Gilead Sciences GILD · USD

SEGMENT INFORMATIONWe have one operating segment which primarily focuses on the discovery, development and commercialization of innovative medicines in areas of unmet medical need. See Note 2. Revenues for disaggregation of our revenues by major products and by geography. Our Chief Executive Officer, as the chief operating decision-maker (“CODM”), uses Net income attributable to Gilead as the primary measure to evaluate performance, allocate resources to the operations of our company on an entity-wide basis and forecast future financial results. Managing and allocating resources on an entity-wide basis enables our CODM to assess the overall level of resources available and how to best deploy these resources across functions and R&D projects based on unmet medical need, scientific data, probability of technical and regulatory successful development, market potential and other considerations, and, as necessary, reallocate resources among our internal R&D portfolio and external opportunities to best support the long-term growth of our business. Our CODM is regularly provided with entity-wide expense categories similar to those found on our Consolidated Statements of Operations, as well as the following:Year Ended December 31,(in millions)202520242023Selling and marketing expenses$3,522 $3,453 $3,272 General and administrative expenses2,252 2,638 2,818 Selling, general and administrative expenses$5,774 $6,091 $6,090 Asset information is not regularly provided to the CODM for assessing performance and allocating resources other than consolidated cash, cash equivalents and marketable debt securities, which can be found on our Consolidated Balance Sheets.

REVENUESDisaggregation of Revenues The following table summarizes our Total revenues:Year Ended December 31, 2025Year Ended December 31, 2024Year Ended December 31, 2023(in millions)U.S.Europe(6)Rest of World(6)TotalU.S.Europe(6)Rest of World(6)TotalU.S.Europe(6)Rest of World(6)TotalProduct sales:HIVBiktarvy$11,467 $1,676 $1,190 $14,334 $10,855 $1,509 $1,060 $13,423 $9,692 $1,253 $905 $11,850 Descovy2,559 93 105 2,758 1,902 100 110 2,113 1,771 100 114 1,985 Genvoya1,281 148 69 1,498 1,498 180 84 1,762 1,752 205 103 2,060 Odefsey881 246 40 1,167 957 290 41 1,288 1,012 294 44 1,350 Symtuza - Revenue share(1)363 120 12 495 450 130 12 592 382 133 13 529 Other HIV(2)352 109 40 500 257 129 48 434 238 116 47 401 Total HIV 16,904 2,392 1,456 20,752 15,918 2,339 1,355 19,612 14,848 2,102 1,226 18,175 Liver DiseaseSofosbuvir/Velpatasvir(3)636 292 344 1,272 922 299 374 1,596 859 323 355 1,537 Vemlidy507 49 514 1,070 486 44 428 959 410 38 414 862 Other Liver Disease(4)476 330 69 874 192 202 73 467 152 150 83 385 Total Liver Disease1,619 671 927 3,217 1,601 545 876 3,021 1,421 511 852 2,784 Veklury470 151 290 911 892 284 623 1,799 972 408 805 2,184 OncologyCell TherapyTecartus153 158 32 344 234 138 31 403 245 110 15 370 Yescarta595 598 303 1,495 662 666 242 1,570 811 547 140 1,498 Total Cell Therapy748 755 335 1,839 896 804 274 1,973 1,055 658 156 1,869 Trodelvy877 347 173 1,397 902 294 119 1,315 777 217 68 1,063 Total Oncology1,626 1,102 508 3,236 1,798 1,098 393 3,289 1,833 875 224 2,932 OtherAmBisome20 267 221 509 44 276 212 533 43 260 189 492 Other(5)177 32 81 290 255 34 68 356 261 40 66 367 Total Other197 300 302 799 299 310 280 889 304 301 255 859 Total product sales20,816 4,617 3,483 28,915 20,508 4,576 3,526 28,610 19,377 4,197 3,361 26,934 Royalty, contract and other revenues60 447 20 527 82 58 4 144 62 114 7 182 Total revenues$20,876 $5,064 $3,503 $29,443 $20,591 $4,634 $3,529 $28,754 $19,438 $4,310 $3,368 $27,116 _______________________________(1) Represents our revenue from cobicistat (“C”), emtricitabine (“FTC”) and tenofovir alafenamide (“TAF”) in Symtuza (darunavir/C/FTC/TAF), a fixed dose combination product commercialized by Janssen Sciences Ireland Unlimited Company (“Janssen”). See Note 7. Collaborations and Other Arrangements for additional information.(2) Includes Atripla, Complera/Eviplera, Emtriva, Stribild, Sunlenca, Truvada, Tybost and Yeztugo/Yeytuo.

COMMITMENTS AND CONTINGENCIES Legal ProceedingsWe are a party to various legal actions. Certain significant matters are described below. We recognize accruals for such actions to the extent that we conclude that a loss is both probable and reasonably estimable. We accrue for the best estimate of a loss within a range; however, if no estimate in the range is better than any other, then we accrue the minimum amount in the range. If we determine that a material loss is reasonably possible and the loss or range of loss can be estimated, we disclose the possible loss. Unless otherwise noted, the outcome of these matters either is not expected to be material or is not possible to determine such that we cannot reasonably estimate the maximum potential exposure or the range of possible loss. As of December 31, 2025, we did not have any material accruals for the matters described herein. As of December 31, 2024, we had approximately $242 million of accruals on our Consolidated Balance Sheets for such matters, with approximately $200 million accrued for a potential settlement with the U.S. Attorney’s Office for the Southern District of New York, which we eventually entered into in April 2025 and subsequently paid.Litigation with Generic Manufacturers As part of the approval process for some of our products, FDA granted us a New Chemical Entity (“NCE”) exclusivity period during which other manufacturers’ applications for approval of generic versions of our products will not be approved. Generic manufacturers may challenge the patents protecting products that have been granted NCE exclusivity one year prior to the end of the NCE exclusivity period. Generic manufacturers have sought and may continue to seek FDA approval for a similar or identical drug through an abbreviated new drug application (“ANDA”), the application form typically used by manufacturers seeking approval of a generic drug. The sale of generic versions of our products prior to their patent expiration would have a significant negative effect on our revenues and results of operations. To seek approval for a generic version of a product having NCE status, a generic company may submit its ANDA to FDA four years after the branded product’s approval.Starting in March 2022, we received letters from Lupin Ltd. (“Lupin”), Laurus Labs (“Laurus”) and Cipla Ltd.

DEBT AND CREDIT FACILITIESThe following table summarizes the carrying amount of our borrowings under various financing arrangements:(in millions)Carrying AmountType of BorrowingIssue DateMaturity DateInterest RateDecember 31, 2025December 31, 2024Senior UnsecuredNovember 2014February 20253.50%$— $1,750 Senior UnsecuredSeptember 2015March 20263.65%2,750 2,747 Senior UnsecuredSeptember 2016March 20272.95%1,249 1,249 Senior UnsecuredSeptember 2020October 20271.20%749 748 Senior UnsecuredNovember 2024November 20294.80%747 746 Senior UnsecuredSeptember 2020October 20301.65%996 995 Senior UnsecuredSeptember 2023October 20335.25%994 993 Senior UnsecuredNovember 2024June 20355.10%992 991 Senior UnsecuredSeptember 2015September 20354.60%994 994 Senior UnsecuredSeptember 2016September 20364.00%744 744 Senior UnsecuredSeptember 2020October 20402.60%990 989 Senior UnsecuredDecember 2011December 20415.65%997 997 Senior UnsecuredMarch 2014April 20444.80%1,738 1,738 Senior UnsecuredNovember 2014February 20454.50%1,736 1,735 Senior UnsecuredSeptember 2015March 20464.75%2,225 2,224 Senior UnsecuredSeptember 2016March 20474.15%1,731 1,730 Senior UnsecuredSeptember 2020October 20502.80%1,480 1,479 Senior UnsecuredSeptember 2023October 20535.55%989 988 Senior UnsecuredNovember 2024November 20545.50%989 989 Senior UnsecuredNovember 2024November 20645.60%739 738 Total senior unsecured notes23,827 25,562 Liability related to future royalties1,110 1,148 Total debt, net24,937 26,710 Less: Current portion of long-term debt, net2,807 1,815 Total Long-term debt, net$22,129 $24,896 Senior Unsecured NotesIn February 2025, we repaid $1.75 billion of principal balance related to our senior unsecured notes due February 2025.Our senior unsecured notes may be redeemed at our option at a redemption price equal to the greater of (i) 100% of the principal amount of the notes to be redeemed and (ii) the sum, as determined by an independent investment banker, of the present values of the remaining scheduled payments of principal and interest on the notes to be redeemed (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis at the Treasury Rate, plus a make-whole premium, which are defined in the terms of the notes. The senior unsecured notes also have a par call feature, exercisable at our option, to redeem the notes at par in whole, or in part, on dates ranging from one to six months prior to maturity.

AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES Available-for-Sale Debt SecuritiesThe following table summarizes our available-for-sale debt securities:December 31, 2025(in millions)Amortized CostGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueU.S. treasury securities$1,222 $3 $— $1,224 U.S. government agencies securities15 — — 15 Corporate debt securities1,392 7 — 1,398 Residential mortgage and asset-backed securities405 2 — 407 Total$3,033 $11 $(1)$3,044 There were no available-for-sale debt securities balances as of December 31, 2024. The total gross unrealized losses in the table above relate to available-for-sale debt securities, primarily corporate debt securities and U.S. treasury securities, with an estimated fair value of approximately $724 million that have been in a continuous unrealized loss position for less than 12 months as of December 31, 2025. No allowance for credit losses was recognized for investments with unrealized losses as of December 31, 2025 as the unrealized losses were primarily driven by broader change in interest rates with no adverse conditions identified that would prevent the issuer from making scheduled principal and interest payments. We do not currently intend to sell, and it is not more likely than not that we will be required to sell, such investments before recovery of their amortized cost bases.

INCOME TAXESIncome before income taxes consists of the following:Year Ended December 31,(in millions)202520242023Domestic$8,310 $(876)$5,467 Foreign1,486 1,566 1,392 Income before income taxes$9,796 $690 $6,859 Income tax expense consists of the following:Year Ended December 31,(in millions)202520242023Federal:Current$820 $1,495 $1,781 Deferred424 (1,562)(1,126)1,244 (67)655 State:Current51 39 80 Deferred(190)(386)170 (139)(347)250 Foreign:Current256 519 381 Deferred(75)106 (39)181 625 342 Income tax expense$1,286 $211 $1,247 In July 2025, the U.S. enacted tax reform legislation through the One Big Beautiful Bill (“OBBB”) Act. Included in this legislation are provisions that restored immediate expensing of domestic R&D expenditures and certain capital expenditures and modified the U.S. taxation of profits derived from foreign operations. The OBBB Act had no material impact to our income tax expense for 2025.The reconciliation between the federal statutory tax rate applied to Income before income taxes and our effective tax rate is summarized as follows(1):Year Ended December 31,202520242023(in millions, except percentages)AmountPercentAmountPercentAmountPercentIncome tax expense at U.S. federal statutory tax rate$2,057 21.0 %$145 21.0 %$1,440 21.0 %State taxes, net of federal benefit(2)(138)(1.4)%(159)(23.0)%174 2.5 %Foreign taxes:Ireland:Tax rate differential(118)(1.2)%(67)(9.7)%(58)(0.8)%Other— — %46 6.7 %69 1.0 %United Kingdom:Tax rate differential****5 0.1 %Intercompany asset transfer****92 1.3 %Other****16 0.2 %Australia:Tax rate differential**7 1.0 %**Intercompany asset transfer**388 56.2 %**Valuation allowance**(101)(14.6)%**Other**(44)(6.4)%**Other foreign jurisdictions(9)(0.1)%41 5.9 %(30)(0.4)%Effect of cross-border tax laws:Global intangible low-taxed income85 0.9 %66 9.6 %23 0.3 %Foreign-derived intangible income(85)(0.9)%(133)(19.3)%(143)(2.1)%U.S. taxation of foreign branches9 0.1 %(245)(35.5)%— — %Other2 — %14 2.0 %13 0.2 %Tax credits:R&D tax credits(143)(1.5)%(144)(20.9)%(164)(2.4)%Other(9)(0.1)%(13)(1.9)%(56)(0.8)%Changes in valuation allowance(3)(538)(5.5)%588 85.2 %38 0.6 %Nontaxable or nondeductible items:Acquired IPR&D and related charges65 0.7 %810 117.4 %88 1.3 %Other20 0.2 %98 14.2 %(2)— %Changes in unrecognized tax benefits61 0.6 %(427)(61.9)%(197)(2.9)%Other adjustments:Settlement of tax examinations— — %251 36.4 %(67)(1.0)%Legal entity restructuring— — %(884)(128.1)%— — %Other27 0.3 %(26)(3.8)%6 0.

LEASESOur operating leases consist primarily of properties and equipment for our administrative, manufacturing and R&D activities. Some of our leases contain options to extend the lease term, allowing for extensions of up to 15 additional years for certain leases, and some contain options to terminate the lease early with a sufficient number of months’ notice and/or if a given number of years have passed after the lease commencement date. We determine the lease term by assuming the exercise of any renewal and/or early-termination options that are reasonably certain. As of December 31, 2025 and 2024, we did not have material finance leases.The following table summarizes balance sheet and other information related to our operating leases:December 31,(in millions, except weighted average amounts)Classification20252024Right-of-use assets, netOther long-term assets$532 $515 Lease liabilities – currentOther current liabilities$102 $113 Lease liabilities – noncurrentOther long-term obligations$503 $498 Weighted average remaining lease term8.1 years8.0 yearsWeighted average discount rate3.53 %3.37 %The following table summarizes cost and other activity related to our operating leases:Year Ended December 31,(in millions)202520242023Operating lease cost, including variable lease and short-term lease cost$169 $163 $165 Cash paid for amounts included in the measurement of lease liabilities$127 $141 $88 Right-of-use assets obtained in exchange for lease liabilities(1)$106 $86 $214 _______________________________(1) These represent noncash activities and were therefore not included on our Consolidated Statements of Cash Flows.

ACQUISITIONSInteriusIn October 2025, we closed an agreement to acquire all outstanding shares of Interius BioTherapeutics, Inc. (“Interius”), a privately held biotechnology company developing in vivo chimeric antigen receptor (“CAR”) therapeutics, for approximately $350 million in cash consideration. As a result, Interius became our wholly-owned subsidiary. We accounted for the transaction as an asset acquisition and recorded a $311 million charge to Acquired in-process research and development expenses on our Consolidated Statements of Operations in 2025. The remaining purchase price related to various other assets acquired and liabilities assumed, consisting primarily of deferred tax assets.CymaBayIn March 2024, we completed the acquisition of CymaBay Therapeutics, Inc. (“CymaBay”) for total consideration of $3.9 billion, net of cash acquired. Upon closing, CymaBay became our wholly-owned subsidiary.We accounted for this transaction as an asset acquisition since the lead asset, seladelpar, an investigational, oral, peroxisome proliferator-activated receptor delta agonist shown to regulate critical metabolic and liver disease pathways, represented substantially all of the fair value of the gross assets acquired. In 2024, we recorded a $3.8 billion charge, representing an acquired IPR&D asset with no alternative future use, to Acquired in-process research and development expenses, as well as stock-based compensation expense of $133 million related to the cash settlement of unvested CymaBay employee stock awards attributable to post-acquisition services, with $67 million being recorded in Research and development expenses and $67 million in Selling, general and administrative expenses on our Consolidated Statements of Operations. In connection with this acquisition, we recorded $333 million of assets acquired, primarily consisting of net deferred tax assets, and $228 million of liabilities assumed, primarily related to an assumed financing arrangement which we subsequently settled in 2024 through various payments totaling $209 million.In July 2024, we paid $320 million to Janssen Pharmaceutica NV to extinguish a future royalty obligation related to seladelpar, which was recorded to Acquired in-process research and development expenses on our Consolidated Statements of Operations.