Analyst Conference Summary

biotechnology

conference date: October 29, 2026 @ 1:30 PM Pacific Time
for quarter ending: September 30, 2026 (third quarter, Q3 2026)

Forward-looking statements

Overview: Solid quarter.

Basic data (GAAP):

Revenue was $8.30 billion, up 6% sequentially from $7.80 billion and up 7% from $7.77 billion in the year-earlier quarter.

Net income was $2.43 billion, up sequentially from negative $10.5 billion and down 20% from $3.05 billion year-earlier.

Earnings per share (EPS, diluted) were $1.94, up sequentially from negative $8.45, and down 20% from $2.43 in the year-earlier quarter.

Guidance:

Increased full year 2026 guidance to product revenue between $31.0 and 31.3 billion. GAAP EPS negative $4.40 to negative $4.05. Non-GAAP EPS negative $1.20 to negative $0.85. Loss is due to $12.4 billion in IPRD charges for acquisitions.

Conference Highlights:

Daniel O'Day, CEO, said "Gilead delivered an exceptional third quarter, with our strongest year-over-year base business growth in more than a decade, reflecting the strength, breadth and durability of our business. Our performance enabled us to raise our full year base business revenue guidance again this quarter, bringing the total increase to $1.6 billion since the start of 2026. Our HIV business grew 18% and HIV prevention sales nearly doubled year-over-year. With multiple ongoing and potential launches across HIV and Oncology, important progress in inflammation and a disciplined operating model, Gilead is well positioned for business growth and impact for patients." Gilead has no major LOEs (loss of exclusivity) until 2036. Diversification strategy has enhanced the business and long-term growth potential.

The dividend is $0.82 per share, is to be paid on December 30, 2026 to shareholders of record as of December 15, 2026. Gilead plans to continue to grow the dividend.

Bixlenvo (Combination of lenacapavir and Bictegravir) for HIV BLA approved by FDA in Q3 2026. In Q2 2026 also announced U.S. would invest in PEPFAR to deliver lenacapivir to an additional 1 million people. The US PrEP business grew 14% y/y. Also announced programs to make lenacapavir inexpensive in developing nations. Gilead now has about 50% share of the PrEP market, with yeztugo as the leading regimen. Other lenacapavir combinations and formulations are under development or planned, with some launches expected in or after 2030.

Arcellx acquisition completed in Q2 2026 for $7.8 billion. This gives Gilead full control of the Anito-Cel program. Multiple myeloma FDA decision expected in December.

In Q3 2026 Gilead announced the European Commission marketing authorization for Trodelvy, in combination with Keytruda (pembrolizumab), for adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (mTNBC) who have not received prior systemic therapy and with tumors express PD-L1. The EC had recently approved Trodelvy as a monotherapy for the treatment of adults with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitors.

In Q3 2026 Gilead announced an agreement to acquire PepStar's oral IL-23R inhibitor program. Lead asset is HCXT-2001 in Phase 1 for immune-related inflamatory diseases.

Gilead plans to initiate a Phase 3 study of emvistegrast 200mg as a monotherapy for UC in 2027. This follows positive Phase 2 data in Q3 2026.

In Q3 Gilead announced the opening of a new research center to support futher investment in U.S. research and manufacturing.

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. Price will become $2,600 for a 30 day supply, a 38% reduction from the current Medicare list price. Net impact could be $1.5 billion in 2028 v. 2027. But total HIV revenue should grow in 2028.

Emvistegrast for ulcerative colitis positive Phase 2 data was shared at EUGW 2026.

Gilead is preparing for the Anito-cel launch for 4th line R/R Multiple Myeloma. PDUFA is December 23, 2026.

Anito-cel for fourth line multiple myeloma FDA filing acceptence in Q1 2026, PDUFA 12/23/2026.

Non-GAAP numbers: Net income was $3.19 billion, up sequentially from negative $8.39 billion and up from $3.10 billion year-earlier. Non-GAAP EPS was $2.55, up sequentially from negative $6.75 and up 3% from $2.47 year-earlier.

Product sales were $8.29 billion, up 9% sequentially from $7.63 billion and up 13% from $7.35 billion in the year-earlier quarter.

Royalty, contract and other revenue was $11 million, down sequentially from $176 million, and ldown from $424 million year-earlier.

Cash and equivalents ended at $6.44 billion, up sequentially from $3.2 billion. $5.04 billion cash flow from operations. Capital expense $237 million. $4.80 billion free cash flow. $370 million was used to repurchase shares. $1.0 billion paid in dividends. Long term liabilities were $26 billion.

Numerous other studies are underway or planned; see Gilead pipeline.

Expenses were $4.84 billion, consisting of $1.57 billion for cost of goods sold; $1.61 billion for R&D; $18 million acquired in-process R&D; $1.64 billion SG&A. Leaving income from operations of $3.46 billion. Interest expense $269 million. Other income $130 million. Income tax $634 million.

Q&A selective summary:

Oral IL-23 therapy? fasting issue for combo? We are excited about our inflamatory bowel disease. IL-23 is early, we are working on formulations.

$1.5 billion IRA impact components? CMS price setting does not reflect the value of Biktarvy. IRA approach for highly effective medicines can put investment at risk and undermine the patent system. Pill penalty for Biktarvy discourages investment and so hurts the communities we serve. $1.5 billion impact in 2028 is a preliminary analysis, subject to change. Includes the Medicare piece and spillovers to other channels. Net of Part D.

Anito-cel for newly diagnosed multiple myeloma? Trials have co-primary endpoints, MRD and PFS. We had discussions with global regulatory agencies about them. These later trials are for transplant-ineligible patients (trial 4 and 6).

Weekly oral PrEP launch next year? Excited about long acting oral, first to market. Patients might like long acting, but not injections. Because it is a Yeztugo extension, we will build off our access in the pharmacy benefit space.

We believe our margins will remain strong.

Palisades partial hold? Autoimmune program continues. Palisades 1 and 2 has rapid manufacturing, but 3 day. The partial clinical hold is allowing us to do some investigation before moving forward. But we have had no patient deaths or Grade 5 events.

New verticals v. HIV franchise? We have been working at diversification for years, including within HIV. Inflamation and autoimmune pipeline is growing in importance.

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