Gilead Sciences (GILD) AI Stock Analysis

• Market Cap: $149.38B
• Dividend Yield: 2.62%
• Average Volume (3M): 6.95M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.32
• Revenue Growth: 2.76%
• EPS Growth: 6407.19%
• Country: US
• Employees: 17,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.47
• Shares Outstanding: 1,240,679,600
• 10 Day Avg. Volume: 6,734,509
• 30 Day Avg. Volume: 6,951,262
• PEG Ratio: -2.62
• Price to Book (P/B): 5.96
• Price to Sales (P/S): 4.01
• P/FCF Ratio: 11.18
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 5.32
• Enterprise Value/Gross Profit: 6.76
• Enterprise Value/Ebitda: 11.33
• 1Y Price Target: $134.63
• Price Target Upside: 11.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 8.17
• Revenue Forecast (FY): $29.21B

• Rating: 78 Outperform
• Price Target: $138.00 ▲(14.62% Upside)

Gilead Sciences' strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The company's strategic focus on its HIV portfolio and successful product launches contribute positively. Technical indicators suggest some short-term caution, but the long-term outlook remains favorable. The recent patent settlement further enhances Gilead's market position.

Positive Factors

HIV Portfolio Growth

Strong growth in HIV therapies like Biktarvy and Descovy demonstrates Gilead's robust market position in antiviral treatments, ensuring sustained revenue streams.

Patent Protection

Securing patent protection for Biktarvy until 2036 strengthens Gilead's competitive edge, ensuring continued market exclusivity and revenue stability.

Cash Flow Management

Strong cash flow management with high free cash flow growth enhances Gilead's ability to invest in R&D and strategic initiatives, supporting long-term growth.

Negative Factors

Oncology Revenue Decline

Declining oncology revenue indicates competitive pressures and challenges in expanding this segment, potentially impacting future diversification efforts.

Cell Therapy Sales Decline

A decline in cell therapy sales suggests difficulties in maintaining market share, which could hinder Gilead's growth in innovative treatment areas.

Medicare Part D Impact

The Medicare Part D redesign poses a significant financial challenge, potentially affecting Gilead's revenue growth and necessitating strategic adjustments.

Gilead Sciences Business Overview & Revenue Model

Company Description

Gilead Sciences, Inc. is a biopharmaceutical company headquartered in Foster City, California, focused on the discovery, development, and commercialization of innovative medicines in areas of unmet medical need. The company primarily operates in the therapeutic sectors of antiviral, oncology, and inflammation, with a strong emphasis on treatments for HIV/AIDS, liver diseases, and cancer. Gilead's core products include well-known antiviral medications such as Truvada, Biktarvy, and Harvoni, along with a growing portfolio of oncology therapies and other therapeutic agents.

How the Company Makes Money

Gilead Sciences generates revenue primarily through the sale of its pharmaceutical products, particularly those targeting HIV, hepatitis C, and cancer. The company’s key revenue streams include direct sales to healthcare providers and hospitals, as well as partnerships with other pharmaceutical companies for co-marketing and distribution of certain products. Gilead also engages in licensing agreements that allow it to earn royalties on the sales of its drugs by other manufacturers. Significant partnerships, such as collaborations with research institutions and other biotech firms, play a critical role in expanding Gilead’s product pipeline and market reach, ultimately bolstering its earnings. The company maintains a strong focus on research and development, which enables it to introduce new products that can drive future revenue growth.

Gilead Sciences Financial Statement Overview

Summary

Gilead Sciences presents a strong financial position with robust profitability and improved leverage. The company has shown resilience in revenue growth and effective cash flow management. While past leverage and cash flow volatility pose some risks, the current trajectory indicates solid financial health and operational efficiency.

Income Statement

Gilead Sciences shows strong profitability with a high gross profit margin of 78.7% and a net profit margin of 27.9% in TTM. The revenue growth rate has been positive, indicating a recovery from previous declines. EBIT and EBITDA margins are robust, reflecting efficient operations. However, the volatility in EBIT margins over the years suggests some operational challenges.

Balance Sheet

The company has significantly improved its debt-to-equity ratio to 0.13 in TTM, indicating reduced leverage and improved financial stability. Return on equity is strong at 40.7%, showcasing effective use of equity to generate profits. The equity ratio is healthy, but past high leverage levels pose a potential risk if not managed carefully.

Cash Flow

Gilead Sciences demonstrates strong cash flow management with a significant free cash flow growth rate of 161.2% in TTM. The operating cash flow to net income ratio is solid, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is nearly 1, highlighting strong cash conversion. However, past fluctuations in free cash flow growth suggest potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.09B	28.75B	27.12B	27.28B	27.30B	24.69B
Gross Profit	22.89B	22.50B	20.62B	21.62B	20.70B	20.12B
EBITDA	13.67B	4.43B	10.50B	8.85B	11.33B	4.13B
Net Income	8.11B	480.00M	5.67B	4.59B	6.22B	123.00M
Balance Sheet
Total Assets	58.53B	58.99B	62.13B	63.17B	67.95B	68.41B
Cash, Cash Equivalents and Short-Term Investments	7.35B	11.57B	7.26B	6.38B	6.52B	7.41B
Total Debt	24.94B	26.71B	24.99B	25.23B	26.70B	31.40B
Total Liabilities	37.08B	39.75B	39.38B	41.96B	46.89B	50.19B
Stockholders Equity	21.54B	19.33B	22.83B	21.24B	21.07B	18.20B
Cash Flow
Free Cash Flow	9.16B	10.30B	7.42B	8.34B	10.80B	7.52B
Operating Cash Flow	9.67B	10.83B	8.01B	9.07B	11.38B	8.17B
Investing Cash Flow	-3.18B	-3.45B	-2.27B	-2.47B	-3.13B	-14.62B
Financing Cash Flow	-4.22B	-3.43B	-5.13B	-6.47B	-8.88B	770.00M

Gilead Sciences Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 120.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILD, the sentiment is Neutral. The current price of 120.4 is below the 20-day moving average (MA) of 124.22, below the 50-day MA of 121.60, and above the 200-day MA of 112.37, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 37.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GILD.

Gilead Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	80 Outperform	$248.95B	13.27	39.51%	3.27%	1.59%	58.02%
GILD	78 Outperform	$149.38B	18.65	40.53%	2.62%	2.76%	6407.19%
BMY	78 Outperform	$106.69B	17.70	33.84%	4.84%	1.26%	―
AMGN	77 Outperform	$171.10B	24.56	81.71%	3.00%	11.03%	65.22%
SNY	75 Outperform	$119.28B	12.10	8.39%	4.54%	-9.32%	120.62%
PFE	74 Outperform	$146.98B	15.07	10.59%	6.65%	4.44%	128.96%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Gilead Sciences Corporate Events

Gilead Sciences Announces Executive Vice President Departure

On November 19, 2025, Gilead Sciences announced that Deborah H. Telman will step down from her role as Executive Vice President, Corporate Affairs and General Counsel, effective December 5, 2025, with her employment terminating later in the month. This leadership change could impact Gilead’s corporate affairs strategy and legal operations, potentially influencing its industry positioning and stakeholder relations.

Gilead Sciences Settles Patent Litigation on Biktarvy

On October 6, 2025, Gilead Sciences announced settlement agreements with Lupin Ltd., Cipla Ltd., and Laurus Labs Ltd. to resolve patent litigations concerning generic versions of Biktarvy®. These agreements prevent the entry of generic Biktarvy tablets in the U.S. market before April 1, 2036, securing Gilead’s market position and patent protection for this product.