Biopharmaceutical company Gilead Sciences (NASDAQ: GILD) announced better-than-expected revenue in Q2 CY2026, with sales up 10.2% year on year to $7.80 billion. On the other hand, the company’s full-year revenue guidance of $30.25 billion at the midpoint came in 0.6% below analysts’ estimates. Its non-GAAP loss of $6.75 per share was 6.9% above analysts’ consensus estimates.

Is now the time to buy GILD? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Gilead Sciences delivered a solid Q2, with year-over-year sales growth led by strong demand in its HIV franchise, particularly Biktarvy and the PrEP segment, as well as advances in oncology and liver disease. Management credited commercial execution and new product launches—including Trodelvy in breast cancer and Livdelzi in liver disease—for boosting results. CEO Daniel O’Day highlighted, “Quarterly PrEP sales doubled year-over-year, exceeding $1 billion for the first time,” underscoring the impact of portfolio expansion. The quarter also saw progress in clinical programs and the closing of strategic acquisitions.

Looking forward, Gilead’s updated guidance hinges on continued strength in its HIV pipeline, the upcoming launch of BIC/LEN, and the potential of new long-acting PrEP and treatment regimens. Management is optimistic about growth in both treatment-naive and switch patient populations, as well as the expansion of the PrEP market. CFO Andrew Dickinson stated, “We are raising our full year HIV growth expectations to 9% to 10% year-over-year from prior guidance of 8% growth,” reflecting confidence in product momentum and pipeline catalysts. However, integration of recent acquisitions and regulatory milestones remain key to execution.

Key Insights from Management’s Remarks

Management attributed Q2’s growth to commercial execution in HIV, oncology, and liver disease, while acknowledging margin pressure from recent acquisitions and increased investment in pipeline assets.

• HIV franchise momentum: HIV product sales, driven by Biktarvy and PrEP offerings like Yeztugo and Descovy, grew strongly. Yeztugo, a long-acting injectable, achieved over $1 billion in annualized sales run rate, supported by persistency rates above 70% for repeat dosing.

• PrEP market expansion: The U.S. PrEP market grew 14% year-over-year, with Gilead's options outpacing the market. Management emphasized the complementary nature of long-acting injectables and upcoming once-weekly oral regimens, aiming to capture diverse patient preferences.

• Trodelvy regulatory advances: Trodelvy, now approved for first-line metastatic triple-negative breast cancer, posted 26% sales growth year-over-year. New indications and expanded treatment guidelines broaden its addressable market and supported adoption.

• Pipeline and acquisitions: The quarter featured the closing of acquisitions for Arcellx and Tubulis, adding cell therapy and antibody-drug conjugate platforms. These deals expanded Gilead’s clinical-stage oncology assets, particularly in ovarian and multiple myeloma indications.

• Margin and expense dynamics: Operating margin declined sharply to -133% due to $11.2 billion in acquired R&D costs from recent M&A. Excluding these charges, management highlighted a base business margin near 49%, consistent with historical performance.

Drivers of Future Performance

Gilead’s outlook is influenced by new product launches, pipeline progression, and the ability to balance R&D investment with commercial growth.

• Upcoming HIV launches: Anticipated FDA decisions on once-daily BIC/LEN and once-weekly islatravir/lenacapavir regimens are expected to reinforce Gilead’s leadership in HIV, targeting both switch and prevention markets. Management sees these launches as critical to sustaining mid- to high-single-digit base business growth.

• Oncology and cell therapy focus: Expansion of Trodelvy into new cancer indications and the integration of Arcellx’s anito-cel product in multiple myeloma are projected to support revenue diversification outside virology. However, cell therapy sales are expected to decline in the near term due to competition, with growth potential from new launches.

• Integration and investment risk: The recent acquisitions add clinical breadth but increase near-term costs and integration complexity. Management cited the need to deliver on pipeline milestones, regulatory approvals, and maintain commercial momentum while absorbing these investments.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will focus on (1) FDA approval outcomes for BIC/LEN in HIV and anito-cel in multiple myeloma, (2) the pace of integration and clinical progress for assets gained through recent acquisitions, and (3) sustained commercial momentum across new HIV and oncology launches. Execution on these fronts will shape Gilead’s ability to maintain revenue growth and manage margin recovery.

Gilead Sciences currently trades at $132.39, down from $135.20 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.