In the second quarter of 2026, Gilead Sciences announced HIV-related revenues of $5.7 billion, marking a 12% rise compared to the previous year. This increase prompted Gilead to elevate its projected annual HIV sales growth to a range of 9% to 10%. The boost in outlook was attributed to stronger consumer interest and improved pricing across the segment. CEO Daniel O’Day remarked that the base business saw its most robust second-quarter performance in the last three years, supported by strong results in HIV care, oncology, and liver disease.
Gilead's HIV prevention division, known as PrEP, saw record-breaking performance in Q2, with revenue surpassing the $1 billion mark for the first time. This represents more than double the sales compared to the same period last year. The long-acting PrEP product Yeztogo generated $232 million in revenue, while Descovy PrEP added about $801 million. Gilead expects Yeztogo to bring in around $1 billion in revenue for the full year.
HIV Prevention Division Growth
As explained by Chief Commercial and Corporate Affairs Officer Johanna Mercier, factors like increased inventory and rising consumer demand contributed to the growth in HIV sales. However, this growth was somewhat offset by market conditions, particularly the unexpected consequences of Affordable Care Act-related insurance modifications. These changes caused the overall HIV treatment market to slow in the current quarter. Mercier noted, however, that the market is forecasted to return to its typical annual growth trajectory, estimated at 2% to 3%.
Yeztogo has emerged as the top choice among long-acting PrEP options for individuals who haven't been previously treated and also leads in the market for switching from other PrEP options, whether oral or injectable. Over 70% of Yeztogo users who received the initial injection have returned for their next dose after six months, thus prolonging their protection for a full year. Gilead has also launched a new initiative named Ready to Go, which features customized text reminders, informative content, and a nurse helpline to help patients stay on track with their treatment.
Gilead is also making moves in its HIV treatment development pipeline. The company is awaiting a decision on the BIC/LEN regimen (bictegravir combined with lenacapavir), a once-daily treatment for individuals with HIV who are virally suppressed. A verdict is expected by August 27. Additionally, Gilead is preparing to file for global approval for a once-weekly regimen combining islatravir and lenacapavir. This treatment displayed encouraging data in the Phase III ISLEND-1 and ISLEND-2 trials and could be introduced as early as 2027.
Challenges and Financial Performance
Gilead Sciences reported a non-GAAP loss of $6.75 for the second quarter, largely due to research and development costs from recent acquisitions amounting to $11.2 billion. These expenses were mainly driven by the acquisitions of Arcellx, Tubulis, and Ouro Medicines. While this caused a financial impact, the company noted a non-GAAP earnings per share (EPS) of $2.27 on an illustrative basis, excluding specific acquisition-related costs.
Gilead also revised its forecast for Veklury, a medication for viral infections, due to a decline in its sales. The company now anticipates annual Veklury revenue to be approximately $300 million. The reduction in demand was partially attributed to evolving market conditions, including shifts tied to the Affordable Care Act and their impact on patient insurance coverage. Gilead’s management remains confident about the company’s future, especially in the fields of HIV treatment and prevention.
Progress in Oncology and Cell Therapy
Oncology Segment Advancements
Gilead's oncology segment showed notable progress in Q2. Trodelvy, a treatment for specific breast cancers, brought in $457 million in revenue, representing a 26% year-over-year increase. The FDA granted Trodelvy approval for first-line use in metastatic triple-negative breast cancer, regardless of PD-L1 status. This expansion significantly broadens the patient base and is associated with a longer expected treatment duration.
The new approval and updated guidance from the National Comprehensive Cancer Network are anticipated to enhance the adoption of Trodelvy in first-line therapies. Gilead recently completed the acquisition of Tubulis, which strengthens its antibody-drug conjugate capabilities and expands its portfolio of clinical-stage products.
Gilead is also working on GS-8824 (formerly TUB-040), a candidate therapy for platinum-resistant ovarian cancer. Early results from Phase I trials showed encouraging response rates of 61% across selected dosage levels. Patients also demonstrated a median progression-free survival of 11 months, with minimal hematological toxicity. These findings suggest the potential of GS-8824 in addressing a major unmet need in ovarian cancer.
In parallel to these advancements, Gilead's leadership continues to focus on building innovative treatments and expanding its reach in the market. With a robust core business, a growing HIV prevention division, and substantial progress in oncology and cell therapy, Gilead is well-positioned to achieve its financial and strategic objectives in the upcoming years.