Gilead Sciences said it expects an $11.2 billion expense in the second quarter of 2026 tied to the acquisition of in-process research and development assets. The charge will push the company to a per-share loss of $7.09, compared with a profit of $2.01 a year earlier.
Gilead Sciences expects an $11.2 billion second-quarter charge from acquiring IPR&D assets, pushing the biopharma giant to a steep quarterly loss.
The Foster City, California-based company previously guided for a full-year adjusted loss per share of $1.05 to $0.65, according to its first-quarter earnings release on May 7. The IPR&D expense stems from the Arcellx deal and other pending acquisitions, the company said.
Analysts expect Gilead to report a loss of $7.09 per share on a diluted basis for the second quarter, down 452.7% from a profit of $2.01 per share a year earlier. Revenue reached $7 billion in the first quarter, topping the $6.9 billion consensus estimate. For the full year, analysts project a loss of $0.77 per share, compared with earnings of $8.15 in fiscal 2025.
The $11.2 billion charge reflects Gilead's strategy of acquiring late-stage pipeline assets to expand its drug portfolio beyond HIV. The company's HIV sales grew year over year on strength in Biktarvy and the U.S. launch of Yes2Go, a twice-yearly injectable for pre-exposure prophylaxis. Management has said it expects growth from HIV, oncology, and new product launches to drive near-term and long-term expansion.
Gilead shares have risen 23.1% over the past 52 weeks, outperforming the S&P 500's 18.2% gain. Of 30 analysts covering the stock, 22 rate it a Strong Buy, with an average price target of $158.72, implying about 19.2% upside from current levels.
The charge means Gilead will report a significant GAAP loss for the second quarter, but the market's focus will be on the underlying operational strength of its HIV and oncology franchises. Investors will watch the Q2 earnings call for details on the acquired pipeline assets and updated full-year guidance.
This article is for informational purposes only and does not constitute investment advice.
