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Gilead Sciences (GILD) · Q2 2026 results and valuation
Share price: $169.73 · 2026-11-11
Gilead Sciences is a biopharmaceutical company that develops and delivers medicines to treat and prevent diseases such as HIV, viral hepatitis, COVID-19, and cancer. The company operates in more than 35 countries and markets its products to healthcare providers and patients globally. Source: 10-K annual report (2026-02-24)
Results Q2 2026 vs Q1 2026 · previous quarter · published 4 Aug 2026 and 7 May 2026
Net income turned to a loss from a profit last quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
Turned loss
Net income vs Q1 2026
Outlook given
Net income -10.50B vs 2.02B
Revenue +12.1%
2 · How management spoke
Typical
Less upbeat than 51% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Gilead Sciences raised its full-year 2026 HIV sales growth forecast from 8% to between 9% and 10% compared to 2025 due to growth in Biktarvy, Yeztugo, and Descovy.
Valuation
Is Gilead Sciences undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.6% growth a year (3-year revenue growth), the model's fair value is $86.04 a share — the stock trades 97% above it. Today's price assumes 10.6% growth a year.
Current price
$169.73
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.6% for 10 yrs
Fair value / share
$86.04
Buy below
$64.53
Price vs fair value
Overvalued 97%
Price vs buy-below price
Overvalued 163%
Management expects
Sales +10% · from the Q2 2026 report: “The company raised its full year 2026 HIV sales growth forecast from 8% to between 9% and 10% compared to 2025 due to growth in Biktarvy, Yeztugo, and Descovy.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The company raised its full year 2026 HIV sales growth forecast from 8% to between 9% and 10% compared to 2025 due to growth in Biktarvy, Yeztugo, and Descovy.
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Figure
Gilead PrEP sales grew over 100% this quarter, outpacing the market due to strong commercial execution.
Source quote
“Gilead PrEP sales growth of over 100% has once again significantly outpaced the market, driven by strong commercial execution.”
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Figure
Sales of $167 million more than doubled year-over-year due to increased U.S. demand and continued uptake in Europe.
Source quote
“Sales of $167 million more than doubled year-over-year, primarily driven by increased U.S. demand as well as continued uptake in Europe.”
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Figure
Liver disease sales reached $877 million, up 10% year-over-year due to increased demand across PBC, HBV, and HDV, despite being partially offset by lower HCV starts.
Source quote
“More broadly, in liver disease, sales of $877 million were up 10% year-over-year, reflecting increased demand across PBC, HBV and HDV, partially offset by lower HCV starts.”
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Guidance
The company now expects base business sales to grow approximately 6% to 7% year-over-year, ranging between $29.8 billion and $30.1 billion.
4 more
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Key theme
The company raised the lower end of its forecast and now expects total product sales to be between $30.1 billion and $30.4 billion.
Source quote
“We have raised the lower end of our range and now expect total product sales in the range of $30.1 billion and $30.4 billion.”
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Guidance
Gilead raised its full-year HIV growth expectations to 9% to 10% from prior guidance of 8% due to a $4 billion annual run rate for its PrEP business.
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Figure
Excluding $11.1 billion in acquired IP R&D expenses from three acquisitions, the second quarter operating margin was approximately 49%.
Source quote
“Excluding the $11.1 billion in acquired IP R&D expenses associated with the 3 acquisitions, our second quarter operating margin was approximately 49%.”
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Guidance
Gilead expects potential launches for BIC/LEN in HIV treatment and anito-cel in multiple myeloma before year-end following the ongoing launches of Trodelvy and Hepcludex.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Given the strong performance in the first half of the year, we now expect full year 2026 HIV sales to grow between 9% and 10% compared to 2025, up from...”
“We continue to expect robust full year growth for Descovy, driven by pricing favorability as well as demand growth and an expanding U.S.”
“Livdelzi continues to gain momentum as the leading second-line treatment for primary biliary cholangitis, or PBC.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 7.80B | 6.96B | +12.1% | 7.08B | +10.2% |
| Gross profit | 6.22B | 5.51B | +12.9% | 5.58B | +11.5% |
| Operating income | -10.39B | 2.59B | Turned loss | 2.47B | Turned loss |
| Net income | -10.50B | 2.02B | Turned loss | 1.96B | Turned loss |
| EPS | -8.45 | 1.61 | Turned loss | 1.56 | Turned loss |
| P/E | 12-mo loss | 19.0 | — | 22.0 | — |
Topics
Most discussed now
- Later this month, Gilead Sciences expects an FDA decision on its once-daily oral treatment combining bictegravir and lenacapavir.
- Including Veklury, second quarter total product sales were $7.6 billion, up 8% year-over-year and 10% sequentially.
- Gilead Sciences expanded the breadth of its innovation engine through the acquisitions of Arcellx, Tubulis and Ouro Medicines, adding…
- Gilead Sciences is making significant progress on another novel regimen for virally suppressed people with HIV.
- R&D expenses were $1.4 billion, relatively flat year-over-year, reflecting lower oncology clinical study activity, partially offset by…
Faded since Q1 2026
- Fading Gilead Sciences' strong financial performance and increase in sales guidance reflects the depth and quality of its portfolio, the numerous…
- Fading Is clearly driven by the quality of Gilead Sciences' portfolio—enhanced by acquisitions since the beginning of the year—the numerous…
- Fading This is supported by disciplined portfolio prioritization and strong execution.
- Fading With the close of the Arcellx acquisition, Gilead Sciences' pipeline now consists of 47 clinical programs spanning its portfolio of…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
Gilead Sciences, Inc. reported its financial results for the quarter ended June 30, 2026, including both GAAP and non-GAAP financial information.
- Material agreement; New financial obligation; Other events · SEC 8-K
- Results of operations · SEC 8-K
Gilead Sciences, Inc. announced its financial results for the quarter ended March 31, 2026, including both GAAP and non-GAAP financial information.
- Shareholder vote results · SEC 8-K · routine
- Regulation FD disclosure; Other events · SEC 8-K
Gilead Sciences completed the acquisition of Arcellx for $115 per share in cash plus a $5 per share contingent value right, representing a total implied equity value of approximately $7.8 billion.
- Material agreement; Regulation FD disclosure · SEC 8-K
Gilead Sciences entered into an agreement to acquire Arcellx for $115.00 per share in cash and one contingent value right of $5.00 per share, representing an implied equity value of $7.8 billion.
- Results of operations · SEC 8-K
Gilead Sciences reported its financial results for the quarter and year ended December 31, 2025, including both GAAP and non-GAAP figures.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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Later this month
FDA decision on our once-daily oral treatment combining bictegravir and lenacapavir
Source quote
“Later this month, we expect an FDA decision on our once-daily oral treatment combining bictegravir and lenacapavir.”
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2027
potential launch of the first once-weekly oral HIV treatment regimen, islatravir plus lenacapavir
Source quote
“These data are expected to support the filing and potential launch of the first once-weekly oral HIV treatment regimen, islatravir plus lenacapavir in 2027.”
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just 5 months to go until the PDUFA date
launch preparations for anito-cel
Source quote
“In cell therapy, launch preparations are fully underway for anito-cel which is just 5 months to go until the PDUFA date.”
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In the second half
another 2 commercial launches in HIV and oncology
Source quote
“In the second half, we expect another 2 commercial launches in HIV and oncology while continuing to deliver clinical and commercial excellence across the portfolio.”
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later this month
FDA priority review decision for bictegravir plus lenacapavir
Source quote
“U.S. launch preparations are currently underway for bictegravir plus lenacapavir, our once-daily single-tablet regimen, where we expect an FDA priority review decision later this month.”