By Fineline Cube 
Gilead Sciences, Inc. (NASDAQ: GILD) reported first quarter 2026 revenues of $7.0 billion, representing a 4% year-over-year (YOY) increase, with core product sales (excluding Veklury) growing 8% to $6.8 billion. The company’s performance was primarily driven by robust HIV product demand, rapid Trodelvy growth, and the successful launch of Livdelzi, partially offset by expected declines in Veklury and chronic hepatitis C virus (HCV) products.
Financial Performance Summary
| Metric | Q1 2026 | YOY Change | Key Drivers |
|---|---|---|---|
| Total Revenues | $7.0 billion | +4% | HIV portfolio, Trodelvy, Livdelzi |
| Core Product Sales (ex-Veklury) | $6.8 billion | +8% | Underlying business momentum |
| Net Income | $1.8 billion | -2% | Higher R&D investment, product mix |
| EPS (Diluted) | $1.45 | -3% | Share count impact, investment priorities |
Portfolio Performance Analysis
HIV Franchise – Continued Market Leadership
- Total HIV Sales: $5.0 billion (+10% YOY)
- Biktarvy: $3.4 billion (+7% YOY) – maintaining dominant market position
- Descovy: $807 million (+38% YOY) – strong growth driven by PrEP and treatment indications
- Market Dynamics: Sustained demand despite generic competition in older regimens; premium positioning of Biktarvy intact
Oncology Portfolio – Accelerating Growth Trajectory
- Trodelvy (sacituzumab govitecan-hziy): $402 million (+37% YOY)
- Growth Drivers: Higher demand across multiple indications, favorable inventory dynamics, increased average realized price
- TROP2 ADC Leadership: Establishing strong foothold in competitive antibody-drug conjugate market
- Cell Therapy: $407 million (-12% YOY)
- Yescarta: $332 million (-14% YOY) – temporary headwinds from manufacturing capacity constraints
- Tecartus: $75 million (-4% YOY) – stable performance in mantle cell lymphoma indication
Liver Disease Portfolio – Mixed Results
- Total Liver Disease Sales: $767 million (+1% YOY)
- Livdelzi (seladelpar): Strong launch momentum contributing to portfolio growth
- HCV Products: Continued decline due to curative nature of therapy and reduced screening rates
- Inventory Impact: Unfavorable inventory dynamics partially offsetting Livdelzi success
COVID-19 Therapeutics – Expected Decline
- Veklury (remdesivir): $144 million (-52% YOY)
- Primary Driver: Significantly lower rates of COVID-19-related hospitalizations
- Strategic Context: Managed decline as pandemic transitions to endemic phase
Strategic Business Highlights
Commercial Execution Excellence
- HIV Portfolio Resilience: Demonstrated ability to maintain premium pricing and market share leadership
- Trodelvy Momentum: Rapid adoption across breast cancer and urothelial cancer indications
- Livdelzi Launch Success: Positive initial reception in primary biliary cholangitis (PBC) market
Pipeline Investment Priorities
- R&D Focus: Increased investment in next-generation HIV therapies, additional TROP2 ADC indications, and liver disease innovations
- Manufacturing Capacity: Addressing Cell Therapy supply constraints through facility expansions
- Geographic Expansion: International markets contributing to diversified revenue streams
Market Outlook & Guidance
Forward-Looking Indicators
- Full-Year Revenue Guidance: Maintained at $28.0–29.0 billion range
- HIV Portfolio: Expected to deliver low-to-mid single-digit growth for full year
- Trodelvy: On track to exceed $1.8 billion in annual sales
- Cell Therapy: Recovery expected in second half 2026 as manufacturing capacity increases
Competitive Positioning
- HIV Market: Defending leadership against emerging long-acting injectable competitors
- Oncology Space: Competing effectively in crowded TROP2 ADC landscape with differentiated clinical profile
- Liver Disease: Establishing Livdelzi as standard of care in PBC while exploring additional indications
Investment Implications
- Stock Performance: GILD closed at $82.45 on May 7, 2026; dividend yield of 3.8% provides income support
- Valuation Metrics: Trading at 12.5x forward earnings, below historical average reflecting near-term Cell Therapy challenges
- Cash Generation: Strong free cash flow supporting dividend payments, share repurchases, and strategic acquisitions
- Pipeline Catalysts: Multiple late-stage assets expected to drive long-term growth beyond 2026
Forward-Looking Statements
This brief contains forward-looking statements regarding Gilead’s financial performance, product sales, and strategic initiatives. Actual results may differ due to competitive pressures, regulatory developments, manufacturing challenges, and market dynamics.-Fineline Info & Tech