A month has gone by since the last earnings report for Gilead Sciences (GILD Quick QuoteGILD - Free Report) . Shares have added about 13.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Gilead due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Gilead Sciences, Inc. before we dive into how investors and analysts have reacted as of late.

GILD Q2 Earnings Beat on HIV and Trodelvy Growth, Product Sales Outlook Raised

Gilead Sciences reported a second-quarter 2026 adjusted loss of $6.75 per share, narrower than the Zacks Consensus Estimate of a loss of $7.07. In the year-ago quarter, GILD posted adjusted earnings of $2.01 per share.

The significant decline was due to acquired in-process research and development (IPR&D) expenses related to the acquisitions of Arcellx, Tubulis and Ouro Medicines.

Revenues increased 10% year over year to $7.80 billion, which beat the Zacks Consensus Estimate of $7.37 billion. Growth was driven by the HIV portfolio, along with Trodelvy and Livdelzi. Product sales, excluding Veklury, rose 10% to $7.60 billion.

GILD's HIV Franchise Drives Growth

HIV product sales increased 12% year over year to $5.69 billion, reflecting higher average realized prices and demand. The figure beat the Zacks Consensus Estimate of $5.4 billion and our model estimate of $5.35 billion.

Flagship HIV therapy Biktarvy sales rose 7% to $3.80 billion, driven by pricing, favorable inventory dynamics and higher demand. Sales surpassed the Zacks Consensus Estimate of $3.65 billion and our model estimate of $3.72 billion.

Biktarvy continues to lead as the regimen of choice for both naive and switch patients across major markets.

Descovy sales jumped 48% to $967 million, comfortably exceeding the Zacks Consensus Estimate of $750 million and our model estimate of $701 million. The increase reflected higher demand and realized prices, particularly in HIV prevention.

Incremental sales of newly approved Yeztugo (lenacapavir) for pre-exposure prophylaxis (PrEP) also boosted HIV product sales. Yeztugo generated sales of $232 million in the second quarter.

Driven by a $4 billion annualized PrEP business and the continued strong performance of Biktarvy, Gilead raised its full-year HIV sales growth guidance to 9-10% from the previous 8% forecast. GILD continues to expect Yeztugo sales of approximately $1 billion in 2026.

Gilead's Liver Disease Portfolio Sales Advance

Liver Disease portfolio sales increased 10% to $877 million. The figure topped the Zacks Consensus Estimate of $800 million and our model estimate of $787 million. Higher demand for Livdelzi, hepatitis B treatments and Hepcludex more than offset lower hepatitis C product sales.

GILD's Cell Therapy Sales Face Pressure

Cell Therapy sales declined 14% year over year to $417 million amid continued competitive headwinds. The figure matched the Zacks Consensus Estimate but came below our model estimate of $418.8 million.

Yescarta sales decreased 12% to $346 million due to competition. Tecartus sales fell 24% to $70 million because of in-class competition.

Gilead now expects full-year Cell Therapy sales to decline by a mid-teens percentage.

Trodelvy Boosts GILD’s Q2 Revenues

Trodelvy sales increased 26% year over year to $457 million, beating the Zacks Consensus Estimate of $448 million and our model estimate of $427 million. Growth reflected stronger demand across triple-negative and previously treated HR-positive/HER2-negative metastatic breast cancer.

The recent first-line metastatic triple-negative breast cancer approvals expand Trodelvy's addressable population. Management said adoption has broadened following regulatory approvals and treatment guideline updates.

Gilead's Costs Reflect Acquisition Charges

Adjusted product gross margin remained unchanged year over year at 86.9%. Adjusted research and development expenses declined 1% to $1.43 billion, as lower oncology clinical study activity offset costs associated with newly acquired businesses.

Adjusted selling, general and administrative expenses increased 12% to $1.52 billion, mainly due to higher HIV promotional spending. Acquired in-process research and development expenses totaled $11.2 billion, primarily related to the Arcellx, Tubulis and Ouro Medicines acquisitions.

As of June 30, 2026, Gilead's cash, cash equivalents and marketable debt securities totaled $3.2 billion, down from $10.6 billion as of Dec. 31, 2025. The decline was primarily due to $11.3 billion in acquisition-related cash outflows, $2.8 billion in debt repayments, $2.1 billion in dividend payments and $774 million in share repurchases.

These acquisition-related charges were the main reason for the adjusted quarterly loss. Excluding the acquisitions and nonrecurring other revenues, management indicated that adjusted earnings would have been $2.27 per share.

GILD Raises 2026 Base Business Outlook

Gilead now expects product sales of $30.10-$30.40 billion in 2026, up from the earlier expectation of $30.00-$30.40 billion. Product sales excluding Veklury are projected to be in the band of $29.80-$30.10 billion, up from the previous guidance of $29.40-$29.80 billion.

Veklury sales are now expected to be approximately $300 million, down from the earlier forecast of around $600 million, reflecting fewer COVID-19-related hospitalizations. Adjusted loss per share is projected to be between 30 cents and 65 cents compared with the previous loss guidance of 65 cents-$1.05.

The improved adjusted earnings outlook reflects stronger base-business sales.

Key Pipeline and Regulatory Updates From GILD

The FDA accepted Gilead's supplemental new drug application for Yeztugo (lenacapavir) 300 mg tablets as a potential once-weekly oral HIV PrEP regimen, with a target date of Feb. 2, 2027.

Gilead and partner Merck reported positive phase III results from the ISLEND-1 and ISLEND-2 studies, demonstrating the potential of the investigational once-weekly oral combination of islatravir and lenacapavir in virologically suppressed adults with HIV.

The FDA also granted accelerated approval to Hepcludex for the treatment of chronic hepatitis D virus (HDV) infection in adults without cirrhosis or with compensated cirrhosis, making it the first and only FDA-approved therapy for HDV in the United States.

Trodelvy received FDA approval for first-line metastatic triple-negative breast cancer (mTNBC), as a monotherapy for patients who are not candidates for PD-1/PD-L1 inhibitor-based therapy or in combination with Merck’s Keytruda (pembrolizumab) or Keytruda Qlex (pembrolizumab and berahyaluronidase alfa-pmph) for patients whose tumors express PD-L1 (CPS ≥10).

The European Commission approved Trodelvy monotherapy for first-line unresectable locally advanced or metastatic TNBC in patients ineligible for PD-1/PD-L1 therapy.

However, Gilead and partner Merck announced that the phase III EVOKE-03 study was discontinued. The study was evaluating Trodelvy plus Keytruda in first-line PD-L1-high metastatic non-small cell lung cancer after an independent review found the study was unlikely to meet its efficacy goals.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

Currently, Gilead has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Gilead has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Gilead belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Bristol Myers Squibb (BMY Quick QuoteBMY - Free Report) , has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Bristol Myers reported revenues of $12.97 billion in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $2.04 for the same period compares with $1.46 a year ago.

Bristol Myers is expected to post earnings of $1.68 per share for the current quarter, representing a year-over-year change of +3.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bristol Myers. Also, the stock has a VGM Score of B.