss per share and $10.39 billion operating loss, Q3 returned to profitability; the prior-quarter figures were heavily affected by acquired IPR&D charges.
The defining driver was HIV: sales rose 18% to $6.2 billion, with Biktarvy up 10%, Descovy up 49% and newer prevention product Yeztugo at $305 million. Product sales excluding Veklury grew 16% to $8.2 billion, despite steep declines in Veklury and cell therapy. Gilead raised full-year product-sales guidance by $900 million at both ends, to $31.0–$31.3 billion, but widened its projected GAAP and non-GAAP losses per share because of approximately $12.4 billion in acquired IPR&D charges. Cash generation remained substantial at $5.0 billion of quarterly operating cash flow, even as acquisition spending drove a lower cash balance.
HIV-led product growth
The commercial story was broad-based growth outside Veklury, with HIV doing most of the work. HIV sales of $6.25 billion increased 18% year over year, driven by prevention demand, higher average realized prices and favorable inventory dynamics. The reported growth also includes the effect of channel inventory, so it is not solely a measure of patient demand.
- Biktarvy Sales increased 10% to $4.06 billion, supported by demand, pricing and favorable inventory; Gilead said some demand came from patients switching from Genvoya and other Gilead HIV products.
- Descovy Sales rose 49% to $1.05 billion, primarily from higher average realized price and favorable inventory dynamics.
- Yeztugo Sales were $305 million, compared with $39 million a year earlier, as demand for the HIV prevention product grew.
- Portfolio context Total product sales excluding Veklury reached $8.20 billion, up 16%; including Veklury, product sales were $8.29 billion, up 13%.
Other product trends
Growth in oncology and liver disease provided additional support, but was uneven. Trodelvy’s momentum and Livdelzi’s ramp contrasted with continued pressure on cell therapy and the expected decline in COVID-related Veklury demand.
- Trodelvy Sales increased 42% to $506 million on higher demand. Gilead reported U.S. and European approvals for first-line triple-negative breast cancer uses, including combinations with Keytruda for eligible PD-L1-positive patients.
- Liver disease Portfolio sales rose 13% to $927 million, primarily reflecting Livdelzi demand and higher realized prices in hepatitis products, partly offset by lower HCV demand. Livdelzi sales were $203 million versus $105 million.
- Cell Therapy Sales fell 18% to $355 million amid ongoing competitive headwinds; Yescarta declined to $294 million from $349 million.
- Veklury Sales dropped 69% to $86 million as COVID-19-related hospitalizations declined.
Earnings and margins
The adjusted result captures improved product economics and growth, while GAAP earnings reflect equity-market volatility and higher spending. Non-GAAP EPS of $2.55 was 3% above the year-ago $2.47 and beat the $2.17 consensus. GAAP EPS of $1.94 fell 20% year over year, mainly because of a $647 million swing from a $483 million equity-securities gain in Q3 2025 to a $164 million loss in Q3 2026, alongside higher operating costs and tax expense.
- Margins GAAP product gross margin improved to 81.0% from 78.6%; non-GAAP product gross margin increased to 88.1% from 86.5%. Gilead attributed the improvement primarily to the expiration of a royalty-related obligation.
- Operating costs R&D expense rose 19% to $1.61 billion, while SG&A increased 21% to $1.64 billion. The company cited employee and clinical-material costs, HIV promotion, acquisition integration and legal expenses.
- Quarterly comparison Operating income was $3.46 billion versus a $10.39 billion loss in Q2 2026; Q2 was distorted by substantial acquired IPR&D charges. Q3 operating income was $3.33 billion a year earlier.
Outlook and pipeline
The higher sales outlook reflects management’s confidence in the commercial base, while the revised loss outlook shows the accounting and investment burden of this year’s deals. Gilead said cumulative base-business revenue guidance had increased by $1.6 billion since the start of 2026.
- 2026 sales guidance Product sales are now expected at $31.0–$31.3 billion, versus $30.1–$30.4 billion previously. Guidance excluding Veklury rose to $30.7–$31.0 billion from $29.8–$30.1 billion; Veklury remains estimated at about $300 million.
- EPS guidance The company now forecasts GAAP diluted loss per share of $4.05–$4.40 and non-GAAP diluted loss per share of $0.85–$1.20, including about $9.88 per share from acquired IPR&D charges and related effects. The guidance reflects approximately $12.4 billion of acquired IPR&D expense related to announced transactions, net of the Lakefront collaboration and related taxes.
- Pipeline and launches Gilead received U.S. approval for Bixlenvo, a single-tablet HIV treatment for virologically suppressed adults switching regimens. It also reported positive Phase 2 results for oral emvistegrast in ulcerative colitis and plans to start a Phase 3 study in 2027.
Acquisitions and cash
The year’s acquisitions materially changed the financial profile and were the main reason GAAP results diverged from the operating growth story. Nine-month acquired IPR&D expense was $11.3 billion, largely from Arcellx, Tubulis and Ouro Medicines; the period also included a $1.75 billion impairment tied to the discontinued Trodelvy NSCLC study. Gilead’s October PepStar agreement adds an oral IL-23R inhibitor program for $1.275 billion upfront, subject to closing conditions.
- Cash generation Q3 operating cash flow was $5.04 billion, up from $4.11 billion a year ago; year-to-date operating cash flow was $11.15 billion.
- Cash uses Year-to-date acquisition-related outflows were $11.3 billion. Gilead also repaid $2.8 billion of debt, paid $3.1 billion in dividends and repurchased $1.1 billion of shares, partly offset by $4.1 billion of net debt proceeds.
- Liquidity Cash, cash equivalents and marketable debt securities totaled $6.4 billion at September 30, down from $10.6 billion at December 31, 2025. Q3 dividends were $1.0 billion and buybacks were $370 million.
