01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Gilead Sciences, Inc. reported robust financial results for the first quarter of 2026, with total revenues reaching $6.96 billiona, a 4% increase year-over-year.
This growth was primarily driven by strong performance in HIV products, particularly Biktarvy and Descovy, and continued momentum in oncology with Trodelvy. Net income surged by 54% to $2.02 billionb, translating to diluted earnings per share of $1.61, also up 54% from the prior year. This significant improvement was bolstered by favorable net unrealized gains from equity securities and higher product sales, partially offset by increased selling, general, and administrative expenses.
The company also announced significant strategic acquisitions in April 2026, including Arcellx for approximately $7.8 billion, Tubulis for up to $5.1 billionc, and Ouro Medicines for approximately $2.2 billion. These strategic moves are expected to result in substantial acquired in-process R&D expenses in Q2 2026, which the company anticipates will lead to a net loss for the second quarter and the full year 2026.
02—Key points
Key Highlights
- Total revenues increased by 4% to $6.96 billion in Q1 2026, driven by strong HIV product sales and Trodelvy.
- Net income saw a substantial increase of 54% to $2.02 billion, with diluted EPS rising to $1.61.
- HIV product sales grew by 10% to $5.0 billion, with Biktarvy and Descovy showing significant increases.
- Trodelvy sales increased by 37% to $402 million, reflecting higher demand.
- Veklury sales decreased by 52% to $144 million due to lower COVID-19 hospitalizations.
- Gilead announced three major acquisitions in April 2026: Arcellx ($7.8B), Tubulis (up to $5.1B), and Ouro Medicines (up to $2.2B), signaling a strong commitment to pipeline expansion.
- The company anticipates significant acquired in-process R&D expenses in Q2 2026 from these acquisitions, which is projected to result in a net loss for Q2 and the full year 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Gilead Sciences, Inc. kept $0.29.
- Revenue$6.96B100.0%
- Cost of revenue−$1.45B20.8%
- Gross profit$5.51B79.2%
- Operating costs−$2.93B42.1%
- Operating income$2.59B37.2%
- Interest, other & tax−$565.0M8.1%
- Net income$2.02B29.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.96B$6.67B | +4.4% |
| Cost of Revenue | $1.45B$1.54B | −6.2% |
| Gross Profit | $5.51B$5.13B | +7.6% |
| SG&A Expenses | $1.45B$1.26B | +15.3% |
| Operating Expenses | $4.37B$4.43B | −1.3% |
| Operating Income | $2.59B$2.24B | +15.6% |
| Net Income | $2.02B$1.31B | +53.7% |
| EPS (Basic) | $1.63$1.06 | +53.8% |
| EPS (Diluted) | $1.61$1.04 | +54.8% |
| Shares Outstanding (Basic) | 1.24B1.25B | −0.3% |
| Shares Outstanding (Diluted) | 1.25B1.26B | −0.4% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the first quarter of 2026?
Revenue growth was primarily driven by increased sales of HIV products, particularly Biktarvy and Descovy, and a significant rise in Trodelvy sales. These were partially offset by lower sales of Veklury due to decreased COVID-19 hospitalizations.
What is the financial impact of the recent acquisitions announced in April 2026?
Gilead announced the acquisitions of Arcellx, Tubulis, and Ouro Medicines. These transactions are expected to result in approximately $11.5 billion in acquired in-process research and development expenses in the second quarter of 2026. Consequently, the company anticipates a net loss for both the second quarter and the full year 2026.
How has Gilead's debt position changed?
Total debt, net, decreased from $22.13 billion at the end of 2025 to $20.86 billion as of March 31, 2026. This reduction was mainly due to the repayment of a $2.75 billion senior unsecured note in March 2026. Additionally, in April 2026, Gilead entered into a term loan facility and borrowed $1.1 billion.
What are the key risks highlighted in the filing regarding future performance?
Key risks include competition from generic and branded products, pricing and reimbursement pressures from government agencies and third parties (including impacts from the Inflation Reduction Act), potential for unfavorable clinical trial results, manufacturing and supply chain disruptions, litigation and regulatory proceedings, and the successful integration of recent acquisitions. The company also anticipates a net loss for the full year 2026 due to significant R&D expenses from recent acquisitions.
06—Continue