Gilead Beats Q2 Revenue Estimates on Strong HIV Drug Sales, Narrows Full-Year Loss Forecast

Gilead Sciences Inc. (GILD) reported second-quarter revenue that surpassed Wall Street estimates, propelled by robust growth in its HIV drug portfolio. However, the company posted a net loss for the period, weighed down by significant charges related to recent acquisitions.

Second-Quarter Results and Outlook

Gilead's total revenue for the second quarter rose 10% to $7.8 billion, exceeding the $7.4 billion consensus estimate compiled by LSEG. The company posted an adjusted loss of $6.75 per share, which was narrower than the $7.24 loss analysts had anticipated.

The quarterly net loss of $8.45 per share was primarily driven by a previously disclosed charge of $9.08 per share resulting from deals to acquire Arcellx, Ouro Medicines, and Tubulis. Looking ahead, Gilead updated its full-year 2026 guidance:

• Full-Year Sales: Forecast tightened to $30.1 billion to $30.4 billion, from a previous range of $30.0 billion to $30.4 billion.
• Adjusted Loss Per Share: Projected loss narrowed to a range of $0.65 to $0.30, an improvement from the prior forecast of a $1.65 to $0.65 loss.

HIV Franchise Drives Growth

The strong top-line performance was anchored by the company's HIV division, where sales grew by 12%. "HIV sales grew 12%, reflecting continued strength in treatment and the rapid expansion of our PrEP (pre-exposure prophylaxis) business," CEO Daniel O’Day said in a statement.

Ad

Several key HIV treatments outperformed expectations:

• Biktarvy: Sales rose 7% to $3.8 billion, beating estimates of $3.63 billion.
• Descovy: Sales jumped by a stronger-than-expected 48% to $967 million, well above the $801 million forecast.
• Yeztugo: The newer twice-yearly injection for HIV prevention generated $232 million, surpassing the $210 million analyst forecast.

Mixed Performance in Other Segments

Beyond HIV, Gilead's portfolio showed varied results. Sales of the cancer drug Trodelvy climbed 26% to $457 million, and the liver disease portfolio saw a 10% increase in sales to $877 million.

Conversely, cell therapy sales fell 14% to $417 million, which the company attributed to increased competition. As expected, sales of the COVID-19 treatment Veklury plunged 81% to just $23 million as demand continues to wane.