Gilead Sciences Reports $6.96 Billion Revenue and $2.02 Billion Net Income in Q1 2026

Gilead Sciences, Inc. reported a total revenue of $6.96 billion for the first quarter of 2026, marking a 4% increase from $6.67 billion in the same period of 2025. The growth was primarily driven by higher sales of HIV products, particularly Biktarvy and Descovy, alongside increased demand for Trodelvy and Livdelzi. Net income for the quarter rose significantly to $2.02 billion, or $1.61 per diluted share, compared to $1.32 billion, or $1.04 per diluted share, in the prior year, reflecting a 54% increase in profitability.

The company experienced notable changes in its financial performance, with product sales reaching $6.95 billion, up from $6.61 billion year-over-year. The increase in revenue was partially offset by a 52% decline in sales of Veklury, attributed to lower COVID-19 hospitalization rates. Gilead's product gross margin improved to 79.2%, up from 76.7% in the previous year, primarily due to a favorable product mix and the expiration of a royalty obligation.

Strategically, Gilead has made significant acquisitions, including the purchase of Arcellx, Inc. for approximately $7.1 billion, which is expected to enhance its oncology portfolio. Additionally, Gilead announced agreements to acquire Tubulis GmbH and Ouro Medicines, with total upfront cash considerations of $3.2 billion and $1.7 billion, respectively. These acquisitions are anticipated to bolster Gilead's capabilities in immunotherapy and T cell engager therapies.

Operationally, Gilead's employee headcount remained stable, and the company continues to operate in over 35 countries. The filing indicated that Gilead's cash and cash equivalents stood at $7.63 billion as of March 31, 2026, with net cash provided by operating activities increasing by 45% to $2.54 billion. The company also reported a decrease in interest expenses, reflecting lower debt balances, while selling, general, and administrative expenses rose by 15% due to increased promotional activities and donations to the Gilead Foundation.

Looking ahead, Gilead anticipates recording approximately $11.5 billion in acquired in-process research and development expenses in the second quarter of 2026, which is expected to result in a net loss for the quarter and the full year. The company remains focused on advancing its product pipeline and expanding its market presence, particularly in the areas of HIV, oncology, and liver disease.