Gilead Sciences reported a second-quarter increase in product sales of 8% and overall revenue growth of 10%, lifting total revenue to $7.8 billion and exceeding Wall Street expectations of $7.4 billion, according to LSEG data. The company said gains were driven primarily by higher sales of HIV medicines, its cancer therapy Trodelvy and treatments for liver disease.
Despite the top-line strength, Gilead recorded a quarterly net loss, a result the company attributed to costs tied to a series of acquisitions. Management had previously flagged a charge of $9.08 per share associated with its deals to acquire cell therapy company Arcellx, autoimmune drug developer Ouro Medicines and cancer drug developer Tubulis.
Gilead highlighted robust performance across its HIV portfolio. Sales of its HIV prevention injection Yeztugo, a twice-yearly product launched in the United States last year, came in at $232 million for the quarter, beating a Wall Street forecast of $210 million. The company said those sales reinforce its confidence that Yeztugo will reach $1 billion in full-year sales.
Other HIV medicines also contributed materially. Quarterly sales for Descovy, an older HIV pill also used for prevention, jumped 48% to $967 million, well above analysts' expectations of $801 million. Biktarvy, another core HIV therapy, saw sales rise 7% to $3.8 billion, outpacing analyst estimates of $3.63 billion.
Gilead called out its growing pre-exposure prophylaxis, or PrEP, business as part of the momentum in its HIV portfolio. In a statement, CEO Daniel O'Day said HIV sales increased 12%, reflecting ongoing strength in treatment combined with rapid expansion of the firm's PrEP business, and that this performance supports an increase in the company's base business revenue expectations for 2026.
"HIV sales grew 12%, reflecting continued strength in treatment and the rapid expansion of our PrEP business, supporting an increase in our base business revenue expectations for 2026," Gilead CEO Daniel O'Day said.
On the therapeutic front beyond HIV, Gilead reported a 26% increase in sales of cancer drug Trodelvy to $457 million. Sales across its liver disease portfolio rose 10% to $877 million. By contrast, cell therapy product sales declined 14% to $417 million, a drop Gilead attributed to increased competition. Sales of the company's COVID-19 antiviral Veklury plunged 81% to $23 million.
For the quarter, Gilead posted an adjusted loss per share of $6.75. On average, Wall Street analysts had expected an adjusted loss of $7.24 per share. The company's GAAP net loss for the quarter was $8.45 per share.
Updating its forward view, Gilead slightly raised the lower end of its revenue outlook for the year and narrowed the range of its projected adjusted loss. The company now expects a 2026 adjusted loss of 65 cents to 30 cents per share, compared with a prior range of $1.65 to 65 cents loss. Gilead's sales guidance was also adjusted to $30.1 billion to $30.4 billion, up from a previous range of $30 billion to $30.4 billion.
In legal news related to events from over two decades ago, California's highest court ordered the dismissal of negligence claims that were tied to the company's decision more than 20 years ago to stop development of an HIV drug that had been believed at the time to offer a safety advantage relative to other options then available.
Implications for markets and sectors
- Biotech and pharmaceutical equities may be influenced by the mix of revenue beats and acquisition-related charges reflected in the results.
- Investors focused on specialty pharmaceuticals and oncology will note Trodelvy's strong growth alongside rising liver disease portfolio sales.
- The decline in cell therapy sales highlights competitive pressures in that subsector and may affect investor perceptions of competing cell therapy names.
Company commentary and outlook
Gilead's management pointed to expanding HIV treatment and prevention revenue as underpinning a firmer revenue outlook for the coming year. The company tempered reported profitability metrics by accounting for acquisition-related charges, while its adjusted results modestly exceeded analysts' expectations.
Financial and operational details from the quarter include:
- Total revenue: $7.8 billion, up 10% year over year.
- Yeztugo sales: $232 million for the quarter.
- Descovy sales: $967 million, up 48% year over year.
- Biktarvy sales: $3.8 billion, up 7% year over year.
- Liver disease portfolio sales: $877 million, up 10%.
- Cell therapy product sales: $417 million, down 14%.
- Trodelvy sales: $457 million, up 26%.
- Veklury sales: $23 million, down 81%.
- Adjusted loss per share: $6.75; consensus adjusted loss per share: $7.24.
- GAAP net loss per share: $8.45.
- Previously flagged acquisition-related charge: $9.08 per share.
Gilead's revised financial guidance narrows the expected adjusted loss range for 2026 and raises the low end of revenue expectations, signaling management's view that the company's core franchises provide a more durable revenue base despite the near-term impact of acquisition costs.
Summary
Gilead's second-quarter results combined top-line strength led by HIV, oncology and liver disease products with a quarterly net loss driven by acquisition-related charges. Management has adjusted full-year guidance to reflect the company's view of stronger underlying revenue momentum while accounting for acquisition costs in its profitability outlook.