Gilead (GILD) Q2 2026: $11.2B IPR&D Charge Drives $10.5B Loss — and a Guidance Raise
Gilead Sciences swung to a $10,496 million net loss for the three months ended June 30, 2026 — negative $8.45 per share, against $1,960 million of profit a year earlier — and the operating business had almost nothing to do with it. Strip out the $11,183 million charge for acquired in-process research and development and a $1,750 million impairment, and product sales actually grew 8.1% to $7,627 million with gross margin expanding; on a non-GAAP basis the loss narrows to $6.75 per share. The loss is a U.S. accounting outcome, not a demand problem: Gilead bought three biotechs for roughly $11.2 billion of cash consideration — an $11,318 million investing outflow on the cash flow statement — and, because each was structured as an asset acquisition, GAAP required the in-process R&D portion of the purchase price to be expensed on day one rather than capitalized. Management's read of the underlying business was confident enough that it raised full-year guidance on the same day.
1. Balance Sheet: Cash Converted Into Expense
1-1. Major Asset Movements
| Item | Dec 31, 2025 ($M) | Jun 30, 2026 ($M) | Change % |
|---|---|---|---|
| Cash and cash equivalents | 7,564 | 3,179 | −58.0 |
| Marketable debt securities (ST + LT) | 3,042 | 0 | −100.0 |
| Accounts receivable, net | 4,913 | 5,055 | +2.9 |
| Inventories (current) | 1,774 | 1,953 | +10.1 |
| Property, plant and equipment, net | 5,606 | 5,833 | +4.0 |
| Intangible assets, net | 16,978 | 14,032 | −17.4 |
| Goodwill | 8,314 | 8,314 | 0.0 |
| Total assets | 59,023 | 49,362 | −16.4 |
Total assets fell $9,661 million in six months. Two lines explain nearly all of it. Gilead liquidated its entire $3,042 million marketable securities portfolio and drew cash down by $4,385 million to fund acquisitions. Combined liquidity — cash plus securities — went from $10,606 million to $3,179 million, a 70% reduction.
The intangible asset decline is a different story. Of the $2,946 million drop, $1,750 million came from writing off the indefinite-lived IPR&D asset tied to sacituzumab govitecan in non-small cell lung cancer. Gilead discontinued the Phase 3 EVOKE-03 study in June 2026 and concluded no future cash flows were expected. The remaining decline is routine amortization of $1,196 million across the sofosbuvir, Yescarta and Trodelvy intangibles. One offset: the $550 million bulevirtide IPR&D asset was reclassified into finite-lived assets after FDA granted Hepcludex accelerated approval in May.
