GILEAD SCIENCES, INC.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
GILD$166.89-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000882095-26-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0000882095-26-000039
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 127 previous paragraphs and 130 current paragraphs.
72 unchanged; 40 reworded; 16 added; 11 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
•In October 2026, the Centers for Medicare and Medicaid Services completed the process of setting the Maximum Fair Price for Biktarvy under Medicare. The new price will be effective and impact our Biktarvy revenue starting January 1, 2028.
Current report
•Received U.S. Food and Drug Administration (“FDA”) approval for Bixlenvo for the treatment of HIV in adults who are virologically suppressed on a stable antiretroviral regimen, including those switching from complex multi-tablet regimens. Bixlenvo is a complete single-tablet regimen indicated for the treatment of HIV to replace current antiretroviral regimens in people with virological suppression with no known or suspected resistance to bictegravir or lenacapavir.
Current report
•Announced a definitive agreement to acquire an oral IL-23R inhibitor program, including lead asset HCXT-2001, from PepStar Therapeutics Limited, a privately held, clinical-stage biotechnology company. Closing of the transaction is subject to certain customary conditions.
Current report
•Net losses from equity securities in 2026 compared to net gains in 2025;
Current report
•Higher operating expenses; and
Current report
•Higher income tax expense; partially offset by
Current report
HIV product sales increased 18% to $6.2 billion for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to higher average realized price, higher demand in HIV prevention and favorable inventory dynamics. In particular:
Current report
•Descovy sales increased 49% primarily due to higher average realized price and favorable inventory dynamics; and
Current report
•Descovy sales increased 45% primarily due to higher average realized price and higher demand; and
Current report
Liver Disease product sales increased 13% to $927 million for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to higher demand for Livdelzi, as well as higher average realized price for HCV and chronic hepatitis B virus (“HBV”) products, partially offset by lower demand for HCV products.
Current report
Trodelvy product sales increased 42% and 35% to $506 million and $1.4 billion for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand.
Current report
Acquired in-process research and development expenses were $18 million for the three months ended September 30, 2026.
Current report
•$3.1 billion Tubulis acquisition;
Current report
Acquired in-process research and development expenses were $170 million for the three months ended September 30, 2025, primarily related to $120 million associated with the Shenzhen Pregene Biopharma Co., Ltd. (“Pregene”) collaboration upfront payment.
Current report
Selling, general and administrative expenses increased 21% to $1.6 billion for the three months ended September 30, 2026, compared to the same period in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses related to our second quarter 2026 acquisitions of Arcellx, Ouro Medicines and Tubulis, as well as higher expenses related to legal matters and higher employee-related costs.
Current report
Our effective tax rate increased for the three months ended September 30, 2026, compared to the same period in 2025, primarily due to a settlement with a tax authority and a remeasurement of certain deferred tax liabilities related to acquired intangible assets, both of which occurred in the three months ended September 30, 2025.
Removed paragraphs (11)
Previous report
•Announced FDA accepted an NDA for bictegravir and lenacapavir for virologically suppressed people with HIV under priority review, with a PDUFA target action date of August 27, 2026.
Previous report
•Lower income tax expense; and
Previous report
HIV product sales increased 12% to $5.7 billion for the three months ended June 30, 2026, compared to the same period in 2025, primarily due to higher average realized price and demand. In particular:
Previous report
•Descovy sales increased 48% primarily due to higher average realized price and demand; and
Previous report
•Descovy sales increased 43% primarily due to higher average realized price and demand; and
Previous report
•Yeztugo increased primarily due to higher demand.
Previous report
Trodelvy product sales increased 26% and 31% to $457 million and $859 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand.
Previous report
Product gross margin remained relatively flat at 79.3% for the three months ended June 30, 2026, compared to the same period in 2025.
Previous report
•$3.1 billion Tubulis acquisition; and
Previous report
Acquired in-process research and development expenses were $61 million for the three months ended June 30, 2025.
Previous report
Interest expense decreased 5% to $487 million for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower average debt balances, partially offset by a higher weighted-average interest rate on the debt.
Reworded paragraphs (40)
Previous wording
The following discussion and analysis is intended to provide material information around events and uncertainties known to management that are relevant to an assessment of the financial condition and results of operations of Gilead and should therefore be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto and other disclosures included as part of our Annual Report on Form 10-K for the year ended December 31, 2025 and our unaudited Condensed Consolidated Financial Statements for the three and six months ended June 30, 2026 and the related notes thereto and other disclosures (including the disclosures under Part II, Item 1A. Risk Factors) included in this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis is intended to provide material information around events and uncertainties known to management that are relevant to an assessment of the financial condition and results of operations of Gilead and should therefore be read in conjunction with our audited Consolidated Financial Statements and the related notes thereto and other disclosures included as part of our Annual Report on Form 10-K for the year ended December 31, 2025 and our unaudited Condensed Consolidated Financial Statements for the three and nine months ended September 30, 2026 and the related notes thereto and other disclosures (including the disclosures under Part II, Item 1A. Risk Factors) included in this Quarterly Report on Form 10-Q.
Previous wording
•Announced U.S. Food and Drug Administration (“FDA”) accepted a supplemental New Drug Application (“NDA”) submission for Yeztugo 300-mg tablet as a potential once-weekly oral formulation for HIV pre-exposure prophylaxis, with a Prescription Drug User Fee Act (“PDUFA”) target action date of February 2, 2027.
Current wording
•Announced FDA accepted a supplemental New Drug Application (“NDA”) submission for Yeztugo 300-mg tablet as a potential once-weekly oral formulation for HIV pre-exposure prophylaxis, with a Prescription Drug User Fee Act (“PDUFA”) target action date of February 2, 2027.
Previous wording
•Received FDA accelerated approval for Hepcludex for the treatment chronic hepatitis delta virus (“HDV”) infection in adults without cirrhosis or with compensated cirrhosis, which is now the first and only FDA-approved treatment for HDV in the U.S.
Current wording
•Received FDA accelerated approval for Hepcludex for the treatment of chronic hepatitis delta virus (“HDV”) infection in adults without cirrhosis or with compensated cirrhosis, which is now the first and only FDA-approved treatment for HDV in the U.S.
Previous wording
•Received a positive opinion from the European Medicines Agency’s Committee for Medicinal Products for Human Use for Trodelvy in combination with Keytruda® (pembrolizumab) for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (“mTNBC”) who have not received prior systemic therapy for metastatic disease and whose tumors express PD-L1 (CPS≥10).
Current wording
•Received European Commission (“EC”) marketing authorization for Trodelvy in combination with Keytruda® (pembrolizumab) for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (“mTNBC”) who have not received prior systemic therapy for metastatic disease and whose tumors express PD-L1 (CPS≥10).
Previous wording
•Announced European Commission marketing authorization for Trodelvy as a monotherapy for the treatment of adult patients with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitor therapy.
Current wording
•Received EC marketing authorization for Trodelvy as a monotherapy for the treatment of adult patients with unresectable locally advanced or mTNBC who have not received prior systemic therapy for metastatic disease and are not candidates for PD-(L)1 inhibitor therapy.
Previous wording
Total revenues increased 10% and 7% to $7.8 billion and $14.8 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher sales of HIV products, Trodelvy and Livdelzi, as well as higher royalty, contract and other revenues, partially offset by lower sales of Veklury as well as Cell Therapy and chronic hepatitis C virus (“HCV”) products.
Current wording
Total revenues increased 7% to $8.3 billion and $23.1 billion for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher sales of HIV products, Trodelvy and Livdelzi, partially offset by lower sales of Veklury and Cell Therapy products, as well as lower royalty, contract and other revenues. Total revenues for the nine months ended September 30, 2026 were also impacted by lower sales of chronic hepatitis C virus (“HCV”) products.
Previous wording
Net loss was $8.5 billion and diluted loss per share was $6.82 for the six months ended June 30, 2026, compared to net income of $3.3 billion and diluted earnings per share of $2.61 for the same period in 2025. The decrease was primarily due to:
Current wording
Net income was $2.4 billion and diluted earnings per share was $1.94 for the three months ended September 30, 2026, compared to net income of $3.1 billion and diluted earnings per share of $2.43 for the same period in 2025. The decrease was primarily due to:
Previous wording
•Higher acquired in-process research and development (“IPR&D”) expenses related to our acquisitions of Arcellx, Tubulis and Ouro Medicines;
Current wording
•Lower acquired in-process research and development (“IPR&D”) expenses.
Previous wording
Net loss was $10.5 billion and diluted loss per share was $8.45 for the three months ended June 30, 2026, compared to net income of $2.0 billion and diluted earnings per share of $1.56 for the same period in 2025. The decrease was primarily due to:
Current wording
Net loss was $6.0 billion and diluted loss per share was $4.87 for the nine months ended September 30, 2026, compared to net income of $6.3 billion and diluted earnings per share of $5.04 for the same period in 2025. The decrease was primarily due to:
Previous wording
•A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics, Inc. (“Immunomedics”); and
Current wording
•A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics, Inc.; and
Previous wording
Please refer to “Results of Operations” below for further information on results for the three and six months ended June 30, 2026.
Current wording
Please refer to “Results of Operations” below for further information on results for the three and nine months ended September 30, 2026.
Previous wording
(2) Includes Atripla, Complera/Eviplera, Emtriva, Stribild, Sunlenca, Truvada and Tybost.
Current wording
(2) Includes Atripla, Bixlenvo, Complera/Eviplera, Emtriva, Stribild, Sunlenca, Truvada and Tybost.
Previous wording
•Biktarvy sales increased 7% primarily due to higher average realized price, favorable inventory dynamics and higher demand, including patients switching from Genvoya and other Gilead HIV products;
Current wording
•Biktarvy sales increased 10% primarily due to higher demand, including patients switching from Genvoya and other Gilead HIV products, higher average realized price and favorable inventory dynamics;
Previous wording
HIV product sales increased 11% to $10.7 billion for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to higher demand and average realized price. In particular:
Current wording
HIV product sales increased 14% to $17.0 billion for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to higher demand and higher average realized price. In particular:
Previous wording
•Biktarvy sales increased 7% primarily due to higher demand, including patients switching from Genvoya and other Gilead HIV products, and average realized price;
Current wording
•Biktarvy sales increased 8% primarily due to higher demand, including patients switching from Genvoya and other Gilead HIV products, and higher average realized price;
Previous wording
Liver Disease product sales increased 10% and 6% to $877 million and $1.6 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to higher demand for Livdelzi, as well as chronic hepatitis B virus products and Hepcludex, partially offset by lower sales for HCV products.
Current wording
Liver Disease product sales increased 8% to $2.6 billion for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to higher demand for Livdelzi, as well as HBV products and Hepcludex, partially offset by lower sales for HCV products.
Previous wording
Veklury product sales decreased 81% and 60% to $23 million and $167 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower rates of COVID-19-related hospitalizations.
Current wording
Veklury product sales decreased 69% and 64% to $86 million and $253 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower rates of COVID-19-related hospitalizations.
Previous wording
Cell Therapy product sales decreased 14% and 13% to $417 million and $824 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower demand reflecting ongoing competitive headwinds.
Current wording
Cell Therapy product sales decreased 18% and 15% to $355 million and $1.2 billion for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily due to lower demand reflecting ongoing competitive headwinds.
Previous wording
Approximately 25% and 27% of our product sales were denominated in foreign currencies during the three months ended June 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $23 million for the three months ended June 30, 2026, based on a comparison using foreign currency exchange rates from the three months ended June 30, 2025.
Current wording
Approximately 22% and 27% of our product sales were denominated in foreign currencies during the three months ended September 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had an unfavorable impact on our total product sales of $8 million for the three months ended September 30, 2026, based on a comparison using foreign currency exchange rates from the three months ended September 30, 2025.
Previous wording
Approximately 26% and 27% of our product sales were denominated in foreign currencies during the six months ended June 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $135 million for the six months ended June 30, 2026, based on a comparison using foreign currency exchange rates from the six months ended June 30, 2025.
Current wording
Approximately 24% and 27% of our product sales were denominated in foreign currencies during the nine months ended September 30, 2026 and 2025, respectively. Foreign currency exchange, net of hedges, had a favorable impact on our total product sales of $127 million for the nine months ended September 30, 2026, based on a comparison using foreign currency exchange rates from the nine months ended September 30, 2025.
Previous wording
Royalty, contract and other revenues increased to $176 million and $189 million for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to recognition of $156 million of previously constrained revenues from the sale of certain intellectual property.
Current wording
Royalty, contract and other revenues decreased to $11 million and $201 million for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily due to recognition of $400 million in the third quarter of 2025 of previously constrained revenues from the sale of certain intellectual property. For the nine months ended September 30, 2026, the decrease was partially offset by recognition of an additional $156 million in the second quarter of 2026 of previously constrained revenues related to the intellectual property sale.
Previous wording
Product gross margin increased to 79.3% for the six months ended June 30, 2026, compared to the same period in 2025, primarily driven by the expiration of a royalty-related obligation.
Current wording
Product gross margin increased to 81.0% and 79.9% for the three and nine months ended September 30, 2026, respectively, compared to the same periods in 2025, primarily driven by the expiration of a royalty-related obligation.
Previous wording
Research and development expenses increased 18% and 9% to $1.8 billion and $3.1 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Personnel, infrastructure and other support costs increased primarily due to integration expenses, including $229 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. Clinical studies and other costs decreased primarily due to lower oncology clinical study activity.
Current wording
Research and development expenses increased 13% to $4.7 billion for the nine months ended September 30, 2026, compared to the same period in 2025. Personnel, infrastructure and other support costs increased primarily due to integration expenses, including $229 million of stock-based compensation expenses related to our second quarter 2026 acquisitions of Arcellx, Ouro Medicines and Tubulis, as well as other higher employee-related costs. Clinical studies and other costs increased primarily due to higher clinical materials and other study support costs, partially offset by lower oncology clinical study activity.
Previous wording
Acquired in-process research and development expenses were $11.2 billion for the three months ended June 30, 2026, primarily related to the following transactions:
Current wording
Acquired in-process research and development expenses were $11.3 billion for the nine months ended September 30, 2026, primarily related to the following transactions:
Previous wording
•$1.0 billion Ouro Medicines acquisition, comprised of $1.9 billion for our acquisition of Ouro Medicines, partially offset by $860 million related to Lakefront’s share of the upfront consideration.
Current wording
•$1.0 billion Ouro Medicines acquisition, comprised of $1.9 billion for our acquisition of Ouro Medicines, partially offset by $860 million related to Lakefront’s share of the upfront consideration; and
Previous wording
Acquired in-process research and development expenses were $11.3 billion for the six months ended June 30, 2026, primarily related to the same transactions as in the three months ended June 30, 2026 as well as $80 million for the Suzhou Genhouse Bio Co., Ltd. collaboration.
Current wording
•$80 million for the Suzhou Genhouse Bio Co., Ltd. collaboration.
Previous wording
Acquired in-process research and development expenses were $315 million for the six months ended June 30, 2025, primarily related to $250 million associated with the LEO Pharma A/S collaboration upfront payment.
Current wording
Acquired in-process research and development expenses were $485 million for the nine months ended September 30, 2025, primarily related to $250 million associated with the LEO Pharma A/S collaboration upfront payment and $120 million associated with the Pregene collaboration upfront payment.
Previous wording
In June 2026, we announced the discontinuation of our Phase 3 EVOKE-03 study of Trodelvy evaluating sacituzumab govitecan-hziy in combination with pembrolizumab in certain patients with previously untreated metastatic NSCLC. In consideration of this decision, and in connection with the preparation of the financial statements for the second quarter of 2026, we determined that no future cash flows were expected to be generated in relation to the NSCLC IPR&D intangible asset, and therefore, no value was attributed to the asset. As a result, we recognized an impairment charge of the remaining balance of $1.75 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended June 30, 2026.
Current wording
In June 2026, we announced the discontinuation of our Phase 3 EVOKE-03 study of Trodelvy evaluating sacituzumab govitecan-hziy in combination with pembrolizumab in certain patients with previously untreated metastatic NSCLC. In consideration of this decision, and in connection with the preparation of the financial statements for the second quarter of 2026, we determined that no future cash flows were expected to be generated in relation to the NSCLC IPR&D intangible asset, and therefore, no value was attributed to the asset. As a result, we recognized an impairment charge of the remaining balance of $1.75 billion in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the nine months ended September 30, 2026.
Previous wording
During the three months ended June 30, 2025, additional data became available indicating a more competitive market for bulevirtide where it was not yet approved. Based on our evaluation of the data, and in connection with the preparation of the financial statements for the second quarter of 2025, we performed an interim impairment test and determined that the revised estimated fair value of the bulevirtide IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $190 million in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the three months ended June 30, 2025.
Current wording
During the three months ended June 30, 2025, additional data became available indicating a more competitive market for bulevirtide where it was not yet approved. Based on our evaluation of the data, and in connection with the preparation of the financial statements for the second quarter of 2025, we performed an interim impairment test and determined that the revised estimated fair value of the bulevirtide IPR&D intangible asset was below its carrying value. As a result, we recognized a partial impairment charge of $190 million in In-process research and development impairments on our Condensed Consolidated Statements of Operations for the nine months ended September 30, 2025.
Previous wording
Selling, general and administrative expenses increased 41% and 29% to $1.9 billion and $3.4 billion for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses, including $332 million of stock-based compensation expenses related to our acquisitions of Arcellx, Ouro Medicines and Tubulis. General and administrative expenses also increased for the six months ended June 30, 2026 due to donations of equity securities made to the Gilead Foundation.
Current wording
Selling, general and administrative expenses increased 26% to $5.0 billion for the nine months ended September 30, 2026, compared to the same period in 2025. Selling and marketing expenses increased primarily due to higher HIV promotional expenses. General and administrative expenses increased primarily due to integration expenses, including $332 million of stock-based compensation expenses related to our second quarter 2026 acquisitions of Arcellx, Ouro Medicines and Tubulis, as well as donations of equity securities made to the Gilead Foundation, higher expenses related to legal matters and higher employee-related costs.
Previous wording
Interest expense was $247 million and remained relatively flat for the three months ended June 30, 2026, compared to the same period in 2025.
Current wording
Interest expense was $269 million and $756 million for the three and nine months ended September 30, 2026, respectively, and remained relatively flat compared to the same periods in 2025.
Previous wording
Favorable movements in Other (income) expense, net for the six months ended June 30, 2026, compared to the same period in 2025, primarily related to net gains from equity securities compared to net losses in 2025.
Current wording
Unfavorable movements in Other (income) expense, net for the three months ended September 30, 2026, compared to the same period in 2025, primarily related to net losses from equity securities compared to net gains in 2025 as well as lower interest income due to lower average cash balances.
Previous wording
Favorable movements in Other (income) expense, net for the three months ended June 30, 2026, compared to the same period in 2025, primarily related to higher net gains from equity securities.
Current wording
Favorable movements in Other (income) expense, net for the nine months ended September 30, 2026, compared to the same period in 2025, primarily related to higher net gains from equity securities, partially offset by lower interest income due to lower average cash balances.
Previous wording
Our effective tax rate decreased for the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to non-deductible acquired IPR&D expense in connection with our acquisitions of Arcellx, Tubulis and Ouro Medicines.
Current wording
Our effective tax rate differed for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to non-deductible acquired IPR&D expense in connection with our second quarter 2026 acquisitions of Arcellx, Tubulis and Ouro Medicines.
Previous wording
Cash and cash equivalents were $3.2 billion as of June 30, 2026. The table below summarizes our cash flow activities, followed by our analysis of changes and trends:
Current wording
Cash and cash equivalents were $6.4 billion as of September 30, 2026. The table below summarizes our cash flow activities, followed by our analysis of period-over-period changes and trends:
Previous wording
Net cash provided by operating activities is our primary source of funds, driven mainly by collections on product sales, partially offset by operating spend. Changes in working capital balances, generally associated with the timing of collections and payments, as well as unanticipated payments related to litigation, taxes or other matters, may create some variation in any given year. Net cash provided by operating activities increased for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to lower income tax payments, collections on higher product sales, receipt of the Lakefront collaboration payment and lower inventory spend, partially offset by higher operating spend.
Current wording
Net cash provided by operating activities is our primary source of funds, driven mainly by collections on product sales, partially offset by operating spend. Changes in working capital balances, generally associated with the timing of collections and payments, as well as unanticipated payments related to litigation, taxes or other matters, may create some variation in any given year. Net cash provided by operating activities increased for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to lower income tax payments, collections on higher product sales, receipt of the Lakefront collaboration payment and lower inventory spend, partially offset by higher operating spend.
Previous wording
The change in Net cash used in investing activities for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to payments made in 2026 related to the acquisitions of Arcellx, Tubulis and Ouro Medicines, partially offset by the liquidation of our marketable securities portfolio to fund the acquisitions, compared with cash used in 2025 to build up our marketable securities portfolio. Net cash used in investing activities may vary in any given year depending on the favorability of strategic opportunities for the business.
Current wording
Net cash used in investing activities may vary in any given year depending on the favorability of strategic opportunities for the business. The change in Net cash used in investing activities for the nine months ended September 30, 2026, compared to the same period in 2025, was primarily due to payments made in 2026 related to the acquisitions of Arcellx, Tubulis and Ouro Medicines, partially offset by the liquidation of our marketable securities portfolio to fund the acquisitions, compared with cash used in 2025 to build up our marketable securities portfolio.
Previous wording
The change in Net cash used in financing activities for the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to proceeds from debt offerings in 2026, which did not occur in 2025, and lower common stock repurchases, partially offset by higher debt repayments and a contingent consideration payment made in 2026, which did not occur in 2025. See Notes 3. Fair Value Measurements and 9. Debt and Credit Facilities of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information. Net cash used in financing activities may vary in any given year depending primarily on the timing of debt repayments and proceeds from debt offerings and the amount of common stock repurchases.
Current wording
Net cash used in financing activities may vary in any given year depending primarily on the timing of debt repayments and proceeds from debt offerings and the amount of common stock repurchases. The change in Net cash used in financing activities for the nine months ended September 30, 2026, compared to the same period in 2025, was primarily due to proceeds from debt offerings in 2026, which did not occur in 2025, and lower common stock repurchases, partially offset by higher debt repayments and a contingent consideration payment made in 2026, which did not occur in 2025. See Notes 3. Fair Value Measurements and 9. Debt and Credit Facilities of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information.
Previous wording
A summary of our capital resources and material cash requirements is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in the Liquidity section above and in Notes 4. Investments, 6. Acquisitions, Collaborations and Other Arrangements, 9. Debt and Credit Facilities, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our capital resources and material cash requirements during the six months ended June 30, 2026.
Current wording
A summary of our capital resources and material cash requirements is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in the Liquidity section above and in Notes 4. Investments, 6. Acquisitions, Collaborations and Other Arrangements, 9. Debt and Credit Facilities, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our capital resources and material cash requirements during the nine months ended September 30, 2026.
Previous wording
A summary of our critical accounting estimates is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in Notes 2. Revenues, 7. Intangible Assets, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting estimates during the six months ended June 30, 2026.
Current wording
A summary of our critical accounting estimates is presented in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025. Other than as disclosed in Notes 2. Revenues, 7. Intangible Assets, 10. Commitments and Contingencies and 12. Income Taxes of the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, there were no material changes to our critical accounting estimates during the nine months ended September 30, 2026.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
•Yeztugo sales increased primarily due to higher demand.
Current report — wording carried from elsewhere
Research and development expenses increased 19% to $1.6 billion for the three months ended September 30, 2026, compared to the same period in 2025. Personnel, infrastructure and other support costs increased primarily due to higher employee-related costs. Clinical studies and other costs increased primarily due to higher clinical materials costs.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
•Higher net gains from equity securities.
Previous report — wording carried elsewhere
•A pre-tax IPR&D impairment charge of $1.75 billion related to assets previously acquired from Immunomedics; and
Previous report — wording carried elsewhere
•Higher operating expenses; partially offset by
Previous report — wording carried elsewhere
•Net gains from equity securities compared to net losses in 2025.