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Gilead Sciences
(NASDAQ:GILD)
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Rating:70Outperform
Price Target:
$149.00
â–²(15.23% Upside)
Action:Reiterated
Date:08/05/26
The score is primarily supported by strong cash-flow durability and constructive technical trend signals. It is tempered by the latest TTM earnings swing to losses and some uncertainty in balance-sheet trend interpretation, while valuation is reasonable and the latest earnings call was strategically positive with raised core guidance despite acquisition-related EPS distortions.
Positive Factors
Strong cash generation and free cash flow
Gilead’s persistent ability to convert earnings into cash and a material recent jump in free cash flow underpins durable financial flexibility. Strong cash generation supports sustained R&D funding, commercialization of launches, dividends or buybacks, and integration of acquisitions over the next several quarters.
Negative Factors
Massive acquired IPR&D charges distort GAAP results
Very large acquisition-related IPR&D charges materially depress GAAP profitability and reported EPS, obscuring operational performance. These non-deductible and non-recurring accounting charges complicate comparability, tax outcomes, and stakeholder assessment of sustainable earnings and could weigh on credit metrics and guidance interpretation.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and free cash flow
Gilead’s persistent ability to convert earnings into cash and a material recent jump in free cash flow underpins durable financial flexibility. Strong cash generation supports sustained R&D funding, commercialization of launches, dividends or buybacks, and integration of acquisitions over the next several quarters.
Read all positive factors
Gilead Sciences Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes income from different sources, highlighting which areas are driving growth and which might be underperforming, crucial for assessing the company's financial health and strategic focus.
Analyzes income from different sources, highlighting which areas are driving growth and which might be underperforming, crucial for assessing the company's financial health and strategic focus.
Data provided by:
The Fly
The FlyGilead Sciences (GILD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.56B
Dividend Yield2.32%
Average Volume (3M)7.39M
Price to Earnings (P/E)―
Beta (1Y)0.35
Revenue Growth6.05%
EPS Growth-151.43%
CountryUS
Employees17,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)-2.60
Shares Outstanding1,239,955,200
10 Day Avg. Volume5,869,841
30 Day Avg. Volume7,391,094
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)6.73
Price to Sales (P/S)5.19
P/FCF Ratio16.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$158.71Price Target Upside22.74% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)-0.47
Revenue Forecast (FY)$30.70B
Gilead Sciences Business Overview & Revenue Model
Company Description
Gilead Sciences, Inc. is a global biopharmaceutical enterprise, with operations spanning the United States, Europe, and numerous international markets. Its core mission involves discovering, developing, and commercializing innovative medications t...
How the Company Makes Money
Gilead primarily makes money by selling patented prescription medicines to wholesalers, distributors, pharmacies, hospitals, and government purchasers, with revenue recognized from product sales net of estimated rebates, chargebacks, returns, and ...
Gilead Sciences Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call portrays a fundamentally strong commercial and clinical performance: robust top-line growth across the base business (notably HIV/PrEP, Trodelvy, Livdelzi), meaningful pipeline and regulatory catalysts ahead, and strategic acquisitions that expand oncology and cell therapy capabilities. These positives are offset in reported results by very large one-time acquired IPR&D charges and related tax effects that drove a large negative reported operating margin and headline EPS losses, along with near-term pressures in cell therapy and reduced COVID product sales. On an underlying basis (excluding acquisition accounting), margins, illustrative EPS and organic growth are healthy and guidance was raised for base business and HIV. Overall the message is strategically constructive but temporarily clouded in reported GAAP/non‑GAAP metrics by transaction-related charges.Positive Updates
Base Business and Total Product Sales Growth
Base business sales of $7.6B increased 10% year-over-year (strongest Q2 growth in 3 years) and were up 12% sequentially. Total product sales (including Veklury) were $7.6B, up 8% year-over-year and up 10% sequentially.
Negative Updates
Large Acquired IPR&D Charges and Reported Losses
Acquired IPR&D expense of ~$11.2B in Q2 (and full-year expectation ~$11.5B) related to Arcellx, Tubulis and Ouro Medicines resulted in a reported operating margin of negative 94% and reported non-GAAP diluted EPS of negative $6.75 for the quarter. Full-year non-GAAP EPS guidance ranged negative (-$0.65 to -$0.30) reflecting these charges.
Read all updates
Q2-2026 Updates
Positive
Negative
Base Business and Total Product Sales Growth
Base business sales of $7.6B increased 10% year-over-year (strongest Q2 growth in 3 years) and were up 12% sequentially. Total product sales (including Veklury) were $7.6B, up 8% year-over-year and up 10% sequentially.
Read all positive updates
Company Guidance
Gilead updated 2026 guidance: base business sales are now expected to grow about 6%–7% year‑over‑year to $29.8–$30.1 billion (a ~$350M midpoint increase vs May and ~$750M vs initial guidance), total product sales $30.1–$30.4 billion (raised the lower end), HIV sales 9%–10% (up from 8%) with Yeztugo targeted at roughly $1 billion and the PrEP franchise at a $4 billion annual run‑rate, Veklury sales trimmed to ~ $300 million (prior ~$600M), cell therapy now forecast to decline mid‑teens % Y/Y, acquired IPR&D expense ~$11.5 billion, R&D and SG&A to rise mid‑single‑digit % in dollars, full‑year non‑GAAP EPS expected at negative $0.65 to negative $0.30 (or, excluding ~ $9.15/share of acquired IPR&D and financing costs and the nonrecurring other revenue, illustrative non‑GAAP EPS of $8.50–$8.85), and an effective tax rate guided between ~115%–140% (about 20% excluding the acquisition‑related items).Gilead Sciences Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.46B | 29.44B | 28.75B | 27.12B | 27.28B | 27.30B |
| Gross Profit | 24.24B | 23.21B | 22.50B | 20.62B | 21.62B | 20.70B |
| EBITDA | 636.00M | 13.58B | 4.43B | 10.50B | 8.85B | 11.33B |
| Net Income | -3.24B | 8.51B | 480.00M | 5.67B | 4.59B | 6.22B |
Balance Sheet | ||||||
| Total Assets | 49.36B | 59.02B | 58.99B | 62.13B | 63.17B | 67.95B |
| Cash, Cash Equivalents and Short-Term Investments | 3.18B | 9.61B | 11.57B | 7.26B | 6.38B | 6.52B |
| Total Debt | 26.25B | 24.94B | 26.71B | 24.99B | 25.23B | 26.70B |
| Total Liabilities | 37.62B | 36.41B | 39.75B | 39.38B | 41.96B | 46.89B |
| Stockholders Equity | 11.83B | 22.70B | 19.33B | 22.83B | 21.24B | 21.07B |
Cash Flow | ||||||
| Free Cash Flow | 13.20B | 9.46B | 10.30B | 7.42B | 8.34B | 10.80B |
| Operating Cash Flow | 13.55B | 10.02B | 10.83B | 8.01B | 9.07B | 11.38B |
| Investing Cash Flow | -10.84B | -4.79B | -3.45B | -2.27B | -2.47B | -3.13B |
| Financing Cash Flow | -4.65B | -7.75B | -3.43B | -5.13B | -6.47B | -8.88B |
Gilead Sciences Technical Analysis
Positive
129.31
Price Trends
130.28
Positive
131.88
Positive
131.41
Positive
Market Momentum
1.86
Negative
63.09
Neutral
97.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILD, the sentiment is Positive. The current price of 129.31 is below the 20-day moving average (MA) of 133.11, below the 50-day MA of 130.28, and below the 200-day MA of 131.41, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 63.09 is Neutral, neither overbought nor oversold. The STOCH value of 97.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILD.
Gilead Sciences Risk Analysis
Gilead Sciences disclosed 22 risk factors in its most recent earnings report. Gilead Sciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gilead Sciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $224.48B | 25.86 | 89.32% | 2.61% | 9.89% | 31.69% | |
74 Outperform | $130.39B | 14.24 | 46.75% | 3.84% | 3.13% | 83.17% | |
70 Outperform | $171.56B | -53.43 | -16.28% | 2.49% | 6.05% | -151.43% | |
69 Neutral | $104.89B | 23.44 | 5.52% | 5.58% | 23.68% | -30.90% | |
66 Neutral | $335.14B | 107.91 | 6.60% | 2.56% | 4.51% | -80.62% | |
66 Neutral | $152.69B | 35.50 | 4.89% | 7.01% | -0.21% | -59.71% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GILD
Gilead Sciences
138.92
23.94
20.82%
AMGN
Amgen
419.38
132.45
46.16%
BMY
Bristol-Myers Squibb
64.63
18.50
40.12%
MRK
Merck & Company
135.97
53.79
65.45%
PFE
Pfizer
26.87
3.21
13.57%
SNY
Sanofi
44.41
-3.86
-7.99%
Gilead Sciences Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Gilead Sciences Launches New $3 Billion Senior Notes
Neutral
May 20, 2026
On May 20, 2026, Gilead Sciences entered into an eleventh supplemental indenture with Computershare Trust Company to support a new multi‑tranche debt issuance totaling $3 billion in senior notes, with maturities in 2028, 2029, 2031 and 2034 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.