Gilead Sciences (GILD) Q1 2026 earnings summary

Executive summary

• Q1 2026 base business sales grew 8% year-over-year to $6.8B, led by HIV (+10% YoY), oncology (Trodelvy +37% YoY), and liver disease (Livdelzi +230% YoY), while total product sales reached $6.9B (+5% YoY).

• HIV sales were driven by Biktarvy (+7% YoY), Descovy (+38% YoY), and Yeztugo, which saw sales up 72% sequentially and 2026 guidance raised to $1B.

• Oncology segment saw Trodelvy sales up 37% YoY, with strong demand in breast cancer and regulatory milestones expected in 2026; Cell Therapy sales declined 12% YoY due to competition.

• Major acquisitions (Arcellx closed; Ouro Medicines and Tubulis pending) expand oncology and inflammation portfolios.

• Multiple regulatory milestones expected in 2026, including FDA decisions for BIC/LEN, anito-cel, Hepcludex, and full approval for Tecartus in mantle cell lymphoma.

Financial highlights

• Q1 2026 total product sales were $6.9B, up 5% YoY; excluding Veklury, sales were $6.8B, up 8% YoY.

• Product gross margin improved to 87% (non-GAAP), up 2 points YoY, and 79.2% (GAAP), up from 76.7%.

• Non-GAAP diluted EPS was $2.03, up 12% YoY; GAAP diluted EPS was $1.61, up from $1.04.

• Operating margin reached 47% (non-GAAP); GAAP operating margin was 37.2%.

• Returned over $1.4B to shareholders in Q1 2026, including $400M in share repurchases and $1B in dividends.

Outlook and guidance

• 2026 product sales guidance raised to $30.0–$30.4B; base business expected to grow 5–6% YoY.

• 2026 HIV sales expected to grow 8% YoY; Yeztugo 2026 sales guidance raised to $1B.

• Full-year non-GAAP loss per share expected at $(1.05)–$(0.65) due to $11.5B in acquisition-related charges; excluding these, non-GAAP EPS would be $8.45–$8.85.

• Guidance includes a 2% growth headwind from U.S. policy changes and higher effective tax rates due to non-deductible acquisition expenses.

• R&D expense to grow at low single digits; SG&A at mid-single digits.