WS Investor
04 Aug 2026, 20:13
Gilead Stock Slips Despite Strong Core Business Growth as Acquisition Charges Weigh on Earnings
Gilead Sciences (NASDAQ: GILD) shares slipped about 1% on Tuesday despite reporting solid second-quarter revenue growth, as large acquisition-related charges resulted in a quarterly loss.
Second-quarter revenue increased 10% year over year to $7.8 billion, while product sales excluding COVID-19 treatment Veklury rose 10% to $7.6 billion, highlighting continued strength across Gilead's core business. However, the company reported a GAAP loss of $8.45 per share and a non-GAAP loss of $6.75 per share, largely reflecting approximately $9.08 per share of acquired in-process R&D and related tax expenses tied to the acquisitions of Arcellx, Tubulis, and Ouro Medicines.
The HIV franchise remained the company's primary growth engine. HIV product sales increased 12% to $5.7 billion, led by Biktarvy, whose sales rose 7% to $3.8 billion, while Descovy surged 48% as demand and pricing improved. Oncology drug Trodelvy also delivered strong momentum, with sales climbing 26%, and liver disease treatment Livdelzi continued to contribute to growth.
The quarter also included three FDA approvals and three positive Phase 3 clinical updates, further strengthening Gilead's development pipeline. Meanwhile, COVID-19 antiviral Veklury sales fell 81% as pandemic-related hospitalizations continued to normalize, while the cell therapy business faced ongoing competitive pressure.
Looking ahead, Gilead raised its full-year 2026 guidance for product sales excluding Veklury to $29.8 billion-$30.1 billion, reflecting confidence in continued momentum across its HIV and oncology portfolios. The company also expects Veklury sales to decline further to approximately $300 million for the year.
While investors welcomed the strong underlying revenue growth and improving outlook for Gilead's core business, the stock came under modest pressure as the headline earnings figures were heavily impacted by substantial acquisition-related charges associated with expanding the company's long-term pipeline.
Gilead Sciences (NASDAQ: GILD) shares slipped about 1% on Tuesday despite reporting solid second-quarter revenue growth, as large acquisition-related charges resulted in a quarterly loss.
Second-quarter revenue increased 10% year over year to $7.8 billion, while product sales excluding COVID-19 treatment Veklury rose 10% to $7.6 billion, highlighting continued strength across Gilead's core business. However, the company reported a GAAP loss of $8.45 per share and a non-GAAP loss of $6.75 per share, largely reflecting approximately $9.08 per share of acquired in-process R&D and related tax expenses tied to the acquisitions of Arcellx, Tubulis, and Ouro Medicines.
The HIV franchise remained the company's primary growth engine. HIV product sales increased 12% to $5.7 billion, led by Biktarvy, whose sales rose 7% to $3.8 billion, while Descovy surged 48% as demand and pricing improved. Oncology drug Trodelvy also delivered strong momentum, with sales climbing 26%, and liver disease treatment Livdelzi continued to contribute to growth.
The quarter also included three FDA approvals and three positive Phase 3 clinical updates, further strengthening Gilead's development pipeline. Meanwhile, COVID-19 antiviral Veklury sales fell 81% as pandemic-related hospitalizations continued to normalize, while the cell therapy business faced ongoing competitive pressure.
Looking ahead, Gilead raised its full-year 2026 guidance for product sales excluding Veklury to $29.8 billion-$30.1 billion, reflecting confidence in continued momentum across its HIV and oncology portfolios. The company also expects Veklury sales to decline further to approximately $300 million for the year.
While investors welcomed the strong underlying revenue growth and improving outlook for Gilead's core business, the stock came under modest pressure as the headline earnings figures were heavily impacted by substantial acquisition-related charges associated with expanding the company's long-term pipeline.
