Gilead Sciences (GILD) official guidance

We now expect acquired IPR&D of $11.5 billion, reflecting $300 million lower second quarter expenses associated with the accounting treatment of potential future milestones related to the Tubulis acquisition.

Overall, we expect full-year non-GAAP EPS between -$0.65 and -$0.30.

We continue to expect both R&D and SG&A expenses to increase a mid-single digit percentage on a dollar basis compared to 2025.

We now expect base business sales to grow approximately 6%-7% year-over-year and range between $29.8 billion and $30.1 billion.

Included in total product sales, we now expect Veklury sales of approximately $300 million compared to approximately $600 million previously, reflecting lower COVID-19 related hospitalizations.

We continue to expect approximately $1 billion for Yeztugo sales for the full year.

Moving to total product sales, we have raised the lower end of our range and now expect total product sales in the range of $30.1 billion and $30.4 billion.

We now expect cell therapy to decline mid-teens percentage year-over-year.

We continue to expect robust full year growth for Descovy, driven by pricing favorability as well as demand growth and an expanding U.S. PrEP market.

Given the strong performance in the first half of the year, we now expect full year 2026 HIV sales to grow between 9% and 10% compared to 2025, up from our prior expectation of 8% and driven by continued strong growth in Biktarvy, Yeztugo, and Descovy.

We continue to expect both R&D and SG&A expenses to increase a mid-single digit percentage on a dollar basis compared to 2025.

Our full year 2026 GAAP and non-GAAP diluted loss per share guidance includes the impact of approximately $9.08 due to acquired IPR&D charges of $11.1 billion related to the Arcellx, Tubulis and Ouro Medicines transactions, net of the impact of the Lakefront collaboration and related taxes.

| Acquisition-related, IPR&D impairment, restructuring and other expenses | ~ 2,400 | ~ 3,400 | ~ 5,150 |

| GAAP projected effective tax rate | ~ 21% | ~ (150%) - (220%) | ~ (80%) - (90%) |

| Non-GAAP projected effective tax rate | ~ 20% | ~ 190% - 140% | ~ 140% - 115% |

| Acquisition-related, IPR&D impairment, restructuring and other expenses, fair value adjustments of equity securities and discrete and related tax adjustments | ~ 1.70 | ~ 2.20 | ~ 3.10 |

| Diluted loss per share | | $ | (3.75) | | $ | (3.40) | | Previously $(3.25) to $(2.85) |

| GAAP projected product gross margin | ~ 79.0% | ~ 79.0% | ~ 79.0% |

| Non-GAAP projected product gross margin | ~ 87.0% | ~ 87.0% | ~ 87.0% |

| GAAP projected operating income (loss) | $11,400 - $11,900 | $(1,000) - $(500) | $(2,250) - $(1,850) |

| Non-GAAP projected operating income | $13,800 - $14,300 | $2,400 - $2,900 | $2,900 - $3,300 |

| Product sales | | $ | 30,100 | | $ | 30,400 | | Previously $30,000 to $30,400 |

| Product sales excluding Veklury | | $ | 29,800 | | $ | 30,100 | | Previously $29,400 to $29,800 |

We expect acquired IPR&D investments of approximately $11.8 billion for the year, which includes the upfront payments associated with our recently announced acquisitions.

Overall, we expect R&D expense as a percentage of total product sales to be less than 20% in 2026.

This includes an expense of approximately $9.50 per share relating to the upfront payments and financing costs associated with the Arcellx, Ouro, and Tubulis transactions.

| Acquisition-related, restructuring and other expenses | ~ 2,400 | ~ 3,400 |

Given our expectations for a steady, durable and long-term build in sales, we expect full-year 2026 Sunlenca revenue of approximately $800 million compared to $150 million in 2025, highlighting that Sunlenca is well on its way to achieving blockbuster status.

Overall, we expect Kite revenue to decline approximately 10% in 2026 compared to 2025.

| Acquisition-related and restructuring expenses, and discrete and related tax adjustments | ~ 1.70 |

| Income tax effect of above non-GAAP adjustments, and discrete and related tax adjustments | (~ 1%) |

We now expect full-year acquired IP R&D to be $900 million.

We continue to expect our effective tax rate to be approximately 19%.

GAAP EPS is expected to be in the range of $6.65-$6.85.

And finally, we expect non-GAAP EPS in the range of $8.05-$8.25, raising non-GAAP EPS by 10 cents at the low end of the range.

We continue to expect product gross margin of approximately 86%, R&D expenses to be roughly flat on a dollar basis from 2024, and SG&A expenses to decline by a mid- to high-single-digit percentage compared to 2024.

And so I would assume about a 14%-15% growth continuing with prep.

Rounding out the P&L, we expect operating income to be between $13.1 billion and $13.4 billion, reflecting an increase of $100 million at the low end of the prior guidance range.

We continue to work on an account-by-account basis to help clinicians navigate the new logistics and reimbursement process, and the benefits of this access will pull through in 2026. Looking forward, we're moving quickly to expand access beyond 75% and continue to target 90% by the end of the first half of 2026.

We continue to expect product gross margin of approximately 86%, R&D expenses to be roughly flat on a dollar basis from 2024, and SG&A expenses to decline by a mid- to high-single-digit percentage compared to 2024.

As a result, total product sales are anticipated to be in the range of $28.4-$28.7 billion.

We now expect total product sales, excluding Veklury, to be between $27.4-$27.7 billion, primarily reflecting higher HIV growth.

For Veklury, we continue to expect full-year revenue of approximately $1 billion.

So we do Yeztugo sales of around $150 million or so, including the $54 million year-to-date.

In other parts of our business, strength in HIV is expected to be partially offset by weaker cell therapy estimates, where we now forecast approximately a 10% decline for full-year 2025 versus full-year 2024.

Driven by the outperformance of both Biktarvy and Descovy year-to-date, we now anticipate our HIV franchise will grow approximately 5% year-over-year versus our prior guidance of 3%.

We continue to expect product gross margin of approximately 86%, R&D expenses to be roughly flat on a dollar basis from 2024, and SG&A expenses to decline by a mid- to high-single-digit percentage compared to 2024.

| GAAP projected effective tax rate(2) | ~ 20% | ~ 21% | ~ 21% | ~ 16% |

| GAAP projected product gross margin | 77.0% - 78.0% | 77.0% - 78.0% | ~ 78.0% | ~ 78.0% |

| GAAP projected operating income | $10,200 - $10,700 | $10,200 - $10,700 | $10,300 - $10,700 | $10,300 - $10,600 |

| Non-GAAP projected operating income | $12,700 - $13,200 | $12,700 - $13,200 | $13,000 - $13,400 | $13,100 - $13,400 |

| Product sales | | $ | 28,400 | | $ | 28,700 | | Previously $28,300 to $28,700 |