Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)


(in millions, except per share amounts)	September 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	7,330	$	9,991
Short-term marketable debt securities	19		—
Accounts receivable, net	5,095		4,420
Inventories	1,785		1,710
Prepaid and other current assets	3,645		3,052
Total current assets	17,874		19,173
Property, plant and equipment, net	5,500		5,414
Long-term marketable debt securities	2,005		—
Intangible assets, net	17,970		19,948
Goodwill	8,314		8,314
Deferred tax assets	1,998		2,378
Other long-term assets	4,873		3,769
Total assets	$	58,533	$	58,995
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	808	$	833
Accrued rebates	4,931		3,892
Current portion of long-term debt, net	2,806		1,815
Other current liabilities	3,752		5,464
Total current liabilities	12,298		12,004
Long-term debt, net	22,135		24,896
Long-term income taxes payable	866		830
Deferred tax liabilities	597		724
Other long-term liabilities	1,182		1,295
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock, par value $0.001 per share; 5 shares authorized; none outstanding	—		—
Common stock, par value $0.001 per share; 5,600 shares authorized; 1,242 and 1,246 shares issued and outstanding, respectively	1		1
Additional paid-in capital	8,678		7,700
Accumulated other comprehensive income	36		132
Retained earnings	12,825		11,497
Total Gilead stockholders’ equity	21,540		19,330
Noncontrolling interest	(84)		(84)
Total stockholders’ equity	21,456		19,246
Total liabilities and stockholders’ equity	$	58,533	$	58,995

See accompanying notes.

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)	2025		2024		2025		2024
Revenues:
Product sales	$	7,345	$	7,515	$	21,013	$	21,074
Royalty, contract and other revenues	424		30		505		111
Total revenues	7,769		7,545		21,518		21,185
Costs and expenses:
Cost of goods sold	1,569		1,574		4,610		4,670
Research and development expenses	1,346		1,395		4,215		4,266
Acquired in-process research and development expenses	170		505		485		4,674
In-process research and development impairments	—		1,750		190		4,180
Selling, general and administrative expenses	1,357		1,433		3,980		4,184
Total costs and expenses	4,442		6,657		13,480		21,975
Operating income (loss)	3,327		888		8,038		(790)
Interest expense	256		238		769		728
Other (income) expense, net	(569)		(306)		(449)		(41)
Income (loss) before income taxes	3,641		956		7,718		(1,477)
Income tax expense (benefit)	589		(297)		1,391		(174)
Net income (loss)	3,052		1,253		6,327		(1,303)
Net income attributable to noncontrolling interest	—		—		—		—
Net income (loss) attributable to Gilead	$	3,052	$	1,253	$	6,327	$	(1,303)

Basic earnings (loss) per share attributable to Gilead	$	2.46	$	1.00	$	5.08	$	(1.04)
Diluted earnings (loss) per share attributable to Gilead	$	2.43	$	1.00	$	5.04	$	(1.04)

Shares used in basic earnings (loss) per share attributable to Gilead calculation	1,243		1,247		1,245		1,247
Shares used in diluted earnings (loss) per share attributable to Gilead calculation	1,254		1,254		1,256		1,247

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Net income (loss):	$	3,052	$	1,253	$	6,327	$	(1,303)
Other comprehensive income (loss), net of reclassifications and taxes:
Net gain on foreign currency translation	—		54		70		38
Net gain on available-for-sale debt securities	3		—		7		5
Net gain (loss) on cash flow hedges	51		(74)		(173)		3
Other comprehensive income (loss), net	55		(20)		(96)		45
Comprehensive income (loss), net	3,107		1,233		6,232		(1,258)
Comprehensive income attributable to noncontrolling interest, net	—		—		—		—
Comprehensive income (loss) attributable to Gilead, net	$	3,107	$	1,233	$	6,232	$	(1,258)

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)


		Three Months Ended September 30, 2025
(in millions, except per share amounts)		Gilead Stockholders' Equity													Noncontrolling Interest		Total Stockholders' Equity
	Common Stock					Additional Paid-In Capital			Accumulated Other Comprehensive (Loss) Income			Retained Earnings
	Shares		Amount
Balance as of June 30, 2025		1,242		$	1		$	8,367		$	(18)		$	11,325	$	(84)	$	19,590
Net income		—		—			—			—			3,052		—		3,052
Other comprehensive income, net		—		—			—			55			—		—		55
Issuances under employee stock purchase plan		1		—			61			—			—		—		61
Issuances under equity incentive plans		4		—			34			—			—		—		34
Stock-based compensation		—		—			231			—			—		—		231
Repurchases of common stock under repurchase programs ($113.25 average price per share)		(4)		—			(16)			—			(419)		—		(435)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(1)		—			—			—			(137)		—		(137)
Dividends declared ($0.79 per share)		—		—			—			—			(995)		—		(995)
Balance as of September 30, 2025		1,242		$	1		$	8,678		$	36		$	12,825	$	(84)	$	21,456


		Nine Months Ended September 30, 2025
(in millions, except per share amounts)		Gilead Stockholders' Equity													Noncontrolling Interest		Total Stockholders' Equity
	Common Stock					Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained Earnings
	Shares		Amount
Balance as of December 31, 2024		1,246		$	1		$	7,700		$	132		$	11,497	$	(84)	$	19,246
Net income		—		—			—			—			6,327		—		6,327
Other comprehensive loss, net		—		—			—			(96)			—		—		(96)
Issuances under employee stock purchase plan		2		—			143			—			—		—		143
Issuances under equity incentive plans		13		—			233			—			—		—		233
Stock-based compensation		—		—			668			—			—		—		668
Repurchases of common stock under repurchase programs ($106.13 average price per share)		(16)		—			(66)			—			(1,626)		—		(1,692)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(3)		—			—			—			(378)		—		(378)
Dividends declared ($2.37 per share)		—		—			—			—			(2,996)		—		(2,996)
Balance as of September 30, 2025		1,242		$	1		$	8,678		$	36		$	12,825	$	(84)	$	21,456

See accompanying notes.


		Three Months Ended September 30, 2024
(in millions, except per share amounts)		Gilead Stockholders' Equity													Noncontrolling Interest		Total Stockholders' Equity
	Common Stock					Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained Earnings
	Shares		Amount
Balance as of June 30, 2024		1,246		$	1		$	7,022		$	93		$	11,165	$	(84)	$	18,197
Net income		—		—			—			—			1,253		—		1,253
Other comprehensive loss, net		—		—			—			(20)			—		—		(20)
Issuances under employee stock purchase plan		1		—			58			—			—		—		58
Issuances under equity incentive plans		4		—			45			—			—		—		45
Stock-based compensation		—		—			216			—			—		—		216
Repurchases of common stock under repurchase programs ($76.30 average price per share)		(4)		—			(15)			—			(285)		—		(300)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(1)		—			—			—			(82)		—		(82)
Dividends declared ($0.77 per share)		—		—			—			—			(977)		—		(977)
Balance as of September 30, 2024		1,246		$	1		$	7,327		$	73		$	11,073	$	(84)	$	18,390


		Nine Months Ended September 30, 2024
(in millions, except per share amounts)		Gilead Stockholders' Equity													Noncontrolling Interest		Total Stockholders' Equity
	Common Stock					Additional Paid-In Capital			Accumulated Other Comprehensive Income			Retained Earnings
	Shares		Amount
Balance as of December 31, 2023		1,246		$	1		$	6,500		$	28		$	16,304	$	(84)	$	22,749
Net loss		—		—			—			—			(1,303)		—		(1,303)
Other comprehensive income, net		—		—			—			45			—		—		45
Issuances under employee stock purchase plan		2		—			139			—			—		—		139
Issuances under equity incentive plans		12		—			115			—			—		—		115
Stock-based compensation		—		—			613			—			—		—		613
Repurchases of common stock under repurchase programs ($75.23 average price per share)		(11)		—			(40)			—			(760)		—		(800)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(3)		—			—			—			(232)		—		(232)
Dividends declared ($2.31 per share)		—		—			—			—			(2,935)		—		(2,935)
Balance as of September 30, 2024		1,246		$	1		$	7,327		$	73		$	11,073	$	(84)	$	18,390

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Nine Months Ended
	September 30,
(in millions)	2025		2024
Operating Activities:
Net income (loss)	$	6,327	$	(1,303)
Adjustments to reconcile Net income (loss) to Net cash provided by operating activities:
Depreciation expense	280		286
Amortization expense	1,793		1,788
Stock-based compensation expense	664		613
Deferred income taxes	282		(1,465)
Net (gain) loss from equity securities	(198)		148
Acquired in-process research and development expenses	485		4,674
In-process research and development impairments	190		4,180
Other, net	213		294
Changes in operating assets and liabilities:
Accounts receivable, net	(546)		67
Inventories	(913)		(200)
Prepaid expenses and other	(275)		(113)
Accounts payable	(37)		348
Income tax assets and liabilities, net	(1,974)		(1,268)
Accrued and other liabilities	401		(197)
Net cash provided by operating activities	6,692		7,853
Investing Activities:
Purchases of marketable debt securities	(2,557)		(244)
Proceeds from sales of marketable debt securities	514		2,265
Proceeds from maturities of marketable debt securities	32		327
Acquisitions, including in-process research and development, net of cash acquired	(461)		(4,765)
Purchases of equity securities	(119)		(453)
Purchases of property, plant and equipment	(358)		(376)
Other investing activities, net	(9)		23
Net cash used in investing activities	(2,958)		(3,224)
Financing Activities:
Proceeds from issuances of common stock	376		249
Repurchases of common stock under repurchase programs	(1,692)		(800)
Repayments of debt and other obligations	(1,780)		(1,963)
Payments of dividends	(3,009)		(2,945)
Other financing activities, net	(377)		(234)
Net cash used in financing activities	(6,482)		(5,693)
Effect of exchange rate changes on cash and cash equivalents	87		15
Net change in cash and cash equivalents	(2,661)		(1,049)
Cash and cash equivalents at beginning of period	9,991		6,085
Cash and cash equivalents at end of period	$	7,330	$	5,037

See accompanying notes.

GILEAD SCIENCES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

The accompanying Condensed Consolidated Financial Statements and related Notes to Condensed Consolidated Financial Statements of Gilead Sciences, Inc. (“Gilead,” “we,” “our” or “us”) should be read in conjunction with the audited Consolidated Financial Statements and the related notes thereto for the year ended December 31, 2024, included in our Annual Report on Form 10-K filed with U.S. Securities and Exchange Commission. There have been no material changes to the summary of our business or significant accounting policies as disclosed in that filing.

These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and include all adjustments consisting of normal recurring adjustments that the management of Gilead believes are necessary for a fair presentation of the periods presented and are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. We have evaluated subsequent events through the report issuance date and determined that there are no further events or transactions to be disclosed other than those already disclosed elsewhere in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

Certain amounts and percentages in these Condensed Consolidated Financial Statements and accompanying notes may not sum or recalculate due to rounding.

2. REVENUES

Disaggregation of Revenues

The following table summarizes our Total revenues:


	Three Months Ended September 30, 2025								Three Months Ended September 30, 2024
(in millions)	U.S.		Europe		Rest of World		Total		U.S.		Europe		Rest of World		Total
Product sales:
HIV
Biktarvy	$	2,940	$	427	$	320	$	3,686	$	2,826	$	375	$	272	$	3,472
Descovy	652		23		25		701		534		24		28		586
Genvoya	323		34		19		377		384		44		21		449
Odefsey	206		61		10		277		248		69		9		326
Symtuza - Revenue share(1)	95		26		3		124		103		33		3		139
Other HIV(2)	82		22		9		112		65		26		9		100
Total HIV	4,299		592		386		5,277		4,161		570		342		5,073

Liver Disease
Sofosbuvir/Velpatasvir(3)	146		65		97		309		222		67		96		385
Vemlidy	136		12		132		280		126		11		95		232
Other Liver Disease(4)	132		81		17		231		45		54		17		116
Total Liver Disease	414		158		247		819		393		132		207		733

Veklury	140		43		93		277		393		81		219		692

Oncology
Cell Therapy
Tecartus	40		35		8		83		63		29		6		98
Yescarta	123		151		75		349		145		182		60		387
Total Cell Therapy	163		186		83		432		208		211		66		485

Trodelvy	221		89		47		357		226		80		26		332
Total Oncology	384		275		129		788		433		291		92		816

Other
AmBisome	2		69		52		123		6		71		52		130
Other(5)	34		7		20		61		47		8		16		71
Total Other	36		76		72		184		53		80		68		201
Total product sales	5,274		1,144		928		7,345		5,433		1,154		928		7,515
Royalty, contract and other revenues	7		411		5		424		17		13		1		30
Total revenues	$	5,281	$	1,555	$	933	$	7,769	$	5,450	$	1,167	$	929	$	7,545


	Nine Months Ended September 30, 2025								Nine Months Ended September 30, 2024
(in millions)	U.S.		Europe		Rest of World		Total		U.S.		Europe		Rest of World		Total
Product sales:
HIV
Biktarvy	$	8,212	$	1,231	$	922	$	10,366	$	7,726	$	1,110	$	814	$	9,649
Descovy	1,791		67		81		1,939		1,339		75		82		1,496
Genvoya	950		114		54		1,118		1,088		138		66		1,292
Odefsey	642		184		30		857		705		217		30		952
Symtuza - Revenue share(1)	265		88		9		362		338		101		9		448
Other HIV(2)	198		85		28		310		190		96		36		322
Total HIV	12,059		1,769		1,124		14,952		11,386		1,737		1,038		14,160

Liver Disease
Sofosbuvir/Velpatasvir(3)	497		227		273		996		737		230		299		1,266
Vemlidy	358		36		389		783		338		33		328		699
Other Liver Disease(4)	307		233		53		593		134		148		55		337
Total Liver Disease	1,162		496		714		2,372		1,210		411		682		2,302

Veklury	390		84		225		700		784		204		473		1,461

Oncology
Cell Therapy
Tecartus	122		107		25		254		181		102		22		305
Yescarta	444		455		228		1,127		502		509		170		1,181
Total Cell Therapy	566		562		253		1,381		683		611		192		1,485

Trodelvy	626		259		128		1,013		655		217		88		960
Total Oncology	1,192		821		381		2,395		1,338		828		280		2,446

Other
AmBisome	15		201		175		391		37		210		176		424
Other(5)	125		23		55		204		203		26		52		281
Total Other	140		225		230		594		241		236		228		705
Total product sales	14,943		3,395		2,674		21,013		14,958		3,416		2,700		21,074
Royalty, contract and other revenues	57		433		16		505		66		43		2		111
Total revenues	$	15,000	$	3,828	$	2,690	$	21,518	$	15,024	$	3,459	$	2,703	$	21,185

(1) Represents our revenue from cobicistat (“C”), emtricitabine (“FTC”) and tenofovir alafenamide (“TAF”) in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company (“Janssen Ireland”).

(2) Includes Atripla, Complera/Eviplera, Emtriva, Stribild, Sunlenca, Truvada, Tybost and Yeztugo/Yeytuo.

(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, Hepsera, Livdelzi/Lyvdelzi, Sovaldi, Viread and Vosevi.

(5) Includes Cayston, Jyseleca, Letairis and Zydelig.

Revenues Recognized from Performance Obligations Satisfied in Prior Years

The following table summarizes revenues recognized from performance obligations satisfied in prior years:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Revenue share with Janssen Ireland and royalties for licenses of intellectual property	$	148	$	173	$	458	$	545
Changes in estimates(1)	$	497	$	146	$	837	$	388

(1) Changes in estimates increased during the three and nine months ended September 30, 2025 primarily due to recognition of $400 million of previously constrained revenues from the sale of certain intellectual property.

Contract Balances

The following table summarizes our contract balances:


(in millions)	September 30, 2025		December 31, 2024
Contract assets(1)	$	695	$	277
Contract liabilities(2)	$	56	$	58

(1) The increase in contract assets during the nine months ended September 30, 2025 primarily related to recognition of $400 million of previously constrained revenues from the sale of certain intellectual property.

(2) Future revenues recognized from contract liabilities are not expected to be material in any one year.

3. FAIR VALUE MEASUREMENTS

Recurring Fair Value Measurements

The following table summarizes the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy:


	September 30, 2025								December 31, 2024
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale debt securities:
U.S. treasury securities	$	757	$	—	$	—	$	757	$	—	$	—	$	—	$	—
U.S. government agencies securities	—		5		—		5		—		—		—		—


Corporate debt securities	—		963		—		963		—		—		—		—
Residential mortgage and asset-backed securities	—		300		—		300		—		—		—		—
Equity securities:
Money market funds	5,745		—		—		5,745		8,502		—		—		8,502
Publicly traded equity securities(1)	1,804		—		—		1,804		1,561		—		—		1,561
Deferred compensation plan	401		—		—		401		343		—		—		343
Foreign currency derivative contracts	—		31		—		31		—		128		—		128
Total	$	8,707	$	1,298	$	—	$	10,005	$	10,405	$	128	$	—	$	10,533
Liabilities:
Contingent consideration liability	$	—	$	—	$	274	$	274	$	—	$	—	$	206	$	206
Deferred compensation plan	401		—		—		401		343		—		—		343
Foreign currency derivative contracts	—		92		—		92		—		3		—		3
Total	$	401	$	92	$	274	$	767	$	343	$	3	$	206	$	552

(1) Publicly traded equity securities include our investment in Galapagos NV (“Galapagos”) of $570 million and Assembly Biosciences, Inc. (“Assembly”) of $115 million as of September 30, 2025, which are subject to contractual sale restrictions. Our investment in Assembly is restricted until October 2025, and our investment in Galapagos is restricted until December 2025. For additional details on Galapagos, see Note 6. Acquisitions, Collaborations and Other Arrangements.

Level 2 Inputs

Available-for-Sale Debt Securities

For our available-for-sale debt securities, we estimate the fair values by reviewing trading activity and pricing as of the measurement date and by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate the fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs.

Foreign Currency Derivative Contracts

Our foreign currency derivative contracts have maturities of 18 months or less and all are with counterparties that have a minimum credit rating of A- or equivalent by S&P Global Ratings, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. We estimate the fair values of these contracts by utilizing an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include foreign currency exchange rates, Secured Overnight Financing Rate (“SOFR”) and swap rates. These inputs, where applicable, are observable at commonly quoted intervals.

Level 3 Inputs

Contingent Consideration Liability

In connection with our first quarter 2021 acquisition of MYR GmbH, we are subject to a potential contingent consideration payment of up to €300 million, subject to customary adjustments, which is revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of bulevirtide until the related contingency is resolved.

The following table summarizes the change in fair value of our contingent consideration liability:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Beginning balance	$	271	$	208	$	206	$	228
Changes in valuation assumptions(1)	4		5		41		(6)
Effect of foreign exchange remeasurement(2)	—		9		27		1
Ending balance(3)	$	274	$	222	$	274	$	222

(1) Included in Research and development expenses on our Condensed Consolidated Statements of Operations. The changes for the nine months ended September 30, 2025 primarily related to changes in assumptions around probability.

(2) Included in Other (income) expense, net on our Condensed Consolidated Statements of Operations.

(3) Included in Other current liabilities and Other long-term liabilities on our Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively.

Fair Value Level Transfers

There were no transfers between Level 1, Level 2 and Level 3 in the periods presented.

Nonrecurring Fair Value Measurements

During the nine months ended September 30, 2025, we recorded a partial impairment charge of $190 million, and during the three and nine months ended September 30, 2024, we recorded partial impairment charges of $1.8 billion and $4.2 billion, respectively, related to certain acquired in-process research and development (“IPR&D”) assets. See Note 7. Intangible Assets for additional information.

Other Fair Value Disclosures

Senior Unsecured Notes

The following table summarizes the total estimated fair value and carrying value of our senior unsecured notes, determined using Level 2 inputs based on their quoted market values:


(in millions)	September 30, 2025		December 31, 2024
Fair value	$	22,398	$	23,335
Carrying value	$	23,823	$	25,562

Liability Related to Future Royalties

We recorded a liability related to future royalties as part of our 2020 acquisition of Immunomedics, Inc., which is subsequently amortized using the effective interest method over the remaining estimated life. The fair value of the liability related to future royalties, determined using Level 3 inputs, was approximately $1.0 billion and $0.9 billion as of September 30, 2025 and December 31, 2024, respectively, and the carrying value was $1.1 billion as of September 30, 2025 and December 31, 2024.

4. AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES

Available-for-Sale Debt Securities

The following table summarizes our available-for-sale debt securities:


	September 30, 2025
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. treasury securities	$	755	$	2	$	—	$	757
U.S. government agencies securities	5		—		—		5
Corporate debt securities	956		6		—		963
Residential mortgage and asset-backed securities	298		1		—		300
Total	$	2,014	$	10	$	—	$	2,024

There were no available-for-sale debt securities balances as of December 31, 2024.

No allowance for credit losses was recognized for investments with unrealized losses as of September 30, 2025 as the unrealized losses were primarily driven by broader change in interest rates with no adverse conditions identified that would prevent the issuer from making scheduled principal and interest payments. We do not currently intend to sell, and it is not more likely than not that we will be required to sell, such investments before recovery of their amortized cost bases.

The following table summarizes the classification of our available-for-sale debt securities on our Condensed Consolidated Balance Sheets:


(in millions)	September 30, 2025
Short-term marketable debt securities	$	19
Long-term marketable debt securities	2,005
Total	$	2,024

The following table summarizes our available-for-sale debt securities by contractual maturity:


	September 30, 2025
(in millions)	Amortized Cost		Fair Value
Within one year	$	19	$	19
After one year through five years	1,984		1,993
After five years through ten years	11		11
After ten years	—		—
Total	$	2,014	$	2,024

Equity Securities

The following table summarizes the classification of our equity securities on our Condensed Consolidated Balance Sheets, including certain equity method investments for which we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments:


(in millions)	September 30, 2025		December 31, 2024
Equity securities measured at fair value:
Cash and cash equivalents	$	5,745	$	8,502
Prepaid and other current assets:
Equity method investment in Galapagos – fair value option	570		462
Equity method investment in Arcus Biosciences, Inc. (“Arcus”) – fair value option	427		448
Other equity method investments – fair value option(1)	143		53
Other	686		614
Other long-term assets	380		327
Equity method investments and other equity investments without readily determinable fair values:
Other long-term assets(2)	393		386
Total	$	8,344	$	10,791

(1) Mostly comprised of our equity interest in Assembly, which was approximately 27% of outstanding Assembly stock at the time of our latest purchase of shares.

(2) Mostly comprised of equity interests in certain collaboration partners and investment funds that are considered to be variable interest entities (“VIEs”) for which we are not the primary beneficiary. Our maximum exposure to loss as a result of our involvement in these VIEs is limited to the value of our investment.

The following table summarizes net unrealized gains and losses related to equity securities still held as of the respective ending balance sheet dates for the periods below, included in Other (income) expense, net on our Condensed Consolidated Statements of Operations:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Unrealized (gain) loss, net, related to fair value option investments	$	(312)	$	(68)	$	(108)	$	341
Unrealized gain, net, related to all other equity investments	(182)		(188)		(93)		(186)
Total unrealized (gain) loss, net	$	(494)	$	(257)	$	(201)	$	155

5. DERIVATIVE FINANCIAL INSTRUMENTS

Our operations in foreign countries expose us to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies, primarily the Euro. To manage this risk, we hedge a portion of our foreign currency exposures related to outstanding monetary assets and liabilities as well as forecasted product sales using foreign currency exchange forward contracts. In general, the market risk related to our operations is offset by corresponding gains and losses from our derivative instruments. By working only with major banks and closely monitoring current market conditions, we seek to limit the credit risk that counterparties to these contracts may be unable to perform. We enter into contracts that permit net settlement at maturity. In addition, our overall risk of loss in the event of counterparty default is limited to the amount of any net unrealized gains on outstanding contracts (i.e., including the impact of offsetting unrealized losses). We do not enter into derivative contracts for trading purposes.

The derivative instruments we use to hedge our exposures for certain monetary assets and liabilities that are denominated in a non-functional currency are not designated as hedges. The derivative instruments we use to hedge our exposures for forecasted product sales are designated as cash flow hedges and have maturities of 18 months or less.

We held foreign currency exchange contracts with outstanding notional amounts of $3.3 billion and $2.9 billion as of September 30, 2025 and December 31, 2024, respectively.

While all our derivative contracts allow us the right to offset assets and liabilities, we have presented amounts on our Condensed Consolidated Balance Sheets on a gross basis. Further, our contracts generally do not require financial collateral. The following table summarizes the classification and fair values of derivative instruments, including the potential effect of offsetting:


	September 30, 2025
(in millions)	Prepaid and other current assets		Other long-term assets		Total Derivative Assets		Other current liabilities		Other long-term liabilities		Total Derivative Liabilities
Foreign currency exchange contracts designated as hedges	$	10	$	2	$	12	$	84	$	2	$	85
Foreign currency exchange contracts not designated as hedges	19		—		19		6		—		6
Total derivatives presented gross on the Condensed Consolidated Balance Sheets					$	31					$	92
Total derivatives not offset on the Condensed Consolidated Balance Sheets					(29)						(29)
Net amount (legal offset)					$	2					$	63


	December 31, 2024
(in millions)	Prepaid and other current assets		Other long-term assets		Total Derivative Assets		Other current liabilities		Other long-term liabilities		Total Derivative Liabilities
Foreign currency exchange contracts designated as hedges	$	90	$	10	$	100	$	—	$	—	$	—
Foreign currency exchange contracts not designated as hedges	28		—		28		3		—		3
Total derivatives presented gross on the Condensed Consolidated Balance Sheets					$	128					$	3
Total derivatives not offset on the Condensed Consolidated Balance Sheets					(3)						(3)
Net amount (legal offset)					$	125					$	—

The following table summarizes the effect of our derivative contracts on our Condensed Consolidated Financial Statements:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Derivatives designated as hedges:
Net gain (loss) recognized in Accumulated other comprehensive income	$	44	$	(70)	$	(172)	$	23
Net (loss) gain reclassified from Accumulated other comprehensive income into Product sales	$	(15)	$	14	$	25	$	19
Derivatives not designated as hedges:
Net gain (loss) recognized in Other (income) expense, net	$	22	$	(2)	$	(6)	$	51

Approximately $81 million of net gains related to the hedged forecasted transactions reported in Accumulated other comprehensive income as of September 30, 2025 are expected to be reclassified to Product sales within 12 months. There were no discontinuances of cash flow hedges for the three and nine months ended September 30, 2025 and 2024.

The cash flow effects of our derivative contracts for the three and nine months ended September 30, 2025 and 2024 were included within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows.

6. ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS

We enter into acquisitions, licensing and strategic collaborations and other similar arrangements with third parties for the research, development and commercialization of certain products and product candidates. The collaborations involve two or more parties who are active participants in the operating activities of the collaboration and are exposed to significant risks and rewards depending on the commercial success of the activities. The financial terms of these arrangements may include non-refundable upfront payments, expense reimbursements, payments by us for options to acquire certain rights, contingent obligations by us for potential development and regulatory milestone payments and/or sales-based milestone payments, royalty payments, revenue or profit-sharing arrangements, cost-sharing arrangements and equity investments.

Acquisitions

Interius

In October 2025, we closed an agreement to acquire all outstanding shares of Interius BioTherapeutics, Inc. (“Interius”), a privately held biotechnology company developing in vivo chimeric antigen receptor therapeutics, for approximately $350 million in cash consideration. As a result, Interius became our wholly-owned subsidiary.

CymaBay

In March 2024, we completed the acquisition of CymaBay Therapeutics, Inc. (“CymaBay”) for total consideration of $3.9 billion, net of cash acquired. Upon closing, CymaBay became our wholly-owned subsidiary.

We accounted for this transaction as an asset acquisition since the lead asset, seladelpar, an investigational, oral, peroxisome proliferator-activated receptor delta agonist shown to regulate critical metabolic and liver disease pathways, represented substantially all of the fair value of the gross assets acquired. During the three months ended March 31, 2024, we recorded a $3.9 billion charge, representing an acquired IPR&D asset with no alternative future use, to Acquired in-process research and development expenses, as well as share-based compensation expense of $133 million related to the cash settlement of unvested CymaBay employee stock awards attributable to post-acquisition services, with $67 million being recorded in Research and development expenses and $67 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.

In July 2024, we paid $320 million to Janssen Pharmaceutica NV to extinguish a future royalty obligation related to seladelpar, which was recorded to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations for the three months ended September 30, 2024.

In August 2024, FDA granted accelerated approval for Livdelzi (seladelpar) for the treatment of primary biliary cholangitis in combination with ursodeoxycholic acid (“UDCA”) in adults who have had an inadequate response to UDCA, or as monotherapy in patients unable to tolerate UDCA.

Collaborations and Other Arrangements

Galapagos

In January 2025, we agreed to amend our option, license and collaboration agreement with Galapagos (the “OLCA”) commensurate with Galapagos’ announcement for a possible separation of Galapagos into two entities: a newly to be formed company (to be named at a later date, herein “SpinCo”) with an initial capital allocation of up to approximately €2.45 billion (approximately $2.54 billion as of the time of announcement) and Galapagos. At the time of separation, should it occur, Galapagos’ and our rights and responsibilities under the OLCA would transfer to SpinCo, and Galapagos would gain full global development and commercialization rights to its pipeline, subject to payment of single digit royalties to Gilead on net sales of certain products. As a result of the amendment, Gilead’s ownership stake in Galapagos is subject to lock-up until December 2025, and upon separation, should it occur, Gilead would hold approximately 25% of the outstanding shares in both Galapagos and SpinCo and would be subject to a lock-up of Galapagos shares through March 2027 and of SpinCo shares until six months after the separation, subject to certain customary exceptions and early termination provisions. The two Gilead designees appointed to Galapagos’ board of directors would step down upon the separation, should it occur, and Gilead would be entitled to nominate two directors to SpinCo’s board. Either party has the right to terminate the amendment if certain conditions for the separation have not been met by December 31, 2025.

In May 2025, Galapagos announced that it decided to re-evaluate the previously proposed separation.

LEO Pharma

In January 2025, we entered into a strategic partnership with LEO Pharma A/S (“LEO Pharma”) to accelerate the development and commercialization of LEO Pharma’s small molecule oral signal transducer and activator of transcription 6 (“STAT6”) programs for the potential treatment of patients with inflammatory diseases. Gilead will have global rights to develop, manufacture, and commercialize the small molecule oral STAT6 program. LEO Pharma will have the option to potentially co-commercialize oral programs for dermatology outside the U.S. LEO Pharma will hold exclusive global rights to STAT6 topical formulations in dermatology. Upon closing of the agreement, we made a $250 million upfront payment to LEO Pharma which was charged to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations. In addition, LEO Pharma is eligible to receive up to approximately $1.5 billion in additional milestone payments and may also receive tiered royalties on sales of oral STAT6 products.

Arcus

In January 2024, we amended our collaboration agreement with Arcus whereby we acquired approximately 15.2 million additional shares of Arcus common stock at a premium for $320 million. We recorded $233 million for the fair value of the equity investment in Prepaid and other current assets on our Condensed Consolidated Balance Sheets and $87 million for the premium in Other (income) expense, net on our Condensed Consolidated Statements of Operations. As part of the January 2024 amendment, we committed to a $100 million continuation fee, which was charged to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations and paid later in 2024. Our number of designees on Arcus’ board of directors was also increased to three. As of September 30, 2025, we held 31.4 million shares, or approximately 30% of the issued and outstanding voting stock of Arcus at the time of our latest purchase of shares.

7. INTANGIBLE ASSETS

The following table summarizes our Intangible assets, net:


	September 30, 2025								December 31, 2024
(in millions)	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation Adjustment		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation Adjustment		Net Carrying Amount
Finite-lived assets:
Intangible asset – sofosbuvir	$	10,720	$	(8,273)	$	—	$	2,447	$	10,720	$	(7,749)	$	—	$	2,971
Intangible asset – axicabtagene ciloleucel	7,110		(3,026)		—		4,084		7,110		(2,721)		—		4,389
Intangible asset – Trodelvy	11,730		(3,894)		—		7,836		11,730		(3,083)		—		8,647
Intangible asset – Hepcludex	845		(394)		—		451		845		(329)		—		516
Other	1,479		(1,028)		—		451		1,474		(940)		1		535
Total finite-lived assets	31,884		(16,614)		—		15,270		31,879		(14,822)		1		17,058
Indefinite-lived assets – IPR&D(1)	2,700		—		—		2,700		2,890		—		—		2,890
Total intangible assets	$	34,584	$	(16,614)	$	—	$	17,970	$	34,769	$	(14,822)	$	1	$	19,948

(1) The Indefinite-lived assets – IPR&D balance as of September 30, 2025 was comprised of $1.75 billion related to sacituzumab govitecan-hziy (“SG”) for non-small cell lung cancer (“NSCLC”) and $950 million related to bulevirtide. See “2025 Impairment” below for 2025 activity.

Impairment Assessments

No indicators of impairment were noted for the three and nine months ended September 30, 2025 and 2024, except as described in “2025 Impairment” and “2024 Impairments” below.

2025 Impairment

During the three months ended June 30, 2025, additional competitive clinical data became available indicating a potentially more competitive market for bulevirtide where it is not yet approved. Based on our evaluation of the data, and in connection with the preparation of the financial statements for the second quarter of 2025, we performed an interim impairment test and determined that the revised estimated fair value of the bulevirtide IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $190 million in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended June 30, 2025.

To arrive at the revised estimated fair value as of June 30, 2025, we used a probability-weighted income approach that discounts expected future cash flows to present value, which requires the use of Level 3 fair value measurements and inputs, including critical estimated inputs, such as: revenues and operating profits related to the planned utilization of bulevirtide outside of the European Union (“EU”), which includes inputs such as addressable patient population, projected market share, treatment duration, and the life of the potential commercialized product; the probability of technical and regulatory success; the time and resources needed to complete the development and approval of bulevirtide outside of the EU; an appropriate discount rate based on the estimated weighted-average cost of capital for companies with profiles similar to our profile; and risks related to the viability of and potential alternative treatments in any future target markets. We used a discount rate of 8.25% which is based on the estimated weighted-average cost of capital for companies with profiles similar to ours.

2024 Impairments

In January 2024, we received data from our Phase 3 EVOKE-01 study of Trodelvy evaluating SG indicating that the study did not meet its primary endpoint of overall survival in previously treated metastatic NSCLC, thus triggering a review for potential impairment of the NSCLC IPR&D intangible asset. Based on our evaluation of the study results and all other data available at the time, and in connection with the preparation of the financial statements for the first quarter of 2024, we performed an interim impairment test and determined that the revised estimated fair value of the NSCLC IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $2.4 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended March 31, 2024.

In September 2024, based on discussions with regulators and external opinion leaders and the completed evaluation of the Phase 3 EVOKE-01 study data, we made a strategic decision to discontinue our clinical development program in metastatic NSCLC for Trodelvy in the second-line indication. This decision triggered a review for potential impairment of the NSCLC IPR&D intangible asset. Based on our evaluation, and in connection with the preparation of the financial statements for the third quarter of 2024, we performed an interim impairment test and determined that the revised estimated fair value of the NSCLC IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $1.8 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended September 30, 2024.

To arrive at the revised estimated fair values as of March 31, 2024 and September 30, 2024, we used a probability-weighted income approach that discounts expected future cash flows to present value, which requires the use of Level 3 fair value measurements and inputs, including critical estimated inputs, such as: revenues and operating profits related to the planned utilization of SG in NSCLC, which includes inputs such as addressable patient population, projected market share, treatment duration, and the life of the potential commercialized product; the probability of technical and regulatory success; the time and resources needed to complete the development and approval of SG in NSCLC; an appropriate discount rate based on the estimated weighted-average cost of capital for companies with profiles similar to our profile; and risks related to the viability of and potential alternative treatments in any future target markets. We used a discount rate of 7.00% which is based on the estimated weighted-average cost of capital for companies with profiles similar to ours.

8. OTHER FINANCIAL INFORMATION

Accounts Receivable, Net

The following table summarizes our Accounts receivable, net:


(in millions)	September 30, 2025		December 31, 2024
Accounts receivable	$	5,994	$	5,319
Less: allowances for chargebacks	762		759
Less: allowances for cash discounts and other	97		89
Less: allowances for credit losses	41		52
Accounts receivable, net	$	5,095	$	4,420

As of September 30, 2025, the majority of our Accounts receivable balance arises from product sales in the U.S. and Europe and approximately 60% relates to three wholesalers—Cardinal Health, Inc., Cencora, Inc. and McKesson Corporation—and their specialty distributor affiliates.

Inventories

The following table summarizes our Inventories:


(in millions)	September 30, 2025		December 31, 2024
Raw materials	$	1,396	$	1,295
Work in process	1,341		847
Finished goods	1,650		1,447
Total	$	4,387	$	3,589
Reported as:
Inventories	$	1,785	$	1,710
Other long-term assets(1)	2,602		1,879
Total	$	4,387	$	3,589

(1) As of September 30, 2025, this amount primarily consists of raw materials and work in process.

Property, Plant and Equipment, Net

The following table summarizes our Property, plant and equipment, net:


(in millions)	September 30, 2025		December 31, 2024
Property, plant and equipment	$	8,193	$	7,884
Less: accumulated depreciation	2,693		2,470
Property, plant and equipment, net	$	5,500	$	5,414

The following table summarizes Depreciation expense:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Depreciation expense	$	90	$	94	$	280	$	286

Accumulated Other Comprehensive Income

The following tables summarize the changes in Accumulated other comprehensive income by component, net of tax:


(in millions)	Foreign Currency Translation		Available-for-Sale Debt Securities		Cash Flow Hedges		Total
Balance as of June 30, 2025	$	105	$	4	$	(127)	$	(18)
Net unrealized gain, net of income tax expense of $0, $1, and $5, respectively	—		4		38		42
(Gain) loss reclassified to net income, net of income tax expense (benefit) of $0, $0, and $(2), respectively	—		—		13		13
Other comprehensive income, net	—		3		51		55
Balance as of September 30, 2025	$	106	$	7	$	(76)	$	36


(in millions)	Foreign Currency Translation		Available-for-Sale Debt Securities		Cash Flow Hedges		Total
Balance as of December 31, 2024	$	36	$	—	$	96	$	132
Net unrealized gain (loss), net of income tax expense (benefit) of $0, $2, and $(22), respectively	70		7		(151)		(74)
Gain reclassified to net income, net of income tax expense of $0, $0, and $3, respectively	—		—		(22)		(22)
Other comprehensive income (loss), net	70		7		(173)		(96)
Balance as of September 30, 2025	$	106	$	7	$	(76)	$	36


(in millions)	Foreign Currency Translation		Available-for-Sale Debt Securities		Cash Flow Hedges		Total
Balance as of June 30, 2024	$	46	$	—	$	47	$	93
Net unrealized gain (loss), net of income tax benefit of $0, $0, and $(9), respectively	54		—		(61)		(7)
Gain reclassified to net income, net of income tax expense of $0, $0, and $2, respectively	—		—		(12)		(12)
Other comprehensive income (loss), net	54		—		(74)		(20)
Balance as of September 30, 2024	$	100	$	—	$	(27)	$	73


(in millions)	Foreign Currency Translation		Available-for-Sale Debt Securities		Cash Flow Hedges		Total
Balance as of December 31, 2023	$	62	$	(5)	$	(29)	$	28
Net unrealized gain, net of income tax expense of $0, $0, and $3, respectively	38		—		20		58
Loss (gain) reclassified to net income, net of income tax expense of $0, $0, and $2, respectively	—		5		(17)		(12)
Other comprehensive income, net	38		5		3		45
Balance as of September 30, 2024	$	100	$	—	$	(27)	$	73

The following table summarizes the reclassifications out of Accumulated other comprehensive income and into Net income (loss), including the affected line items from our Condensed Consolidated Statements of Operations:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024		Line Item Affected
Net (loss) gain related to cash flow hedges	$	(15)	$	14	$	25	$	19	Product sales
Net loss related to available-for-sale debt securities	$	—	$	—	$	—	$	5	Other (income) expense, net
Income tax (benefit) expense	$	(2)	$	2	$	3	$	2	Income tax expense (benefit)

Restructuring

During the three and nine months ended September 30, 2025 and 2024, we incurred restructuring charges primarily related to reductions in our workforce.

The following table summarizes the affected line items from our Condensed Consolidated Statements of Operations:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Research and development expenses	$	8	$	5	$	52	$	68
Selling, general and administrative expenses	5		23		49		45
Restructuring charges	$	14	$	28	$	101	$	112

As of September 30, 2025, we had a remaining liability of $52 million on our Condensed Consolidated Balance Sheets associated with restructuring charges, a majority of which we anticipate will be paid in the next 12 months.

Other (Income) Expense, Net

The following table summarizes the components of Other (income) expense, net:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
(Gain) loss from equity securities, net	$	(483)	$	(258)	$	(198)	$	148
Interest income	(88)		(52)		(254)		(196)
Other, net	1		4		3		7
Other (income) expense, net	$	(569)	$	(306)	$	(449)	$	(41)

9. DEBT AND CREDIT FACILITIES

The following table summarizes the carrying amount of our borrowings under various financing arrangements:


(in millions)				Carrying Amount
Type of Borrowing	Issue Date	Maturity Date	Interest Rate	September 30, 2025		December 31, 2024
Senior Unsecured	November 2014	February 2025	3.50%	$	—	$	1,750
Senior Unsecured	September 2015	March 2026	3.65%	2,749		2,747
Senior Unsecured	September 2016	March 2027	2.95%	1,249		1,249
Senior Unsecured	September 2020	October 2027	1.20%	749		748
Senior Unsecured	November 2024	November 2029	4.80%	747		746
Senior Unsecured	September 2020	October 2030	1.65%	996		995
Senior Unsecured	September 2023	October 2033	5.25%	994		993
Senior Unsecured	November 2024	June 2035	5.10%	991		991
Senior Unsecured	September 2015	September 2035	4.60%	994		994
Senior Unsecured	September 2016	September 2036	4.00%	744		744
Senior Unsecured	September 2020	October 2040	2.60%	989		989
Senior Unsecured	December 2011	December 2041	5.65%	997		997
Senior Unsecured	March 2014	April 2044	4.80%	1,738		1,738
Senior Unsecured	November 2014	February 2045	4.50%	1,736		1,735
Senior Unsecured	September 2015	March 2046	4.75%	2,225		2,224
Senior Unsecured	September 2016	March 2047	4.15%	1,730		1,730
Senior Unsecured	September 2020	October 2050	2.80%	1,479		1,479
Senior Unsecured	September 2023	October 2053	5.55%	989		988
Senior Unsecured	November 2024	November 2054	5.50%	989		989
Senior Unsecured	November 2024	November 2064	5.60%	739		738
Total senior unsecured notes				23,823		25,562
Liability related to future royalties				1,119		1,148
Total debt, net				24,941		26,710
Less: Current portion of long-term debt, net				2,806		1,815
Total Long-term debt, net				$	22,135	$	24,896

Senior Unsecured Notes

We are required to comply with certain covenants under our note indentures governing our senior unsecured notes. As of September 30, 2025, we were not in violation of any covenants. In February 2025, we repaid $1.75 billion of principal balance related to our senior unsecured notes due at maturity.

Revolving Credit Facility

As of September 30, 2025 and December 31, 2024, there were no amounts outstanding under our $2.5 billion revolving credit facility maturing in June 2029, and we were in compliance with all covenants.

10. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

We are a party to various legal actions. Certain significant matters are described below. We recognize accruals for such actions to the extent that we conclude that a loss is both probable and reasonably estimable. We accrue for the best estimate of a loss within a range; however, if no estimate in the range is better than any other, then we accrue the minimum amount in the range. If we determine that a material loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss. Unless otherwise noted, the outcome of these matters either is not expected to be material or is not possible to determine such that we cannot reasonably estimate the maximum potential exposure or the range of possible loss. As of September 30, 2025, we did not have any material accruals for the matters described herein. As of December 31, 2024, we had approximately $242 million of accruals on our Condensed Consolidated Balance Sheets for the matters described herein, with approximately $200 million accrued for a settlement with the U.S. Attorney’s Office for the Southern District of New York that we entered into in April 2025 and paid subsequently.

Litigation with Generic Manufacturers

As part of the approval process for some of our products, FDA granted us a New Chemical Entity (“NCE”) exclusivity period during which other manufacturers’ applications for approval of generic versions of our products will not be approved. Generic manufacturers may challenge the patents protecting products that have been granted NCE exclusivity one year prior to the end of the NCE exclusivity period. Generic manufacturers have sought and may continue to seek FDA approval for a similar or identical drug through an abbreviated new drug application (“ANDA”), the application form typically used by manufacturers seeking approval of a generic drug. The sale of generic versions of our products prior to their patent expiration would have a significant negative effect on our revenues and results of operations. To seek approval for a generic version of a product having NCE status, a generic company may submit its ANDA to FDA four years after the branded product’s approval.

Starting in March 2022, we received letters from Lupin Ltd. (“Lupin”), Laurus Labs (“Laurus”) and Cipla Ltd. (“Cipla”), indicating that they have submitted ANDAs to FDA requesting permission to market and manufacture generic versions of the adult dosage strength of Biktarvy. Lupin, Laurus and Cipla have challenged the validity of four of the six patents listed in the Orange Book as associated with Biktarvy. We filed a lawsuit against Lupin, Laurus and Cipla in May 2022 in the U.S. District Court of Delaware to enforce and defend our intellectual property. Additionally, in November 2023, we received a letter from Cipla indicating that it has submitted an ANDA to FDA requesting permission to market and manufacture a generic version of the pediatric dosage strength of Biktarvy. Cipla challenged the validity of two of the patents listed in the Orange Book as associated with Biktarvy. We filed a separate lawsuit against Cipla in December 2023 in the U.S. District Court of Delaware. This lawsuit was consolidated with the first lawsuit. In October 2025, the consolidated lawsuit was dismissed based on negotiated settlement agreements with Lupin, Laurus and Cipla. Under the agreements, which are subject to standard acceleration provisions, no generic entry by the parties for Biktarvy tablets containing bictegravir (50 mg), tenofovir alafenamide (25 mg) and emtricitabine (200 mg) is expected prior to April 1, 2036 in the United States. Additionally, no generic entry by the parties for Biktarvy tablets containing bictegravir (30 mg), tenofovir alafenamide (15 mg) and emtricitabine (120 mg) is expected in the United States prior to November 19, 2035, if pediatric exclusivity has been granted, or by May 19, 2035, if pediatric exclusivity has not been granted.

In June 2025, we received a letter from Aspiro Pharma Ltd. (“Aspiro”), indicating that it had submitted an ANDA to FDA to request permission to market and manufacture a generic version of Veklury. Aspiro challenges six of the sixteen patents listed in the Orange Book for Veklury as not valid or not infringed by Aspiro’s proposed ANDA product. In July 2025, we filed a lawsuit against Aspiro in the U.S. District Court of New Jersey. We intend to enforce and defend our intellectual property.

Antitrust and Consumer Protection

We, along with Bristol-Myers Squibb Company (“BMS”), Johnson & Johnson, Inc. (“Johnson & Johnson”) and Teva Pharmaceutical Industries Ltd. (“Teva”) have been named as defendants in class action lawsuits filed in 2019 and 2020 related to various drugs used to treat HIV, including drugs used in combination antiretroviral therapy. Plaintiffs allege that we (and the other defendants) engaged in various conduct to restrain competition in violation of federal and state antitrust laws and state consumer protection laws. The lawsuits, which have been consolidated, are pending in the U.S. District Court for the Northern District of California. The lawsuits seek to bring claims on behalf of direct purchasers consisting largely of wholesalers and indirect or end-payor purchasers, including health insurers and individual patients. Plaintiffs seek damages, permanent injunctive relief and other relief. In the second half of 2021 and first half of 2022, several plaintiffs consisting of retail pharmacies, individual health plans and United Healthcare, filed separate lawsuits effectively opting out of the class action cases, asserting claims that are substantively the same as the classes. These cases have been coordinated with the class actions. In March 2023, the District Court granted our motion to hold separate trials as to (i) the allegations against us and Teva seeking monetary damages relating to Truvada and Atripla (“Phase I”) and (ii) the allegations against us and, in part, Johnson & Johnson, seeking monetary damages and injunctive relief relating to Complera (“Phase II”). In May 2023, we settled claims with the direct purchaser class and the retailer opt-out plaintiffs for $525 million, which we paid in the second half of 2023. The settlement agreements are not an admission of liability or fault by us. In June 2023, the jury returned a complete verdict in Gilead’s favor on the remaining plaintiffs’ Phase I allegations. In November 2023, the court denied plaintiffs’ motion to set aside the verdict, and in February 2024, the court entered final judgment on the Phase I verdict and certain summary judgment rulings. In September 2024, plaintiffs filed their opening appellate briefs challenging the Phase I verdict and those summary judgment rulings. We filed our responsive briefs in January 2025. Plaintiffs filed their reply briefs in March 2025. Oral argument took place in October 2025. The court has stayed Phase II pending the appeal of Phase I. While we intend to vigorously oppose the appeal and defend against the Phase II claims, we cannot predict the ultimate outcome. If plaintiffs are successful in their appeal or Phase II claims, we could be required to pay monetary damages or could be subject to permanent injunctive relief in favor of plaintiffs.

In January 2022, we, along with BMS and Janssen Products, L.P., were named as defendants in a lawsuit filed in the Superior Court of the State of California, County of San Mateo, by Aetna, Inc. on behalf of itself and its affiliates and subsidiaries that effectively opts the Aetna plaintiffs out of the above class actions. The allegations are substantively the same as those in the class actions. The Aetna plaintiffs seek damages, permanent injunctive relief and other relief. In March 2024, the court denied our motion for judgment on the pleadings to preclude Aetna from re-litigating claims that were dismissed at summary judgment in the above class action cases. We filed a writ petition appealing the denial of our motion for judgment on the pleadings, which the appellate court denied in May 2024. In April 2024, the court granted our motion to bifurcate the case to adjudicate the issue of preclusion before litigating the merits of the case. In July 2024, Aetna filed a request to voluntarily dismiss two of its claims with prejudice, which the court subsequently granted, leaving only the claims related to Truvada and Atripla. In September 2024, Aetna filed an amended complaint with respect to these claims. In October 2024, we filed a demurrer and motion to strike plaintiff’s claims. In April 2025, the court overruled the demurrer and stated in its order that an immediate appeal is warranted. In June 2025, we filed a writ petition to the Court of Appeal, which has been fully briefed and is pending before the court. Trial has been scheduled for January 2027.

In February 2021, we, along with BMS and Teva, were named as defendants in a lawsuit filed in the First Judicial District Court for the State of New Mexico, County of Santa Fe by the New Mexico Attorney General. The New Mexico Attorney General alleges that we (and the other defendants) restrained competition in violation of New Mexico antitrust and consumer protection laws. The New Mexico Attorney General seeks damages, permanent injunctive relief and other relief. We moved to dismiss the case based on lack of personal jurisdiction and, in July 2023, the New Mexico Supreme Court remanded the case back to the trial court for limited jurisdictional discovery. In September 2025, the court dismissed the case with prejudice, resolving the lawsuit.

We intend to vigorously defend ourselves in these actions, however, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages or could be subject to permanent injunctive relief awarded in favor of plaintiffs, which may result in a material, adverse effect on our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable.

Product Liability

We have been named as a defendant in one putative class action lawsuit and various product liability lawsuits related to Viread, Truvada, Atripla, Complera and Stribild. Plaintiffs allege that Viread, Truvada, Atripla, Complera and/or Stribild caused them to experience kidney, bone and/or tooth injuries. The lawsuits, which are pending in state or federal court in California and Missouri, involve approximately 23,000 active plaintiffs. Plaintiffs in these cases seek damages and other relief on various grounds for alleged personal injury and economic loss. The first bellwether trial in California state court was scheduled to begin in October 2022 but is currently stayed pending the conclusion of appellate proceedings in the California Supreme Court. In the California federal case, Gilead agreed to make a one-time payment of approximately $39 million to a group of plaintiffs (approximately 2,470 plaintiffs). The federal court set a trial date of March 2027 for the first bellwether trial of the remaining cases. In the putative class action pending in Missouri, the court heard oral argument in August 2025 on, among other things, the plaintiffs’ motion to certify a class action, which the court has taken under advisement and will issue a decision in due course. We intend to vigorously defend ourselves in these actions, however, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages, which may result in a material, adverse effect on our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable.

Qui Tam Litigation

A former sales employee filed a qui tam lawsuit against Gilead in March 2017 in U.S. District Court for the Eastern District of Pennsylvania. Following the government’s decision not to intervene in the suit, the case was unsealed in December 2020. The lawsuit alleges that certain of Gilead’s hepatitis C virus (“HCV”) sales and marketing activities and donations to an independent charitable foundation violated the federal False Claims Act and various state false claims acts. The lawsuit seeks all available relief under these statutes. In September 2025, the court granted Gilead’s motion for summary judgment and dismissed the case. Relator has appealed the court’s ruling.

Health Choice Advocates, LLC (“Health Choice”) filed a qui tam lawsuit against Gilead in May 2020 in Texas state court. The lawsuit alleged that Gilead violated the Texas Medicare Fraud Prevention Act (“TMFPA”) through our clinical educator programs for Sovaldi and Harvoni and our HCV and HIV patient support programs. The lawsuit sought all available relief under the TMFPA. Health Choice voluntarily dismissed the case without prejudice in August 2023, and commenced a new action in October 2023, asserting largely identical allegations and claims. In the newly filed action, the Texas Attorney General has intervened as a plaintiff. Trial has been scheduled for June 2026.

We intend to vigorously defend ourselves in these actions, however, we cannot predict the ultimate outcomes. If any of these plaintiffs are successful in their claims, we could be required to pay significant monetary damages, which may result in a material, adverse effect on our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable.

Other Matters

We are a party to various legal actions that arose in the ordinary course of our business. We do not believe that it is probable or reasonably possible that these other legal actions will have a material adverse impact on our consolidated financial position, results of operations or cash flows.

11. EARNINGS (LOSS) PER SHARE

The following table shows the calculation of Basic and Diluted earnings (loss) per share attributable to Gilead:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions, except per share amounts)	2025		2024		2025		2024
Net income (loss) attributable to Gilead	$	3,052	$	1,253	$	6,327	$	(1,303)
Shares used in basic earnings (loss) per share attributable to Gilead calculation	1,243		1,247		1,245		1,247
Dilutive effect of equity-based awards	11		7		11		—
Shares used in diluted earnings (loss) per share attributable to Gilead calculation	1,254		1,254		1,256		1,247

Basic earnings (loss) per share attributable to Gilead	$	2.46	$	1.00	$	5.08	$	(1.04)
Diluted earnings (loss) per share attributable to Gilead	$	2.43	$	1.00	$	5.04	$	(1.04)

Potential shares of common stock excluded from the computation of Diluted earnings (loss) per share attributable to Gilead because their effect would have been antidilutive were 3 million and 5 million for the three and nine months ended September 30, 2025, respectively, and 7 million and 14 million for the three and nine months ended September 30, 2024, respectively.

12. INCOME TAXES

The following table summarizes our Income tax expense (benefit):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions, except percentages)	2025			2024			2025			2024
Income (loss) before income taxes	$	3,641		$	956		$	7,718		$	(1,477)
Income tax expense (benefit)	$	589		$	(297)		$	1,391		$	(174)
Effective tax rate	16.2		%	(31.1)		%	18.0		%	11.8		%

Our effective income tax rate of 16.2% for the three months ended September 30, 2025 differed from the U.S. federal statutory rate of 21% primarily due to a settlement with a tax authority, favorable changes in the fair value of our equity securities that are non-taxable for income tax purposes and a remeasurement of certain deferred tax liabilities related to acquired intangible assets.

Our effective income tax rate of 18.0% for the nine months ended September 30, 2025 differed from the U.S. federal statutory rate of 21% primarily due to tax benefits from stock-based compensation, a settlement with a tax authority and remeasurement of certain deferred tax liabilities related to acquired intangible assets.

Our effective income tax rate of (31.1)% for the three months ended September 30, 2024 differed from the U.S. federal statutory rate of 21% primarily due to a tax benefit associated with a legal entity restructuring and a decrease in state deferred tax liabilities associated with the $1.8 billion NSCLC IPR&D intangible asset impairment charge.

Our effective income tax rate of 11.8% for the nine months ended September 30, 2024 differed from the U.S. federal statutory rate of 21% primarily due to $3.9 billion of non-deductible acquired IPR&D expense recorded in connection with our acquisition of CymaBay, partially offset by a tax benefit associated with a legal entity restructuring, a decrease in state deferred tax liabilities associated with the $4.2 billion NSCLC IPR&D intangible asset impairment charge and settlements with tax authorities.

In July 2025, the U.S. enacted tax reform legislation through the One Big Beautiful Bill (“OBBB”) Act. Included in this legislation are provisions that restored immediate expensing of domestic R&D expenditures and certain capital expenditures and modified the U.S. taxation of profits derived from foreign operations. The OBBB Act had no material impact to our income tax expense for the three and nine months ended September 30, 2025.

Our income tax returns are subject to audit by federal, state and foreign tax authorities. We are currently under examination by the Internal Revenue Service for our 2019 to 2021 tax years. There are differing interpretations of tax laws and regulations, and as a result, significant disputes may arise with these tax authorities involving issues on the timing and amount of deductions and allocations of income among various tax jurisdictions. We periodically evaluate our exposures associated with our tax filing positions.

In October 2025, we reached a settlement with a tax authority related to a prior year legal entity restructuring. As a result, we anticipate recognizing approximately $450 million of income tax benefit and a corresponding $530 million reduction in our unrecognized tax benefits in the quarter ending December 31, 2025.

13. SEGMENT INFORMATION

We have one operating segment which primarily focuses on the discovery, development and commercialization of innovative medicines in areas of unmet medical need. See Note 2. Revenues for disaggregation of our revenues by major products and by geography. Our Chief Executive Officer, as the chief operating decision-maker (“CODM”), uses Net income (loss) attributable to Gilead as the primary measure to evaluate performance, review budget-to-actual results, allocate resources to the operations of our company on an entity-wide basis and forecast future financial results. Managing and allocating resources on an entity-wide basis enables our CODM to assess the overall level of resources available and how to best deploy these resources across functions and research and development (“R&D”) projects based on unmet medical need, scientific data, probability of technical and regulatory successful development, market potential and other considerations, and, as necessary, reallocate resources among our internal R&D portfolio and external opportunities to best support the long-term growth of our business. Our CODM is regularly provided with entity-wide expense categories similar to those found on our Condensed Consolidated Statements of Operations, as well as the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)	2025		2024		2025		2024
Selling and marketing expenses	$	829	$	848	$	2,446	$	2,396
General and administrative expenses	527		584		1,534		1,788
Selling, general and administrative expenses	$	1,357	$	1,433	$	3,980	$	4,184

Asset information is not regularly provided to the CODM for assessing performance and allocating resources other than consolidated cash, cash equivalents and marketable debt securities, which can be found on our Condensed Consolidated Balance Sheets.

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