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)	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 comprehensive income (loss), net of reclassifications and taxes:
Net (loss) gain on foreign currency translation	(18)		51		(28)		69
Net gain (loss) on available-for-sale debt securities	3		4		(8)		4
Net gain (loss) on cash flow hedges	32		(166)		92		(224)
Other comprehensive income (loss), net	17		(111)		56		(150)
Comprehensive (loss) income, net	$	(10,479)	$	1,850	$	(8,419)	$	3,125

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(unaudited)


		Three Months Ended June 30, 2026
(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 March 31, 2026		1,242		$	1		$	9,305		$	78		$	14,131	$	(84)	$	23,431
Net loss		—		—			—			—			(10,496)		—		(10,496)
Other comprehensive income, net		—		—			—			17			—		—		17
Issuances under equity incentive plans		2		—			7			—			—		—		7
Stock-based compensation		—		—			232			—			—		—		232
Repurchases of common stock under repurchase programs ($131.83 average price per share)		(3)		—			(12)			—			(343)		—		(355)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		—		—			—			—			(61)		—		(61)
Dividends declared ($0.82 per share)		—		—			—			—			(1,031)		—		(1,031)
Balance as of June 30, 2026		1,241		$	1		$	9,532		$	95		$	2,200	$	(84)	$	11,744


		Six Months Ended June 30, 2026
(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, 2025		1,241		$	1		$	8,932		$	39		$	13,730	$	(84)	$	22,618
Net loss		—		—			—			—			(8,475)		—		(8,475)
Other comprehensive income, net		—		—			—			56			—		—		56
Issuances under employee stock purchase plan		1		—			86			—			—		—		86
Issuances under equity incentive plans		6		—			88			—			—		—		88
Stock-based compensation		—		—			450			—			—		—		450
Repurchases of common stock under repurchase programs ($134.34 average price per share)		(6)		—			(25)			—			(749)		—		(774)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(2)		—			—			—			(241)		—		(241)
Dividends declared ($1.64 per share)		—		—			—			—			(2,066)		—		(2,066)
Balance as of June 30, 2026		1,241		$	1		$	9,532		$	95		$	2,200	$	(84)	$	11,744

See accompanying notes.


		Three Months Ended June 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 (Loss)			Retained Earnings
	Shares		Amount
Balance as of March 31, 2025		1,245		$	1		$	8,138		$	92		$	10,931	$	(84)	$	19,078
Net income		—		—			—			—			1,960		—		1,960
Other comprehensive loss, net		—		—			—			(111)			—		—		(111)
Issuances under equity incentive plans		2		—			24			—			—		—		24
Stock-based compensation		—		—			226			—			—		—		226
Repurchases of common stock under repurchase programs ($105.88 average price per share)		(5)		—			(21)			—			(506)		—		(527)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(1)		—			—			—			(64)		—		(64)
Dividends declared ($0.79 per share)		—		—			—			—			(997)		—		(997)
Balance as of June 30, 2025		1,242		$	1		$	8,367		$	(18)		$	11,325	$	(84)	$	19,590


		Six Months Ended June 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 (Loss)			Retained Earnings
	Shares		Amount
Balance as of December 31, 2024		1,246		$	1		$	7,700		$	132		$	11,497	$	(84)	$	19,246
Net income		—		—			—			—			3,275		—		3,275
Other comprehensive loss, net		—		—			—			(150)			—		—		(150)
Issuances under employee stock purchase plan		1		—			82			—			—		—		82
Issuances under equity incentive plans		9		—			199			—			—		—		199
Stock-based compensation		—		—			436			—			—		—		436
Repurchases of common stock under repurchase programs ($103.87 average price per share)		(12)		—			(50)			—			(1,207)		—		(1,257)
Repurchases of common stock for employee tax withholding under equity incentive plans and other		(2)		—			—			—			(240)		—		(240)
Dividends declared ($1.58 per share)		—		—			—			—			(2,001)		—		(2,001)
Balance as of June 30, 2025		1,242		$	1		$	8,367		$	(18)		$	11,325	$	(84)	$	19,590

See accompanying notes.

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)


	Six Months Ended
	June 30,
(in millions)	2026		2025
Operating Activities:
Net (loss) income	$	(8,475)	$	3,275
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities:
Depreciation expense	191		190
Amortization expense	1,196		1,197
Stock-based compensation expense	449		434
Deferred income taxes	(408)		(377)
Net (gain) loss from equity securities	(485)		284
Acquired in-process research and development expenses	12,150		315
In-process research and development impairments	1,750		190
Other, net	423		124
Changes in operating assets and liabilities:
Accounts receivable, net	(199)		(213)
Inventories	(197)		(398)
Prepaid expenses and other	(8)		93
Accounts payable	(49)		(267)
Income tax assets and liabilities, net	142		(1,852)
Accrued and other liabilities	(364)		(410)
Net cash provided by operating activities	6,117		2,584
Investing Activities:
Purchases of marketable debt securities	(551)		(2,287)
Proceeds from sales of marketable debt securities	3,544		295
Proceeds from maturities of marketable debt securities	37		15
Acquisitions, including in-process research and development, net of cash acquired	(11,318)		(294)
Purchases of equity securities	(35)		(37)
Purchases of property, plant and equipment	(257)		(211)
Other investing activities, net	3		(13)
Net cash used in investing activities	(8,577)		(2,531)
Financing Activities:
Proceeds from debt financing, net of issuance costs	4,085		—
Proceeds from issuances of common stock	175		279
Repurchases of common stock under repurchase programs	(774)		(1,257)
Repayments of debt and other obligations	(2,783)		(1,771)
Payments of dividends	(2,069)		(2,004)
Other financing activities, net	(529)		(240)
Net cash used in financing activities	(1,895)		(4,993)
Effect of exchange rate changes on cash and cash equivalents	(30)		92
Net change in cash and cash equivalents	(4,385)		(4,848)
Cash and cash equivalents at beginning of period	7,564		9,991
Cash and cash equivalents at end of period	$	3,179	$	5,144

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, 2025, 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 June 30, 2026								Three Months Ended June 30, 2025
(in millions)	U.S.		Europe		Rest of World		Total		U.S.		Europe		Rest of World		Total
Product sales:
HIV
Biktarvy	$	2,981	$	468	$	323	$	3,772	$	2,799	$	429	$	302	$	3,530
Descovy	921		23		23		967		601		24		28		653
Genvoya	236		37		16		289		322		40		16		377
Odefsey	171		58		10		239		221		66		11		298
Symtuza - Revenue share(1)	105		30		3		138		88		33		3		124
Yeztugo	223		—		9		232		15		—		—		15
Other HIV(2)	23		24		10		56		50		33		9		92
Total HIV	4,659		640		393		5,693		4,096		624		368		5,088

Liver Disease
Livdelzi	147		20		—		167		74		4		—		78
Sofosbuvir/Velpatasvir(3)	142		81		80		303		184		81		76		342
Vemlidy	124		13		152		289		122		13		117		252
Other Liver Disease(4)	20		79		19		118		33		72		19		123
Total Liver Disease	433		193		251		877		413		170		211		795

Veklury	14		2		7		23		51		19		50		121

Oncology
Cell Therapy
Tecartus	29		34		8		70		41		41		9		92
Yescarta	132		139		75		346		162		154		77		393
Total Cell Therapy	161		173		83		417		203		196		86		485

Trodelvy	307		92		57		457		224		96		44		364
Total Oncology	468		265		140		873		427		291		131		849

Other
AmBisome	4		47		59		110		7		65		56		129
Other(5)	22		8		21		51		44		8		21		73
Total Other	26		55		80		161		52		73		77		202
Total product sales	5,601		1,155		872		7,627		5,038		1,178		838		7,054
Royalty, contract and other revenues	2		169		4		176		13		10		4		27
Total revenues	$	5,603	$	1,324	$	876	$	7,803	$	5,051	$	1,189	$	842	$	7,082


	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
Product sales:
HIV
Biktarvy	$	5,553	$	905	$	675	$	7,133	$	5,272	$	804	$	603	$	6,679
Descovy	1,682		46		46		1,774		1,139		45		55		1,239
Genvoya	451		70		32		553		627		79		35		741
Odefsey	324		117		19		461		436		123		20		579
Symtuza - Revenue share(1)	211		59		5		275		170		62		6		238
Yeztugo	382		—		16		397		15		—		—		15
Other HIV(2)	59		51		19		129		101		63		19		183
Total HIV	8,663		1,248		812		10,723		7,760		1,177		738		9,675

Liver Disease
Livdelzi	261		39		—		300		114		4		—		118
Sofosbuvir/Velpatasvir(3)	283		141		162		586		351		161		175		687
Vemlidy	215		27		284		526		222		24		257		504
Other Liver Disease(4)	35		157		40		232		61		148		35		244
Total Liver Disease	795		363		486		1,644		748		338		467		1,553

Veklury	126		17		25		167		250		41		132		423

Oncology
Cell Therapy
Tecartus	59		71		16		146		82		72		17		171
Yescarta	252		285		142		679		321		304		154		779
Total Cell Therapy	311		356		157		824		403		376		171		949

Trodelvy	560		187		112		859		405		171		81		657
Total Oncology	871		543		269		1,683		808		547		252		1,606

Other
AmBisome	11		106		131		248		13		132		123		268
Other(5)	61		16		32		109		91		16		35		143
Total Other	72		122		163		357		104		149		158		410
Total product sales	10,527		2,292		1,755		14,574		9,669		2,251		1,747		13,668
Royalty, contract and other revenues	2		177		10		189		49		21		10		81
Total revenues	$	10,529	$	2,469	$	1,765	$	14,763	$	9,719	$	2,273	$	1,757	$	13,749

(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 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.

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				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Revenue share with Janssen Ireland and royalties for licenses of intellectual property	$	158	$	153	$	310	$	310
Changes in estimates(1)	$	186	$	126	$	418	$	340

(1) During the three and six months ended June 30, 2026, changes in estimates included recognition of $156 million of previously constrained revenues from the sale of certain intellectual property.

Contract Balances

The following table summarizes our contract balances:


(in millions)	June 30, 2026		December 31, 2025
Contract assets(1)	$	756	$	629
Contract liabilities(2)	$	50	$	48

(1) The increase in contract assets during the six months ended June 30, 2026 primarily related to recognition of $156 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:


	June 30, 2026								December 31, 2025
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale debt securities(1):
U.S. treasury securities	$	—	$	—	$	—	$	—	$	1,224	$	—	$	—	$	1,224
U.S. government agencies securities	—		—		—		—		—		15		—		15


Corporate debt securities	—		—		—		—		—		1,398		—		1,398
Residential mortgage and asset-backed securities	—		—		—		—		—		407		—		407
Equity securities:
Money market funds	1,563		—		—		1,563		6,150		—		—		6,150
Publicly traded equity securities	1,676		—		—		1,676		1,961		—		—		1,961
Deferred compensation plan	458		—		—		458		406		—		—		406
Foreign currency derivative contracts	—		82		—		82		—		56		—		56
Total	$	3,697	$	82	$	—	$	3,779	$	9,741	$	1,875	$	—	$	11,616
Liabilities:
Contingent consideration liability	$	—	$	—	$	60	$	60	$	—	$	—	$	278	$	278
Deferred compensation plan	458		—		—		458		406		—		—		406
Foreign currency derivative contracts	—		18		—		18		—		72		—		72
Total	$	458	$	18	$	60	$	535	$	406	$	72	$	278	$	757

(1) During 2026, we sold all of our available-for-sale debt securities and used the proceeds to partially fund our acquisitions discussed in 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

MYR Contingent Consideration Liability

In connection with our first quarter 2021 acquisition of MYR GmbH (“MYR”), we were subject to a contingent consideration payment of up to €300 million, subject to customary adjustments, which we revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of bulevirtide. In May 2026, FDA granted accelerated approval of Hepcludex (bulevirtide), and we subsequently paid a majority of the contingent consideration, which was reflected in financing activities in our Condensed Consolidated Statements of Cash Flows, with the remaining amount expected to be paid during the third quarter of 2026.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Beginning balance	$	275	$	216	$	278	$	206
Changes in valuation assumptions(1)	72		35		74		37
Effect of foreign exchange remeasurement(2)	1		20		(5)		27
Payments	(288)		—		(288)		—
Ending balance(3)	$	60	$	271	$	60	$	271

(1) Included in Research and development expenses on our Condensed Consolidated Statements of Operations.

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

(3) Included in Other current liabilities on our Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025.

Fair Value Level Transfers

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

Nonrecurring Fair Value Measurements

In connection with our second quarter 2026 acquisition of Ouro Medicines, LLC (“Ouro Medicines”), we are subject to potential contingent consideration payments of up to $500 million for the achievement of certain development and regulatory milestones, for which we recorded a liability with an initial fair value of $277 million. See Note 6. Acquisitions, Collaborations and Other Arrangements for additional information.

During the three and six months ended June 30, 2026 and 2025, we recorded impairment charges of $1.75 billion and $190 million, respectively, both 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)	June 30, 2026		December 31, 2025
Fair value	$	22,262	$	22,342
Carrying value	$	24,069	$	23,827

Term Loan Facility

As of June 30, 2026, the fair value of our term loan, determined using Level 3 inputs, was approximately $1.1 billion and the carrying value was $1.1 billion.

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 $0.7 billion and $0.8 billion as of June 30, 2026 and December 31, 2025, respectively, and the carrying value was $1.1 billion as of June 30, 2026 and December 31, 2025.

4. INVESTMENTS

Available-for-Sale Debt Securities

During 2026, we sold all of our available-for-sale debt securities and used the proceeds to partially fund our acquisitions discussed in Note 6. Acquisitions, Collaborations and Other Arrangements. As such, there were no available-for-sale debt securities as of June 30, 2026.

The following table summarizes our available-for-sale debt securities as of December 31, 2025:


	December 31, 2025
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. treasury securities	$	1,222	$	3	$	—	$	1,224
U.S. government agencies securities	15		—		—		15
Corporate debt securities	1,392		7		—		1,398
Residential mortgage and asset-backed securities	405		2		—		407
Total	$	3,033	$	11	$	(1)	$	3,044

The total gross unrealized losses in the table above relate to available-for-sale debt securities, primarily corporate debt securities and U.S. treasury securities, with an estimated fair value of approximately $724 million that had been in a continuous unrealized loss position for less than 12 months as of December 31, 2025.

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)	June 30, 2026		December 31, 2025
Equity securities measured at fair value:
Cash and cash equivalents:
Money market funds	$	1,563	$	6,150
Prepaid and other current assets:
Equity method investment in Lakefront Biotherapeutics NV (“Lakefront”) (formerly known as Galapagos NV) – fair value option	500		551
Equity method investment in Arcus Biosciences, Inc. – fair value option	969		749
Other equity method investments – fair value option(1)	171		183
Other	63		499
Other long-term assets	431		386
Equity method investments and other equity securities without readily determinable fair values:
Other long-term assets(2)	295		393
Total	$	3,992	$	8,909

(1) Mostly comprised of our equity interest in Assembly Biosciences, Inc.

(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				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Unrealized (gain) loss, net, related to fair value option investments	$	(289)	$	(72)	$	(143)	$	204
Unrealized (gain) loss, net, related to all other equity investments	(51)		(71)		6		89
Total unrealized (gain) loss, net	$	(340)	$	(143)	$	(137)	$	293

Related Party Transaction

During the six months ended June 30, 2026, we donated certain equity securities to the Gilead Foundation, a California nonprofit public benefit corporation for which certain of our officers serve as directors, and recorded a related expense of $63 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.

5. DERIVATIVES

Our operations in foreign countries expose us to risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies, primarily the Euro. To partially mitigate the impact of changes in currency exchange rates on net cash flows from our foreign currency denominated sales as well as outstanding monetary assets and liabilities, we enter into foreign currency exchange forward contracts. In general, the risk of foreign currency fluctuations 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 mitigate 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 mitigate 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 $3.9 billion as of June 30, 2026 and December 31, 2025, 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:


	June 30, 2026
(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	$	59	$	6	$	66	$	15	$	—	$	16
Foreign currency exchange contracts not designated as hedges	16		—		16		2		—		2
Total derivatives presented gross on the Condensed Consolidated Balance Sheets					$	82					$	18
Total derivatives not offset on the Condensed Consolidated Balance Sheets					(17)						(17)
Net amount (legal offset)					$	65					$	1


	December 31, 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	$	18	$	2	$	20	$	62	$	3	$	65
Foreign currency exchange contracts not designated as hedges	36		—		36		7		—		7
Total derivatives presented gross on the Condensed Consolidated Balance Sheets					$	56					$	72
Total derivatives not offset on the Condensed Consolidated Balance Sheets					(40)						(40)
Net amount (legal offset)					$	16					$	32

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Derivatives designated as hedges:
Net gain (loss) recognized in Accumulated other comprehensive income	$	19	$	(170)	$	64	$	(216)
Net (loss) gain reclassified from Accumulated other comprehensive income into Product sales	$	(18)	$	19	$	(42)	$	40
Derivatives not designated as hedges:
Net (loss) gain recognized in Other (income) expense, net	$	(2)	$	(22)	$	1	$	(28)

Approximately $35 million of pre-tax net gains related to the hedged forecasted transactions reported in Accumulated other comprehensive income as of June 30, 2026 are expected to be reclassified to Product sales within 12 months. There were no discontinuances of cash flow hedges for the three and six months ended June 30, 2026 and 2025.

The cash flow effects of our derivative contracts for the three and six months ended June 30, 2026 and 2025 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

Ouro Medicines

In June 2026, we closed an agreement to acquire Ouro Medicines, a privately held biotechnology company focused on developing T cell engager (“TCE”) therapies, for aggregate consideration of approximately $1.9 billion, comprised of $1.6 billion in cash consideration, net of cash acquired, and the fair value of contingent consideration of up to $500 million, representing potential future milestone payments. As a result of the agreement, Ouro Medicines became our wholly-owned subsidiary.

We accounted for the transaction as an asset acquisition since the lead asset, OM336 (gamgertamig), a clinical-stage BCMAxCD3 TCE, represents substantially all of the fair value of the gross assets acquired. We recorded a $1.9 billion charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026. The remaining purchase price relates to various other assets acquired and liabilities assumed. We determined that Ouro Medicines was a VIE at the time of acquisition and therefore recorded the contingent consideration as a liability. The fair value of this contingent liability, estimated using Level 3 inputs, including probability-weighted scenarios for each milestone, was $277 million as of the acquisition date, with $143 million recorded in Other current liabilities and $133 million recorded in Other long-term liabilities on our Condensed Consolidated Balance Sheets. The contingent liability will be adjusted at the time the underlying milestones are met. The liability represents a noncash investing activity and was therefore not included on our Condensed Consolidated Statements of Cash Flows.

In addition, we recorded stock-based compensation expense of $135 million related to the cash settlement of unvested Ouro Medicines employee stock awards attributable to post-acquisition services, with $45 million being recorded in Research and development expenses and $91 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026.

Tubulis

In May 2026, we closed an agreement to acquire Tubulis GmbH (“Tubulis”), a private Germany-based, clinical-stage biotechnology company developing next-generation antibody-drug conjugates (“ADCs”), for approximately $3.2 billion in cash consideration, net of cash acquired. As a result, Tubulis became our wholly-owned subsidiary.

We accounted for the transaction as an asset acquisition since the lead asset, TUB-040, a NaPi2b-directed topoisomerase-I inhibitor ADC currently in Phase 1b/2 development for platinum-resistant ovarian cancer and non-small cell lung cancer (“NSCLC”), represents substantially all of the fair value of the gross assets acquired. We recorded a $3.1 billion charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026. We allocated the remaining purchase price to various other assets acquired and liabilities assumed.

In addition, we recorded stock-based compensation expense of $51 million related to the cash settlement of unvested Tubulis employee stock awards attributable to post-acquisition services, with $28 million being recorded in Research and development expenses and $23 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026.

Under the agreement, the former shareholders of Tubulis are eligible to receive up to approximately $1.9 billion in potential future milestone payments.

Arcellx

In April 2026, we closed an agreement to acquire Arcellx, Inc. (“Arcellx”), a public biotechnology company focused on delivering a new class of innovative immunotherapies for patients with cancer and other incurable diseases, for approximately $6.4 billion in cash consideration, net of cash acquired. As a result, Arcellx became our wholly-owned subsidiary.

Prior to the acquisition, we had been engaged in a global strategic collaboration with Arcellx to co-develop and co-commercialize Arcellx’s lead late-stage product candidate, anitocabtagene autoleucel (“anito-cel”), an investigational BCMA-directed chimeric antigen receptor T-cell therapy for patients with relapsed and/or refractory multiple myeloma. In conjunction with the collaboration, we made various purchases of Arcellx shares. Under the collaboration agreement, Arcellx was eligible to receive performance-based development and regulatory milestone payments, with further commercial milestone payments, profit split payments on co-promoted products and royalties on at least a portion of worldwide net sales, depending on whether Arcellx opted in to co-promote the future products.

We accounted for the April 2026 transaction as an asset acquisition since the acquired intellectual property rights related to anito-cel represent substantially all of the fair value of the gross assets acquired. We recorded a $7.0 billion charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026. We also recorded $324 million of assets acquired, primarily consisting of net deferred tax assets, and $88 million of liabilities assumed. As part of the transaction, we settled our existing $773 million investment in Arcellx previously recorded in Prepaid and other current assets on our Condensed Consolidated Balance Sheets. This settlement represents a noncash investing activity and was therefore not included on our Condensed Consolidated Statements of Cash Flows as part of the acquisition.

In addition, we recorded stock-based compensation expense of $375 million related to the cash settlement of unvested Arcellx employee stock awards attributable to post-acquisition services, with $156 million being recorded in Research and development expenses and $218 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026.

Under the agreement to acquire Arcellx, the former shareholders of Arcellx are eligible to receive one non-transferable contingent value right of $5 per share, or approximately $300 million total, upon the achievement of at least $6.0 billion in cumulative global net sales of anito-cel from launch through year-end 2029.

Collaborations and Other Arrangements

Lakefront

In March 2026, we entered into an agreement with Lakefront, formerly Galapagos NV, effective upon the closing of our definitive agreement to acquire Ouro Medicines, for a research and development collaboration on the acquired Ouro Medicines assets. Under the agreement, Lakefront paid 50% of the upfront cash consideration in June 2026 and will pay 50% of future contingent milestones payable to Ouro Medicines’ shareholders. Additionally, Lakefront is responsible for development activities and costs prior to registrational studies for gamgertamig, with later clinical development activities performed by both parties and costs being shared equally. We will retain commercialization rights and pay Lakefront royalties of 20% to 23% on net sales of gamgertamig products. The agreement can be terminated for convenience by either party at any time with advance notice, with the continuing party retaining the rights to develop and commercialize gamgertamig.

We are accounting for the agreement as a collaborative arrangement as it involves joint operating activities where both parties have active participation and are exposed to significant risks and rewards dependent on the commercial success of the activities. We determined that our only distinct performance obligation in the arrangement is to transfer licenses and know-how for the development of the intellectual property acquired from Ouro Medicines to Lakefront, which we had delivered as of June 30, 2026. We further concluded that, given the nature of the joint operating activities, Lakefront is not our customer under the agreement, and therefore, any payments received from them pursuant to the agreement would not be recorded as revenues. Rather, payments made to or received from Lakefront in connection with the agreement will be recorded as an addition to or reduction from the respective line item on our Condensed Consolidated Statements of Operations to which the costs relate. As a result, we recorded Lakefront’s non-refundable $860 million payment to us for their 50% share of the upfront cash consideration as a reduction of Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six months ended June 30, 2026. The payment was reflected in operating activities within our Condensed Consolidated Statements of Cash Flows.

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 acquired 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. 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 during the six months ended June 30, 2025. 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.

7. INTANGIBLE ASSETS

The following table summarizes our Intangible assets, net:


	June 30, 2026								December 31, 2025
(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	$	(8,797)	$	—	$	1,923	$	10,720	$	(8,448)	$	—	$	2,272
Intangible asset – axicabtagene ciloleucel	7,110		(3,330)		—		3,780		7,110		(3,127)		—		3,983
Intangible asset – Trodelvy	11,730		(4,704)		—		7,026		11,730		(4,164)		—		7,566
Intangible asset – Hepcludex(1)	1,395		(462)		—		933		845		(415)		—		430
Other	1,458		(1,087)		—		372		1,483		(1,056)		—		428
Total finite-lived assets	32,413		(18,382)		—		14,032		31,888		(17,211)		—		14,678
Indefinite-lived assets – IPR&D(1)(2)	—		—		—		—		2,300		—		—		2,300
Total intangible assets	$	32,413	$	(18,382)	$	—	$	14,032	$	34,188	$	(17,211)	$	—	$	16,978

(1) In May 2026, FDA granted accelerated approval of Hepcludex (bulevirtide) for treatment of adults living with chronic hepatitis delta virus infection. Accordingly, the related IPR&D intangible asset of $550 million was reclassified to finite-lived assets in the second quarter of 2026.

(2) During the second quarter of 2026, we recorded an impairment for the remaining $1.75 billion IPR&D intangible asset balance related to sacituzumab govitecan-hziy (“SG”) for NSCLC. See “2026 Impairment” below.

Impairment Assessments

We did not identify any indicators of impairment resulting in an adjustment to the carrying value of intangible assets during the three and six months ended June 30, 2026 and 2025, except as described in “2026 Impairment” and “2025 Impairment” below.

2026 Impairment

In June 2026, we announced the discontinuation of our Phase 3 EVOKE-03 study of Trodelvy evaluating SG 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 and six 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 and six 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.

8. OTHER FINANCIAL INFORMATION

Accounts Receivable, Net

The following table summarizes our Accounts receivable, net:


(in millions)	June 30, 2026		December 31, 2025
Accounts receivable(1)	$	5,902	$	5,895
Less: allowances for chargebacks	(671)		(843)
Less: allowances for cash discounts and other	(125)		(97)
Less: allowances for credit losses	(51)		(41)
Accounts receivable, net	$	5,055	$	4,913

(1) As of June 30, 2026, 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)	June 30, 2026		December 31, 2025
Raw materials	$	1,415	$	1,414
Work in process	1,163		1,306
Finished goods	1,719		1,647
Total	$	4,298	$	4,368
Reported as:
Inventories	$	1,953	$	1,774
Other long-term assets(1)	2,345		2,594
Total	$	4,298	$	4,368

(1) As of June 30, 2026, this amount primarily consists of raw materials and work in process.

As of June 30, 2026, we held approximately $568 million of pre-commercial Trodelvy inventory for which the manufacturing process has not yet been approved by FDA.

Property, Plant and Equipment, Net

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


(in millions)	June 30, 2026		December 31, 2025
Property, plant and equipment	$	8,707	$	8,302
Less: accumulated depreciation	(2,874)		(2,696)
Property, plant and equipment, net	$	5,833	$	5,606

The following table summarizes Depreciation expense:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Depreciation expense	$	98	$	93	$	191	$	190

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 March 31, 2026	$	64	$	(3)	$	18	$	78
Net unrealized (loss) gain, net of income tax expense of $0, $0, and $2, respectively	(18)		1		16		(1)
Loss reclassified to net income, net of income tax benefit of $0, $0, and $(2), respectively	—		2		16		18
Other comprehensive (loss) income, net	(18)		3		32		17
Balance as of June 30, 2026	$	46	$	—	$	49	$	95


(in millions)	Foreign Currency Translation		Available-for-Sale Debt Securities		Cash Flow Hedges		Total
Balance as of December 31, 2025	$	74	$	8	$	(43)	$	39
Net unrealized (loss) gain, net of income tax expense (benefit) of $0, $(3), and $8, respectively	(28)		(9)		56		19
Loss reclassified to net income, net of income tax benefit of $0, $0, and $(5), respectively	—		—		37		37
Other comprehensive (loss) income, net	(28)		(8)		92		56
Balance as of June 30, 2026	$	46	$	—	$	49	$	95


(in millions)	Foreign Currency Translation		Available-for-Sale Debt Securities		Cash Flow Hedges		Total
Balance as of March 31, 2025	$	54	$	—	$	38	$	92
Net unrealized gain (loss), net of income tax expense (benefit) of $0, $1, and $(21), respectively	51		4		(149)		(94)
Loss (gain) reclassified to net income, net of income tax expense (benefit) of $0, $0, and $2, respectively	—		—		(16)		(16)
Other comprehensive income (loss), net	51		4		(166)		(111)
Balance as of June 30, 2025	$	105	$	4	$	(127)	$	(18)


(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, $1, and $(27), respectively	69		4		(189)		(116)
Loss (gain) reclassified to net income, net of income tax expense (benefit) of $0, $0, and $5, respectively	—		—		(35)		(35)
Other comprehensive income (loss), net	69		4		(224)		(150)
Balance as of June 30, 2025	$	105	$	4	$	(127)	$	(18)

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025		Line Item Affected
Net (loss) gain related to cash flow hedges	$	(18)	$	19	$	(42)	$	40	Product sales
Net loss related to available-for-sale debt securities	$	2	$	—	$	—	$	—	Other (income) expense, net
Income tax (benefit) expense	$	(2)	$	2	$	(5)	$	5	Income tax expense

Restructuring

During the three and six months ended June 30, 2026 and 2025, we incurred restructuring charges primarily related to severance costs resulting from reductions in our workforce and facility exit costs.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Research and development expenses	$	2	$	6	$	17	$	44
Selling, general and administrative expenses	15		7		40		43
Restructuring charges	$	17	$	13	$	57	$	88

As of June 30, 2026, we had a remaining liability of $60 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				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
(Gain) loss from equity securities, net	$	(343)	$	(142)	$	(485)	$	284
Interest income	(45)		(73)		(140)		(166)
Other, net	1		6		3		2
Other (income) expense, net	$	(387)	$	(208)	$	(621)	$	120

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	June 30, 2026		December 31, 2025
Senior Unsecured	September 2015	March 2026	3.65%	—		2,750
Senior Unsecured	September 2016	March 2027	2.95%	1,250		1,249
Term Loan	April 2026	April 2027	Variable	1,099		—
Senior Unsecured	September 2020	October 2027	1.20%	749		749
Senior Unsecured	May 2026	May 2028	4.25%	498		—
Senior Unsecured	May 2026	May 2029	4.40%	996		—
Senior Unsecured	November 2024	November 2029	4.80%	747		747
Senior Unsecured	September 2020	October 2030	1.65%	996		996
Senior Unsecured	May 2026	May 2031	4.60%	995		—
Senior Unsecured	September 2023	October 2033	5.25%	994		994
Senior Unsecured	May 2026	May 2034	4.90%	497		—
Senior Unsecured	November 2024	June 2035	5.10%	992		992
Senior Unsecured	September 2015	September 2035	4.60%	995		994
Senior Unsecured	September 2016	September 2036	4.00%	744		744
Senior Unsecured	September 2020	October 2040	2.60%	990		990
Senior Unsecured	December 2011	December 2041	5.65%	997		997
Senior Unsecured	March 2014	April 2044	4.80%	1,739		1,738
Senior Unsecured	November 2014	February 2045	4.50%	1,736		1,736
Senior Unsecured	September 2015	March 2046	4.75%	2,225		2,225
Senior Unsecured	September 2016	March 2047	4.15%	1,731		1,731
Senior Unsecured	September 2020	October 2050	2.80%	1,480		1,480
Senior Unsecured	September 2023	October 2053	5.55%	989		989
Senior Unsecured	November 2024	November 2054	5.50%	989		989
Senior Unsecured	November 2024	November 2064	5.60%	739		739
Total senior unsecured notes and term loan facility				25,168		23,827
Liability related to future royalties				1,077		1,110
Total debt, net				26,246		24,937
Less: Current portion of long-term debt, net				2,414		2,807
Total Long-term debt, net				$	23,832	$	22,129

Senior Unsecured Notes

In May 2026, we issued $3.0 billion aggregate principal amount of senior unsecured notes in a registered offering consisting of $500 million principal amount of 4.25% senior unsecured notes due May 2028, $1.0 billion principal amount of 4.40% senior unsecured notes due May 2029, $1.0 billion principal amount of 4.60% senior unsecured notes due May 2031 and $500 million principal amount of 4.90% senior unsecured notes due May 2034. These notes may be redeemed at our option at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum, as determined by an independent investment banker, of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate, plus a make-whole premium, which are defined in the terms of the notes. The May 2029, May 2031 and May 2034 senior unsecured notes also have a par call feature, exercisable at our option, to redeem the notes at par, in whole or in part, on dates ranging from one to two months prior to maturity. In each case, accrued and unpaid interest is payable to the redemption date. In the event of a change in control and a downgrade in the rating of our senior unsecured notes below investment grade by Moody’s Investors Service, Inc. and S&P Global Ratings, the holders may require us to repurchase all or a portion of their notes at a price equal to 101% of the aggregate principal amount of the notes repurchased, plus accrued and unpaid interest to the date of repurchase.

In March 2026, we repaid $2.75 billion of principal balance related to our senior unsecured notes due March 2026.

We are required to comply with certain covenants under the indentures governing our senior unsecured notes. As of June 30, 2026, we were in compliance with all such covenants.

Term Loan Facility

In April 2026, we entered into a term loan facility credit agreement (the “Term Loan Facility”) with a group of institutional lenders to provide for a one-year senior unsecured term loan facility in an aggregate principal amount of $4.7 billion. Pursuant to the Term Loan Facility, we borrowed an aggregate principal amount of $1.1 billion during the three months ended June 30, 2026, all of which remained outstanding as of June 30, 2026. During the three months ended June 30, 2026, we also cancelled the remaining $3.6 billion of undrawn commitments under the Term Loan Facility.

The Term Loan Facility contains customary representations, warranties, affirmative and negative covenants and events of default. Borrowings under the Term Loan Facility bear interest at either (i) Term SOFR plus the Applicable Margin or (ii) Base Rate plus the Applicable Margin, each as defined in the Term Loan Facility. We may prepay or reduce the amount borrowed under the Term Loan Facility, in whole or in part, at any time without premium or penalty. As of June 30, 2026, we were in compliance with all covenants under the Term Loan Facility.

Revolving Credit Facility

As of June 30, 2026 and December 31, 2025, 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 June 30, 2026 and December 31, 2025, we did not have any material accruals for the matters described herein.

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.

In January 2026, we received a letter from Cipla Ltd. (“Cipla”) indicating that it had submitted a new drug application under §505(b)(2) of the Federal Food, Drug, and Cosmetic Act (“505(b)(2) application”) for emtricitabine/tenofovir alafenamide tablets. The 505(b)(2) application references Descovy as the listed drug product. The 505(b)(2) application also includes a paragraph IV certification challenging two Orange Book patents for Descovy. In February 2026, we filed a lawsuit against Cipla in the U.S. District Court for the District of Delaware. 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 was denied in August 2025. Trial has been scheduled for January 2027.

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 August 2026, the Supreme Court ruled in Gilead’s favor, concluding that plaintiffs’ negligence claim could not proceed as a matter of law and directing the trial court to enter a new order granting summary judgment for Gilead on all causes of action. 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 district court issued an order in January 2026 denying, among other things, plaintiffs’ motion for class certification. The U.S. Court of Appeals for the Eighth Circuit then denied Plaintiff’s request for interlocutory appellate review of the district court’s decision to deny class certification. 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 HIV and hepatitis 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 December 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. (LOSS) EARNINGS PER SHARE

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share amounts)	2026		2025		2026		2025
Net (loss) income	$	(10,496)	$	1,960	$	(8,475)	$	3,275
Shares used in basic (loss) earnings per share calculation	1,243		1,245		1,243		1,246
Dilutive effect of equity-based awards	—		10		—		12
Shares used in diluted (loss) earnings per share calculation	1,243		1,255		1,243		1,257

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

Potential shares of common stock excluded from the computation of Diluted (loss) earnings per share because their effect would have been antidilutive were 15 million and 14 million for the three and six months ended June 30, 2026, respectively, and 7 million and 5 million for the three and six months ended June 30, 2025, respectively.

12. INCOME TAXES

The following table summarizes our Income tax expense:


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

Our effective income tax rates of (2.4)% and (10.4)% for the three and six months ended June 30, 2026, respectively, differed from the U.S. federal statutory rate of 21% primarily due to non-deductible acquired IPR&D expense in connection with our acquisitions of Arcellx, Tubulis, and Ouro Medicines.

Our effective income tax rate of 19.3% for the three months ended June 30, 2025 differed from the U.S. federal statutory rate of 21% primarily due to favorable changes in the fair value of certain of our equity securities that are non-taxable for income tax purposes, tax benefits from stock-based compensation and a decrease in foreign deferred tax liabilities associated with the $190 million bulevirtide IPR&D intangible asset impairment charge.

Our effective income tax rate of 19.7% for the six months ended June 30, 2025 differed from the U.S. federal statutory rate of 21% primarily due to tax benefits from stock-based compensation.

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 (loss) income as the primary measure to evaluate performance, 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				Six Months Ended
	June 30,				June 30,
(in millions)	2026		2025		2026		2025
Selling and marketing expenses	$	1,011	$	864	$	1,910	$	1,617
General and administrative expenses	910		501		1,463		1,006
Selling, general and administrative expenses	$	1,921	$	1,365	$	3,372	$	2,623

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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