Gilead Sciences has reported a steady start to 2026, with stronger HIV performance, rising oncology sales, and improving margins prompting a lift in full-year revenue guidance.
“Gilead teams have delivered another strong quarter with 8% year-over-year growth in our base business and 10% growth in HIV, supported by the successful launch of Yeztugo. We have raised our full year revenue guidance as a reflection of our performance," said Daniel O’Day, Gilead’s Chairman and Chief Executive Officer.
“Building on the strongest pipeline in Gilead’s history, we are adding potentially best-in-disease assets and platforms in oncology and inflammation from our acquisitions of Arcellx, Ouro Medicines and Tubulis. With up to four potential launches and five Phase 3 updates anticipated in 2026, Gilead is well-positioned for sustained growth in the near and long term.”
Total revenue for the first quarter rose 4% year-over-year to $7.0 billion, driven primarily by HIV therapies, Trodelvy (sacituzumab govitecan-hziy), and Livdelzi (seladelpar). Gains were partially offset by declining sales in Veklury (remdesivir), hepatitis C treatments, and cell therapy products.
Product sales excluding Veklury climbed 8% to $6.8 billion. HIV product sales surged 10% to $5.0 billion, fueled by stronger demand and improved pricing, despite some inventory headwinds.
The company’s liver disease portfolio edged up 1% to $767 million, supported by Livdelzi growth, while hepatitis C sales continued to soften.
Oncology and cell therapy show mixed trends
Trodelvy (sacituzumab govitecan-hziy) stood out with a 37% increase to $402 million, driven by stronger demand and pricing gains.
In contrast, cell therapy revenues declined 12% to $407 million: Yescarta (axicabtagene ciloleucel) fell 14% to $332 million amid competitive pressure; Tecartus (brexucabtagene autoleucel) slipped 4% to $75 million; Veklury sales dropped sharply, down 52% to $144 million, reflecting reduced COVID-19 hospitalizations.
Gilead reported diluted EPS of $1.61, up from $1.04 a year earlier, while non-GAAP EPS rose to $2.03 from $1.81.
Product gross margin improved to 79.2%, up from 76.7%, with non-GAAP margins rising to 87.5%. The gains were driven by product mix and the expiration of a royalty-related obligation.
Operating expenses rose in key areas: R&D remained steady at $1.4 billion; SG&A increased to $1.5 billion, driven by HIV marketing and foundation contributions; Acquired IPR&D expenses totaled $107 million, including a collaboration payment to Genhouse.
Gilead ended the quarter with $8.6 billion in cash and securities, down from $10.6 billion at year-end 2025. The decline reflected $2.8 billion in debt repayments, $1.0 billion in dividends, and $419 million in share repurchases, partially offset by $2.5 billion in operating cash flow.
