November 2, 2026·41 min read
Gilead Sciences, Inc. (GILD), Financial Analysis
Insights derived from analysing SEC filings. Independent analysis, not a publication of the SEC.
Total revenues Q3 2026
$8.30bn
+6.8% year on year (Q3 2025 $7.77bn)
Total costs and expenses Q3 2026
$4.84bn
+8.9% year on year (Q3 2025 $4.44bn)
Operating margin Q3 2026
41.7%
(1.1 pts) year on year (Q3 2025 42.8%)
Key findings
- Q3 2026 total revenues $8.30bn, +6.8%; product sales $8.29bn, +12.9%. Q3 2025 included $400m of previously constrained IP sale revenue in royalty, contract and other revenue, which was $11m in Q3 2026. Operating margin 41.7% against 42.8%; GAAP diluted EPS $1.94 against $2.43; non GAAP $2.55 against $2.47.
- Acquired IPR&D explains the TTM net loss. TTM Q3 2026 revenues $30.99bn; acquired IPR&D $11.85bn (Q2 2026: Arcellx $7.0bn, Tubulis $3.1bn, Ouro $1.0bn net of the $860m Lakefront share; Q4 2025 $539m) and IPR&D impairments $2.15bn ($1.75bn Trodelvy lung cancer asset in Q2 2026, $400m bulevirtide in Q4 2025) turn $11.64bn of operating income before these charges into an operating loss of ($2.36bn). Acquired IPR&D is not tax deductible, so tax expense was $1.33bn on a pre tax loss of ($2.53bn); net loss ($3.86bn), diluted EPS ($3.16). Gilead keeps acquired IPR&D in non GAAP results: TTM non GAAP EPS ($0.31).
- HIV $6.25bn, +18.4%, 75.3% of Q3 2026 revenues against 59.8% in FY2021. Biktarvy $4.06bn, +10.1%; Descovy $1.05bn, +49.2%; twice yearly Yeztugo $305m after $232m in Q2 2026. ViiV Healthcare HIV sales +9.0% in pounds sterling.
- Medicare price for Biktarvy from 2028. CMS set the Maximum Fair Price in Oct 2026, effective 1 Jan 2028: $2,600 per 30 days, about 38% below list. Stated on the Q3 2026 call: about $1.5bn net revenue effect in 2028, with total HIV revenue still expected to grow. US generic entry not before 1 Apr 2036 under the Oct 2025 settlements.
- Oncology and liver disease: Trodelvy $506m, +41.7%, after first line metastatic triple negative breast cancer approvals; cell therapy $355m, (17.8%), with anito cel (Arcellx) due for an FDA decision on 23 Dec 2026; Livdelzi $203m, +93.3%.
- FY2026 product sales guidance raised three times, from $29.6bn to $30.0bn (10 Feb) to $31.0bn to $31.3bn (29 Oct); GAAP EPS guidance moved from a range of $6.75 to $7.15 (10 Feb) to ($4.40) to ($4.05) (29 Oct) on acquired IPR&D. Shares at $170.58 trade at 25.2x FY2025 GAAP EPS; base case $130 in FY2029, range $61 to $194.
Figures are read from the Forms 10-K for FY2022, FY2023, FY2024 and FY2025, the Forms 10-Q for Q1 2025 to Q3 2026, the Forms 8-K with all their exhibits, incl. the quarterly earnings releases (Ex 99.1), the Arcellx merger agreement, tender and support agreement and transaction releases (Ex 2.1, 10.1, 99.1), the amended 2022 Equity Incentive Plan (Ex 10.1), the underwriting agreement, supplemental indenture and legal opinion for the May 2026 notes (Ex 1.1, 4.2, 5.1), the CFO commentary given on the Q4 2025 and Q3 2026 earnings calls (Gilead files no separate CFO commentary exhibit), the Form 8-K Item 5.07 vote results of the 2026 annual meeting, Schedules 13G and Forms 4 for central index key 882095, together with the filings of the peer companies listed in the Sources appendix. Accession numbers appear in the Sources appendix. Market prices are the last trades of 2 Nov 2026.
1 Revenue & Business Model
- Storyline: HIV carries growth while acquisitions charged as acquired IPR&D drive the 2026 loss. HIV rose from 59.8% of FY2021 revenues to 75.3% in Q3 2026 as Veklury fell from 20.4% to 1.0%. Chapters 2 to 4 cover the three revenue drivers: HIV, oncology and liver disease.
- One operating segment, product sales reported by therapeutic area. FY2025: HIV $20.75bn (70.5%), oncology $3.24bn (11.0%), liver disease $3.22bn (10.9%), Veklury $911m (3.1%), other products $799m, royalty, contract and other $527m.
- Total revenues FY2021 $27.31bn to FY2025 $29.44bn, a 1.9% CAGR, as Veklury fell from $5.57bn to $911m; TTM Q3 2026 $30.99bn; 9M 2026 $23.06bn, +7.2%.
- Regions FY2025: United States 70.9%, Europe 17.2%, rest of world 11.9%; the US share was 76.7% in Q3 2026. About 90% of US gross product sales go to three wholesalers (10-K FY2025).
- Gross to net: rebates, chargebacks and other deductions were 41% of gross product sales in FY2025 against 38% in FY2024, after the 2025 Medicare Part D redesign (10-K FY2025).
Table 1.1 Sales by product, last five quarters ($m)
| Product | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|
| Biktarvy | 3,686 | 3,968 | 3,361 | 3,772 | 4,059 |
| Descovy | 701 | 819 | 807 | 967 | 1,046 |
| Yeztugo | 39 | n/a | 166 | 232 | 305 |
| Genvoya | 377 | 380 | 264 | 289 | 339 |
| Odefsey | 277 | 310 | 221 | 239 | 286 |
| Trodelvy | 357 | 384 | 402 | 457 | 506 |
| Yescarta | 349 | 368 | 332 | 346 | 294 |
| Tecartus | 83 | 90 | 75 | 70 | 60 |
| Vemlidy | 280 | 287 | 237 | 289 | 333 |
| Epclusa and authorized generic | 309 | 276 | 283 | 303 | 274 |
| Livdelzi | 105 | n/a | 133 | 167 | 203 |
| Veklury | 277 | 211 | 144 | 23 | 86 |
| Total revenues | 7,769 | 7,925 | 6,960 | 7,803 | 8,300 |
Source: 8-K Ex 99.1 releases and Forms 10-Q; Q4 2025 equals FY2025 less 9M 2025. Yeztugo and Livdelzi were not shown separately for Q4 2025. Selected products only, so lines do not add to the total.
Table 1.2 Total revenues by therapeutic area, last five quarters ($m)
| Area | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | Q3 growth (%) | Q3 share (%) |
|---|---|---|---|---|---|---|---|
| HIV | 5,277 | 5,800 | 5,030 | 5,693 | 6,249 | 18.4 | 75.3 |
| Liver disease | 819 | 845 | 767 | 877 | 927 | 13.2 | 11.2 |
| Oncology | 788 | 841 | 810 | 873 | 860 | 9.1 | 10.4 |
| Veklury | 277 | 211 | 144 | 23 | 86 | (69.0) | 1.0 |
| Other products | 184 | 205 | 196 | 161 | 167 | (9.2) | 2.0 |
| Royalty, contract and other | 424 | 22 | 14 | 176 | 11 | (97.4) | 0.1 |
Q3 2025 royalty, contract and other revenue includes $400m of previously constrained IP sale revenue; Q2 2026 includes a further $156m.
2 HIV: Biktarvy Share, PrEP Growth and the 2028 Medicare Price
- HIV $6.25bn in Q3 2026, +18.4%, 75.3% of total revenues; 9M 2026 $16.97bn, +13.5%; FY2025 $20.75bn, +5.8%.
- Treatment: Biktarvy $4.06bn, +10.1%; US treatment share 53% against 52% a year earlier (stated on the Q3 2026 call). Older regimens decline: Genvoya $339m and Odefsey $286m against $377m and $277m.
- Prevention (PrEP): Descovy $1.05bn, +49.2%; Yeztugo, the twice yearly lenacapavir injection launched in Jun 2025, $166m, $232m and $305m in Q1 to Q3 2026. Stated on the Q3 2026 call: Gilead PrEP share 50%, Descovy and Yeztugo at about $4bn annual run rate, more than 70% of Yeztugo users returned for a second injection.
- Medicare price: CMS set the Biktarvy Maximum Fair Price in Oct 2026, effective 1 Jan 2028, at $2,600 per 30 days, about 38% below list; the CFO put the 2028 net effect at about $1.5bn and expects Biktarvy revenue to fall in 2028 (stated on the Q3 2026 call).
- Pipeline: Bixlenvo (bictegravir and lenacapavir) approved in Q3 2026; once weekly oral lenacapavir PrEP PDUFA 2 Feb 2027; positive Phase 3 data for once weekly islatravir plus lenacapavir with Merck.
How the HIV market is changing
- Long acting regimens gain share: long acting injectables were 35% of ViiV Healthcare US HIV sales and 80% of its HIV growth in Q3 2026; Cabenuva +34% and Apretude +19% in pounds sterling (GSK 6-K of 28 Oct 2026).
- Older brands lose sales: J&J Prezista family (3.8%) and Merck Isentress (36%) in the latest quarter; GSK cites dolutegravir loss of exclusivity in international tenders.
- US policy: the 2025 Medicare Part D redesign cut Gilead HIV revenue by about $1.1bn in 2025 (stated on the Q3 2026 call); Biktarvy is the first Gilead product with a Medicare set price, from 2028.
- Global access: PEPFAR and the Global Fund committed to supply lenacapavir PrEP to up to 3 million people (8-K Ex 99.1, 7 May 2026); royalty free licences cover 120 countries.
Table 2.1 HIV sales against competitors
| Company and product | Period | Sales | Growth (%) | Filed detail |
|---|---|---|---|---|
| Gilead HIV | Q3 2026 | $6.25bn | 18.4 | Biktarvy, Descovy, Yeztugo, Genvoya, Odefsey |
| Gilead Biktarvy | Q3 2026 | $4.06bn | 10.1 | US treatment share 53% (stated on the Q3 2026 call) |
| Gilead Descovy | Q3 2026 | $1.05bn | 49.2 | daily oral PrEP and treatment |
| Gilead Yeztugo | Q3 2026 | $305m | n/a | twice yearly PrEP; Q3 2025 $39m |
| ViiV Healthcare HIV (GSK) | Q3 2026 | GBP 2.12bn | 9.0 | +10% at constant exchange rates |
| ViiV Cabenuva | Q3 2026 | GBP 478m | 34.0 | long acting injectables 35% of US HIV sales |
| ViiV Dovato | Q3 2026 | GBP 754m | 8.0 | oral two drug regimen |
| ViiV Apretude | Q3 2026 | GBP 143m | 19.0 | injectable PrEP every two months |
| J&J Prezista, Prezcobix, Rezolsta, Symtuza | quarter to 27 Sep 2026 | $381m | (3.8) | Edurant $386m (+0.4%) |
| Merck Isentress | Q3 2026 | $52m | (36.0) | Delstrigo $67m (13%) |
ViiV Healthcare is majority owned by GSK; sales in pounds sterling, growth at actual exchange rates. J&J quarter ends 27 Sep 2026. Gilead books a revenue share on Symtuza ($132m).
3 Oncology: Trodelvy Grows, Cell Therapy Declines, Anito Cel Pending
- Oncology $860m in Q3 2026, +9.1%, 10.4% of total revenues; FY2025 $3.24bn against $1.25bn in FY2021.
- Trodelvy $506m, +41.7%, after first line metastatic triple negative breast cancer approvals, alone or with Keytruda for PD L1 positive tumors (US Q2 2026, then EU). ASCENT 07 in HR positive breast cancer missed its primary endpoint; EVOKE 03 in lung cancer was stopped, leading to the $1.75bn Q2 2026 impairment.
- Cell therapy $355m, (17.8%): Yescarta $294m, (15.8%); Tecartus $60m, (27.7%). Stated on the Q3 2026 call: FY2026 decline by a mid teens %.
- Acquisitions: Arcellx ($7.8bn equity value) adds anito cel, a BCMA CAR T for fourth line or later multiple myeloma, PDUFA 23 Dec 2026; Tubulis ($3.15bn upfront) adds the NaPi2b ADC TUB 040.
How the oncology market is changing
- Antibody drug conjugates grow: AstraZeneca Enhertu $969m, +36%, and Datroway (TROP2) $78m with first line TNBC filings in the EU, Japan and China, a direct competitor to Trodelvy; Pfizer Padcev $667m, +23.1% (Q2 2026).
- CAR T share shifts: J&J Carvykti $710m, +35.5%, and BMS Breyanzi $526m, +46%, while Gilead cell therapy fell 17.8% to $355m; the FDA added a class wide Boxed Warning on T cell malignancies (Q2 2026 10-Q).
- Combination with Keytruda: Merck Keytruda family $8.60bn, +5.6%, is the partner drug in the PD L1 positive first line mTNBC approval of Trodelvy.
Table 3.1 Oncology sales against competitors ($m)
| Company and product | Period | Sales | Growth (%) | Filed detail |
|---|---|---|---|---|
| Gilead Trodelvy (TROP2 ADC) | Q3 2026 | 506 | 41.7 | first line mTNBC approvals in 2026 |
| Gilead cell therapy (Yescarta, Tecartus) | Q3 2026 | 355 | (17.8) | Yescarta $294m; Tecartus $60m |
| AstraZeneca Enhertu (HER2 ADC) | Q3 2026 | 969 | 36.0 | with Daiichi Sankyo; 9M 2026 $2.69bn |
| AstraZeneca Datroway (TROP2 ADC) | Q3 2026 | 78 | n/a | more than 3x a year earlier; first line TNBC filings |
| J&J Carvykti (BCMA CAR T) | quarter to 27 Sep 2026 | 710 | 35.5 | competes with anito cel in multiple myeloma |
| BMS Breyanzi (CD19 CAR T) | Q3 2026 | 526 | 46.0 | 9M 2026 $1.42bn (+47%) |
| Merck Keytruda family | Q3 2026 | 8,601 | 5.6 | combination partner for Trodelvy in PD L1 positive mTNBC |
| Pfizer Padcev (ADC) | Q2 2026 | 667 | 23.1 | latest filed quarter |
J&J quarter ends 27 Sep 2026; Pfizer latest filed quarter is Q2 2026. Gilead reports no margin by product or area.
4 Liver Disease: Livdelzi and Vemlidy Offset Hepatitis C
- Liver disease $927m in Q3 2026, +13.2%, 11.2% of total revenues; FY2025 $3.22bn.
- Products: Livdelzi (primary biliary cholangitis) $203m against $105m; Vemlidy (hepatitis B) $333m, +18.9%; Epclusa and its authorized generic (hepatitis C) $274m, (11.3%); other liver products $117m (computed).
- Approvals and data: Hepcludex received US accelerated approval for chronic hepatitis delta in Q2 2026, the first US treatment for HDV, after $590m of bulevirtide IPR&D impairments in FY2025; the Phase 3 IDEAL study of Livdelzi was positive.
How the liver disease market is changing
- Hepatitis C declines across companies: Epclusa (11.3%) to $274m and AbbVie Mavyret (15.1%) to $265m in Q3 2026.
- Rare and metabolic liver disease grows: Livdelzi nearly doubled; Madrigal Rezdiffra in MASH reached $364m in Q2 2026, +71%, with more than 49,000 patients on therapy.
- Competitors outside the SEC record: Ipsen (Iqirvo) and Alfasigma (Ocaliva), both in primary biliary cholangitis, do not file with the SEC and are not compared.
Table 4.1 Liver disease sales against competitors ($m)
| Company and product | Period | Sales | Growth (%) | Filed detail |
|---|---|---|---|---|
| Gilead liver disease | Q3 2026 | 927 | 13.2 | 11.2% of total revenues |
| Gilead Livdelzi (PBC) | Q3 2026 | 203 | 93.3 | Phase 3 IDEAL positive |
| Gilead Vemlidy (HBV) | Q3 2026 | 333 | 18.9 | chronic hepatitis B |
| Gilead Epclusa and authorized generic (HCV) | Q3 2026 | 274 | (11.3) | hepatitis C |
| AbbVie Mavyret (HCV) | Q3 2026 | 265 | (15.1) | US $115m (21.2%) |
| Madrigal Rezdiffra (MASH) | Q2 2026 | 364 | 71.0 | over 49,000 patients on therapy at 30 Jun 2026 |
Madrigal latest filed quarter is Q2 2026.
5 Financial Analysis & Ratios
- Operating loss TTM ($2.36bn), (7.6%) of total revenues, against an operating margin of 34.0% in FY2025, 5.8% in FY2024 (CymaBay acquired IPR&D $3.8bn and Trodelvy impairments $4.18bn) and 36.3% in FY2021. Before acquired IPR&D the TTM operating margin is 30.6%; before acquired IPR&D and IPR&D impairments, 37.5%.
- Net loss TTM ($3.86bn); diluted EPS ($3.16). Tax expense of $1.33bn on a pre tax loss reflects non deductible acquired IPR&D; 9M 2026 GAAP effective tax rate (31.1%). FY2025 net income $8.51bn included about $450m of tax benefit from a settlement with a tax authority in Q4 2025.
- Cash flow TTM: operating cash flow $14.48bn, capex $699m, free cash flow $13.78bn (44.5% of revenues). 9M 2026 operating cash flow $11.15bn, +67%, was lifted by lower tax payments, the Lakefront collaboration receipt and lower inventory spend (10-Q Q3 2026); FY2025 included the final $1.3bn transition tax payment.
- Balance sheet at 30 Sep 2026: cash $6.44bn after marketable securities were sold to fund acquisitions; debt $26.23bn incl. $3.0bn of notes (May 2026) and a $1.1bn one year term loan; net debt $19.79bn against $14.33bn at end 2025. Equity $13.04bn against $22.70bn, after the Q2 2026 loss.
- Capital returns TTM: dividends $4.10bn and buybacks $1.37bn, against acquisitions of $11.95bn; quarterly dividend $0.82 in 2026 against $0.79 in 2025.
Table 5.1 Income statement, cash flow and balance sheet summary ($bn unless stated)
| Line item | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM Q3 2026 |
|---|---|---|---|---|---|---|
| Revenue | 27.3 | 27.3 | 27.1 | 28.8 | 29.4 | 31.0 |
| Gross profit | 20.7 | 21.6 | 20.6 | 22.5 | 23.2 | 24.8 |
| Research and development | 4.6 | 5.0 | 5.7 | 5.9 | 5.8 | 6.3 |
| Selling, general and administrative | 5.2 | 5.7 | 6.1 | 6.1 | 5.8 | 6.8 |
| Operating income | 9.9 | 7.3 | 7.6 | 1.7 | 10.0 | (2.4) |
| Net income | 6.2 | 4.6 | 5.7 | 0.5 | 8.5 | (3.9) |
| Diluted EPS ($) | 4.93 | 3.64 | 4.50 | 0.38 | 6.78 | (3.16) |
| Operating cash flow | 11.4 | 9.1 | 8.0 | 10.8 | 10.0 | 14.5 |
| Capital expenditure | (0.6) | (0.7) | (0.6) | (0.5) | (0.6) | (0.7) |
| Free cash flow | 10.8 | 8.3 | 7.4 | 10.3 | 9.5 | 13.8 |
| Stock based compensation | 0.6 | 0.6 | 0.8 | 0.8 | 0.9 | 0.9 |
| Cash and investments | 7.8 | 7.6 | 8.4 | 10.0 | 10.6 | 6.4 |
| Total debt | 26.7 | 25.2 | 25.0 | 26.7 | 24.9 | 26.2 |
| Total equity | 21.1 | 21.2 | 22.8 | 19.3 | 22.7 | 13.0 |
Operating income is after acquired IPR&D and IPR&D impairments, both expensed in operating costs. TTM equals Q4 2025 plus Q1 to Q3 2026; balance sheet at 30 Sep 2026. Total debt is current plus long term debt; cash and investments include marketable debt securities.
Table 5.2 What changed, Q3 2026 against Q3 2025
| Metric | Q3 2025 | Q3 2026 | Change |
|---|---|---|---|
| Revenue ($bn) | 7.77 | 8.30 | 6.8% |
| Gross profit ($bn) | 6.20 | 6.73 | 8.5% |
| Operating income ($bn) | 3.33 | 3.46 | 4.1% |
| Net income ($bn) | 3.05 | 2.43 | (20.4%) |
| Diluted EPS ($) | 2.43 | 1.94 | (20.2%) |
| Operating cash flow ($bn) | 4.11 | 5.04 | 22.6% |
| Free cash flow ($bn) | 3.96 | 4.80 | 21.1% |
| Operating margin (%) | 42.8 | 41.7 | (1.1 pts) |
| Net margin (%) | 39.3 | 29.3 | (10.0 pts) |
Table 5.3 Ratio analysis
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM Q3 2026 |
|---|---|---|---|---|---|---|
| Growth and margins | ||||||
| Revenue growth (%) | n/a | (0.1) | (0.6) | 6.0 | 2.4 | n/a |
| Gross margin (%) | 75.8 | 79.3 | 76.0 | 78.3 | 78.8 | 79.9 |
| Operating margin (%) | 36.3 | 26.9 | 28.0 | 5.8 | 34.0 | (7.6) |
| Net margin (%) | 22.8 | 16.8 | 20.9 | 1.7 | 28.9 | (12.5) |
| FCF margin (%) | 39.6 | 30.6 | 27.4 | 35.8 | 32.1 | 44.5 |
| Cost and investment intensity | ||||||
| R&D (%) revenue | 16.9 | 18.2 | 21.1 | 20.5 | 19.7 | 20.4 |
| SBC (%) revenue | 2.3 | 2.3 | 2.8 | 2.9 | 3.0 | 2.9 |
| Capex (%) revenue | 2.1 | 2.7 | 2.2 | 1.8 | 1.9 | 2.3 |
| Effective tax rate (%) | 25.1 | 21.5 | 18.2 | 30.6 | 13.1 | n/a |
| Returns | ||||||
| ROE (%) | 29.5 | 21.7 | 25.7 | 2.3 | 40.5 | (29.6) |
| ROA (%) | 9.2 | 7.0 | 9.0 | 0.8 | 14.4 | (7.5) |
| ROIC (%) | 18.6 | 14.8 | 15.8 | 3.2 | 23.5 | (5.9) |
| Asset turnover (x) | 0.40 | 0.43 | 0.44 | 0.49 | 0.50 | 0.60 |
| Liquidity and leverage | ||||||
| Current ratio (x) | 1.27 | 1.29 | 1.43 | 1.60 | 1.55 | 1.38 |
| Debt to equity (x) | 1.27 | 1.19 | 1.09 | 1.38 | 1.10 | 2.01 |
| Net cash ($bn) | (18.9) | (17.6) | (16.6) | (16.7) | (14.3) | (19.8) |
| Efficiency and cash quality | ||||||
| Days sales outstanding | 60 | 64 | 63 | 56 | 61 | 59 |
| FCF to net income (x) | 1.74 | 1.82 | 1.31 | 21.47 | 1.11 | n/a |
| Shareholder returns (%) FCF | 38 | 61 | 65 | 49 | 63 | 40 |
TTM ratios use TTM Q3 2026 flows and the 30 Sep 2026 balance sheet. Margins and returns for FY2024 and TTM include acquired IPR&D ($4.66bn and $11.85bn) and IPR&D impairments ($4.18bn and $2.15bn). ROE and ROA use average balances for FY2022 to FY2025 and period end balances for FY2021 and TTM.
Table 5.4 Valuation snapshot at $170.58 per share, 2 Nov 2026
| Measure | Value |
|---|---|
| Market cap ($bn) | 211.6 |
| Enterprise value (net debt at 30 Sep 2026) ($bn) | 231.4 |
| P/E on FY2025 GAAP EPS (x) | 25.2 |
| P/E on FY2025 non GAAP EPS (x) | 20.9 |
| EV/Sales TTM Q3 2026 (x) | 7.5 |
| FCF yield on TTM free cash flow (%) | 6.5 |
| Dividend yield (%) | 1.9 |
| Price/Book (x) | 16.2 |
Cost structure and profitability
- Gross margin on total revenues 81.1% in Q3 2026 against 79.8%; GAAP product gross margin 81.0% against 78.6% after expiry of a royalty obligation (TAF royalty, stated on the Q3 2026 call). Amortization of acquired intangibles, about $587m a quarter, runs through cost of goods sold.
- R&D $1.61bn, +19.5%, 19.4% of total revenues; SG&A $1.64bn, +20.9%, incl. integration and legal costs (10-Q Q3 2026). Q2 2026 included $561m of integration stock compensation.
- Costs and expenses (total revenues less operating income) $4.84bn in Q3 2026, +8.9%, against revenue growth of +6.8%; Q3 2025 revenue included the $400m IP sale.
- Acquired IPR&D by quarter: $170m (Q3 2025), $539m (Q4 2025), $107m (Q1 2026), $11.18bn (Q2 2026), $18m (Q3 2026). Gilead accounts for Arcellx, Tubulis and Ouro as asset acquisitions, so the purchase price of the pipeline assets is expensed at closing.
- Product sales guidance and EPS guidance moved in opposite directions in 2026: product sales up $1.4bn at the midpoint between February and October; GAAP EPS guidance down from a range of $6.75 to $7.15 (10 Feb) to ($4.40) to ($4.05) (29 Oct) as acquired IPR&D rose from about $300m (February, stated on the Q4 2025 call) to about $12.9bn.
Table 5.5 Costs as % of total revenues, last five quarters
| Line | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 |
|---|---|---|---|---|---|
| Cost of goods sold (% of total revenues) | 20.2 | 20.5 | 20.8 | 20.2 | 18.9 |
| Research and development (% of total revenues) | 17.3 | 20.0 | 19.7 | 22.6 | 19.4 |
| Selling, general and administrative (% of total revenues) | 17.5 | 22.6 | 20.8 | 24.6 | 19.8 |
| Acquired IPR&D (% of total revenues) | 2.2 | 6.8 | 1.5 | 143.3 | 0.2 |
| IPR&D impairments (% of total revenues) | 0.0 | 5.0 | 0.0 | 22.4 | 0.0 |
| Operating income (% of total revenues) | 42.8 | 25.0 | 37.2 | (133.2) | 41.7 |
| Net income (% of total revenues) | 39.3 | 27.5 | 29.0 | (134.5) | 29.3 |
Table 5.6 Acquired IPR&D, IPR&D impairments and operating income ($m)
| Line | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | Q3 2026 | TTM Q3 2026 |
|---|---|---|---|---|---|---|
| Acquired IPR&D | 170 | 539 | 107 | 11,183 | 18 | 11,847 |
| IPR&D impairments | 0 | 400 | 0 | 1,750 | 0 | 2,150 |
| Operating income | 3,327 | 1,984 | 2,586 | (10,394) | 3,462 | (2,362) |
| Operating income before both charges | 3,497 | 2,923 | 2,693 | 2,539 | 3,480 | 11,635 |
| Operating margin before both charges (%) | 45.0 | 36.9 | 38.7 | 32.5 | 41.9 | 37.5 |
| Non GAAP operating income (company measure) | 3,921 | 3,089 | 3,267 | (7,328) | 4,168 | n/a |
Non GAAP operating income keeps acquired IPR&D and excludes amortization, IPR&D impairments, acquisition costs and restructuring (8-K Ex 99.1).
6 MD&A & Management Commentary
Q3 2026 results release (8-K of 29 Oct 2026) and earnings call
- Q3 2026 (29 Oct 2026): total revenues $8.30bn, +6.8%; product sales $8.29bn, +12.9%; product sales excluding Veklury $8.2bn, +16%; GAAP diluted EPS $1.94; non GAAP $2.55; operating cash flow $5.04bn.
- Margins: GAAP product gross margin 81.0% against 78.6%, non GAAP 88.1% against 86.5%, after expiry of a royalty obligation; non GAAP operating margin 50.2% against 50.5%; GAAP effective tax rate 20.7%.
- GAAP to non GAAP, Q3 2026 per share: amortization of acquired intangibles $0.37 (about $587m a quarter in cost of goods sold), equity investment losses $0.11, acquisition related costs $0.05, restructuring $0.03 and tax items $0.05.
- Approvals and pipeline (8-K releases): Trodelvy first line mTNBC (US Q2 2026, then EU); Hepcludex for hepatitis delta (US, Q2 2026); Bixlenvo (bictegravir and lenacapavir) approved in Q3 2026; once weekly oral lenacapavir PrEP PDUFA date 2 Feb 2027; PepStar oral IL 23R agreement signed.
- Stated on the Q3 2026 call: FY2026 acquired IPR&D about $12.9bn, incl. about $1.4bn of Q4 upfront payments; Yeztugo about $1bn in FY2026; cell therapy down by a mid teens % in FY2026; Gilead PrEP share 50%.
- Q2 2026 results (8-K Ex 99.1, 4 Aug 2026): total revenues $7.80bn, +10%; GAAP EPS ($8.45), non GAAP ($6.75) after $11.2bn of acquired IPR&D and the $1.75bn Trodelvy impairment; Veklury guidance cut to about $300m.
- Q1 2026 results (8-K Ex 99.1, 7 May 2026): total revenues $6.96bn, +4%; non GAAP product gross margin 87.5% against 85.5%; EPS guidance cut on about $11.5bn of expected acquired IPR&D.
Table 6.1 Outlook items in the 8-K releases and on the call
| Item | Outlook | Source |
|---|---|---|
| FY2026 product sales | $31.0bn to $31.3bn; excluding Veklury $30.7bn to $31.0bn; Veklury about $300m | 8-K Ex 99.1, 29 Oct 2026 |
| FY2026 diluted EPS | GAAP ($4.40) to ($4.05); non GAAP ($1.20) to ($0.85), incl. about $9.88 per share of acquired IPR&D | 8-K Ex 99.1, 29 Oct 2026 |
| FY2026 operating income | GAAP ($3.15bn) to ($2.75bn); non GAAP $2.0bn to $2.4bn (10 Feb: GAAP $11.4bn to $11.9bn) | Guidance table, 29 Oct 2026 |
| FY2026 product gross margin | GAAP about 79.0%; non GAAP about 87.0%, unchanged through the year | Guidance table, 29 Oct 2026 |
| FY2026 tax rate | excluding non deductible acquired IPR&D about 21% GAAP and 20% non GAAP | Guidance table, 29 Oct 2026 |
| Arcellx effect | reduces 2026 diluted EPS by about $5.57 to $5.67; accretive from 2028 subject to anito cel approval | 8-K Ex 99.1, 28 Apr 2026 |
| FY2026 non GAAP EPS excluding 2026 acquisition items | $8.75 to $9.10, raised $0.25 at both ends | Stated on the Q3 2026 call |
| Biktarvy in 2028 | about $1.5bn net effect of the Medicare price; Biktarvy revenue to decline in 2028, total HIV to grow | Stated on the Q3 2026 call |
Management and CFO commentary
- CFO Andrew Dickinson, stated on the Q3 2026 call: base business sales $8.2bn, +16% year on year and +8% on Q2 2026; FY2026 base business guidance $30.7bn to $31.0bn, about $1.65bn above the initial range; FY2026 HIV growth about 12%.
- CFO, stated on the Q3 2026 call: non GAAP product gross margin 88% against 86% after a TAF related royalty obligation expired in Nov 2025; FY2026 acquired IPR&D about $12.9bn incl. $1.4bn of Q4 upfront payments for PepStar and a Vir collaboration.
- CFO, stated on the Q3 2026 call: Biktarvy Medicare price about 38% below list, about $1.5bn net effect in 2028; total HIV revenue, product sales and EPS expected to grow in 2028; Q3 returns about $1.4bn incl. $370m of buybacks.
- CFO, stated on the Q4 2025 call (10 Feb 2026): FY2026 product sales $29.6bn to $30.0bn; Yeztugo about $800m; acquired IPR&D about $300m; non GAAP operating income $13.8bn to $14.3bn; 2025 returns $5.9bn, about 63% of free cash flow.
- CEO Daniel O'Day, 8-K Ex 99.1 of 29 Oct 2026: base business guidance raised by a total of $1.6bn since the start of 2026; HIV +18%; HIV prevention sales nearly doubled year on year.
- CEO, 8-K Ex 99.1 of 23 Feb 2026: anito cel could become a foundational multiple myeloma treatment, incl. earlier lines; the D Domain binder could support in vivo cell therapy work.
- Chief Commercial Officer Johanna Mercier, stated on the Q3 2026 call: PrEP sales nearly doubled against 14% growth in the US PrEP market.
Table 6.2 Management statements in their own words
| Speaker | Date and source | Statement |
|---|---|---|
| Daniel O'Day, Chairman and CEO | 4 Aug 2026, 8-K Ex 99.1 Q2 2026 | “the rapid expansion of our PrEP business” |
| Andrew Dickinson, CFO | 10 Feb 2026, Q4 2025 earnings call | “we expect 2026 total product sales between $29.6 and $30 billion.” |
Table 6.3 Key disclosures in the Forms 10-Q and 10-K
| Item | Disclosure |
|---|---|
| 10-K FY2025, concentration | HIV $20.75bn of $28.92bn product sales (72%); about 90% of US gross product sales go to Cardinal, McKesson and Cencora; US 70.9% of revenues. |
| 10-K FY2025, patents | Biktarvy US 2036 (generic settlements from 1 Apr 2036), Descovy 2031, Odefsey 2032, Genvoya 2029, Epclusa 2033, Trodelvy 2028 with regulatory exclusivity to 2032, Yescarta 2031, Tecartus 2027, Yeztugo and Sunlenca 2037. |
| 10-K FY2025, deductions | Rebates and chargebacks $17.5bn in FY2025 against $15.5bn; gross to net 41% of gross sales against 38%; ending reserve $5.18bn. |
| 10-K FY2025, charges | Acquired IPR&D $1.02bn (Interius $311m, LEO $250m, Pregene $200m); IPR&D impairments $590m (bulevirtide); effective tax rate 13.1%. |
| 10-Q Q3 2026, acquired IPR&D | 9M 2026 $11.31bn: Arcellx $7.0bn, Tubulis $3.1bn, Ouro $1.0bn ($1.9bn less the $860m Lakefront share), Genhouse $80m; Q2 2026 integration stock compensation $229m in R&D and $332m in SG&A. |
| 10-Q Q3 2026, liquidity | Cash $6.4bn and no marketable securities; 9M operating cash flow $11.15bn (+67%); 9M capex $494m; debt $26.2bn ($2.4bn current). |
| 10-Q Q3 2026, currency | 22% of Q3 2026 product sales in foreign currencies against 27% a year earlier; currency net of hedges reduced Q3 product sales by $8m and added $127m in 9M 2026. |
| 10-Q Q3 2026, legal | Cipla 505(b)(2) challenges to Descovy and Odefsey patents and Zydus to Descovy and Vemlidy, suits filed; TDF state cases dismissed after the Aug 2026 California Supreme Court ruling; Texas TMFPA case settled in Oct 2026. |
Table 6.4 FY2026 guidance, every revision
| Date | Filing | Product sales ($bn) | Product sales excl. Veklury ($bn) | GAAP diluted EPS ($) | Non GAAP diluted EPS ($) |
|---|---|---|---|---|---|
| 10 Feb 2026 | Q4 2025 results | 29.6 to 30.0 | 29.0 to 29.4 | 6.75 to 7.15 | 8.45 to 8.85 |
| 7 May 2026 | Q1 2026 results | 30.0 to 30.4 | 29.4 to 29.8 | (3.25) to (2.85) | (1.05) to (0.65) |
| 4 Aug 2026 | Q2 2026 results | 30.1 to 30.4 | 29.8 to 30.1 | (3.75) to (3.40) | (0.65) to (0.30) |
| 29 Oct 2026 | Q3 2026 results | 31.0 to 31.3 | 30.7 to 31.0 | (4.40) to (4.05) | (1.20) to (0.85) |
Source: 8-K Ex 99.1 of each date. Veklury guidance about $600m until 4 Aug 2026, then about $300m. The 29 Oct 2026 non GAAP range includes about $9.88 per share of acquired IPR&D ($12.4bn for Arcellx, Tubulis, Ouro and PepStar, net of the Lakefront share and tax).
7 Peer Valuation & Sector Summary
- Sector: large biopharmaceutical companies with HIV, oncology and liver disease franchises. Gilead relies on HIV for three quarters of revenues; AbbVie on immunology; Merck on Keytruda.
- Growth, latest quarter: REGN 36.3%, ABBV 10.3%, BMY 6.9%, GILD 6.8%, MRK 4.7%; H1 2026: VRTX 10.2%, AMGN 7.8%.
- Margins TTM: gross margin VRTX 86.0%, REGN 85.8%, GILD 79.9%, ABBV 73.7%, MRK 71.8%, AMGN 69.5%, BMY 69.2%. GILD operating margin (7.6%) after acquired IPR&D, 30.6% before it, against VRTX 38.0%, ABBV 32.2%, AMGN 30.0% and MRK 8.1% after its $15.1bn of IPR&D and licence charges.
- Free cash flow margin TTM: GILD 44.5%, lifted by lower tax payments and the Lakefront receipt, against VRTX 30.2% (TTM Q2 2026), ABBV 28.3% (TTM Q2 2026), AMGN 26.7% (TTM Q2 2026), REGN 22.6% and BMY 18.6%.
- Leverage and valuation: net debt GILD $19.8bn, AMGN $43.3bn, BMY $29.9bn, ABBV $64.3bn and MRK $46.8bn (both at 30 Jun 2026); VRTX and REGN hold net cash. EV/Sales GILD 7.5x against VRTX 10.3x, ABBV 8.9x, AMGN 7.7x, MRK 6.2x, REGN 4.8x and BMY 3.2x.
Table 7.1 Peer comparison, latest reported period
| Company | Revenue TTM ($bn) | Revenue growth (%) | Gross margin (%) | Operating margin (%) | Net margin (%) | FCF margin (%) | ROE (%) | Net cash ($bn) | Market value ($bn) | EV/Sales (x) | P/E TTM (x) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| GILD | 31.0 | 6.8 | 79.9 | (7.6) | (12.5) | 44.5 | n/a | (19.8) | 212 | 7.5 | n/a |
| AMGN | 38.1 | 7.8 | 69.5 | 30.0 | 23.0 | 26.7 | 86.0 | (43.3) | 251 | 7.7 | 28.7 |
| BMY | 50.0 | 6.9 | 69.2 | 23.1 | 18.5 | 18.6 | 44.1 | (29.9) | 128 | 3.2 | 13.8 |
| VRTX | 12.6 | 10.2 | 86.0 | 38.0 | 35.0 | 30.2 | 22.6 | 13.6 | 143 | 10.3 | 32.4 |
| REGN | 16.9 | 36.3 | 85.8 | 28.8 | 28.5 | 22.6 | 14.9 | 16.2 | 98 | 4.8 | 20.8 |
| ABBV | 66.0 | 10.3 | 73.7 | 32.2 | 15.7 | 28.3 | n/a | (64.3) | 522 | 8.9 | 50.8 |
| MRK | 67.4 | 4.7 | 71.8 | 8.1 | 3.6 | n/a | n/a | (46.8) | 369 | 6.2 | 154.1 |
Growth is the latest reported quarter year on year for GILD, ABBV, MRK, BMY and REGN (Q3 2026) and H1 2026 for AMGN and VRTX. Margins TTM Q3 2026, except AMGN and VRTX TTM Q2 2026 (Q3 Forms 10-Q not filed by 2 Nov 2026). GILD, ABBV and MRK operating margins are after acquired IPR&D: GILD before acquired IPR&D 30.6%. BMY operating margin computed, as BMY reports no operating income line. GILD net loss TTM, so P/E and ROE are blank; GILD P/E 25.2x on FY2025 GAAP EPS. ABBV and MRK rows as in the AbbVie post (prices of 30 Oct 2026); ABBV FCF margin is TTM Q2 2026 and ABBV and MRK net debt is at 30 Jun 2026; other prices are last trades of 2 Nov 2026.
8 Material Events & Contracts
- 9 Forms 8-K between 2 Nov 2025 and 2 Nov 2026: four results releases, the Arcellx agreement and completion, the May 2026 notes offering, the annual meeting vote results and the departure of the General Counsel.
- Arcellx: agreed on 23 Feb 2026 at $115 per share in cash plus a $5 CVR, about $7.8bn equity value, a 68% premium to the 30 day volume weighted average price; Gilead already held about 11.5%; completed 28 Apr 2026 and accounted for as an asset acquisition, so the price was expensed as acquired IPR&D ($7.0bn).
- Funding: $3.0bn of senior notes in four tranches (4.250% 2028 to 4.900% 2034) and a $1.1bn one year term loan in Q2 2026, plus the sale of marketable securities ($3.04bn at end 2025, none at 30 Sep 2026).
Table 8.1 Forms 8-K filed between 2 Nov 2025 and 2 Nov 2026
| Date | Items | Event |
|---|---|---|
| 19 Nov 2025 | 5.02 | Deborah Telman to leave role as EVP Corporate Affairs and General Counsel as of Dec 5 2025 (successor Keeley Cain Wettan named later as EVP, General Counsel, Legal and Compliance). |
| 10 Feb 2026 | 2.02, 9.01 | Q4 and FY2025 results: FY2025 revenue $29.44bn (+2%); FY2025 GAAP EPS $6.78 against $0.38; FY2025 non GAAP EPS $8.15 against $4.62; Q4 revenue $7.9bn (+5%), Q4 GAAP EPS $1.74, non GAAP $1.86. Initial FY2026 guidance: product sales $29.6bn to $30.0bn, GAAP EPS $6.75 to $7.15, non GAAP EPS $8.45 to $8.85. Q1 2026 dividend raised to $0.82. Ex 99.1. |
| 23 Feb 2026 | 1.01, 7.01, 9.01 | Merger agreement to acquire Arcellx for $115 per share cash plus $5 CVR (payable if anito cel cumulative net sales reach $6.0bn through 2029); implied equity value $7.8bn; 68% premium to 30 day volume weighted average price; Gilead already owned about 11.5%. Anito cel BLA PDUFA date Dec 23 2026. Ex 2.1, 10.1, 99.1. |
| 28 Apr 2026 | 7.01, 8.01, 9.01 | Arcellx tender offer completed (38.8m shares tendered, 77.2% with shares already held); merger closed; funds used about $7.1bn. Accounted as asset acquisition; reduces 2026 diluted EPS by about $5.57 to $5.67. Ex 99.1. |
| 4 May 2026 | 5.07, 9.01 | Apr 30 2026 annual meeting: nine directors elected, EY ratified, say on pay approved (954.3m for, 77.5m against), amended 2022 Equity Incentive Plan approved; three shareholder proposals rejected (independent chair 280.0m for and 752.7m against). Ex 10.1. |
| 7 May 2026 | 2.02, 9.01 | Q1 2026 results: revenue $6.96bn (+4%); GAAP EPS $1.61; non GAAP EPS $2.03; product sales guidance raised to $30.0bn to $30.4bn; EPS guidance cut to GAAP ($3.25) to ($2.85) on $11.5bn expected acquired IPR&D (Arcellx, Ouro, Tubulis). Tubulis and Ouro deals announced. Ex 99.1. |
| 20 May 2026 | 1.01, 2.03, 8.01, 9.01 | Issued $3.0bn senior notes: $500m 4.250% due 2028, $1.0bn 4.400% due 2029, $1.0bn 4.600% due 2031, $500m 4.900% due 2034; proceeds for general purposes including acquisitions. A $1.1bn one year term loan was also drawn in Q2 2026 (Q2 2026 release). Ex 1.1, 4.2, 5.1. |
| 4 Aug 2026 | 2.02, 9.01 | Q2 2026 results: revenue $7.80bn (+10%); GAAP EPS ($8.45) and non GAAP EPS ($6.75) on $11.2bn acquired IPR&D ($7.0bn Arcellx, $3.1bn Tubulis, $1.0bn Ouro net of Lakefront) and $1.75bn Trodelvy NSCLC IPR&D impairment; Veklury guidance cut to about $300m; product sales guidance $30.1bn to $30.4bn. Ex 99.1. |
| 29 Oct 2026 | 2.02, 9.01 | Q3 2026 results: revenue $8.30bn (+7%); product sales $8.29bn (+13%); HIV $6.25bn (+18%); Biktarvy $4.06bn (+10%); Descovy $1.05bn (+49%); Yeztugo $305m; Trodelvy $506m (+42%); GAAP EPS $1.94; non GAAP EPS $2.55; operating cash flow $5.0bn; FY2026 product sales guidance raised to $31.0bn to $31.3bn; non GAAP EPS guidance ($1.20) to ($0.85) including PepStar IPR&D. Ex 99.1. |
Table 8.2 Material contracts and financing arrangements
| Contract | Terms |
|---|---|
| Arcellx merger agreement (Ex 2.1, 23 Feb 2026) | Tender offer at $115.00 per share plus one CVR of $5.00 payable if cumulative worldwide anito cel sales exceed $6.0bn by 31 Dec 2029; $260m termination fee payable by Arcellx in specified cases; closed 28 Apr 2026, funds used about $7.1bn. |
| Tender and support agreement (Ex 10.1) | Arcellx directors, officers and funds affiliated with New Enterprise Associates and SR One, about 10.3% of Arcellx shares, agreed to tender. |
| Senior notes, May 2026 (Ex 1.1, 4.2, 5.1) | $500m 4.250% 2028, $1.0bn 4.400% 2029, $1.0bn 4.600% 2031, $500m 4.900% 2034; general corporate purposes incl. acquisitions; change of control repurchase offer; eleventh supplemental indenture. |
| Term loan and revolving credit | $1.1bn one year term loan drawn in Q2 2026; $2.5bn revolving credit facility (10-K FY2025). |
| Agreement with the US administration (Dec 2025) | Three year exclusion of branded products from Section 232 tariffs tied to US investment ($32bn planned through 2030); most favored nation prices in Medicaid for select products and for future launches. |
| Biktarvy patent settlements (8-K, 6 Oct 2025) | Settlements with Lupin, Cipla and Laurus permit US generic Biktarvy entry from 1 Apr 2036. |
| 2022 Equity Incentive Plan (Ex 10.1, 4 May 2026) | 47,750,000 newly authorized shares plus 111,485,837 shares previously authorized; approved by shareholders on 30 Apr 2026. |
9 Ownership, Voting Power & Annual Meeting
- One class of common stock, one vote per share, no controlling holder. Schedule 13G filers: BlackRock 101.7m shares, 8.2% (event date 31 Mar 2025); Vanguard Capital Management 93.3m, 7.51% (31 Mar 2026); FMR 65.5m, 5.3% (31 Dec 2025). Capital World Investors reported 53.8m, 4.3%, below the 5% threshold (31 Mar 2025).
- 2026 annual meeting (30 Apr 2026): 91.1% of entitled shares represented; nine directors elected with 95.1% (Daniel O'Day, Chairman and CEO) to 98.5% (Javier Rodriguez) of votes cast; say on pay 92.5%; amended equity plan 93.9%; an independent chair proposal received 27.1% and a patent exclusivity report 13.1%.
- Insiders, 12 months to 2 Nov 2026: no open market purchases; open market sales about $86.7m by seven insiders, all but one director sale under Rule 10b5 1 plans. CEO Daniel O'Day sold 366,280 shares for about $51.3m, incl. 231,280 from option exercises; Chief Commercial Officer Johanna Mercier $18.6m; former General Counsel Deborah Telman $6.6m; CFO Andrew Dickinson $4.9m (3,000 shares a month).
- Board and officers: Deborah Telman left as EVP Corporate Affairs and General Counsel on 5 Dec 2025 (8-K of 19 Nov 2025); Keeley Cain Wettan became EVP, General Counsel, Legal and Compliance.
Table 9.1 Annual meeting vote results, 30 Apr 2026
| Proposal | For (bn votes) | Against (bn votes) | Abstain (bn votes) | For as % of votes cast | Result |
|---|---|---|---|---|---|
| Elect Jacqueline K. Barton | 1.013 | 0.021 | 0.001 | 98.0 | Elected |
| Elect Jeffrey A. Bluestone | 1.017 | 0.017 | 0.001 | 98.4 | Elected |
| Elect Sandra J. Horning | 1.002 | 0.031 | 0.002 | 97.0 | Elected |
| Elect Kelly A. Kramer | 0.996 | 0.038 | 0.001 | 96.3 | Elected |
| Elect Ted W. Love | 1.017 | 0.018 | 0.001 | 98.3 | Elected |
| Elect Harish Manwani | 0.996 | 0.038 | 0.001 | 96.3 | Elected |
| Elect Daniel P. O'Day (Chairman and CEO) | 0.981 | 0.050 | 0.004 | 95.1 | Elected; lowest director support |
| Elect Javier J. Rodriguez | 1.019 | 0.015 | 0.001 | 98.5 | Elected; highest director support |
| Elect Anthony Welters | 0.993 | 0.041 | 0.002 | 96.0 | Elected |
| Ratify Ernst & Young LLP as auditor for FY2026 | 1.046 | 0.083 | 0.001 | 92.7 | Approved |
| Advisory vote on named executive officer pay | 0.954 | 0.078 | 0.003 | 92.5 | Approved |
| Amended and restated 2022 Equity Incentive Plan | 0.970 | 0.063 | 0.002 | 93.9 | Approved |
| Shareholder: independent Board Chair policy | 0.280 | 0.753 | 0.002 | 27.1 | Not approved |
| Shareholder: report on extended patent exclusivities and patient access | 0.134 | 0.887 | 0.014 | 13.1 | Not approved |
| Shareholder: report on ESG and DEI executive pay metrics | 0.007 | 1.022 | 0.006 | 0.7 | Not approved |
Broker non votes 95.0m on each item except the auditor ratification. 1.24bn shares entitled to vote.
2026 annual meeting
- Meeting of 30 Apr 2026: 1.13bn of 1.24bn shares represented; all management proposals passed and all three shareholder proposals failed (8-K Item 5.07 of 4 May 2026).
- Director support: Daniel O'Day received the most votes against among directors (50.2m); Javier Rodriguez the fewest (15.0m).
- Shareholder proposals: independent Board chair 280.0m for and 752.7m against; report on patent exclusivities and patient access 134.0m for; ESG and DEI pay metrics report 7.3m for.
10 Risk Factors
- Item 1A of the FY2025 Form 10-K holds 22 risk factors, as in FY2024 (12,027 words against 11,738): one added, on the $32bn US investment plan, one removed, on ERP systems, and 7 materially reworded, led by pricing and reimbursement. Gilead restates Item 1A in each Form 10-Q; the Q3 2026 version records the Biktarvy Medicare price.
Table 10.1 Risk factors and legal matters with filed figures
| Risk | Disclosure and change |
|---|---|
| HIV concentration | HIV 75.3% of Q3 2026 total revenues and 72% of FY2025 product sales; Biktarvy $14.33bn in FY2025. |
| Medicare price setting | Biktarvy Maximum Fair Price of $2,600 per 30 days from 1 Jan 2028, which the Q3 2026 10-Q says will also raise Medicaid rebates and lower 340B ceiling prices; about $1.5bn 2028 effect (stated on the Q3 2026 call). |
| Most favored nation pricing | Sep 2026 CMS GLOBE Model final rule (Part B rebates benchmarked to other countries from Apr 2027) and the proposed GUARD Part D model added in the Q3 2026 10-Q; Medicaid MFN for select products under the Dec 2025 agreement. |
| Tariffs | 100% tariffs on patented pharmaceuticals and Section 301 tariffs took effect in Jul 2026; the three year Section 232 exclusion is not assured; tariffs named 9 times in the FY2025 Item 1A against once a year earlier. |
| Patent challenges | Cipla 505(b)(2) filings against Descovy and Odefsey patents and Zydus against Descovy and Vemlidy; suits filed in 2026. |
| Acquired IPR&D and impairments | Acquired IPR&D $11.85bn TTM; IPR&D impairments $2.70bn (FY2022), $4.18bn (FY2024), $590m (FY2025) and $1.75bn (Q2 2026); intangible assets $13.42bn at 30 Sep 2026. |
| Cell therapy | FDA class wide Boxed Warning on T cell malignancies for CAR T therapies (Q2 2026 10-Q); cell therapy sales (17.8%) in Q3 2026. |
| Litigation | Aetna HIV antitrust trial set for Jan 2027; TDF federal bellwether trial Sep 2027 after about $39m paid to about 2,470 federal plaintiffs; HIV antitrust class action appeal pending. |
How risk factors changed
- Comparison: 10-K FY2025 filed 24 Feb 2026 acc 0000882095-26-000006 against 10-K FY2024 filed 28 Feb 2025 acc 0000882095-25-000006.
- Tariffs are named 9 times in the FY2025 Item 1A against once a year earlier.
- AI is mentioned 7 times against 2 a year earlier; most favored nation pricing appears for the first time.
- The pricing factor grew by about 700 words, the largest change, driven by the Biktarvy Medicare negotiation, MFN policy and Medicaid and ACA changes.
- The BIOSECURE Act appears in 3 places against 1 a year earlier, tied to clinical and supply chain risks.
- Factor count held at 22 and total words rose 2.5%; ESG and climate text was cut while a factor on the $32bn US investment plan was added.
Table 10.2 Size of the risk factor section
| Measure | 10-K FY2024 | 10-K FY2025 |
|---|---|---|
| Risk factors (count) | 22 | 22 |
| Words in Item 1A | 11,738 | 12,027 |
Table 10.3 Risk factors added, removed and materially reworded
| Change | Risk factor | What changed |
|---|---|---|
| Added | US manufacturing and R&D investments may miss intended benefits | New factor on the plan to invest $32bn in the US through 2030, citing construction delays, cost inflation, cGMP inspections, possible impairments and dependence on tax credits and tariff rules. |
| Removed | ERP and information system upgrades could disrupt operations | Standalone factor on implementing enterprise resource planning systems was dropped. |
| Reworded | Pricing and reimbursement pressures, discounts and rebates | Grew from 1,351 to 2,050 words: adds HHS selection of Biktarvy in Jan 2026 for Medicare price negotiation effective 2028, MFN executive orders and the Jul 2025 presidential letter, the One Big Beautiful Bill Act Medicaid changes and expiry of ACA premium subsidies, up to 100% tariffs on imported branded drugs announced Sep 2025, and 340B diversion and court rulings; drops the Colorado PDAB Genvoya review. |
| Reworded | Certain products carry heightened risks | Drops the sentence on reliance on TAF and nucleoside regimens in HIV; cell therapy text notes Yescarta and Tecartus REMS requirements ended in Jun 2025. |
| Reworded | Clinical trial risks | Replaces 2024 examples (Trodelvy urothelial withdrawal, magrolimab, ARC 10) with ASCENT 07 missing its progression free survival endpoint in HR positive, HER2 negative breast cancer and a warning that lower Trodelvy revenue estimates could trigger impairments; adds the BIOSECURE Act. |
| Reworded | Materials, supplies and manufacturing interruptions | Drops the carboplatin and cisplatin shortage example; adds reliance on non US suppliers for raw materials and intermediates and the BIOSECURE Act. |
| Reworded | Climate change and natural disasters | Shortened; removes the COP26 health programme reference and the note on stakeholders opposing climate initiatives. |
| Reworded | Corporate responsibility goals and disclosures | Cut from 546 to 164 words; removes ESG screening and goal setting detail and adds public scrutiny of global patient access to medicines. |
| Reworded | Acquisitions, licensing and strategic transactions | Cut from 552 to 395 words; removes the 2024 Trodelvy impairment examples (EVOKE 01, second line NSCLC). |
Table 10.4 Risk factor updates in quarterly reports since the annual filing
| Filing | Change disclosed |
|---|---|
| 10-Q Q1 2026 filed 7 May 2026 | Full Item 1A restated with updates: Florida ADAP removed Biktarvy from its formulary in Mar 2026; Dec 2025 agreement with the administration (three year Section 232 tariff exclusion tied to US manufacturing investment, MFN prices in Medicaid and for future launches, a direct to patient Epclusa price); Apr 2026 proclamation of 100% tariffs on patented drugs; expiry of ACA enhanced subsidies reducing enrollment. |
| 10-Q Q2 2026 filed 6 Aug 2026 | Adds the FDA class wide Boxed Warning on T cell malignancies for CAR T therapies, the EVOKE 03 discontinuation and related impairment, global Section 301 tariffs, False Claims Act qui tam risk on 340B, Colorado drug importation, AI enabled counterfeiting, the ABC Safe Drug Act and EU General Pharmaceutical Legislation, and acquired IPR&D charges from acquisitions. |
| 10-Q Q3 2026 filed 29 Oct 2026 | Records that CMS completed the Biktarvy Maximum Fair Price in Oct 2026, a price substantially lower than current Medicare pricing that will raise Medicaid rebates and lower 340B ceiling prices; adds the Sep 2026 CMS GLOBE Model final rule (MFN benchmarked Part B rebates from Apr 2027, waived during Gilead's GENEROUS participation), the proposed GUARD Part D model, the May 2026 Supreme Court decision not to review IRA challenges, and that 100% pharmaceutical tariffs took effect in Jul 2026. |
11 Stock Price, Scenarios & Sensitivity
- GILD traded at $170.58 on 2 Nov 2026, +42.4% on the Oct 2025 month end close of $119.79, 2.9% below the 52 week high of $175.65 and 48.4% above the low of $114.93; the month end close rose 14.5% in October 2026, which includes the Q3 2026 results.
- Valuation: TTM GAAP EPS is negative; 25.2x FY2025 GAAP EPS of $6.78 and 20.9x FY2025 non GAAP EPS of $8.15; 19.1x the midpoint of FY2026 non GAAP EPS excluding 2026 acquisition items of $8.75 to $9.10 (stated on the Q3 2026 call); EV/Sales 7.5x; free cash flow yield 6.5%; dividend yield 1.92% on $3.28 a year.
- Scenario model: total revenues grow from TTM Q3 2026 for three years to FY2029; GAAP operating margin as stated, incl. amortization and acquired IPR&D; net interest and other expense $169m a year (TTM level); 21% tax rate; price equals FY2029 GAAP EPS times exit P/E.
Critical factors and core assumptions
Table 11.1 Critical factors behind the best case
| Factor | Current value | Best case requires | Evidence in filings and calls |
|---|---|---|---|
| Yeztugo and lenacapavir PrEP | Yeztugo $305m in Q3 2026; about $1bn in FY2026 (stated on the call) | above $3bn a year by 2029, with weekly oral lenacapavir approved in Feb 2027 | 8-K Ex 99.1 of 29 Oct 2026; PDUFA 2 Feb 2027 |
| Biktarvy after the Medicare price | FY2025 $14.33bn; Q3 2026 $4.06bn, +10.1% | 2028 effect held to about $1.5bn with total HIV still growing | Q3 2026 10-Q; stated on the Q3 2026 call |
| Anito cel launch | PDUFA 23 Dec 2026; $7.0bn charged as acquired IPR&D | approval on time and cumulative sales near the $6.0bn CVR threshold by end 2029 | 8-K of 23 Feb and 28 Apr 2026 |
| Trodelvy in first line breast cancer | $506m in Q3 2026, +41.7% | about $2.5bn a year by 2029 | 8-K Ex 99.1 of 4 Aug and 29 Oct 2026 |
| Acquired IPR&D | 9M 2026 $11.31bn; FY2026 about $12.9bn (stated on the call) | back near FY2025 level of $1.02bn a year | 10-Q Q3 2026; 10-K FY2025 |
| Policy (tariffs, MFN) | three year Section 232 exclusion agreed Dec 2025; 100% pharmaceutical tariffs since Jul 2026 | exclusion holds; MFN limited to Medicaid select products | Q3 2026 10-Q risk factors |
- Base: TTM Q3 2026 total revenues $30.99bn; GAAP operating margin (7.6%) after $11.85bn of acquired IPR&D, 34.0% in FY2025; amortization of acquired intangibles about $2.4bn a year.
- Best case: 7.0% revenue CAGR, 45.0% GAAP operating margin with acquired IPR&D near $1bn a year, 18x P/E.
- Base case: 3.5% revenue CAGR with the $1.5bn Biktarvy price effect in 2028 and cell therapy declining, 40.0% margin, 15x P/E.
- Worst case: (1.5%) revenue CAGR with further price setting, tariff exclusion lapse and successful patent challenges, 30.0% margin, 11x P/E.
- Tax rate 21% (FY2026 guidance excluding non deductible acquired IPR&D); share count unchanged at 1.24bn (buybacks offset stock compensation).
Scenarios, three years forward
Table 11.2 Scenario analysis, TTM Q3 2026 to FY2029
| Measure | Worst case | Base case | Best case |
|---|---|---|---|
| Revenue CAGR, 3 years (%) | (1.5) | 3.5 | 7.0 |
| Revenue, FY2029 ($bn) | 29.6 | 34.4 | 38.0 |
| Operating margin, FY2029 (%) | 30.0 | 40.0 | 45.0 |
| Net income, FY2029 ($bn) | 6.9 | 10.7 | 13.4 |
| EPS, FY2029 ($) | 5.55 | 8.65 | 10.77 |
| Exit P/E (x) | 11.0 | 15.0 | 18.0 |
| Implied price ($) | 61 | 130 | 194 |
| Change against $170.58 (%) | (64) | (24) | 14 |
| Implied annual return (%) | (29.0) | (8.7) | 4.4 |
Implied annual return excludes dividends ($3.28 a year at the 2026 rate of $0.82 per quarter). FY2029 is three years after TTM Q3 2026.
Sensitivity analysis
Table 11.3 Sensitivity of implied price to revenue CAGR and operating margin at 15x P/E
| Revenue CAGR \ Operating margin | 30% | 35% | 40% | 42% | 45% |
|---|---|---|---|---|---|
| (2%) | $82 | $96 | $110 | $115 | $124 |
| 0% | $87 | $102 | $117 | $123 | $132 |
| 2% | $93 | $108 | $124 | $130 | $140 |
| 4% | $98 | $115 | $132 | $138 | $148 |
| 7% | $107 | $125 | $143 | $151 | $162 |
Cells show implied share price in year 3. Current price $170.58. Blue cells sit above it, red cells below.
Table 11.4 Sensitivity of implied price to exit P/E and operating margin at 3.5% revenue CAGR
| Exit P/E \ Operating margin | 30% | 35% | 40% | 42% | 45% |
|---|---|---|---|---|---|
| 11x | $71 | $83 | $95 | $100 | $107 |
| 13x | $84 | $98 | $112 | $118 | $127 |
| 15x | $97 | $113 | $130 | $136 | $146 |
| 18x | $116 | $136 | $156 | $164 | $175 |
| 20x | $129 | $151 | $173 | $182 | $195 |
Cells show implied share price in year 3. Current price $170.58. Blue cells sit above it, red cells below.
Disclaimer
This analysis is for information only and is not financial advice. It is derived from public SEC filings retrieved via sec-api.io and is not a publication of the U.S. Securities and Exchange Commission. Scenario values are model outputs under stated assumptions and are not forecasts. Data as of 2 November 2026.
Sources
All company figures are read from SEC filings retrieved through the sec-api.io MCP server. Points marked as stated on a call are taken from the Q4 2025 and Q3 2026 earnings calls held by the company.
Table A.1 Filings used, with accession numbers
| Form | Period | Filed | Accession number |
|---|---|---|---|
| 10-Q | Q3 2026 | 29 Oct 2026 | 0000882095-26-000039 |
| 8-K Ex 99.1 | Q3 2026 | 29 Oct 2026 | 0000882095-26-000037 |
| 10-Q | Q2 2026 | 6 Aug 2026 | 0000882095-26-000031 |
| 8-K Ex 99.1 | Q2 2026 | 4 Aug 2026 | 0000882095-26-000028 |
| 10-Q | Q1 2026 | 7 May 2026 | 0000882095-26-000024 |
| 8-K Ex 99.1 | Q1 2026 | 7 May 2026 | 0000882095-26-000022 |
| 10-K | FY2025 | 24 Feb 2026 | 0000882095-26-000006 |
| 8-K Ex 99.1 | Q4 2025 | 10 Feb 2026 | 0000882095-26-000003 |
| 10-Q | Q3 2025 | 7 Nov 2025 | 0000882095-25-000047 |
| 10-Q | Q2 2025 | 7 Aug 2025 | 0000882095-25-000032 |
| 10-Q | Q1 2025 | 7 May 2025 | 0000882095-25-000012 |
| 10-K | FY2023 | 23 Feb 2024 | 0000882095-24-000007 |
| 10-K | FY2022 | 22 Feb 2023 | 0000882095-23-000007 |
| 8-K | Arcellx agreement | 23 Feb 2026 | 0001104659-26-018314 |
| 8-K | Arcellx close | 28 Apr 2026 | 0001104659-26-049874 |
| 8-K | Annual meeting | 4 May 2026 | 0000882095-26-000008 |
| 8-K | Notes offering | 20 May 2026 | 0001104659-26-064518 |
| 8-K | Biktarvy settlements | 6 Oct 2025 | 0000882095-25-000041 |
| 8-K | Officer departure | 19 Nov 2025 | 0001104659-25-113968 |
Table A.2 Further Gilead filings and peer filings used
| Company | Form | Filed | Accession number |
|---|---|---|---|
| Gilead Sciences (risk factor comparison) | 10-K FY2024 | 28 Feb 2025 | 0000882095-25-000006 |
| Gilead Sciences | 8-K (Items 2.02, 9.01) | 30 Oct 2025 | 0000882095-25-000044 |
| FMR (Gilead holding) | Schedule 13G | event date 31 Dec 2025 | 0000315066-26-000432 |
| BlackRock (Gilead holding) | Schedule 13G | event date 31 Mar 2025 | 0002052113-25-001603 |
| Vanguard Capital Management (Gilead holding) | Schedule 13G | event date 31 Mar 2026 | 0002100119-26-000510 |
| AbbVie | 8-K Ex 99.1 | 30 Oct 2026 | 0001551152-26-000033 |
| Amgen | 10-K FY2025 | 2026 | 0000318154-26-000010 |
| Amgen | 10-Q Q2 2026 | 2026 | 0000318154-26-000126 |
| AstraZeneca | 6-K | 30 Oct 2026 | 0001654954-26-009256 |
| Bristol Myers Squibb | 10-K FY2025 | 2026 | 0000014272-26-000004 |
| Bristol Myers Squibb | 10-Q Q3 2026 | 29 Oct 2026 | 0000014272-26-000024 |
| GSK (ViiV Healthcare) | 6-K | 28 Oct 2026 | 0001654954-26-009181 |
| Johnson & Johnson | 10-Q | 21 Oct 2026 | 0000200406-26-000197 |
| Madrigal Pharmaceuticals | 8-K Ex 99.1 | 30 Jul 2026 | 0001628280-26-050775 |
| Merck | 8-K Ex 99.1 | 29 Oct 2026 | 0001104659-26-119825 |
| Pfizer | 10-Q | 4 Aug 2026 | 0000078003-26-000095 |
| Vertex Pharmaceuticals | 10-K FY2025 | 2026 | 0000875320-26-000056 |
| Vertex Pharmaceuticals | 10-Q Q2 2026 | 2026 | 0000875320-26-000259 |
Table B.1 Exhibits to Forms 8-K filed in the last twelve months
| Filed | Exhibit | Document | Content |
|---|---|---|---|
| 10 Feb 2026 | Ex 99.1 | Q4 and FY2025 results | Q4 2025 revenue $7.9bn (+5%); diluted EPS $1.74; non GAAP diluted EPS $1.86 against $1.90 a year earlier; FY2025 revenue $29.4bn (+2%); product sales $28.9bn; product sales excluding Veklury $28.0bn (+4%) |
| 23 Feb 2026 | Ex 99.1 | Agreement to acquire Arcellx | Gilead to acquire Arcellx for $115 per share in cash plus a $5 CVR; implied equity value $7.8bn; Offer price is a 68% premium to the 30 day volume weighted average price as of 20 Feb 2026; Gilead already owned about 11.5% of Arcellx |
| 23 Feb 2026 | Ex 2.1 | Arcellx merger agreement (summary from 8 K Item 1.01) | Tender offer by Ravens Sub, Inc. at $115.00 per share plus one CVR of $5.00; minimum condition of more than 50% of shares including those Gilead owns; Conditions include HSR expiry and foreign antitrust clearances; second step merger under DGCL Section 251(h) |
| 23 Feb 2026 | Ex 10.1 | Form of tender and support agreement (summary from 8 K Item 1.01) | Arcellx directors, officers and funds affiliated with New Enterprise Associates and SR One agreed to tender their shares; Holders controlled about 10.3% of Arcellx shares as of 19 Feb 2026 |
| 28 Apr 2026 | Ex 99.1 | Arcellx acquisition completed | Tender offer completed on 28 Apr 2026; tendered shares plus Gilead's stake equalled about 77.2% of Arcellx shares; Total implied equity value about $7.8bn at closing; Arcellx delisted from Nasdaq |
| 4 May 2026 | Ex 10.1 | 2022 Equity Incentive Plan, amended and restated 30 Apr 2026 | Share reserve set at 47,750,000 newly authorized shares plus 111,485,837 shares previously authorized; Approved by stockholders at the 30 Apr 2026 annual meeting: 970.3m for, 62.5m against |
| 7 May 2026 | Ex 99.1 | Q1 2026 results | Revenue $7.0bn (+4%); product sales excluding Veklury $6.8bn (+8%); HIV $5.0bn (+10%); Biktarvy $3.4bn (+7%); Descovy $807m (+38%); Trodelvy $402m (+37%); Veklury $144m (52%); Cell Therapy $407m (12%) |
| 20 May 2026 | Ex 1.1 | Underwriting agreement for senior notes (summary from 8 K Item 8.01) | Underwriting agreement dated 14 May 2026 with Barclays, BofA Securities and Citigroup as representatives; Offering under shelf registration on Form S 3 (File No. 333 273745) |
| 20 May 2026 | Ex 4.2 | Eleventh supplemental indenture and notes (summary from 8 K Item 1.01) | $3.0bn of senior notes: $500m 4.250% due 2028, $1.0bn 4.400% due 2029, $1.0bn 4.600% due 2031, $500m 4.900% due 2034; Proceeds for general corporate purposes, which may include acquisitions; change of control repurchase offer required |
| 20 May 2026 | Ex 5.1 | Legal opinion on the notes | Opinion of counsel on validity of the notes issued under the S 3 shelf; no financial content |
| 4 Aug 2026 | Ex 99.1 | Q2 2026 results | Revenue $7.8bn (+10%); product sales excluding Veklury $7.6bn (+10%); HIV $5.7bn (+12%); Biktarvy $3.8bn (+7%); Descovy $967m (+48%); Trodelvy $457m (+26%); Yescarta $346m (12%); Veklury $23m (81%) |
| 29 Oct 2026 | Ex 99.1 | Q3 2026 results | Revenue $8.3bn (+7%); product sales $8.3bn (+13%); product sales excluding Veklury $8.2bn (+16%); HIV $6.2bn (+18%); Biktarvy $4.1bn (+10%); Descovy $1.0bn (+49%); Yeztugo $305m against $39m |
