Gilead Sciences, Inc.

What they do

Gilead develops and commercializes innovative medicines in virology, oncology, and other therapeutic areas. Its HIV portfolio includes blockbuster products like Biktarvy, Descovy, and Sunlenca, and it also sells cell therapies, liver disease treatments, and the COVID-19 antiviral Veklury.

Revenue drivers

• HIV portfolio — Largest revenue segment; Q2 2026 sales of $5.7 billion, up 12% year-over-year, driven by Biktarvy ($3.8 billion, +7%) and Descovy ($967 million, +48%).
• Liver Disease portfolio — Includes chronic HBV, HCV, and Livdelzi; Q2 2026 sales of $877 million, up 10%, reflecting higher demand for Livdelzi and HBV products.
• Trodelvy — Oncology product (sacituzumab govitecan-hziy); contributed to growth in base business in Q2 2026.
• Livdelzi — Liver disease product (seladelpar); noted as a growth driver in Q2 2026, with higher demand.

Recent performance

In Q2 2026 (ended June 30, 2026), total revenues rose 10% year-over-year to $7.8 billion, with product sales up 8% to $7.6 billion. Excluding Veklury, product sales increased 10%. The company reported a GAAP diluted loss per share of $(8.45) and non-GAAP diluted loss per share of $(6.75), driven primarily by $9.08 per share of acquired IPR&D and tax expenses related to acquisitions of Arcellx, Tubulis, and Ouro Medicines. Cash and marketable debt securities fell to $3.2 billion at June 30, 2026, from $10.6 billion at year-end 2025, due to acquisition outflows and debt repayments.

Strategy

Management emphasizes growth in the HIV portfolio, including PrEP expansion, and oncology and liver disease franchises. The company made three FDA approvals and three positive Phase 3 updates in Q1-Q2 2026. It is pursuing acquisitions, such as Arcellx, Tubulis, and Ouro Medicines, and a collaboration with Lakefront Biotherapeutics. Shareholder returns include quarterly dividends and share repurchases under a $6.0 billion 2025 program.

Risks

• HIV revenue concentration — Substantial portion of revenue derives from HIV products; competition from generics or loss of market share could materially affect results.
• Cell therapy complexity — Personalized CAR T-cell therapies like Yescarta and Tecartus face manufacturing and delivery challenges that could limit commercial success.
• Acquisition integration — Recent large acquisitions (Arcellx, Tubulis, Ouro Medicines) involve significant IPR&D expenses and integration risks; impairment of acquired assets may occur (e.g., Immunomedics IPR&D impairment).
• Patent and regulatory uncertainty — Reliance on patent protection and estimated loss of exclusivity for products; changes in U.S. regulatory or tax policies (e.g., Inflation Reduction Act, One Big Beautiful Bill Act) could affect profitability.

Outlook

Management raised base business revenue expectations for 2026, citing strong HIV growth and expansion. They expect to deliver two potential launches in oncology and HIV in the second half of 2026. Dividend payments are expected to continue, subject to Board declaration.