GILD Q2 Revenue Hits $7.8B, GAAP Swings to $8.45 Loss on Deals

Gilead Sciences (GILD) reported Q2 2026 revenue of $7.8 billion, up 10% year over year, but GAAP diluted EPS swung to a loss of $(8.45) per share. The loss was driven entirely by $9.08 per share in one-time acquired IPR&D and tax expenses from the Arcellx, Tubulis, and Ouro Medicines acquisitions plus an Immunomedics impairment. GILD closed at $131.99 with a market cap of $167.9 billion.

The numbers

• Revenue: $7.8 billion (+10% YoY)
• Base business (ex-Veklury): +10%
• GAAP EPS: $(8.45)
• HIV sales: $5.7 billion (+12%)
• Biktarvy: $3.8 billion (+7%)
• Descovy: $967 million (+48% on PrEP demand)
• Trodelvy: $457 million (+26%)
• Yeztugo (lenacapavir PrEP): on track for ~$1B first year
• Operating cash flow: $6.1 billion

What the numbers mean

The headline GAAP loss masks an underlying business growing at its fastest rate in three years. HIV is the engine. Biktarvy at $3.8 billion continues to dominate the treatment market. Descovy’s 48% growth reflects accelerating PrEP demand, and Yeztugo (lenacapavir for PrEP) is tracking toward $1 billion in its first full year.

The cash burn is eye-popping: $11.3 billion in acquisition spending in six months, leaving $3.2 billion from $10.6 billion at year-end. But management pointed to $6.1 billion in operating cash flow and raised full-year base business guidance by $750 million versus February. The business is generating enough cash to fund the acquisition spree, but the runway is narrowing.

The August 27 bictegravir/lenacapavir single-tablet PDUFA resolved with approval: the FDA cleared Bixlenvo (bictegravir 75 mg/lenacapavir 50 mg) on the PDUFA date, the smallest single-tablet HIV regimen ever (see our Bixlenvo coverage). For context on Gilead’s HIV franchise strategy, see our bic/len cannibalization analysis.

The acquisition pipeline

Gilead is executing a high-stakes transformation: spending billions on Arcellx (CAR-T for myeloma), Tubulis (ADCs), and Ouro Medicines (immunology) while the core HIV franchise prints cash. Anito-cel, the Arcellx CAR-T, is approaching its PDUFA. For the full analysis of that catalyst, see our anito-cel BCMA CAR-T PDUFA analysis.

The question for investors: can the acquisition pipeline deliver before the cash runs too low? The $6.1 billion in operating cash flow says they have runway. The $7.4 billion cash drain in six months says they are spending it fast.

Risk to watch

The August 27 bic/len PDUFA resolved cleanly with the Bixlenvo approval, removing the CRL risk that was the near-term threat to the HIV franchise’s growth trajectory. The base business needs to keep printing cash for the pipeline bets to pay off.

Source: Gilead Q2 2026 earnings release