Gilead Sciences 10-Q 2026-06-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission File No. 000-19731

GILEAD SCIENCES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware			94-3047598
(State or Other Jurisdiction of Incorporation or Organization)			(IRS Employer Identification No.)

333 Lakeside Drive, Foster City, California 94404

(Address of principal executive offices) (Zip Code)

650-574-3000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class						Trading Symbol(s)						Name of each exchange on which registered
Common Stock, par value, $0.001 per share						GILD						The Nasdaq Global Select Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨

Smaller reporting company ☐ 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. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No x

Number of shares outstanding of the issuer’s common stock, par value $0.001 per share, as of July 31, 2026: 1,239,955,155

GILEAD SCIENCES, INC.

INDEX

PART I.			FINANCIAL INFORMATION									3
			Item 1.			Condensed Consolidated Financial Statements						3
						Condensed Consolidated Balance Sheets						3
						Condensed Consolidated Statements of Operations						4
						Condensed Consolidated Statements of Comprehensive (Loss) Income						5
						Condensed Consolidated Statements of Stockholders’ Equity						6
						Condensed Consolidated Statements of Cash Flows						8
						Notes to Condensed Consolidated Financial Statements						9
			Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations						28
			Item 3.			Quantitative and Qualitative Disclosures About Market Risk						37
			Item 4.			Controls and Procedures						37
PART II.			OTHER INFORMATION									39
			Item 1.			Legal Proceedings						39
			Item 1A.			Risk Factors						39
			Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds						54
			Item 3.			Defaults Upon Senior Securities						54
			Item 4.			Mine Safety Disclosures						54
			Item 5.			Other Information						54
			Item 6.			Exhibits						54
SIGNATURES												58

We own or have rights to various trademarks, copyrights and trade names used in our business, including the following: GILEAD®, GILEAD SCIENCES®, KITE®, AMBISOME®, ATRIPLA®, BIKTARVY®, CAYSTON®, COMPLERA®, DESCOVY®, DESCOVY FOR PREP®, EMTRIVA®, EPCLUSA®, EVIPLERA®, GENVOYA®, HARVONI®, HEPCLUDEX®, JYSELECA®, LETAIRIS®, LIVDELZI®/LYVDELZI®, 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.

Certain amounts and percentages in this Quarterly Report on Form 10-Q may not sum or recalculate due to rounding.

This Quarterly Report on Form 10-Q, including Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A. Risk Factors, contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Words such as “ambition,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “hope,” “intend,” “may,” “might,” “outlook,” “plan,” “priority,” “project,” “seek,” “should,” “target” and variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements other than statements of historical fact are forward-looking statements, including statements regarding overall trends; operating cost, product sales and revenue trends; liquidity and capital needs; plans and expectations with respect to products, product candidates, corporate strategy, business and operations, financial projections, strategic investments and the use of capital; expectations regarding the impact of the One Big Beautiful Bill Act, changes in U.S. regulatory policies, changes in U.S. trade policies, including tariffs, and U.S. government shutdowns; collaboration and licensing arrangements; patent protection and estimated loss of exclusivity for our products and product candidates; ongoing litigation and investigation matters; and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends and similar expressions.

We have based these forward-looking statements on our current expectations about future events. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Our actual results or outcomes may differ materially from those suggested by these forward-looking statements for various reasons, including those identified in Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q. Given these risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements included in this report are made only as of the date hereof unless otherwise specified. Except as required under federal securities laws and the rules and regulations of U.S. Securities and Exchange Commission, we do not undertake, and specifically decline, any obligation to update any of these statements or to publicly announce the results of any revisions to any forward-looking statements after the distribution of this report, whether as a result of new information, future events, changes in assumptions or otherwise. In evaluating our business, you should carefully consider the risks described under Part II, Item 1A. Risk Factors of this Quarterly Report on Form 10-Q. Any of the risks contained herein could materially and adversely affect our business, results of operations and financial condition.

PART I. FINANCIAL INFORMATION

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions, except per share amounts)						June 30, 2026						December 31, 2025
Assets
Current assets:
Cash and cash equivalents						$	3,179					$	7,564
Short-term marketable debt securities						—						68
Accounts receivable, net						5,055						4,913
Inventories						1,953						1,774
Prepaid and other current assets						3,759						4,024
Total current assets						13,945						18,342
Property, plant and equipment, net						5,833						5,606
Long-term marketable debt securities						—						2,974
Intangible assets, net						14,032						16,978
Goodwill						8,314						8,314
Deferred tax assets						2,487						1,964
Other long-term assets						4,751						4,845
Total assets						$	49,362					$	59,023
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable						$	674					$	715
Accrued rebates						4,233						4,337
Current portion of long-term debt, net						2,414						2,807
Other current liabilities						3,699						3,953
Total current liabilities						11,020						11,813
Long-term debt, net						23,832						22,129
Long-term income taxes payable						943						896
Deferred tax liabilities						333						402
Other long-term liabilities						1,490						1,165
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; 1,241 shares issued and outstanding						1						1
Additional paid-in capital						9,532						8,932
Accumulated other comprehensive income						95						39
Retained earnings						2,200						13,730
Total Gilead stockholders’ equity						11,829						22,703
Noncontrolling interest						(84)						(84)
Total stockholders’ equity						11,744						22,618
Total liabilities and stockholders’ equity						$	49,362					$	59,023

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

						Three Months Ended												Six Months Ended
						June 30,												June 30,
(in millions, except per share amounts)						2026						2025						2026						2025
Revenues:
Product sales						$	7,627					$	7,054					$	14,574					$	13,668
Royalty, contract and other revenues						176						27						189						81
Total revenues						7,803						7,082						14,763						13,749
Costs and expenses:
Cost of goods sold						1,579						1,501						3,023						3,041
Research and development expenses						1,764						1,491						3,136						2,870
Acquired in-process research and development expenses						11,183						61						11,290						315
In-process research and development impairments						1,750						190						1,750						190
Selling, general and administrative expenses						1,921						1,365						3,372						2,623
Total costs and expenses						18,197						4,608						22,571						9,038
Operating (loss) income						(10,394)						2,474						(7,808)						4,711
Interest expense						247						254						487						513
Other (income) expense, net						(387)						(208)						(621)						120
(Loss) income before income taxes						(10,254)						2,429						(7,674)						4,077
Income tax expense						242						468						801						802
Net (loss) income						$	(10,496)					$	1,960					$	(8,475)					$	3,275
Basic (loss) earnings per share						$	(8.45)					$	1.57					$	(6.82)					$	2.63
Diluted (loss) earnings per share						$	(8.45)					$	1.56					$	(6.82)					$	2.61
Shares used in basic (loss) earnings per share calculation						1,243						1,245						1,243						1,246
Shares used in diluted (loss) earnings per share calculation						1,243						1,255						1,243						1,257

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(unaudited)

						Three Months Ended												Six Months Ended
						June 30,												June 30,
(in millions)						2026						2025						2026						2025
Net (loss) income						$	(10,496)					$	1,960					$	(8,475)					$	3,275
Other comprehensi

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The following discussion and analysis is intended to provide material information around events and uncertainties known to management that are relevant to an assessment of the financial condition and results of operations of Gilead and should therefore be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto and other disclosures included as part of our Annual Report on Form 10-K for the year ended December 31, 2025 and our unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and the related notes thereto and other disclosures (including the disclosures under Part II, Item 1A. Risk Factors) included in this Quarterly Report on Form 10-Q.

Management Overview

Gilead Sciences, Inc. (including its consolidated subsidiaries, referred to as “Gilead,” the “company,” “we,” “our” or “us”) 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. We are committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19 and cancer. We operate in more than 35 countries worldwide, with headquarters in Foster City, California.

Key Business Updates

The following represents a summary of notable business updates and events since the filing of our Annual Report on Form 10-K for the year ended December 31, 2025, including certain items from our press releases, which readers are encouraged to review in full as available on our website at www.gilead.com. The content on the referenced website does not constitute a part of and is not incorporated by reference into this Quarterly Report on Form 10-Q.

Virology

• Announced U.S. Food and Drug Administration (“FDA”) accepted a supplemental New Drug Application (“NDA”) submission for Yeztugo 300-mg tablet as a potential once-weekly oral formulation for HIV pre-exposure prophylaxis, with a Prescription Drug User Fee Act (“PDUFA”) target action date of February 2, 2027.

• Received FDA accelerated approval for Hepcludex for the treatment chronic hepatitis delta virus (“HDV”) infection in adults without cirrhosis or with compensated cirrhosis, which is now the first and only FDA-approved treatment for HDV in the U.S.

• Announced FDA accepted an NDA for bictegravir and lenacapavir for virologically suppressed people with HIV under priority review, with a PDUFA target action date of August 27, 2026.

Oncology

• Received a positive opinion from the European Medicines Agency’s Committee for Medicinal Products for Human Use 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).

• Received FDA approval of Trodelvy for the first-line treatment of adult patients with locally advanced or mTNBC as either a single agent for patients who are not candidates for PD-(L)1 inhibitor-based therapy or in combination with Keytruda® (pembrolizumab) or Keytruda Qlex™ (pembrolizumab and berahyaluronidase alfa-mph) for patients whose tumors express PD-L1 (CPS ≥10).

• Announced European Commission marketing authorization for Trodelvy as a monotherapy for the treatment of adult patients with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitor therapy.

• Announced the discontinuation of the Phase 3 EVOKE-03 study, in partnership with Merck & Co., Inc., evaluating Trodelvy in combination with Keytruda® for the investigational treatment of first-line metastatic non-small cell lung cancer (“NSCLC”) with high PD-L1 expression (TPS ≥50%). The decision was based on the recommendation of the external Data Monitoring Committee, following review of data from a pre-specified final analysis of progression-free survival and interim analysis of overall survival.

• Completed the acquisition of Tubulis GmbH (“Tubulis”), which brings Gilead next-generation antibody-drug conjugate (“ADC”) assets, including TUB-040, a NaPi2b-directed topoisomerase-I inhibitor ADC, and a platform to develop novel ADCs.

• Completed the acquisition of Arcellx, Inc. (“Arcellx”), which builds on an existing collaboration agreement with Arcellx for the development of anitocabtagene autoleucel (“anito-cel”) in relapsed or refractory (“R/R”) multiple myeloma (“MM”), and also adds Arcellx’s D-Domain BCMA binder that has the potential to strengthen Gilead’s portfolio in oncology and inflammation.

• Announced that the Biologics License Application for anito-cel in 4L+ R/R MM has been accepted by FDA, with a PDUFA target action date of December 23, 2026.

• Received FDA full approval for Tecartus in adult patients with R/R mantle cell lymphoma, following an accelerated approval in this setting in July 2020. The Tecartus label now includes efficacy, safety and pharmacokinetic data from Cohort 3 of the ZUMA-2 study in patients who are R/R after one or more lines of therapy and who are Bruton tyrosine kinase inhibitor-naïve.

Inflammation

• Completed the acquisition of Ouro Medicines, LLC (“Ouro Medicines”), which adds gamgertamig, a clinical stage BCMAxCD3 T cell engager for autoimmune diseases, to Gilead’s inflammation portfolio. The acquisition was completed in collaboration with Lakefront Biotherapeutics NV (“Lakefront”) (formerly known as Galapagos NV), which equally shared the upfront payment and will equally share contingent milestone payments, subject to customary adjustments.

Key Financial Results

The following table summarizes our key financial results for the period and period-over-period changes:

						Three Months Ended																		Six Months Ended
						June 30,																		June 30,
(in millions, except percentages and per share amounts)						2026						2025						Change						2026						2025						Change
Total revenues						$	7,803					$	7,082					10		%				$	14,763					$	13,749					7		%
Net (loss) income						$	(10,496)					$	1,960					NM						$	(8,475)					$	3,275					NM
Diluted (loss) earnings per share						$	(8.45)					$	1.56					NM						$	(6.82)					$	2.61					NM

---

NM - Not Meaningful

Total revenues increased 10% and 7% to $7.8 billion and $14.8 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher sales of HIV products, Trodelvy and Livdelzi, as well as higher royalty, contract and other revenues, partially offset by lower sales of Veklury as well as Cell Therapy and chronic hepatitis C virus (“HCV”) products.

Net loss was $10.5 billion and diluted loss per share was $8.45 for the three months ended June 30, 2026, compared to net income of $2.0 billion and diluted earnings per share of $1.56 for the same period in 2025. The decrease was primarily due to:

• Higher acquired in-process research and development (“IPR&D”) expenses related to our acquisitions of Arcellx, Tubulis and Ouro Medicines;

• A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics, Inc. (“Immunomedics”); and

• Higher operating expenses; partially offset by

• Higher revenues;

• Lower income tax expense; and

• Higher net gains from equity securities.

Net loss was $8.5 billion and diluted loss per share was $6.82 for the six months ended June 30, 2026, compared to net income of $3.3 billion and diluted earnings per share of $2.61 for the same period in 2025. The decrease was primarily due to:

• Higher acquired IPR&D expenses related to our acquisitions of Arcellx, Tubulis and Ouro Medicines;

• A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics; and

• Higher operating expenses; partially offset by

• Higher revenues; and

• Net gains from equity securities compared to net losses in 2025.

Please refer to “Results of Operations” below for further information on results for the three and six months ended June 30, 2026.

Results of Operations

Revenues

The following table summarizes our Total revenues and period-over-period changes:

						Three Months Ended June 30, 2026																								Three Months Ended June 30, 2025
(in millions, except percentages)						U.S.						Europe						Rest of World						Total						U.S.						Europe						Rest of World						Total						Change
Product sales:
HIV
Biktarvy						$	2,981					$	468					$	323					$	3,772					$	2,799					$	429					$	302					$	3,530					7		%
Descovy						921						23						23						967						601						24						28						653						48		%
Genvoya						236						37						16						289						322						40						16						377						(23)		%
Odefsey						171						58						10						239						221						66						11						298						(20)		%
Symtuza - Revenue share(1)						105						30						3						138						88						33						3						124						11		%
Yeztugo						223						—						9						232						15						—						—						15						NM
Other HIV(2)						23						24						10						56						50						33						9						92						(39)		%
Total HIV						4,659						640						393						5,693						4,096						624						368						5,088						12		%
Liver Disease
Livdelzi						147						20						—						167						74						4						—						78						NM
Sofosbuvir/Velpatasvir(3)						142						81						80						303						184						81						76						342						(11)		%
Vemlidy						124						13						152						289						122						13						117						252						15		%
Other Liver Disease(4)						20						79						19						118						33						72						19						123						(4)		%
Total Liver Disease						433						193						251						877						413						170						211						795						10		%
Veklury						14						2						7						23						51						19						50						121						(81)		%
Oncology
Cell Therapy
Tecartus						29						34						8						70						41						41						9						92						(24)		%
Yescarta						132						139						75						346						162						154						77						393						(12)		%
Total Cell Therapy						161						173						83						417						203						196						86						485						(14)		%
Trodelvy						307						92						57						457						224						96						44						364						26		%
Total Oncology						468						265						140						873						427						291						131						849						3		%
Other
AmBisome						4						47						59						110						7						65						56						129						(14)		%
Other(5)						22						8						21						51						44						8						21						73						(30)		%
Total Other						26						55						80						161						52						73						77						202						(20)		%
Total product sales						5,601						1,155						872						7,627						5,038						1,178						838						7,054						8		%
Royalty, contract and other revenues						2						169						4						176						13						10						4						27						NM
Total revenues						$	5,603					$	1,324					$	876					$	7,803					$	5,051					$	1,189					$	842					$	7,082					10		%

						Six Months Ended June 30, 2026																								Six Months Ended June 30, 2025
(in millions)						U.S.						Europe						Rest of World						Total						U.S.						Europe						Rest of World						Total						Change
Product sales:
HIV
Biktarvy						$	5,553					$	905					$	675					$	7,133					$	5,272					$	804					$	603					$	6,679					7		%
Descovy						1,682						46						46						1,774						1,139						45						55						1,239						43		%
Genvoya						451						70						32						553						627						79						35						741						(25)		%
Odefsey						324						117						19						461						436						123						20						579						(21)		%
Symtuza - Revenue share(1)						211						59						5						275						170						62						6						238						16		%
Yeztugo						382						—						16						397						15						—						—						15						NM
Other HIV(2)						59						51						19						129						101						63						19						183						(30)		%
Total HIV						8,663						1,248						812						10,723						7,760						1,177						738						9,675						11		%
Liver Disease
Livdelzi						261						39						—						300						114						4						—						118						NM
Sofosbuvir/Velpatasvir(3)						283						141						162						586						351						161						175						687						(15)		%
Vemlidy						215						27						284						526						222						24						257						504						4		%
Other Liver Disease(4)						35						157						40						232						61						148						35						244						(5)		%
Total Liver Disease						795						363						486						1,644						748						338						467						1,553						6		%
Veklury						126						17						25						167						250						41						132						423						(60)		%
Oncology
Cell Therapy
Tecartus						59						71						16						146						82						72						17						171						(15)		%
Yescarta						252						285						142						679						321						304						154						779						(13)		%
Total Cell Therapy						311						356						157						824						403						376						171						949						(13)		%
Trodelvy						560						187						112						859						405						171						81						657						31		%
Total Oncology						871						543						269						1,683						808						547						252						1,606						5		%
Other
AmBisome						11						106						131						248						13						132						123						268						(7)		%
Other(5)						61						16						32						109						91						16						35						143						(24)		%
Total Other						72						122						163						357						104						149						158						410						(13)		%
Total product sales						10,527						2,292						1,755						14,574						9,669						2,251						1,747						13,668						7		%
Royalty, contract and other revenues						2						177						10						189						49						21						10						81						NM
Total revenues						$	10,529					$	2,469					$	1,765					$	14,763					$	9,719					$	2,273					$	1,757					$	13,749					7		%

---

NM - Not Meaningful

(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.

(2) Includes Atripla, 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.

HIV

HIV product sales increased 12% to $5.7 billion for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to higher average realized price and demand. In particular:

• Biktarvy sales increased 7% primarily due to higher average realized price, favorable inventory dynamics and higher demand, including patients switching from Genvoya and other Gilead HIV products;

• Descovy sales increased 48% primarily due to higher average realized price and demand; and

• Yeztugo sales increased primarily due to higher demand.

HIV product sales increased 11% to $10.7 billion for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to higher demand and average realized price. In particular:

• Biktarvy sales increased 7% primarily due to higher demand, including patients switching from Genvoya and other Gilead HIV products, and average realized price;

• Descovy sales increased 43% primarily due to higher average realized price and demand; and

• Yeztugo increased primarily due to higher demand.

Liver Disease

Liver Disease product sales increased 10% and 6% to $877 million and $1.6 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand for Livdelzi, as well as chronic hepatitis B virus products and Hepcludex, partially offset by lower sales for HCV products.

Veklury

Veklury product sales decreased 81% and 60% to $23 million and $167 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower rates of COVID-19-related hospitalizations.

Oncology

Cell Therapy

Cell Therapy product sales decreased 14% and 13% to $417 million and $824 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower demand reflecting ongoing competitive headwinds.

Trodelvy

Trodelvy product sales increased 26% and 31% to $457 million and $859 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand.

Foreign Currency Exchange Impact

We generally face exposure to movements in foreign currency exchange rates, primarily in the Euro. We use foreign currency exchange contracts to hedge a portion of our foreign currency exposures.

Approximately 25% and 27% of our product sales were denominated in foreign currencies during the three months ended June 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $23 million for the three months ended June 30, 2026, based on a comparison using foreign currency exchange rates from the three months ended June 30, 2025.

Approximately 26% and 27% of our product sales were denominated in foreign currencies during the six months ended June 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $135 million for the six months ended June 30, 2026, based on a comparison using foreign currency exchange rates from the six months ended June 30, 2025.

Royalty, Contract and Other Revenues

Royalty, contract and other revenues increased to $176 million and $189 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to recognition of $156 million of previously constrained revenues from the sale of certain intellectual property.

Costs and Expenses

The following table summarizes our costs and expenses and period-over-period changes:

						Three Months Ended																		Six Months Ended
						June 30,																		June 30,
(in millions, except percentages)						2026						2025						Change						2026						2025						Change
Cost of goods sold						$	1,579					$	1,501					5		%				$	3,023					$	3,041					(1)		%
Product gross margin						79.3		%				78.7		%				58 bps						79.3		%				77.7		%				150 bps
Research and development expenses						$	1,764					$	1,491					18		%				$	3,136					$	2,870					9		%
Acquired in-process research and development expenses						$	11,183					$	61					NM						$	11,290					$	315					NM
In-process research and development impairments						$	1,750					$	190					NM						$	1,750					$	190					NM
Selling, general and administrative expenses						$	1,921					$	1,365					41		%				$	3,372					$	2,623					29		%

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NM - Not Meaningful

Product Gross Margin

Product gross margin remained relatively flat at 79.3% for the three months ended June 30, 2026, compared to the same period in 2025.

Product gross margin increased to 79.3% for the six months ended June 30, 2026, compared to the same period in 2025, primarily driven by the expiration of a royalty-related obligation.

Research and Development Expenses

Research and development expenses consist primarily of personnel costs, including salaries, benefits and stock-based compensation expense, infrastructure, materials and supplies and other support costs, research and clinical studies performed by contract research organizations and our collaboration partners and other outside services.

We manage these expenses by identifying the research and development (“R&D”) activities we expect to be performed during a given period and then prioritizing efforts based on scientific data, probability of successful technical development and regulatory approval, market potential, available human and capital resources and other considerations. We regularly review our R&D activities based on unmet medical need and, as necessary, reallocate resources among our internal R&D portfolio and external opportunities that we believe will best support the long-term growth of our business. We do not track total R&D expenses by product candidate, therapeutic area or development phase.

The following table summarizes our Research and development expenses and period-over-period changes:

						Three Months Ended																		Six Months Ended
						June 30,																		June 30,
(in millions, except percentages)						2026						2025						Change						2026						2025						Change
Personnel, infrastructure and other support costs						$	1,146					$	855					34		%				$	2,007					$	1,709					17		%
Clinical studies and other costs						618						636						(3)		%				1,128						1,160						(3)		%
Research and development expenses						$	1,764					$	1,491					18		%				$	3,136					$	2,870					9		%

Research and development expenses increased 18% and 9% to $1.8 billion and $3.1 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Personnel, infrastructure and other support costs increased primarily due to integration expenses, including $229 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. Clinical studies and other costs decreased primarily due to lower oncology clinical study activity.

Acquired In-Process Research and Development Expenses

Acquired in-process research and development expenses are recorded when incurred and reflect costs of externally-developed IPR&D projects, acquired directly in a transaction other than a business combination, that do not have an alternative future use, including upfront and pre-commercialization milestone payments related to various collaborations and the costs of rights to IPR&D projects.

Acquired in-process research and development expenses were $11.2 billion for the three months ended June 30, 2026, primarily related to the following transactions:

• $7.0 billion Arcellx acquisition;

• $3.1 billion Tubulis acquisition; and

• $1.0 billion Ouro Medicines acquisition, comprised of $1.9 billion for our acquisition of Ouro Medicines, partially offset by $860 million related to Lakefront’s share of the upfront consideration.

Acquired in-process research and development expenses were $11.3 billion for the six months ended June 30, 2026, primarily related to the same transactions as in the three months ended June 30, 2026 as well as $80 million for the Suzhou Genhouse Bio Co., Ltd. collaboration.

Acquired in-process research and development expenses were $61 million for the three months ended June 30, 2025.

Acquired in-process research and development expenses were $315 million for the six months ended June 30, 2025, primarily related to $250 million associated with the LEO Pharma A/S collaboration upfront payment.

See Note 6. Acquisitions, Collaborations and Other Arrangements of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.

In-Process Research and Development Impairment

2026 Impairment

In June 2026, we announced the discontinuation of our Phase 3 EVOKE-03 study of Trodelvy evaluating sacituzumab govitecan-hziy in combination with pembrolizumab in certain patients with previously untreated metastatic NSCLC. In consideration of this decision, and in connection with the preparation of the financial statements for the second quarter of 2026, we determined that no future cash flows were expected to be generated in relation to the NSCLC IPR&D intangible asset, and therefore, no value was attributed to the asset. As a result, we recognized an impairment charge of the remaining balance of $1.75 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended June 30, 2026.

2025 Impairment

During the three months ended June 30, 2025, additional data became available indicating a more competitive market for bulevirtide where it was 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. Our revised discounted cash flows for the June 30, 2025 fair value estimation primarily reflected the updated expectations for bulevirtide’s potential market share outside of the EU.

Selling, General and Administrative Expenses

Selling, general and administrative expenses are recorded when incurred and consist primarily of personnel costs, facilities and overhead costs, and selling, marketing and advertising expenses, as well as other general and administrative costs related to finance, human resources, legal and other administrative activities.

The following table summarizes our Selling, general and administrative expenses and period-over-period changes:

						Three Months Ended																		Six Months Ended
						June 30,																		June 30,
(in millions, except percentages)						2026						2025						Change						2026						2025						Change
Selling and marketing expenses						$	1,011					$	864					17		%				$	1,910					$	1,617					18		%
General and administrative expenses						910						501						82		%				1,463						1,006						45		%
Selling, general and administrative expenses						$	1,921					$	1,365					41		%				$	3,372					$	2,623					29		%

Selling, general and administrative expenses increased 41% and 29% to $1.9 billion and $3.4 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses, including $332 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. General and administrative expenses also increased for the six months ended June 30, 2026 due to donations of equity securities made to the Gilead Foundation.

Interest Expense and Other (Income) Expense, Net

The following table summarizes our Interest expense and Other (income) expense, net and period-over-period changes:

						Three Months Ended																		Six Months Ended
						June 30,																		June 30,
(in millions, except percentages)						2026						2025						Change						2026						2025						Change
Interest expense						$	247					$	254					(3)		%				$	487					$	513					(5)		%
Other (income) expense, net						$	(387)					$	(208)					86		%				$	(621)					$	120					NM
(Gain) loss from equity securities, net						$	(343)					$	(142)					NM						$	(485)					$	284					NM
Interest income						$	(45)					$	(73)					(37)		%				$	(140)					$	(166)					(16)		%
Other, net						$	1					$	6					(79)		%				$	3					$	2					NM

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NM - Not Meaningful

Interest expense was $247 million and remained relatively flat for the three months ended June 30, 2026, compared to the same period in 2025.

Interest expense decreased 5% to $487 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower average debt balances, partially offset by a higher weighted-average interest rate on the debt.

Favorable movements in Other (income) expense, net for the three months ended June 30, 2026, compared to the same period in 2025, primarily related to higher net gains from equity securities.

Favorable movements in Other (income) expense, net for the six months ended June 30, 2026, compared to the same period in 2025, primarily related to net gains from equity securities compared to net losses in 2025.

Income Taxes

The following table summarizes our Income tax expense and period-over-period changes:

						Three Months Ended																		Six Months Ended
						June 30,																		June 30,
(in millions, except percentages)						2026						2025						Change						2026						2025						Change
(Loss) income before income taxes						$	(10,254)					$	2,429					NM						$	(7,674)					$	4,077					NM
Income tax expense						$	242					$	468					(48)		%				$	801					$	802					—		%
Effective tax rate						(2.4)		%				19.3		%				NM						(10.4)		%				19.7		%				NM

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NM - Not Meaningful

Our effective tax rate decreased for the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to non-deductible acquired IPR&D expense in connection with our acquisitions of Arcellx, Tubulis and Ouro Medicines.

The Organisation for Economic Co-operation and Development (“OECD”) has developed a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as “Pillar Two”), with certain aspects effective January 1, 2024 and other aspects effective January 1, 2025. Certain countries in which we operate have enacted Pillar Two legislation, and other countries are in the process of introducing legislation to implement Pillar Two. In January 2026, the OECD announced additional administrative guidance, including a “side-by-side” framework intended to coordinate the application of Pillar Two with existing minimum tax regimes in certain jurisdictions. We do not expect Pillar Two, including the side-by-side framework, to have a material impact on our results of operations, liquidity or capital resources.

Liquidity and Capital Resources

We regularly analyze our ability to generate and obtain adequate amounts of cash to meet our short-term and long-term requirements and plans. Our capital priorities include: (i) investing in our business and R&D pipeline, (ii) continuing select partnerships and business development transactions, (iii) growing our dividend over time and (iv) repurchasing shares to offset dilution and opportunistically reduce share count. Based on our evaluation of our current position of liquidity, available capital resources and our material cash requirements, we believe that we can satisfy our capital needs for the next 12 months and the foreseeable future.

Liquidity

Cash and cash equivalents were $3.2 billion as of June 30, 2026. The table below summarizes our cash flow activities, followed by our analysis of changes and trends:

						Six Months Ended
						June 30,
(in millions, except percentages)						2026						2025						Change
Net cash provided by (used in):
Operating activities						$	6,117					$	2,584					NM
Investing activities						(8,577)						(2,531)						NM
Financing activities						(1,895)						(4,993)						(62)		%
Effect of exchange rate changes on cash and cash equivalents						(30)						92						NM
Net change in cash and cash equivalents						$	(4,385)					$	(4,848)					(10)		%

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NM - Not Meaningful

Operating Activities

Net cash provided by operating activities is our primary source of funds, driven mainly by collections on product sales, partially offset by operating spend. Changes in working capital balances, generally associated with the timing of collections and payments, as well as unanticipated payments related to litigation, taxes or other matters, may create some variation in any given year. Net cash provided by operating activities increased for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower income tax payments, collections on higher product sales, receipt of the Lakefront collaboration payment and lower inventory spend, partially offset by higher operating spend.

Investing Activities

The change in Net cash used in investing activities for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to payments made in 2026 related to the acquisitions of Arcellx, Tubulis and Ouro Medicines, partially offset by the liquidation of our marketable securities portfolio to fund the acquisitions, compared with cash used in 2025 to build up our marketable securities portfolio. Net cash used in investing activities may vary in any given year depending on the favorability of strategic opportunities for the business.

Financing Activities

The change in Net cash used in financing activities for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to proceeds from debt offerings in 2026, which did not occur in 2025, and lower common stock repurchases, partially offset by higher debt repayments and a contingent consideration payment made in 2026, which did not occur in 2025. See Notes 3. Fair Value Measurements and 9. Debt and Credit Facilities of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information. Net cash used in financing activities may vary in any given year depending primarily on the timing of debt repayments and proceeds from debt offerings and the amount of common stock repurchases.

In August 2026, we announced that our Board of Directors declared a quarterly dividend of $0.82 per share of our common stock, with a payment date of September 29, 2026 to all stockholders of record as of the close of business on September 15, 2026. Future dividends are subject to declaration by our Board of Directors.

Capital Resources

A summary of our capital resources and material cash requirements is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in the Liquidity section above and in Notes 4. Investments, 6. Acquisitions, Collaborations and Other Arrangements, 9. Debt and Credit Facilities, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our capital resources and material cash requirements during the six months ended June 30, 2026.

Critical Accounting Estimates

A summary of our critical accounting estimates is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in Notes 2. Revenues, 7. Intangible Assets, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting estimates during the six months ended June 30, 2026.

Information Available on Our Website

Our company website is www.gilead.com. We routinely post important information for investors in the “Investors” section of our 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 days after the end of each quarter. The content on the referenced websites does not constitute a part of and is not incorporated by reference into this Quarterly Report on Form 10-Q.