Key Highlights

  • Gilead Sciences closed down 2.58% at $131.76 on August 5, following Tuesday's earnings report.
  • Second-quarter revenue reached $7.8 billion, beating consensus estimates of $7.51 billion by 3.86%.
  • Non-GAAP EPS loss of $6.75 came in narrower than the expected $6.75 loss, essentially matching estimates.
  • HIV sales grew 12% year-over-year, driven by Biktarvy and the rapid uptake of long-acting injectable Yeztugo, which passed a $1 billion annual sales run rate.
  • Management raised full-year 2026 product sales guidance, though a GAAP net loss of $10.5 billion tied to acquired IPR&D and tax charges weighed on the headline results.

What Happened

Gilead Sciences (NASDAQ:GILD) is a global biopharmaceutical company headquartered in Foster City, California, that discovers, develops, and commercializes innovative medicines addressing areas of unmet medical need. Its core therapeutic franchises include HIV/AIDS treatments (Biktarvy, Genvoya, Descovy, Truvada), liver disease therapies (Epclusa, Harvoni, Vemlidy), and oncology and cell therapy products (Yescarta, Tecartus, Trodelvy), alongside its COVID-19 treatment Veklury.

Shares declined despite the company beating second-quarter revenue expectations and raising full-year product sales guidance, as investors focused on a wider-than-expected net loss and a mixed analyst reaction to the print. The company posted second-quarter revenue of $7.8 billion, up 10% year-over-year, driven by HIV, Trodelvy, and Livdelzi, but a GAAP net loss of $10.5 billion reflected acquired IPR&D and tax charges from recent acquisitions.

HIV and Oncology Growth Continues

Chairman and CEO Daniel O'Day said the company delivered a very strong second quarter, with 10% year-over-year revenue growth in the base business driven by the HIV portfolio, Trodelvy, and Livdelzi. HIV sales grew 12% to $5.7 billion, with Yeztugo, the company's long-acting PrEP drug, posting $232 million in sales and surpassing a $1 billion annual run rate for the first time. Trodelvy sales rose 26% to $457 million on strength in both triple-negative and HR-positive breast cancer, while Livdelzi more than doubled to $167 million.

RBC Capital raised its price target on the stock following the print, and Needham raised its price target citing strong HIV momentum offset by pricing pressure and a newer fragmented HIV competitive landscape. Other analysts, including Cantor Fitzgerald, remained more bullish, highlighting a split in sentiment underscoring the broader healthcare sector and major indices, which are near record highs amid a strong earnings season and easing macro concerns.

Conclusion

Gilead's underlying business performance was strong across its core HIV, oncology, and liver disease franchises, but the scale of acquisition-related charges and a split analyst reaction appear to have outweighed the headline revenue beat for investors on August 5. With the company reaffirming plans for two additional launches in oncology and HIV in the second half of 2026, the decline may reflect near-term profit-taking following a strong year-to-date run rather than a change in the underlying growth trajectory.

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