I'll research GILD before writing the preview. Let me start gathering recent filings, transcripts, and news.I'll read the Q1 2026 transcript and release, and pull more context in parallel.Let me gather recent news, analyst context, and stock price performance.Let me pull recent news digests and any sellside actions for context.Let me check for recent analyst/consensus context and key June-July developments via web search.Let me read the consensus estimate article and the ISLEND-1/2 readout.I have what I need. Here's the earnings preview.
Report date: Tuesday, Aug 4, 2026 (after market close) · Event: Q2 2026 Earnings Call Stock: ~$131 (Aug 3 close) · YTD ~+8%, but down ~15% from February highs near $155
This will look like a "loss" quarter, and that's by design — not deterioration. Gilead closed (Arcellx) and expects to close (Ouro, Tubulis) three deals whose upfront payments (~$11.5B of acquired IPR&D plus financing costs, ~$9.50/share) land in Q2. Management already guided full-year 2026 to a reported non-GAAP loss of $(1.05)–$(0.65) vs. the $8.45–$8.85 it would have earned absent the deals. The Street's Q2 consensus of roughly a $7.07 loss per share reflects those one-time charges.
So don't anchor on the headline EPS. The signal is in (1) the underlying/ex-IPR&D earnings power, (2) revenue vs. the ~$7.37B consensus (~+4% YoY), and (3) whether the growth-driver launches justify the multiple.
| Metric | Q2 2026 consensus | Comment |
|---|---|---|
| Total revenue | ~$7.37B (+~4% YoY) | Total product sales ~$7.30B |
| Descovy | ~$750M (+~15% YoY) | PrEP durability the key question |
| Genvoya | ~$295M (–~22% YoY) | Ongoing switch cannibalization |
| Reported EPS | ~$(7.07) loss | Distorted by ~$11.5B IPR&D charge |
Gilead has beaten EPS in three of the last four quarters (avg. surprise ~7%), and Q1 beat by ~7%.
Q1 was strong and prompted a guidance raise, so the bar is elevated: - Total product sales $6.9B (+5% YoY); ex-Veklury $6.8B (+8%) - HIV $5.0B (+10%) — Biktarvy $3.4B (+7%, >52% U.S. share); U.S. PrEP +87% - Yeztugo $166M (+72% sequentially) — beat expectations, drove the raise - Descovy $807M (+38%); Trodelvy $402M (+37%); Livdelzi $133M (>3x YoY) - Cell therapy $407M (–12%) and Veklury $144M (–52%) — the drags - Non-GAAP EPS $2.03 (+12%); operating margin ~47%
Management raised FY26: product sales to $30.0–30.4B, ex-Veklury $29.4–29.8B (+5–6%), HIV growth to ~8% (from 6%), and Yeztugo to ~$1B (from $800M). Note the built-in ~2% policy headwind from the Medicaid pricing agreement and ACA subsidy changes.
1. Yeztugo — the make-or-break growth story. Q1 delivered $166M; the ~$1B full-year target implies a steep back-half ramp. Watch quarterly run-rate, naïve-vs-switch mix, the ~95% access / ~95% $0-copay claims, and early persistency/return-for-second-dose data (the biggest fundamental unknown for a twice-yearly injectable). The DTC campaign launched in late February and management said 6–12 months are needed to see impact.
2. HIV base durability & pricing. Biktarvy share and pricing, Descovy PrEP (~80% of Descovy), and quantification of the ~2% policy/ACA headwind. No major HIV LOE until 2036 is the long-term bull case.
3. Pipeline catalysts — mostly positive momentum: - BIC/LEN (once-daily oral switch regimen): PDUFA Aug 27, 2026 — decision lands ~3 weeks after this call; watch for launch-readiness/pre-launch commentary. - ISLEND-1/2 (once-weekly oral islatravir/lenacapavir, w/ Merck): positive topline reported in mid-July — a meaningful pipeline de-risking; expect discussion of filing path. - anito-cel (multiple myeloma CAR-T from Arcellx): PDUFA Dec 23, 2026, revenue starting early 2027. - Trodelvy 1L metastatic TNBC: FDA/EU decisions in H2 2026, with NCCN Category 1 already in hand — but watch competitive framing vs. AstraZeneca/Daiichi's Datroway. - Hepcludex/bulevirtide (chronic HDV) U.S. decision was expected "later in Q2" — check for approval. - Also: TUB-040 ovarian data (post-ASCO), Livdelzi IDEAL Phase 3 (H2), EVOKE-03 and ASCENT-GYN readouts (H2).
4. Cell therapy erosion. Yescarta/Tecartus have been declining double digits on in-/out-of-class competition. The bridge to anito-cel is the story, but near-term this remains a drag.
5. Margins & capital return. Q1 operating margin was ~47%; management insists it can absorb the three deals' incremental spend (~$400M, ~half R&D) via revenue outperformance while holding ex-IPR&D EPS. Watch the ex-charge margin, R&D as % of sales (guided <20%), the $0.82 quarterly dividend, buyback pace (~$400M in Q1), and cash (down to $8.6B at Q1 from $10.6B after debt paydown + deal financing).
Ignore the optically ugly GAAP/non-GAAP loss — it's the ~$11.5B deal charge. The real questions are whether Yeztugo's ramp keeps tracking toward $1B, whether HIV holds ~8% growth against the ~2% policy headwind, and whether the newly expanded oncology/inflammation pipeline (anito-cel, Trodelvy 1L, Tubulis/Ouro) continues de-risking. With ISLEND positive, a favorable court ruling, and Q1 momentum, the fundamental setup is constructive; the risk is that the elevated raised guidance leaves little room for a Yeztugo or pricing disappointment. Key focus items: Yeztugo run-rate + persistency, HIV pricing, ex-IPR&D EPS/margins, and any FY26 guidance revision.
Preview based on Gilead's Q1 2026 release/call, recent news, and pre-print sell-side commentary; figures are approximate and subject to the actual report.