Gilead Sciences GILD
Gilead Sciences reports $8.3 billion revenue for Q3 2026
- Form
- 10-Q
- Filed
- Importance
- Notable
- Accession
- 0000882095-26-000039
- Revenue: $8.3 billion for the three months ended Sep 30, 2026
- Net income: $2.43 billion for the three months ended Sep 30, 2026
- Diluted EPS: $1.94 for the three months ended Sep 30, 2026
- Cash and equivalents: $6.44 billion at Sep 30, 2026
Written from the 10-Q on EDGAR. AI can make mistakes. Check the filing.
What changed
23 changes since the June 2026 10-Q
Compared with the 10-Q 0000882095-26-000031, filed Aug 6, 2026.
New legal mention
In June 2026, we received additional letters from Cipla indicating that it had submitted a 505(b)(2) application for emtricitabine/rilpivirine hydrochloride/tenofovir alafenamide fumarate tablets.
From the filings
Now
In June 2026, we received additional letters from Cipla indicating that it had submitted a 505(b)(2) application for emtricitabine/rilpivirine hydrochloride/tenofovir alafenamide fumarate tablets.New legal mention
This 505(b)(2) application references Odefsey as the listed drug product and includes a paragraph IV certification challenging two Orange Book patents for Odefsey.
From the filings
Now
This 505(b)(2) application references Odefsey as the listed drug product and includes a paragraph IV certification challenging two Orange Book patents for Odefsey.New legal mention
In August 2026, we filed another lawsuit against Cipla in the U.S. District Court for the District of Delaware, which was subsequently consolidated with the Descovy 505(b)(2) litigation.
From the filings
Now
In August 2026, we filed another lawsuit against Cipla in the U.S. District Court for the District of Delaware, which was subsequently consolidated with the Descovy 505(b)(2) litigation.New legal mention
In July 2026, we received letters from Zydus Pharmaceuticals (USA) Inc. on behalf of Zydus Lifesciences Global FZE ( Zydus ) indicating that Zydus had submitted two 505(b)(2) applications, one for emtricitabine and…
From the filings
Now
In July 2026, we received letters from Zydus Pharmaceuticals (USA) Inc. on behalf of Zydus Lifesciences Global FZE ( Zydus ) indicating that Zydus had submitted two 505(b)(2) applications, one for emtricitabine and tenofovir alafenamide tablets and one for tenofovir alafenamide tablets.New legal mention
The 505(b)(2) applications reference Descovy and Vemlidy as the listed drug products, respectively, and they include paragraph IV certifications challenging all of the Orange Book patents for Descovy and Vemlidy.
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Now
The 505(b)(2) applications reference Descovy and Vemlidy as the listed drug products, respectively, and they include paragraph IV certifications challenging all of the Orange Book patents for Descovy and Vemlidy.New legal mention
The lawsuits, which were filed in state or federal court in California and Missouri, included approximately 23,000 active plaintiffs seeking damages and other relief on various grounds for alleged personal injury and…
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The lawsuits, which were filed in state or federal court in California and Missouri, included approximately 23,000 active plaintiffs seeking damages and other relief on various grounds for alleged personal injury and economic loss.New legal mention
The Court of Appeal issued a writ of mandate to the trial court implementing that decision, and in October 2026, the trial court entered judgment in favor of Gilead and dismissed the California state cases with…
From the filings
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The Court of Appeal issued a writ of mandate to the trial court implementing that decision, and in October 2026, the trial court entered judgment in favor of Gilead and dismissed the California state cases with prejudice.New legal mention
In October 2026, Gilead entered into a settlement agreement to resolve the litigation.
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In October 2026, Gilead entered into a settlement agreement to resolve the litigation.New legal mention
The settlement agreement is not an admission of liability or wrongdoing by Gilead.
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The settlement agreement is not an admission of liability or wrongdoing by Gilead.New legal mention
Shares used in basic earnings (loss) per share calculation 1,242 1,243 1,242 1,245
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Shares used in basic earnings (loss) per share calculation 1,242 1,243 1,242 1,245EPS up 123% from Jun 30
$1.96, was −$8.45.
From the filings
Before
−$8.45Now
$1.96Cash up 103% from Jun 30
$6.4B, was $3.2B.
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Before
$3.2BNow
$6.4BOur existing products are subject to pricing and reimbursement pressures from government agencies and other…
Adds "January"; drops "We continue to evaluate".
From the filings
Before
Our existing products are subject to pricing and reimbursement pressures from government agencies and other third parties, including required discounts and rebates. Successful commercialization of our products depends, in part, on the availability and amount of third-party payer reimbursement for our products and related treatments and medical services in the markets where we sell our products. As our products mature, pricing pressures from private insurers and government payers often result in a reduction of the net product prices. Legislative and regulatory actions affecting government prescription drug procurement and reimbursement programs occur relatively frequently. We may be adversely impacted by any such legislative and regulatory actions, though it is difficult to predict the impact, if any, on the use and reimbursement of our products. In the U.S., the European Union ( EU ) and other significant or potentially significant markets for our products and product candidates, government authorities and third-party payers are increasingly attempting to limit or regulate the price of medical products and services. The volume of drug pricing-related legislation and administrative action has dramatically increased in recent years, including: U.S. Congress has enacted the Inflation Reduction Act of 2022 ( IRA ), which, among other changes, (1) requires the Department of Health and Human Services to negotiate Medicare prices for certain drugs (starting with 10 drugs in 2026, adding 15 drugs in 2027 and 2028, and adding 20 drugs in 2029 and subsequent years), which could also affect the Medicaid rebate obligations and the ceiling prices charged to covered entities under Section 340B of the Public Health Service Act ( 340B ) if such prices are lower than the Medicaid Best Price and reduce the Average Sales Price and associated Medicare reimbursement rate for products reimbursed under Medicare Part B; (2) imposes an inflation-based rebate on Medicare Part B utilization…Now
Our existing products are subject to pricing and reimbursement pressures from government agencies and other third parties, including required discounts and rebates. Successful commercialization of our products depends, in part, on the availability and amount of third-party payer reimbursement for our products and related treatments and medical services in the markets where we sell our products. As our products mature, pricing pressures from private insurers and government payers often result in a reduction of the net product prices. Legislative and regulatory actions affecting government prescription drug procurement and reimbursement programs occur relatively frequently. We may be adversely impacted by any such legislative and regulatory actions, though it is difficult to predict the impact, if any, on the use and reimbursement of our products. In the U.S., the European Union ( EU ) and other significant or potentially significant markets for our products and product candidates, government authorities and third-party payers are increasingly attempting to limit or regulate the price of medical products and services. The volume of drug pricing-related legislation and administrative action has dramatically increased in recent years, including: U.S. Congress has enacted the Inflation Reduction Act of 2022 ( IRA ), which, among other changes, (1) requires the Department of Health and Human Services to negotiate Medicare prices for certain drugs (starting with 10 drugs in 2026, adding 15 drugs in 2027 and 2028, and adding 20 drugs in 2029 and subsequent years), which could also affect the Medicaid rebate obligations and the ceiling prices charged to covered entities under Section 340B of the Public Health Service Act ( 340B ) if such prices are lower than the Medicaid Best Price and reduce the Average Sales Price and associated Medicare reimbursement rate for products reimbursed under Medicare Part B; (2) imposes an inflation-based rebate on Medicare Part B utilization…In October 2026, the Centers for Medicare and Medicaid Services completed the process of setting the Maximum…
New paragraph in MD&A.
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In October 2026, the Centers for Medicare and Medicaid Services completed the process of setting the Maximum Fair Price for Biktarvy under Medicare. The new price will be effective and impact our Biktarvy revenue starting January 1, 2028.Received U.S. Food and Drug Administration ( FDA ) approval for Bixlenvo for the treatment of HIV in adults…
New paragraph in MD&A.
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Received U.S. Food and Drug Administration ( FDA ) approval for Bixlenvo for the treatment of HIV in adults who are virologically suppressed on a stable antiretroviral regimen, including those switching from complex multi-tablet regimens. Bixlenvo is a complete single-tablet regimen indicated for the treatment of HIV to replace current antiretroviral regimens in people with virological suppression with no known or suspected resistance to bictegravir or lenacapavir.Announced a definitive agreement to acquire an oral IL-23R inhibitor program, including lead asset…
New paragraph in MD&A.
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Announced a definitive agreement to acquire an oral IL-23R inhibitor program, including lead asset HCXT-2001, from PepStar Therapeutics Limited, a privately held, clinical-stage biotechnology company. Closing of the transaction is subject to certain customary conditions.Research and development expenses increased 19% to $1.6 billion for the three months ended September 30…
Adds "Research and development expenses"; drops "HIV product sales".
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HIV product sales increased 12% to $5.7 billion for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to higher average realized price and demand. In particular:Now
Research and development expenses increased 19% to $1.6 billion for the three months ended September 30, 2026, compared to the same period in 2025. Personnel, infrastructure and other support costs increased primarily due to higher employee-related costs. Clinical studies and other costs increased primarily due to higher clinical materials costs.Selling, general and administrative expenses increased 21% to $1.6 billion for the three months ended…
Adds "21%"; drops "41% and 29%".
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Selling, general and administrative expenses increased 41% and 29% to $1.9 billion and $3.4 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses, including $332 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. General and administrative expenses also increased for the six months ended June 30, 2026 due to donations of equity securities made to the Gilead Foundation.Now
Selling, general and administrative expenses increased 21% to $1.6 billion for the three months ended September 30, 2026, compared to the same period in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses related to our second quarter 2026 acquisitions of Arcellx, Ouro Medicines and Tubulis, as well as higher expenses related to legal matters and higher employee-related costs.Our effective tax rate increased for the three months ended September 30, 2026, compared to the same period…
Adds "Our effective tax rate"; drops "HIV product sales".
From the filings
Before
HIV product sales increased 12% to $5.7 billion for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to higher average realized price and demand. In particular:Now
Our effective tax rate increased for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to a settlement with a tax authority and a remeasurement of certain deferred tax liabilities related to acquired intangible assets, both of which occurred in the three months ended September 30, 2025.
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Section by section. Added words and removed words against the earlier filing.
Cover page 2 changes
3 unchanged paragraphs
For the quarterly period ended June September 30, 2026
19 unchanged paragraphs
Number of shares outstanding of the issuer s common stock, par value $0.001 per share, as of July 31, October 23, 2026: 1,239,955,155 1,240,338,614
2 unchanged paragraphs
Financial statements 171 changes
2 unchanged paragraphs
(in millions, except per share amounts) June September 30, 2026 December 31, 2025
Cash and cash equivalents $ 3,179 6,437 $ 7,564
1 unchanged paragraph
Accounts receivable, net 5,055 5,007 4,913
Inventories 1,953 1,896 1,774
Prepaid and other current assets 3,759 3,214 4,024
Total current assets 13,945 16,553 18,342
Property, plant and equipment, net 5,833 5,945 5,606
1 unchanged paragraph
Intangible assets, net 14,032 13,424 16,978
1 unchanged paragraph
Total assets $ 49,362 $ 59,023
Deferred tax assets 2,487 2,270 1,964
Other long-term assets 4,751 4,902 4,845
Total assets $ 51,408 $ 59,023
2 unchanged paragraphs
Accounts payable $ 674 $ 715
Accounts payable $ 934 $ 715
Accrued rebates 4,233 4,624 4,337
Current portion of long-term debt, net 2,414 2,416 2,807
Other current liabilities 3,699 4,028 3,953
Total current liabilities 11,020 12,002 11,813
Long-term debt, net 23,832 23,815 22,129
Long-term income taxes payable 943 974 896
Deferred tax liabilities 333 318 402
Other long-term liabilities 1,490 1,343 1,165
4 unchanged paragraphs
Retained earnings 2,200 13,730
Additional paid-in capital 9,532 9,841 8,932
Accumulated other comprehensive income 95 89 39
Retained earnings 3,107 13,730
Total Gilead stockholders equity 11,829 13,040 22,703
1 unchanged paragraph
Total stockholders equity 11,744 12,955 22,618
Total liabilities and stockholders equity $ 49,362 51,408 $ 59,023
3 unchanged paragraphs
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Product sales $ 7,627 $ 7,054 $ 14,574 $ 13,668
Total revenues 7,803 7,082 14,763 13,749
Cost of goods sold 1,579 1,501 3,023 3,041
Research and development expenses 1,764 1,491 3,136 2,870
Selling, general and administrative expenses 1,921 1,365 3,372 2,623
Total costs and expenses 18,197 4,608 22,571 9,038
Operating (loss) income ( 10,394 ) 2,474 ( 7,808 ) 4,711
Interest expense 247 254 487 513
Other (income) expense, net ( 387 ) ( 208 ) ( 621 ) 120
(Loss) income before income taxes ( 10,254 ) 2,429 ( 7,674 ) 4,077
Income tax expense 242 468 801 802
Net (loss) income $ ( 10,496 ) $ 1,960 $ ( 8,475 ) $ 3,275
Basic (loss) earnings per share $ ( 8.45 ) $ 1.57 $ ( 6.82 ) $ 2.63
Diluted (loss) earnings per share $ ( 8.45 ) $ 1.56 $ ( 6.82 ) $ 2.61
Shares used in diluted (loss) earnings per share calculation 1,243 1,255 1,243 1,257
Product sales $ 8,289 $ 7,345 $ 22,862 $ 21,013
Royalty, contract and other revenues 176 27 189 81 11 424 201 505
Total revenues 8,300 7,769 23,063 21,518
Cost of goods sold 1,571 1,569 4,595 4,610
Research and development expenses 1,608 1,346 4,744 4,215
Acquired in-process research and development expenses 11,183 61 11,290 315 18 170 11,307 485
In-process research and development impairments 1,750 190 1,750 190
Selling, general and administrative expenses 1,641 1,357 5,013 3,980
Total costs and expenses 4,838 4,442 27,409 13,480
Operating income (loss) 3,462 3,327 ( 4,346 ) 8,038
Interest expense 269 256 756 769
Other (income) expense, net 130 ( 569 ) ( 492 ) ( 449 )
Income (loss) before income taxes 3,063 3,641 ( 4,610 ) 7,718
Income tax expense 634 589 1,435 1,391
Net income (loss) $ 2,429 $ 3,052 $ ( 6,045 ) $ 6,327
Basic earnings (loss) per share $ 1.96 $ 2.46 $ ( 4.87 ) $ 5.08
Diluted earnings (loss) per share $ 1.94 $ 2.43 $ ( 4.87 ) $ 5.04
Shares used in basic (loss) earnings (loss) per share calculation 1,242 1,243 1,242 1,245 1,243 1,246
Shares used in diluted earnings (loss) per share calculation 1,251 1,254 1,242 1,256
2 unchanged paragraphs
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (unaudited) (LOSS)
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Net (loss) income $ ( 10,496 ) $ 1,960 $ ( 8,475 ) $ 3,275
Other comprehensive income (loss), net 17 ( 111 ) 56 ( 150 )
Comprehensive (loss) income, net $ ( 10,479 ) $ 1,850 $ ( 8,419 ) $ 3,125
Net income (loss) $ 2,429 $ 3,052 $ ( 6,045 ) $ 6,327
Other comprehensive income (loss) income, net of reclassifications and taxes:
Net (loss) gain on foreign currency translation ( 18 10 ) 51 ( 28 38 ) 69 70
Net gain (loss) on available-for-sale debt securities 3 4 ( 8 ) 4 7
Net gain (loss) on cash flow hedges 32 ( 166 ) 92 4 51 96 ( 224 173 )
Other comprehensive (loss) income, net ( 6 ) 55 50 ( 96 )
Comprehensive income (loss), net $ 2,424 $ 3,107 $ ( 5,995 ) $ 6,232
3 unchanged paragraphs
Three Months Ended June September 30, 2026
2 unchanged paragraphs
Balance as of March 31, 2026 1,242 $ 1 $ 9,305 $ 78 $ 14,131 $ ( 84 ) $ 23,431
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and 91 more changes in the filing
Note 2: REVENUES 90 changes
2 unchanged paragraphs
Biktarvy $ 2,981 $ 468 $ 323 $ 3,772 $ 2,799 $ 429 $ 302 $ 3,530
Descovy 921 23 23 967 601 24 28 653
Genvoya 236 37 16 289 322 40 16 377
Odefsey 171 58 10 239 221 66 11 298
Three Months Ended June September 30, 2026 Three Months Ended June September 30, 2025 (in millions) U.S. Europe Rest of World Total U.S. Europe Rest of World Total
Biktarvy $ 3,284 $ 442 $ 333 $ 4,059 $ 2,940 $ 427 $ 320 $ 3,686
Descovy 998 22 26 1,046 652 23 25 701
Genvoya 301 27 12 339 323 34 19 377
Odefsey 226 52 8 286 206 61 10 277
1 unchanged paragraph
Yeztugo 223 9 232 15 15
Total HIV 4,659 640 393 5,693 4,096 624 368 5,088
Livdelzi 147 20 167 74 4 78
Yeztugo 294 10 305 39 39
Total HIV 5,261 591 397 6,249 4,299 592 386 5,277
Livdelzi 176 26 1 203 93 11 105
1 unchanged paragraph
Vemlidy 124 13 152 289 122 13 117 252
Vemlidy 170 13 151 333 136 12 132 280
1 unchanged paragraph
Total Liver Disease 433 193 251 877 413 170 211 795
Veklury 14 2 7 23 51 19 50 121
Tecartus 29 34 8 70 41 41 9 92
Yescarta 132 139 75 346 162 154 77 393
Total Cell Therapy 161 173 83 417 203 196 86 485
Trodelvy 307 92 57 457 224 96 44 364
Total Oncology 468 265 140 873 427 291 131 849
AmBisome 4 47 59 110 7 65 56 129
Total Other 26 55 80 161 52 73 77 202
Total product sales 5,601 1,155 872 7,627 5,038 1,178 838 7,054
Royalty, contract and other revenues 2 169 4 176 13 10 4 27
Total revenues $ 5,603 $ 1,324 $ 876 $ 7,803 $ 5,051 $ 1,189 $ 842 $ 7,082
Biktarvy $ 5,553 $ 905 $ 675 $ 7,133 $ 5,272 $ 804 $ 603 $ 6,679
Descovy 1,682 46 46 1,774 1,139 45 55 1,239
Genvoya 451 70 32 553 627 79 35 741
Odefsey 324 117 19 461 436 123 20 579
Total Liver Disease 524 161 243 927 414 158 247 819
Veklury 63 12 11 86 140 43 93 277
Tecartus 24 31 5 60 40 35 8 83
Yescarta 114 107 73 294 123 151 75 349
Total Cell Therapy 139 138 78 355 163 186 83 432
Trodelvy 336 98 71 506 221 89 47 357
Total Oncology 475 236 149 860 384 275 129 788
AmBisome 3 52 44 99 2 69 52 123
Total Other 39 59 69 167 36 76 72 184
Total product sales 6,361 1,058 869 8,289 5,274 1,144 928 7,345
Royalty, contract and other revenues 2 6 3 11 7 411 5 424
Total revenues $ 6,363 $ 1,065 $ 872 $ 8,300 $ 5,281 $ 1,555 $ 933 $ 7,769
Six Nine Months Ended June September 30, 2026 Six Nine Months Ended June September 30, 2025 (in millions) U.S. Europe Rest of World Total U.S. Europe Rest of World Total
Biktarvy $ 8,837 $ 1,347 $ 1,009 $ 11,193 $ 8,212 $ 1,231 $ 922 $ 10,366
Descovy 2,680 69 71 2,820 1,791 67 81 1,939
Genvoya 752 97 44 892 950 114 54 1,118
Odefsey 550 170 27 747 642 184 30 857
1 unchanged paragraph
Yeztugo 382 16 397 15 15
Total HIV 8,663 1,248 812 10,723 7,760 1,177 738 9,675
Livdelzi 261 39 300 114 4 118
Yeztugo 676 26 702 54 54
Total HIV 13,924 1,839 1,209 16,972 12,059 1,769 1,124 14,952
Livdelzi 437 65 1 503 207 16 223
1 unchanged paragraph
Vemlidy 215 27 284 526 222 24 257 504
Vemlidy 385 40 435 860 358 36 389 783
1 unchanged paragraph
Total Liver Disease 795 363 486 1,644 748 338 467 1,553
Veklury 126 17 25 167 250 41 132 423
Tecartus 59 71 16 146 82 72 17 171
Yescarta 252 285 142 679 321 304 154 779
Total Cell Therapy 311 356 157 824 403 376 171 949
Trodelvy 560 187 112 859 405 171 81 657
Total Oncology 871 543 269 1,683 808 547 252 1,606
AmBisome 11 106 131 248 13 132 123 268
Total Other 72 122 163 357 104 149 158 410
Total product sales 10,527 2,292 1,755 14,574 9,669 2,251 1,747 13,668
Royalty, contract and other revenues 2 177 10 189 49 21 10 81
Total revenues $ 10,529 $ 2,469 $ 1,765 $ 14,763 $ 9,719 $ 2,273 $ 1,757 $ 13,749
Total Liver Disease 1,319 523 729 2,571 1,162 496 714 2,372
Veklury 188 28 36 253 390 84 225 700
Tecartus 83 102 21 206 122 107 25 254
Yescarta 366 392 215 973 444 455 228 1,127
Total Cell Therapy 450 494 235 1,179 566 562 253 1,381
Trodelvy 896 285 183 1,364 626 259 128 1,013
Total Oncology 1,346 779 418 2,543 1,192 821 381 2,395
AmBisome 14 158 175 347 15 201 175 391
Total Other 111 181 232 524 140 225 230 594
Total product sales 16,888 3,350 2,624 22,862 14,943 3,395 2,674 21,013
1 unchanged paragraph
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and 10 more changes in the filing
Note 3: FAIR VALUE MEASUREMENTS 28 changes
2 unchanged paragraphs
June September 30, 2026 December 31, 2025
6 unchanged paragraphs
Total $ 3,697 $ 82 $ $ 3,779 $ 9,741 $ 1,875 $ $ 11,616
Total $ 458 $ 18 $ 60 $ 535 $ 406 $ 72 $ 278 $ 757
Money market funds 1,563 1,563 4,465 4,465 6,150 6,150
Publicly traded equity securities 1,676 1,676 1,490 1,490 1,961 1,961
Deferred compensation plan 458 458 456 456 406 406
Foreign currency derivative contracts 82 82 66 66 56 56
Total $ 6,411 $ 66 $ $ 6,477 $ 9,741 $ 1,875 $ $ 11,616
Contingent consideration liability $ $ $ 60 $ 60 $ $ $ 278 $ 278
Deferred compensation plan 458 458 456 456 406 406
Foreign currency derivative contracts 18 18 30 30 72 72
Total $ 456 $ 30 $ $ 486 $ 406 $ 72 $ 278 $ 757
6 unchanged paragraphs
In connection with our first quarter 2021 acquisition of MYR GmbH ( MYR ), we were subject to a contingent consideration payment of up to 300 million, subject to customary adjustments, which we revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration ( FDA ) approval of bulevirtide. In May 2026, FDA granted accelerated approval of Hepcludex (bulevirtide), and we subsequently paid a majority of the contingent consideration during the second and third quarters of 2026, which was reflected in financing activities in our Condensed Consolidated Statements of Cash Flows. with the remaining amount expected to be paid during the third quarter of 2026.
1 unchanged paragraph
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Beginning balance $ 275 $ 216 $ 278 $ 206
Beginning balance $ 60 $ 271 $ 278 $ 206
2 unchanged paragraphs
Payments ( 288 ) ( 288 )
Payments ( 60 ) ( 348 )
2 unchanged paragraphs
(3) Included in Other current liabilities on our Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025.
3 unchanged paragraphs
In connection with our second quarter 2026 acquisition of Ouro Medicines, LLC ( Ouro Medicines ), we are subject to potential contingent consideration payments of up to $ 500 million for the achievement of certain development and regulatory milestones, for which we recorded a liability with an initial fair value of $ 277 million. See Note 6. Acquisitions, Collaborations and Other Arrangements for additional information.
During the three and six nine months ended June September 30, 2026 and 2025, we recorded impairment charges of $ 1.75 billion and $ 190 million, respectively, both related to certain acquired in-process research and development ( IPR&D ) assets. See Note 7. Intangible Assets for additional information.
3 unchanged paragraphs
Fair value $ 22,262 $ 22,342
(in millions) June September 30, 2026 December 31, 2025
Fair value $ 20,917 $ 22,342
Carrying value $ 24,069 24,073 $ 23,827
As of June September 30, 2026, the fair value of our term loan, determined using Level 3 inputs, was approximately $ 1.1 billion and the carrying value was $ 1.1 billion.
1 unchanged paragraph
We recorded a liability related to future royalties as part of our 2020 acquisition of Immunomedics, Inc., which is subsequently amortized using the effective interest method over the remaining estimated life. The fair value of the liability related to future royalties, determined using Level 3 inputs, was approximately $ 0.7 billion and $ 0.8 billion as of June September 30, 2026 and December 31, 2025, respectively, and the carrying value was $ 1.1 billion as of June September 30, 2026 and December 31, 2025.
Note 4: INVESTMENTS 14 changes
1 unchanged paragraph
During 2026, we sold all of our available-for-sale debt securities and used the proceeds to partially fund our acquisitions discussed in Note 6. Acquisitions, Collaborations and Other Arrangements. As such, there were no available-for-sale debt securities as of June September 30, 2026.
9 unchanged paragraphs
(in millions) June September 30, 2026 December 31, 2025
2 unchanged paragraphs
Money market funds $ 1,563 4,465 $ 6,150
1 unchanged paragraph
Equity method investment in Lakefront Biotherapeutics NV ( Lakefront ) (formerly known as Galapagos NV) fair value option 500 501 551
Equity method investment in Arcus Biosciences, Inc. fair value option 969 812 749
4 unchanged paragraphs
Total $ 3,992 $ 8,909
Total $ 6,714 $ 8,909
3 unchanged paragraphs
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Total unrealized (gain) loss, net $ ( 340 ) $ ( 143 ) $ ( 137 ) $ 293
Unrealized (gain) loss (gain), net, related to fair value option investments $ ( 289 ) 178 $ ( 72 312 ) $ 35 $ ( 143 108 ) $ 204
Unrealized gain, loss, net, related to all other equity investments ( 51 10 ) ( 71 182 ) 6 89 ( 4 ) ( 93 )
Total unrealized loss (gain), net $ 167 $ ( 494 ) $ 30 $ ( 201 )
1 unchanged paragraph
During the six nine months ended June September 30, 2026, we donated certain equity securities to the Gilead Foundation, a California nonprofit public benefit corporation for which certain of our officers serve as directors, and recorded a related expense of $ 63 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations.
Note 5: DERIVATIVES 13 changes
2 unchanged paragraphs
We held foreign currency exchange contracts with outstanding notional amounts of $ 3.3 3.6 billion and $ 3.9 billion as of June September 30, 2026 and December 31, 2025, respectively.
2 unchanged paragraphs
Foreign currency exchange contracts designated as hedges $ 59 55 $ 6 5 $ 66 60 $ 15 $ 1 $ 16
Foreign currency exchange contracts not designated as hedges 16 16 2 2 6 6 14 14
Total derivatives presented gross on the Condensed Consolidated Balance Sheets $ 82 66 $ 18 30
Total derivatives not offset on the Condensed Consolidated Balance Sheets ( 17 24 ) ( 17 24 )
Net amount (legal offset) $ 65 42 $ 1 6
7 unchanged paragraphs
Three Months Ended Six Nine Months Ended
September 30, September 30,
2 unchanged paragraphs
Net gain (loss) recognized in Accumulated other comprehensive income $ 19 1 $ ( 170 ) 44 $ 64 65 $ ( 216 172 )
Net (loss) gain reclassified from Accumulated other comprehensive income into Product sales $ ( 18 4 ) $ 19 ( 15 ) $ ( 42 45 ) $ 40 25
1 unchanged paragraph
Net (loss) gain recognized in Other (income) expense, net $ ( 2 16 ) $ ( 22 ) $ 1 ( 16 ) $ ( 28 6 )
Approximately $ 35 53 million of pre-tax net gains related to the hedged forecasted transactions reported in Accumulated other comprehensive income as of June September 30, 2026 are expected to be reclassified to Product sales within 12 months. There were no discontinuances of cash flow hedges for the three and six nine months ended June September 30, 2026 and 2025.
The cash flow effects of our derivative contracts for the three and six nine months ended June September 30, 2026 and 2025 were included within Net cash provided by operating activities on our Condensed Consolidated Statements of Cash Flows.
Note 6: ACQUISITIONS, COLLABORATIONS AND OTHER ARRANGEMENTS 10 changes
2 unchanged paragraphs
We accounted for the transaction as an asset acquisition since the lead asset, OM336 (gamgertamig), a clinical-stage BCMAxCD3 TCE, represents substantially all of the fair value of the gross assets acquired. We recorded a $ 1.9 billion charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026. The remaining purchase price relates to various other assets acquired and liabilities assumed. We determined that Ouro Medicines was a VIE at the time of acquisition and therefore recorded the contingent consideration as a liability. The fair value of this contingent liability, estimated using Level 3 inputs, including probability-weighted scenarios for each milestone, was $ 277 million as of the acquisition date, with $ 143 million recorded in Other current liabilities and $ 133 million recorded in Other long-term liabilities on our Condensed Consolidated Balance Sheets. The contingent liability will be adjusted at the time the underlying milestones are met. The liability represents a noncash investing activity and was therefore not included on our Condensed Consolidated Statements of Cash Flows.
In addition, we recorded stock-based compensation expense of $ 135 million related to the cash settlement of unvested Ouro Medicines employee stock awards attributable to post-acquisition services, with $ 45 million being recorded in Research and development expenses and $ 91 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026.
1 unchanged paragraph
We accounted for the transaction as an asset acquisition since the lead asset, TUB-040, a NaPi2b-directed topoisomerase-I inhibitor ADC currently in Phase 1b/2 development for platinum-resistant ovarian cancer and non-small cell lung cancer ( NSCLC ), represents substantially all of the fair value of the gross assets acquired. We recorded a $ 3.1 billion charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026. We allocated the remaining purchase price to various other assets acquired and liabilities assumed.
In addition, we recorded stock-based compensation expense of $ 51 million related to the cash settlement of unvested Tubulis employee stock awards attributable to post-acquisition services, with $ 28 million being recorded in Research and development expenses and $ 23 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026.
3 unchanged paragraphs
We accounted for the April 2026 transaction as an asset acquisition since the acquired intellectual property rights related to anito-cel represent substantially all of the fair value of the gross assets acquired. We recorded a $ 7.0 billion charge to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026. We also recorded $ 324 million of assets acquired, primarily consisting of net deferred tax assets, and $ 88 million of liabilities assumed. As part of the transaction, we settled our existing $ 773 million investment in Arcellx previously recorded in Prepaid and other current assets on our Condensed Consolidated Balance Sheets. This settlement represents a noncash investing activity and was therefore not included on our Condensed Consolidated Statements of Cash Flows as part of the acquisition.
In addition, we recorded stock-based compensation expense of $ 375 million related to the cash settlement of unvested Arcellx employee stock awards attributable to post-acquisition services, with $ 156 million being recorded in Research and development expenses and $ 218 million in Selling, general and administrative expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026.
1 unchanged paragraph
In October 2026, we entered into a definitive agreement with PepStar Therapeutics Limited, a privately held, clinical-stage biotechnology company, to acquire PepStar IP Holdings Limited and its oral IL-23R inhibitor program, including lead asset HCXT-2001, for $ 1.275 billion in upfront cash consideration, which is subject to customary adjustments and payable at closing. The transaction is expected to close in the fourth quarter of 2026, subject to certain conditions. We expect to account for the transaction as an asset acquisition.
1 unchanged paragraph
In March 2026, we entered into an initial agreement with Lakefront, formerly Galapagos NV, effective upon the closing of our definitive agreement to acquire Ouro Medicines, for a research and development collaboration on the acquired Ouro Medicines assets. Under the agreement, Lakefront paid 50 % of the upfront cash consideration in June 2026 and will pay 50 % of future contingent milestones payable to Ouro Medicines shareholders. Additionally, Lakefront is responsible for development activities and costs prior to registrational studies for gamgertamig, with later clinical development activities performed by both parties and costs being shared equally. We will retain commercialization rights and pay Lakefront royalties of 20 % to 23 % on net sales of gamgertamig products. The March 2026 agreement can be terminated for convenience by either party at any time with advance notice, with the continuing party retaining the rights to develop and commercialize gamgertamig. In September 2026, to further define our collaboration relationship, we entered into a definitive license and collaboration agreement with Lakefront that amended the March 2026 agreement. The terms of the September 2026 agreement are substantially the same as the March 2026 agreement described above.
We are accounting for the agreement as a collaborative arrangement as it involves joint operating activities where both parties have active participation and are exposed to significant risks and rewards dependent on the commercial success of the activities. We determined that our only distinct performance obligation in the arrangement is to transfer licenses and know-how for the development of the intellectual property acquired from Ouro Medicines to Lakefront, which we had delivered as of June 30, 2026. We further concluded that, given the nature of the joint operating activities, Lakefront is not our customer under the agreement, and therefore, any payments received from them we receive pursuant to the agreement would not be recorded as revenues. Rather, payments made to or received from Lakefront in connection with the agreement will be recorded as an addition to or reduction from the respective line item on our Condensed Consolidated Statements of Operations to which the costs relate. As a result, we recorded Lakefront s non-refundable $ 860 million payment to us for their 50 % share of the upfront cash consideration as a reduction of Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the three and six nine months ended June September 30, 2026. The payment was reflected in operating activities within our Condensed Consolidated Statements of Cash Flows.
In January 2025, we entered into a strategic partnership with LEO Pharma A/S ( LEO Pharma ) to accelerate the development and commercialization of LEO Pharma s small molecule oral signal transducer and activator of transcription 6 ( STAT6 ) programs for the potential treatment of patients with inflammatory diseases. Gilead acquired global rights to develop, manufacture and commercialize the small molecule oral STAT6 program. LEO Pharma will have the option to potentially co-commercialize oral programs for dermatology outside the U.S. LEO Pharma will hold exclusive global rights to STAT6 topical formulations in dermatology. We made a $ 250 million upfront payment to LEO Pharma, which was charged to Acquired in-process research and development expenses on our Condensed Consolidated Statements of Operations during the six nine months ended June September 30, 2025. In addition, LEO Pharma is eligible to receive up to approximately $ 1.5 billion in additional milestone payments and may also receive tiered royalties on sales of oral STAT6 products.
Note 7: INTANGIBLE ASSETS 8 changes
1 unchanged paragraph
June September 30, 2026 December 31, 2025
4 unchanged paragraphs
Intangible asset sofosbuvir $ 10,720 $ ( 8,797 8,972 ) $ $ 1,923 1,748 $ 10,720 $ ( 8,448 ) $ $ 2,272
3 unchanged paragraphs
Other 1,458 ( 1,087 1,115 ) 372 344 1,483 ( 1,056 ) 428
Total finite-lived assets 32,413 ( 18,382 18,990 ) 14,032 13,424 31,888 ( 17,211 ) 14,678
1 unchanged paragraph
Total intangible assets $ 32,413 $ ( 18,382 18,990 ) $ $ 14,032 13,424 $ 34,188 $ ( 17,211 ) $ $ 16,978
3 unchanged paragraphs
We did not identify any indicators of impairment resulting in an adjustment to the carrying value of intangible assets during the three and six nine months ended June September 30, 2026 and 2025, except as described in 2026 Impairment and 2025 Impairment below.
In June 2026, we announced the discontinuation of our Phase 3 EVOKE-03 study of Trodelvy evaluating SG in combination with pembrolizumab in certain patients with previously untreated metastatic NSCLC. In consideration of this decision, and in connection with the preparation of the financial statements for the second quarter of 2026, we determined that no future cash flows were expected to be generated in relation to the NSCLC IPR&D intangible asset, and therefore, no value was attributed to the asset. As a result, we recognized an impairment charge of the remaining balance of $ 1.75 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three and six nine months ended June September 30, 2026.
During the three months ended June 30, 2025, additional data became available indicating a more competitive market for bulevirtide where it was not yet approved. Based on our evaluation of the data, and in connection with the preparation of the financial statements for the second quarter of 2025, we performed an interim impairment test and determined that the revised estimated fair value of the bulevirtide IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $ 190 million in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three and six nine months ended June September 30, 2025.
1 unchanged paragraph
Note 8: OTHER FINANCIAL INFORMATION 72 changes
2 unchanged paragraphs
(in millions) June September 30, 2026 December 31, 2025
1 unchanged paragraph
Less: allowances for chargebacks ( 671 786 ) ( 843 )
Less: allowances for cash discounts and other ( 125 124 ) ( 97 )
Less: allowances for credit losses ( 51 42 ) ( 41 )
Accounts receivable, net $ 5,055 5,007 $ 4,913
(1) As of June September 30, 2026, the majority of our Accounts receivable balance arises from product sales in the U.S. and Europe and approximately 60 65 % relates to three wholesalers Cardinal Health, Inc., Cencora, Inc. and McKesson Corporation and their specialty distributor affiliates.
1 unchanged paragraph
(in millions) June September 30, 2026 December 31, 2025
Raw materials $ 1,415 1,493 $ 1,414
Work in process 1,163 1,314 1,306
Finished goods 1,719 1,616 1,647
Total $ 4,298 4,424 $ 4,368
Inventories $ 1,953 1,896 $ 1,774
1 unchanged paragraph
Total $ 4,298 4,424 $ 4,368
(1) As of June September 30, 2026, this amount primarily consists of raw materials and work in process.
As of June September 30, 2026, we held approximately $ 568 654 million of pre-commercial Trodelvy inventory for which the manufacturing process has not yet been approved by FDA.
2 unchanged paragraphs
(in millions) June September 30, 2026 December 31, 2025
Property, plant and equipment $ 8,707 8,946 $ 8,302
Less: accumulated depreciation ( 2,874 3,001 ) ( 2,696 )
Property, plant and equipment, net $ 5,833 5,945 $ 5,606
1 unchanged paragraph
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Depreciation expense $ 98 $ 93 $ 191 $ 190
Depreciation expense $ 132 $ 90 $ 323 $ 280
3 unchanged paragraphs
Balance as of March 31, 2026 $ 64 $ ( 3 ) $ 18 $ 78
Net unrealized (loss) gain, net of income tax expense of $ 0 , $ 0 , and $ 2 , respectively ( 18 ) 1 16 ( 1 )
Loss reclassified to net income, net of income tax benefit of $ 0 , $ 0 , and $( 2 ), respectively
Other comprehensive (loss) income, net ( 18 ) 3 32 17
1 unchanged paragraph
Net unrealized (loss) gain, net of income tax expense of $ 0 , $ 0 , and $ 0 , respectively ( 10 ) 1 ( 9 )
Loss reclassified to net income, net of income tax benefit of $ 0 , $ 0 , and $ 0 , respectively
Other comprehensive (loss) income, net ( 10 ) 4 ( 6 )
Balance as of September 30, 2026 $ 36 $ $ 53 $ 89
2 unchanged paragraphs
Balance as of June 30, 2026 $ 46 $ $ 49 $ 95
Net unrealized (loss) gain, net of income tax expense (benefit) of $ 0 , $( 3 ), and $ 8 , respectively ( 28 38 ) ( 9 ) 56 19 57 10
Loss reclassified to net income, net of income tax benefit of $ 0 , $ 0 , and $( 5 6 ), respectively
Other comprehensive (loss) income, net ( 28 38 ) ( 8 ) 92 56 96 50
Balance as of September 30, 2026 $ 36 $ $ 53 $ 89
1 unchanged paragraph
Balance as of March 31, 2025 $ 54 $ $ 38 $ 92
Net unrealized gain (loss), net of income tax expense (benefit) of $ 0 , $ 1 , and $( 21 ), respectively
Loss (gain) reclassified to net income, net of income tax expense (benefit) of $ 0 , $ 0 , and $ 2 , respectively ( 16 ) ( 16 )
Other comprehensive income (loss), net 51 4 ( 166 ) ( 111 )
1 unchanged paragraph
Net unrealized gain, net of income tax expense of $ 0 , $ 1 , and $ 5 , respectively (Gain) loss reclassified to net income, net of income tax expense (benefit) of $ 0 , $ 0 , and $( 2 ), respectively
Other comprehensive income, net 3 51 55
Balance as of September 30, 2025 $ 106 $ 7 $ ( 76 ) $ 36
2 unchanged paragraphs
Balance as of June 30, 2025 $ 105 $ 4 $ ( 127 ) $ ( 18 )
Net unrealized gain (loss), net of income tax expense (benefit) of $ 0 , $ 1 2 , and $( 27 22 ), respectively
Loss Gain reclassified to net income, net of income tax expense (benefit) of $ 0 , $ 0 , and $ 5 3 , respectively ( 35 22 ) ( 35 22 )
Other comprehensive income (loss), net 69 4 70 7 ( 224 173 ) ( 150 96 )
Balance as of September 30, 2025 $ 106 $ 7 $ ( 76 ) $ 36
The following table summarizes the reclassifications out of Accumulated other comprehensive income and into Net (loss) income (loss), including the affected line items from our Condensed Consolidated Statements of Operations:
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Net loss related to available-for-sale debt securities $ 2 $ $ $ Other (income) expense, net
Net (loss) gain related to cash flow hedges $ ( 18 4 ) $ 19 ( 15 ) $ ( 42 45 ) $ 40 25 Product sales
Income tax (benefit) expense $ $ ( 2 ) $ 2 $ ( 5 6 ) $ 5 3 Income tax expense
During the three and six nine months ended June September 30, 2026 and 2025, we incurred restructuring charges primarily related to severance costs resulting from reductions in our workforce and facility exit costs.
1 unchanged paragraph
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Research and development expenses $ 2 $ 6 $ 17 $ 44
Restructuring charges $ 17 $ 13 $ 57 $ 88
Cost of goods sold $ 1 $ $ 1 $
Research and development expenses 8 8 25 52
Selling, general and administrative expenses 15 7 40 43 33 5 73 49
Restructuring charges $ 42 $ 14 $ 99 $ 101
As of June September 30, 2026, we had a remaining liability of $ 60 41 million on our Condensed Consolidated Balance Sheets associated with restructuring charges, a majority of which we anticipate will be paid in the next 12 months.
2 unchanged paragraphs
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
(Gain) loss from equity securities, net $ ( 343 ) $ ( 142 ) $ ( 485 ) $ 284
Interest income ( 45 ) ( 73 ) ( 140 ) ( 166 )
Other (income) expense, net $ ( 387 ) $ ( 208 ) $ ( 621 ) $ 120
Loss (gain) from equity securities, net $ 164 $ ( 483 ) $ ( 321 ) $ ( 198 )
Interest income ( 41 ) ( 88 ) ( 181 ) ( 254 )
Other (income) expense, net $ 130 $ ( 569 ) $ ( 492 ) $ ( 449 )
Note 9: DEBT AND CREDIT FACILITIES 15 changes
2 unchanged paragraphs
Type of Borrowing Issue Date Maturity Date Interest Rate June September 30, 2026 December 31, 2025
2 unchanged paragraphs
Term Loan April 2026 April 2027 Variable 1,099 1,100
3 unchanged paragraphs
Senior Unsecured November 2024 November 2029 4.80 % 747 748 747
Senior Unsecured September 2020 October 2030 1.65 % 996 997 996
5 unchanged paragraphs
Senior Unsecured September 2016 September 2036 4.00 % 744 745 744
4 unchanged paragraphs
Senior Unsecured September 2015 March 2046 4.75 % 2,225 2,226 2,225
5 unchanged paragraphs
Total senior unsecured notes and term loan facility 25,168 25,173 23,827
Liability related to future royalties 1,077 1,058 1,110
Total debt, net 26,246 26,231 24,937
Less: Current portion of long-term debt, net 2,414 2,416 2,807
Total Long-term debt, net $ 23,832 23,815 $ 22,129
3 unchanged paragraphs
We are required to comply with certain covenants under the indentures governing our senior unsecured notes. As of June September 30, 2026, we were in compliance with all such covenants.
In April 2026, we entered into a term loan facility credit agreement (the Term Loan Facility ) with a group of institutional lenders to provide for a one-year senior unsecured term loan facility in an aggregate principal amount of $ 4.7 billion. Pursuant to the Term Loan Facility, we borrowed an aggregate principal amount of $ 1.1 billion during the three months ended June 30, second quarter of 2026, all of which remained outstanding as of June September 30, 2026. During the three months ended June 30, second quarter of 2026, we also cancelled the remaining $ 3.6 billion of undrawn commitments under the Term Loan Facility.
The Term Loan Facility contains customary representations, warranties, affirmative and negative covenants and events of default. Borrowings under the Term Loan Facility bear interest at either (i) Term SOFR plus the Applicable Margin or (ii) Base Rate plus the Applicable Margin, each as defined in the Term Loan Facility. We may prepay or reduce the amount borrowed under the Term Loan Facility, in whole or in part, at any time without premium or penalty. As of June September 30, 2026, we were in compliance with all covenants under the Term Loan Facility.
1 unchanged paragraph
As of June September 30, 2026 and December 31, 2025, there were no amounts outstanding under our $ 2.5 billion revolving credit facility maturing in June 2029, and we were in compliance with all covenants.
Legal proceedings 44 changes
We are a party to various legal actions. Certain significant matters are described below. We recognize accruals for such actions to the extent that we conclude that a loss is both probable and reasonably estimable. We accrue for the best estimate of a loss within a range; however, if no estimate in the range is better than any other, then we accrue the minimum amount in the range. If we determine that a material loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss. Unless otherwise noted, the outcome of these matters either is not expected to be material or is not possible to determine such that we cannot reasonably estimate the maximum potential exposure or the range of possible loss. As of June September 30, 2026 and December 31, 2025, we did not have any material accruals for the matters described herein.
2 unchanged paragraphs
In January 2026, we received a letter from Cipla Ltd. ( Cipla ) indicating that it had submitted a new drug application under 505(b)(2) of the Federal Food, Drug, and Cosmetic Act ( 505(b)(2) application ) for emtricitabine/tenofovir alafenamide tablets. The 505(b)(2) application references Descovy as the listed drug product. The 505(b)(2) application also includes a paragraph IV certification challenging two Orange Book patents for Descovy (the Descovy 505(b)(2) litigation ). In February 2026, we filed a lawsuit against Cipla in the U.S. District Court for the District of Delaware. In June 2026, we received additional letters from Cipla indicating that it had submitted a 505(b)(2) application for emtricitabine/rilpivirine hydrochloride/tenofovir alafenamide fumarate tablets. This 505(b)(2) application references Odefsey as the listed drug product and includes a paragraph IV certification challenging two Orange Book patents for Odefsey. In August 2026, we filed another lawsuit against Cipla in the U.S. District Court for the District of Delaware, which was subsequently consolidated with the Descovy 505(b)(2) litigation. We intend to enforce and defend our intellectual property.
In July 2026, we received letters from Zydus Pharmaceuticals (USA) Inc. on behalf of Zydus Lifesciences Global FZE ( Zydus ) indicating that Zydus had submitted two 505(b)(2) applications, one for emtricitabine and tenofovir alafenamide tablets and one for tenofovir alafenamide tablets. The 505(b)(2) applications reference Descovy and Vemlidy as the listed drug products, respectively, and they include paragraph IV certifications challenging all of the Orange Book patents for Descovy and Vemlidy. In August 2026, we filed a lawsuit against Zydus in the U.S. District Court for the District of New Jersey. We intend to enforce and defend our intellectual property.
4 unchanged paragraphs
We intend to vigorously defend ourselves in these actions, however, we cannot predict the ultimate outcomes. If any of these plaintiffs are successful in their claims, we could be required to pay significant monetary damages, which may result in a material, adverse effect on our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable.
We have been named as a defendant in one putative class action lawsuit and various product liability lawsuits related to Viread, Truvada, Atripla, Complera and Stribild. Plaintiffs allege that Viread, Truvada, Atripla, Complera and/or Stribild caused them to experience kidney, bone and/or tooth injuries. The lawsuits, which are pending were filed in state or federal court in California and Missouri, involve included approximately 23,000 active plaintiffs Plaintiffs in these cases seek seeking damages and other relief on various grounds for alleged personal injury and economic loss. The first bellwether trial in California state court was scheduled to begin in October 2022 but is currently was stayed pending the conclusion of appellate proceedings in the California Supreme Court. In August 2026, the California Supreme Court ruled in Gilead s favor, concluding that plaintiffs negligence claim could not proceed as a matter of law and directing the trial court to enter a new order granting summary judgment for Gilead on all causes of action. The Court of Appeal issued a writ of mandate to the trial court implementing that decision, and in October 2026, the trial court entered judgment in favor of Gilead and dismissed the California state cases with prejudice. In the California federal case, cases, Gilead agreed to make a one-time payment of approximately $ 39 million to a group of plaintiffs (approximately 2,470 plaintiffs). The federal court set a trial date of March September 2027 for the first bellwether trial of the remaining cases. In the putative class action pending in Missouri, the district court issued an order in January 2026 denying, among other things, plaintiffs motion for class certification. The U.S. Court of Appeals for the Eighth Circuit then denied Plaintiff s the plaintiffs request for interlocutory appellate review of the district court s decision to deny class certification. We intend to vigorously defend ourselves in these actions, however, we cannot predict the ultimate outcome. If plaintiffs are successful in their claims, we could be required to pay significant monetary damages, which may result in a material, adverse effect on our results of operations and financial condition, including in a particular reporting period in which any such outcome becomes probable and estimable.
A former sales employee filed a qui tam lawsuit against Gilead in March 2017 in U.S. District Court for the Eastern District of Pennsylvania. Following the government s decision not to intervene in the suit, the case was unsealed in December 2020. The lawsuit alleges that certain of Gilead s hepatitis C virus ( HCV ) sales and marketing activities and donations to an independent charitable foundation violated the federal False Claims Act and various state false claims acts. The lawsuit seeks all available relief under these statutes. In September 2025, the court granted Gilead s motion for summary judgment and dismissed the case. Relator has appealed the court s ruling.
Health Choice Advocates, LLC ( Health Choice ) filed a qui tam lawsuit against Gilead in May 2020 in Texas state court. The lawsuit alleged that Gilead violated the Texas Medicare Fraud Prevention Act ( TMFPA ) through our clinical educator programs for Sovaldi and Harvoni and our HIV and hepatitis patient support programs. The lawsuit sought all available relief under the TMFPA. Health Choice voluntarily dismissed the case without prejudice in August 2023, and commenced a new action in October 2023, asserting largely identical allegations and claims. In the newly filed action, the Texas Attorney General has intervened as a plaintiff. Trial has been scheduled for December In October 2026, Gilead entered into a settlement agreement to resolve the litigation. The settlement agreement is not an admission of liability or wrongdoing by Gilead.
1 unchanged paragraph
11. (LOSS) EARNINGS PER SHARE
11. EARNINGS (LOSS) PER SHARE
The following table shows the calculation of Basic and Diluted (loss) earnings (loss) per share:
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Net (loss) income $ ( 10,496 ) $ 1,960 $ ( 8,475 ) $ 3,275
Shares used in diluted (loss) earnings per share calculation 1,243 1,255 1,243 1,257
Basic (loss) earnings per share $ ( 8.45 ) $ 1.57 $ ( 6.82 ) $ 2.63
Diluted (loss) earnings per share $ ( 8.45 ) $ 1.56 $ ( 6.82 ) $ 2.61
Net income (loss) $ 2,429 $ 3,052 $ ( 6,045 ) $ 6,327
Shares used in basic (loss) earnings (loss) per share calculation 1,242 1,243 1,242 1,245 1,243 1,246
Dilutive effect of equity-based awards 10 12 9 11 11
Shares used in diluted earnings (loss) per share calculation 1,251 1,254 1,242 1,256
Basic earnings (loss) per share $ 1.96 $ 2.46 $ ( 4.87 ) $ 5.08
Diluted earnings (loss) per share $ 1.94 $ 2.43 $ ( 4.87 ) $ 5.04
Potential shares of common stock excluded from the computation of Diluted (loss) earnings (loss) per share because their effect would have been antidilutive were 15 1 million and 14 million for the three and six nine months ended June September 30, 2026, respectively, and 7 3 million and 5 million for the three and six nine months ended June September 30, 2025, respectively.
1 unchanged paragraph
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
(Loss) income before income taxes $ ( 10,254 ) $ 2,429 $ ( 7,674 ) $ 4,077
Income tax expense $ 242 $ 468 $ 801 $ 802
Effective tax rate ( 2.4 ) % 19.3 % ( 10.4 ) % 19.7 %
Income (loss) before income taxes $ 3,063 $ 3,641 $ ( 4,610 ) $ 7,718
Income tax expense $ 634 $ 589 $ 1,435 $ 1,391
Effective tax rate 20.7 % 16.2 % ( 31.1 ) % 18.0 %
Our effective income tax rate of 19.7 20.7 % for the six three months ended June September 30, 2025 differed from 2026 was generally consistent with the U.S. federal statutory rate of 21%. primarily due to tax benefits from stock-based compensation.
Our effective income tax rates rate of ( 2.4 )% and ( 10.4 31.1 )% for the three and six nine months ended June September 30, 2026 respectively, differed from the U.S. federal statutory rate of 21% primarily due to non-deductible acquired IPR&D expense in connection with our second quarter 2026 acquisitions of Arcellx, Tubulis, and Ouro Medicines.
Our effective income tax rate of 19.3 16.2 % for the three months ended June September 30, 2025 differed from the U.S. federal statutory rate of 21% primarily due to a settlement with a tax authority, favorable changes in the fair value of certain of our equity securities that are non-taxable for income tax purposes tax benefits from stock-based compensation and a decrease in foreign remeasurement of certain deferred tax liabilities associated with the $ 190 million bulevirtide IPR&D related to acquired intangible asset impairment charge. assets.
Our effective income tax rate of 18.0 % for the nine months ended September 30, 2025 differed from the U.S. federal statutory rate of 21% primarily due to tax benefits from stock-based compensation, a settlement with a tax authority and a remeasurement of certain deferred tax liabilities related to acquired intangible assets.
1 unchanged paragraph
We have one operating segment , which primarily focuses on the discovery, development and commercialization of innovative medicines in areas of unmet medical need. See Note 2. Revenues for disaggregation of our revenues by major products and by geography. Our Chief Executive Officer, as the chief operating decision-maker ( CODM ), uses Net (loss) income (loss) as the primary measure to evaluate performance, allocate resources to the operations of our company on an entity-wide basis and forecast future financial results. Managing and allocating resources on an entity-wide basis enables our CODM to assess the overall level of resources available and how to best deploy these resources across functions and research and development ( R&D ) projects based on unmet medical need, scientific data, probability of successful technical development and regulatory successful development, approval, market potential and other considerations, and, as necessary, reallocate resources among our internal R&D portfolio and external opportunities to best support the long-term growth of our business. Our CODM is regularly provided with entity-wide expense categories similar to those found on our Condensed Consolidated Statements of Operations, as well as the following:
Three Months Ended Six Nine Months Ended
September 30, September 30,
1 unchanged paragraph
Selling and marketing expenses $ 1,011 $ 864 $ 1,910 $ 1,617
General and administrative expenses 910 501 1,463 1,006
Selling, general and administrative expenses $ 1,921 $ 1,365 $ 3,372 $ 2,623
Selling and marketing expenses $ 946 $ 829 $ 2,856 $ 2,446
General and administrative expenses 695 527 2,158 1,534
Selling, general and administrative expenses $ 1,641 $ 1,357 $ 5,013 $ 3,980
1 unchanged paragraph
MD&A 216 changes
The following discussion and analysis is intended to provide material information around events and uncertainties known to management that are relevant to an assessment of the financial condition and results of operations of Gilead and should therefore be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto and other disclosures included as part of our Annual Report on Form 10-K for the year ended December 31, 2025 and our unaudited Condensed Consolidated Financial Statements for the three and six nine months ended June September 30, 2026 and the related notes thereto and other disclosures (including the disclosures under Part II, Item 1A. Risk Factors) included in this Quarterly Report on Form 10-Q.
3 unchanged paragraphs
Announced FDA accepted an NDA for bictegravir and lenacapavir for virologically suppressed people with HIV under priority review, with a PDUFA target action date of August 27, 2026.
In October 2026, the Centers for Medicare and Medicaid Services completed the process of setting the Maximum Fair Price for Biktarvy under Medicare. The new price will be effective and impact our Biktarvy revenue starting January 1, 2028.
Received U.S. Food and Drug Administration ( FDA ) approval for Bixlenvo for the treatment of HIV in adults who are virologically suppressed on a stable antiretroviral regimen, including those switching from complex multi-tablet regimens. Bixlenvo is a complete single-tablet regimen indicated for the treatment of HIV to replace current antiretroviral regimens in people with virological suppression with no known or suspected resistance to bictegravir or lenacapavir.
Announced U.S. Food and Drug Administration ( FDA ) accepted a supplemental New Drug Application ( NDA ) submission for Yeztugo 300-mg tablet as a potential once-weekly oral formulation for HIV pre-exposure prophylaxis, with a Prescription Drug User Fee Act ( PDUFA ) target action date of February 2, 2027.
Received FDA accelerated approval for Hepcludex for the treatment of chronic hepatitis delta virus ( HDV ) infection in adults without cirrhosis or with compensated cirrhosis, which is now the first and only FDA-approved treatment for HDV in the U.S.
Received a positive opinion from the European Medicines Agency s Committee for Medicinal Products for Human Use Commission ( EC ) marketing authorization for Trodelvy in combination with Keytruda (pembrolizumab) for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer ( mTNBC ) who have not received prior systemic therapy for metastatic disease and whose tumors express PD-L1 (CPS 10).
1 unchanged paragraph
Announced European Commission Received EC marketing authorization for Trodelvy as a monotherapy for the treatment of adult patients with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitor therapy.
5 unchanged paragraphs
Announced a definitive agreement to acquire an oral IL-23R inhibitor program, including lead asset HCXT-2001, from PepStar Therapeutics Limited, a privately held, clinical-stage biotechnology company. Closing of the transaction is subject to certain customary conditions.
3 unchanged paragraphs
Three Months Ended Six Nine Months Ended
September 30, September 30,
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Total revenues $ 7,803 $ 7,082 10 % $ 14,763 $ 13,749 7 %
Net (loss) income $ (10,496) $ 1,960 NM $ (8,475) $ 3,275 NM
Diluted (loss) earnings per share $ (8.45) $ 1.56 NM $ (6.82) $ 2.61 NM
A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics, Inc. ( Immunomedics ); and
Lower income tax expense; and
Higher net gains from equity securities.
Total revenues $ 8,300 $ 7,769 7 % $ 23,063 $ 21,518 7 %
Net income (loss) $ 2,429 $ 3,052 (20) % $ (6,045) $ 6,327 NM
Diluted earnings (loss) per share $ 1.94 $ 2.43 (20) % $ (4.87) $ 5.04 NM
Total revenues increased 10% and 7% to $7.8 $8.3 billion and $14.8 $23.1 billion for the three and six nine months ended June September 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher sales of HIV products, Trodelvy and Livdelzi, partially offset by lower sales of Veklury and Cell Therapy products, as well as higher lower royalty, contract and other revenues. partially offset Total revenues for the nine months ended September 30, 2026 were also impacted by lower sales of Veklury as well as Cell Therapy and chronic hepatitis C virus ( HCV ) products.
Net loss income was $10.5 $2.4 billion and diluted loss earnings per share was $8.45 $1.94 for the three months ended June September 30, 2026, compared to net income of $2.0 $3.1 billion and diluted earnings per share of $1.56 $2.43 for the same period in 2025. The decrease was primarily due to:
Net losses from equity securities in 2026 compared to net gains in 2025;
Higher operating expenses; partially offset by and
Higher income tax expense; partially offset by
Higher revenues; and
Higher Lower acquired in-process research and development ( IPR&D ) expenses. related to our acquisitions of Arcellx, Tubulis and Ouro Medicines;
Net loss was $8.5 $6.0 billion and diluted loss per share was $6.82 $4.87 for the six nine months ended June September 30, 2026, compared to net income of $3.3 $6.3 billion and diluted earnings per share of $2.61 $5.04 for the same period in 2025. The decrease was primarily due to:
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A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics, Inc.; and
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Higher revenues; and
Net gains from equity securities compared to net losses in 2025.
Please refer to Results of Operations below for further information on results for the three and six nine months ended June September 30, 2026.
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Biktarvy $ 2,981 $ 468 $ 323 $ 3,772 $ 2,799 $ 429 $ 302 $ 3,530 7 %
Descovy 921 23 23 967 601 24 28 653 48 %
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and 182 more changes in the filing
Controls and procedures 2 changes
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and 2 more changes in the filing
Risk factors 17 changes
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and 17 more changes in the filing
Unregistered sales of stock 9 changes
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and 9 more changes in the filing
Other information 3 changes
and 3 more changes in the filing
Exhibits 7 changes
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and 7 more changes in the filing
Unchanged: Notes to the financial statements, Note 1: SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES, Market risk, Defaults on senior securities, Mine safety disclosures
Compared by code from the two filings' text and XBRL. Not advice.
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