GILD · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

GILEAD SCIENCES, INC. · 2026-10-30 · Importance 9 · Surprise 14

The effective tax rate for the three months ended September 30, 2026, increased to 20.7% from 16.2% a year earlier, a 452-basis-point increase. The change primarily reflected a tax-authority settlement and remeasurement of deferred tax liabilities related to acquired intangible assets, both recorded in the 2025 quarter. For the nine months, the effective tax rate was negative 31.1%, compared with 18.0% in 2025, primarily because acquired IPR&D expense from the Arcellx, Tubulis and Ouro Medicines acquisitions was nondeductible.

Key facts

• Gilead does not expect Pillar Two, including the OECD side-by-side framework, to materially affect results of operations, liquidity or capital resources. source
• Gilead’s effective tax rate for the nine months ended September 30, 2026 differed primarily because acquired IPR&D expense from its Q2 2026 Arcellx, Tubulis and Ouro Medicines acquisitions was nondeductible. source
• Gilead’s effective tax rate increased by 452 basis points to 20.7% in Q3 2026, primarily because a tax-authority settlement and remeasurement of deferred tax liabilities occurred in Q3 2025. source