Gilead Sciences (GILD) AI Stock Analysis

• Market Cap: $183.17B
• Dividend Yield: 2.52%
• Average Volume (3M): 7.62M
• Price to Earnings (P/E): 22.1
• 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): 1.86
• Shares Outstanding: 1,240,679,600
• 10 Day Avg. Volume: 7,181,391
• 30 Day Avg. Volume: 7,616,706
• PEG Ratio: 0.01
• Price to Book (P/B): 6.75
• Price to Sales (P/S): 5.19
• P/FCF Ratio: 15.24
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 6.22
• Enterprise Value/Gross Profit: 7.70
• Enterprise Value/Ebitda: 14.21
• 1Y Price Target: $155.39
• Price Target Upside: 5.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $168.00 ▲(13.79% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial performance (TTM profitability rebound and consistently high free cash flow) and constructive technical momentum (price above key moving averages with healthy MACD/RSI). Earnings-call guidance and sentiment are supportive due to continued base-business and HIV/prevention growth, though policy and cell-therapy headwinds temper upside. Valuation is reasonable but not clearly cheap at ~22.5x earnings with a ~2.1% dividend yield.

Positive Factors

Free Cash Flow Generation

Consistently high free cash flow (~$7.4B–$10.8B annually; TTM ~$9.7B) underpins durable capital flexibility: funds R&D, disciplined buybacks/dividends, and strategic M&A without immediate reliance on equity financing, supporting long-term investment and shareholder returns.

Market-leading HIV Franchise

A dominant HIV franchise (Biktarvy market leadership and substantial HIV sales) provides durable, recurring revenue and pricing leverage. Strong prevention uptake (YES2GO/Descovy) and payer coverage expand addressable market, anchoring predictable cash flow and funding pipeline investments.

Pipeline Depth and Strategic Cell-Therapy Deal

Acquiring Arcellx and controlling anito‑cel accelerates cell-therapy scale-up and removes profit-sharing, enhancing long-term oncology growth optionality. Combined with a catalyst-rich late-stage pipeline and multiple prospective launches, this materially diversifies revenue drivers beyond antivirals.

Negative Factors

Meaningful Leverage

A sizable debt burden (historical debt/equity ~1.1–1.7) constrains financial flexibility for large-scale investment and raises interest and refinancing risk in adverse conditions. Data inconsistencies in the latest period also reduce visibility into leverage trends and liquidity buffers.

Earnings Volatility

Large swings in margins and returns across years indicate earnings sensitivity to product cycles, one-offs, and portfolio mix. This volatility undermines predictability for cash flow, capital allocation and long-range planning, complicating sustained margin guidance despite current strong run rates.

Policy & Competitive Headwinds

Structural policy shifts (Medicare Part D/Medicaid/ACA changes) and competitive dynamics in cell therapy create durable revenue pressure. Measured multi-hundred-million dollar impacts and channel shifts can depress realized pricing and volumes, limiting topline and margin expansion over the medium term.

Gilead Sciences Business Overview & Revenue Model

Company Description

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for the treatment of hematology, oncology, and cell therapy patients. In addition, the company provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. Gilead Sciences, Inc. has collaboration agreements with Arcus Biosciences, Inc.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Tango Therapeutics, Inc.; Jounce Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Gadeta B.V.; Bristol-Myers Squibb Company; Dragonfly Therapeutics, Inc.; and Merck & Co, Inc. The company was incorporated in 1987 and is headquartered in Foster City, California.

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

Strong current profitability rebound (TTM net margin ~27.9%, EBIT margin ~37.5%) and consistently high gross margins (~76%–81%) are supported by robust, recurring free cash flow (~$9.7B TTM). Offsets include meaningful leverage (debt-to-equity ~1.1–1.7 historically), notable earnings volatility across years, and a flagged inconsistency in the latest balance-sheet line items (debt/equity shown as 0), which reduces confidence in the latest-period balance-sheet precision.

Income Statement

Profitability rebounded sharply in TTM (Trailing-Twelve-Months), with net profit margin rising to ~27.9% (vs. ~1.7% in 2024) and strong operating profitability (EBIT margin ~37.5%). Gross margin remains consistently high (~76%–81%), supporting durable earnings power. Revenue growth improved in TTM (Trailing-Twelve-Months) (~12.2%) after modest growth in 2024 (~6.0%) and flat-to-slightly down results in 2022–2023. Key weakness is earnings volatility across years (notably very low profitability in 2020 and 2024), which tempers confidence in stability despite the strong current run-rate.

Balance Sheet

Leverage is meaningful, with debt-to-equity generally around ~1.1–1.7 across 2020–2024, indicating debt is a sizable part of the capital structure. Asset base is stable (~$59–68B), and return on equity is strong in better profit years (e.g., ~24.8% in 2023 and ~40.7% in TTM (Trailing-Twelve-Months)), but it drops sharply when earnings weaken (e.g., ~0.7% in 2020 and ~2.5% in 2024). In TTM (Trailing-Twelve-Months), reported total debt and equity are shown as 0 while debt-to-equity is provided, so balance-sheet precision for the latest period is limited—this data inconsistency is a risk flag for interpretation.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently high (about $7.4B–$10.8B annually), and in TTM (Trailing-Twelve-Months) free cash flow (~$9.7B) nearly matches reported net income (free cash flow to net income ~0.95), indicating solid earnings quality. Operating cash flow is also robust (TTM (Trailing-Twelve-Months) ~$10.0B). A watch-out is that operating cash flow has not consistently covered net income above 1.0 (coverage ~0.71–0.98 historically; ~0.79 in TTM (Trailing-Twelve-Months)), and free cash flow growth has been volatile (negative in 2022–2023, modest in 2024, very strong in TTM (Trailing-Twelve-Months)).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.44B	28.75B	27.12B	27.28B	27.30B
Gross Profit	25.52B	22.50B	20.62B	21.62B	20.70B
EBITDA	10.82B	4.43B	10.50B	8.85B	11.33B
Net Income	8.51B	480.00M	5.67B	4.59B	6.22B
Balance Sheet
Total Assets	59.02B	58.99B	62.13B	63.17B	67.95B
Cash, Cash Equivalents and Short-Term Investments	10.61B	11.57B	7.26B	6.38B	6.52B
Total Debt	0.00	26.71B	24.99B	25.23B	26.70B
Total Liabilities	36.41B	39.75B	39.38B	41.96B	46.89B
Stockholders Equity	22.62B	19.33B	22.83B	21.24B	21.07B
Cash Flow
Free Cash Flow	10.02B	10.30B	7.42B	8.34B	10.80B
Operating Cash Flow	10.02B	10.83B	8.01B	9.07B	11.38B
Investing Cash Flow	-4.79B	-3.45B	-2.27B	-2.47B	-3.13B
Financing Cash Flow	-7.75B	-3.43B	-5.13B	-6.47B	-8.88B

Gilead Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 147.64
• 50DMA: Positive
• 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 Positive. The current price of 147.64 is below the 20-day moving average (MA) of 148.30, above the 50-day MA of 133.69, and above the 200-day MA of 118.42, indicating a neutral trend. The MACD of 5.18 indicates Positive momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 25.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILD.

Gilead Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRK	78 Outperform	$307.60B	17.01	―	3.12%	1.59%	58.02%
GILD	74 Outperform	$183.17B	22.10	40.57%	2.52%	2.76%	6407.19%
PFE	73 Outperform	$154.31B	19.90	―	6.65%	4.44%	128.96%
AMGN	71 Outperform	$206.39B	26.67	106.10%	3.00%	11.03%	65.22%
BMY	71 Outperform	$125.45B	17.70	40.53%	4.84%	1.26%	―
SNY	69 Neutral	$115.01B	19.63	6.76%	4.58%	-9.32%	120.62%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Gilead Sciences Corporate Events

Gilead Sciences to Acquire Arcellx in Major Cell-Therapy Deal

On February 22–23, 2026, Gilead Sciences agreed to acquire Arcellx in a cash‑and‑CVR deal valuing the target at an implied $7.8 billion at closing. A Gilead subsidiary will launch a tender offer at $115 per share plus a $5 contingent value right tied to $6 billion in cumulative global net sales of Arcellx’s lead CAR T therapy anitocabtagene autoleucel (anito‑cel) by year‑end 2029.

The transaction, approved by both boards and expected to close in the second quarter of 2026 subject to antitrust and tender conditions, will give Gilead full control of anito‑cel and eliminate collaboration profit‑sharing, milestones and royalties, with the deal expected to be earnings‑accretive from 2028 after potential FDA approval. The U.S. Food and Drug Administration has accepted the Biologics License Application for anito‑cel as a fourth‑line treatment for relapsed or refractory multiple myeloma, underpinned by Phase 1 and pivotal Phase 2 data, positioning Gilead to strengthen its cell‑therapy franchise through Kite while leveraging Arcellx’s D‑Domain platform across future oncology and in vivo cell‑therapy programs.

The most recent analyst rating on (GILD) stock is a Hold with a $155.00 price target. To see the full list of analyst forecasts on Gilead Sciences stock, see the GILD Stock Forecast page.