GILD · 8-K · 20260804PR000028

Operating Margin Drivers

GILEAD SCIENCES, INC. · 2026-08-04 · Importance 90 · Surprise 100 · No source text

GAAP operating loss was $10.394 billion in the second quarter of 2026 versus operating income of $2.474 billion in the prior-year quarter, producing a negative 133.2% operating margin versus 34.9%. The loss primarily reflected $11.183 billion of acquired IPR&D expense and a $1.750 billion IPR&D impairment, alongside higher R&D and SG&A expenses. Non-GAAP operating loss was $7.329 billion versus operating income of $3.290 billion, and non-GAAP operating margin was negative 93.9% versus 46.5%. Higher revenue and lower income tax expense only partially offset the acquisition-related charges and higher operating expenses.

Key facts

• GAAP operating (loss) income for Q2 2026: $(10,394) million compared to $2,474 million in Q2 2025 source
• Net (loss) income for Q2 2026: $(10,496) million compared to $1,960 million in Q2 2025 source
• Diluted loss per share (GAAP) in Q2 2026: $(8.45) compared to $1.56 in Q2 2025 source
• Non-GAAP diluted loss per share in Q2 2026: $(6.75) compared to $2.01 in Q2 2025 source

Impact estimates