Gilead Raises 2026 Product Sales Outlook Again

The Tip Desk · October 29, 2026 · 4 min read

Third-quarter product sales excluding Veklury rose 16% to $8.2 billion, the fastest base-business pace of the year, as HIV, Trodelvy and Livdelzi more than offset Veklury and cell-therapy declines.

Gilead Sciences (GILD) posted third-quarter product sales of $8.3 billion, up 13% from a year earlier, as year-over-year growth in the company’s base business accelerated for a second straight quarter.

Product sales excluding Veklury increased 16% to $8.2 billion, after 10% growth in the second quarter and 8% in the first. Chairman and Chief Executive Officer Daniel O’Day said the company delivered its strongest year-over-year base-business growth in more than a decade and raised full-year 2026 base-business revenue guidance again, bringing the total increase to $1.6 billion since the start of the year.

HIV product sales rose 18% to $6.2 billion, after 12% growth in the second quarter and 10% in the first. The company said the increase was driven primarily by higher average realized price, higher demand in HIV prevention and favorable inventory dynamics. Biktarvy sales increased 10% to $4.1 billion, after 7% growth in both the first and second quarters, on higher demand, higher average realized price and favorable inventory dynamics. Descovy sales were $1.0 billion, up 49% year-over-year.

The Liver Disease portfolio increased 13% to $927 million, after 1% growth in the first quarter, reflecting higher demand for Livdelzi and higher average realized price for chronic hepatitis C and B products, partially offset by lower HCV demand. Trodelvy sales increased 42% to $506 million. Oncology product sales were $860 million.

Veklury sales decreased 69% to $86 million on lower COVID-19-related hospitalizations. Cell Therapy product sales decreased 18% to $355 million, which the company said reflected ongoing competitive headwinds. Royalty, contract and other revenues were $11 million, compared with $424 million a year earlier, primarily because revenues recognized in the prior year related to a previous sale of intellectual property did not repeat.

GAAP diluted earnings were $1.94 a share, compared with $2.43 a year earlier. The company said the decrease was driven primarily by net losses from equity securities versus net gains in the prior year, higher operating expenses, higher income tax expense and lower royalty, contract and other revenues, partially offset by higher product sales and lower acquired in-process research and development expenses. Non-GAAP diluted EPS was $2.55, compared with $2.47.

Product gross margin was 81.0%, versus 78.6% a year earlier; non-GAAP product gross margin was 88.1%. The company said the increases were driven primarily by the expiration of a royalty-related obligation. Research and development expenses were $1.6 billion, versus $1.3 billion, on higher employee-related and clinical materials costs. Selling, general and administrative expenses were $1.6 billion, versus $1.4 billion, on higher HIV promotional activities, acquisition integration costs, legal matters and employee-related costs. The effective tax rate was 20.7%, versus 16.2%, primarily because a settlement with a tax authority and remeasurement of certain deferred tax liabilities in the prior year did not repeat.

For full-year 2026, Gilead now expects product sales of $31.000 billion to $31.300 billion, previously $30.100 billion to $30.400 billion, and product sales excluding Veklury of $30.700 billion to $31.000 billion, previously $29.800 billion to $30.100 billion. Veklury is expected at about $300 million. GAAP diluted loss per share guidance was lowered to $(4.40) to $(4.05) from $(3.75) to $(3.40), and non-GAAP diluted loss per share guidance to $(1.20) to $(0.85) from $(0.65) to $(0.30). The company said the full-year GAAP and non-GAAP diluted loss per share ranges include the impact of approximately $9.88 due to acquired IPR&D charges of $12.4 billion related to the Arcellx, Tubulis, Ouro Medicines and PepStar transactions, net of the Lakefront collaboration and related taxes.

Cash, cash equivalents and marketable debt securities were $6.4 billion as of September 30, 2026, versus $10.6 billion at year-end 2025. Third-quarter operating cash flow was $5.0 billion. The company paid $1.0 billion of dividends and repurchased $370 million of common stock in the quarter.

Since the last quarterly release, Gilead received FDA approval for Bixlenvo, a single-tablet bictegravir/lenacapavir regimen indicated to replace current antiretroviral regimens in adults who are virologically suppressed on a stable antiretroviral regimen, with no known or suspected resistance to bictegravir or lenacapavir, and announced European Commission marketing authorization for Trodelvy with Keytruda in first-line PD-L1-positive metastatic triple-negative breast cancer. The board declared a quarterly dividend of $0.82 a share for the fourth quarter.