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Gilead Sciences (GILD)
NASDAQ:GILD
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Gilead Sciences
(NASDAQ:GILD)
76Outperform
Positive Factors
Clinical Trials and Approvals
ASCENT-04 trial hit the primary endpoint of PFS in 1L mTNBC (PD-L1+), indicating progress in oncology.
Financial Performance
The 4% EPS beat was driven by solid cost controls, which more than offset the slight miss in total revenue.
Product Performance
Strong growth was observed in the HIV drug Descovy, driven by market share gains and pricing advantages, contributing positively to the company’s overall performance.
Negative Factors
Government Policy Impact
Proposed government budget cuts could indirectly impact HIV/AIDS treatment and prevention services.
Oncology Segment Challenges
The company faced continued pressure in its Oncology segment, particularly in the CAR-T business, with a notable miss for Trodelvy attributed to inventory issues.
Revenue Concerns
Gilead Sciences experienced a revenue miss that has concerned investors, attributed to the first impact of the Part-D redesign.
Gilead Sciences (GILD) vs. S&P 500 (SPY)
Market Cap
$122.02B
Dividend Yield3.13%
Average Volume (3M)9.14M
Price to Earnings (P/E)21.6
Beta (1Y)0.35
Revenue Growth4.63%
EPS Growth1144.01%
CountryUS
Employees17,600
SectorHealthcare
Sector Strength54
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)1.81
Shares Outstanding1,246,634,500
10 Day Avg. Volume8,658,664
30 Day Avg. Volume9,138,293
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.08
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.86
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$116.29Price Target Upside18.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering26
Gilead Sciences Business Overview & Revenue Model
Company DescriptionGilead Sciences, Inc. is a leading biopharmaceutical company that focuses on discovering, developing, and commercializing innovative therapeutics in areas of unmet medical need. The company's primary sectors include antiviral medications, particularly for the treatment of HIV/AIDS, liver diseases such as hepatitis B and C, and emerging viral diseases. Gilead's core products include a range of antiviral drugs, notably Biktarvy, Genvoya, and Truvada, which are widely used in the treatment and prevention of HIV.
How the Company Makes MoneyGilead Sciences generates revenue primarily through the sale of its pharmaceutical products across various therapeutic areas. The company's key revenue streams include antiviral medications for HIV/AIDS, liver diseases, and inflammatory diseases. Significant revenue is derived from its flagship HIV products like Biktarvy and Genvoya. Additionally, Gilead engages in strategic partnerships and collaborations with other pharmaceutical companies to enhance its research and development efforts, which can include co-development and co-commercialization agreements. Licensing agreements and royalties from collaborations also contribute to its earnings. The company's financial performance is influenced by factors such as drug pricing, patent protections, regulatory approvals, and market demand for its products.
Gilead Sciences Key Performance Indicators (KPIs)
Any
Product Revenue by Segment
Breaks down sales figures by product lines, offering insights into which segments are most profitable and where the company might be expanding or contracting its market presence.
Breaks down sales figures by product lines, offering insights into which segments are most profitable and where the company might be expanding or contracting its market presence.
Data provided by:
Main Street Data
Main Street DataGilead Sciences Financial Statement Overview
Summary
Gilead Sciences demonstrates strong financial health with significant improvements in cash management and debt reduction. Revenue growth and gross margins are positive, though the decline in net profitability is a concern. The balance sheet is markedly de-leveraged, and cash flows are robust, providing a solid foundation for future investments. Continued focus on profitability is essential.Income Statement
Gilead Sciences shows a stable revenue base with a moderate growth trajectory, evidenced by a 6% revenue growth in the TTM period. Gross profit margin is healthy at 57.7%, but the net profit margin has decreased significantly to 1.7%, indicating pressure on profitability. EBIT and EBITDA margins stand at 28.9% and 13.1% respectively, showing operational efficiency but a decline in EBITDA suggests rising expenses or other financial pressures.75
Positive
Balance Sheet
The balance sheet shows remarkable improvement, with total debt reduced to zero, enhancing financial stability. The equity ratio cannot be calculated due to zero stockholders' equity, which could indicate restructuring or financial adjustments. The debt-to-equity reduction is a significant strength, enhancing risk resilience.80
Positive
Cash Flow
Cash flow analysis reveals robust free cash flow generation with a 40.8% growth in TTM. The operating cash flow to net income ratio is notably strong, indicating effective cash management. The company's ability to generate free cash flow consistently strengthens its capacity to fund operations and investments without relying on debt.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 28.75B | 27.12B | 27.28B | 27.30B | 24.69B | Gross Profit |
| 22.50B | 20.62B | 21.62B | 20.70B | 20.12B | EBIT |
| 1.66B | 7.61B | 7.33B | 7.41B | 7.03B | EBITDA |
| 4.43B | 10.50B | 8.85B | 11.33B | 4.13B | Net Income Common Stockholders |
| 480.00M | 5.67B | 4.59B | 6.22B | 89.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.57B | 7.26B | 7.63B | 7.83B | 7.91B | Total Assets |
| 58.99B | 62.13B | 63.17B | 67.95B | 68.41B | Total Debt |
| 26.71B | 24.99B | 25.23B | 26.70B | 31.40B | Net Debt |
| 16.72B | 18.90B | 19.82B | 21.36B | 25.41B | Total Liabilities |
| 39.75B | 39.38B | 41.96B | 46.89B | 50.19B | Stockholders Equity |
| 19.33B | 22.83B | 21.21B | 21.06B | 18.22B |
| Cash Flow | Free Cash Flow | |||
| 10.30B | 7.42B | 8.34B | 10.80B | 7.52B | Operating Cash Flow |
| 10.83B | 8.01B | 9.07B | 11.38B | 8.17B | Investing Cash Flow |
| -3.45B | -2.27B | -2.47B | -3.13B | -14.62B | Financing Cash Flow |
| -3.43B | -5.13B | -6.47B | -8.88B | 770.00M |
Gilead Sciences Technical Analysis
Negative
98.16
Price Trends
108.00
Negative
101.82
Negative
92.11
Positive
Market Momentum
-2.01
Positive
36.46
Neutral
31.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILD, the sentiment is Negative. The current price of 98.16 is below the 20-day moving average (MA) of 103.70, below the 50-day MA of 108.00, and above the 200-day MA of 92.11, indicating a neutral trend. The MACD of -2.01 indicates Positive momentum. The RSI at 36.46 is Neutral, neither overbought nor oversold. The STOCH value of 31.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $122.02B | 21.64 | 32.51% | 3.13% | 4.63% | 1144.01% | |
70 Outperform | $145.42B | 25.56 | 105.67% | 3.31% | 15.59% | 56.99% | |
70 Outperform | $132.49B | 22.72 | 7.34% | 2.83% | -4.57% | 2.96% | |
67 Neutral | $78.29B | 19.93 | 22.26% | 4.12% | 4.17% | -29.96% | |
66 Neutral | $130.08B | 17.30 | 8.62% | 7.41% | 13.38% | ― | |
63 Neutral | $96.81B | 18.79 | 31.99% | 5.12% | 4.62% | ― | |
52 Neutral | $5.21B | 3.55 | -41.91% | 2.83% | 15.12% | 0.42% |
* Healthcare Sector Average
Performance Comparison
GILD
Gilead Sciences
98.16
34.59
54.41%
AMGN
Amgen
272.05
-28.93
-9.61%
BMY
Bristol-Myers Squibb
46.88
4.05
9.46%
GSK
GlaxoSmithKline
36.87
-6.49
-14.97%
PFE
Pfizer
22.97
-3.79
-14.16%
SNY
Sanofi
52.13
2.85
5.78%
Gilead Sciences Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -7.53%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong growth in the HIV and liver disease segments, successful clinical trials, and promising product launches, contrasted by declines in overall product sales, Veclury, and oncology due to COVID-19 dynamics and competitive pressures. The company's strategic focus on pipeline and market expansion is promising but faces market challenges.Q1-2025 Updates
Positive Updates
HIV Business Growth
HIV sales increased by 6% year over year, driven by higher average realized price and demand. Biktarvy sales were up 7% year over year, highlighting strong demand-led volume growth.
Livedelzi Market Entry Success
Livedelzi continues its strong launch momentum, with $40 million in sales in its second full quarter, capturing about a third of the market in its category.
Trodelvy Phase III Success
Trodelvy plus pembrolizumab demonstrated a statistically significant and clinically meaningful progression-free survival benefit in the phase III ASCENT-04 trial for first-line PD-L1 positive metastatic triple-negative breast cancer.
Positive Operating Margins
The company reported strong operating margin and earnings per share, reflecting effective expense management.
Strong Cell Therapy Outlook
Anetocel remains on track to potentially launch in 2026 for relapsed refractory multiple myeloma, with promising clinical profiles and manufacturing capabilities.
Improvements in Liver Disease Sales
Sales increased by 3% year over year, driven by demand across PBC, HBV, and HDV, despite lower average realized prices for HCV products in the US.
Negative Updates
Total Product Sales Decline
Total product sales, including Veclury, were down 1% year over year, attributed to fewer COVID-19 related hospitalizations.
Reduced Oncology Sales
Oncology sales were lower, with Trodelvy sales down 5% year over year due to inventory dynamics and lower average realized price.
Veclury Sales Drop
Veclury sales decreased by 45% year over year, reflecting lower rates of COVID-19 related hospitalizations.
Cell Therapy Competitive Headwinds
Sales of cell therapy products declined, attributed to competitive headwinds, especially outside the US.
Impact of Medicare Part D Redesign
Part D redesign led to flat reported HIV sales for 2025, with expected growth returning in 2026.
Company Guidance
During the Gilead Sciences, Inc. First Quarter 2025 Earnings Conference Call, the company provided comprehensive guidance, highlighting key metrics and strategic initiatives. Total product sales, excluding Veclury, reached $6.3 billion, marking a 4% year-over-year increase, primarily driven by strong performance in the HIV segment, which grew by 6%. Sales of Biktarvy, a leading HIV treatment, rose by 7%, while Descovy sales surged 38% year over year. The company reported a decline in total product sales to $6.6 billion, down 1% year-over-year, due to a decrease in Veclury sales as COVID-19 hospitalizations fell. Despite this, Gilead maintained a robust 85% product gross margin and a strong operating margin of 43%. Looking ahead, Gilead anticipates continued growth with the potential launch of lenacapavir for PrEP, anetocel for multiple myeloma, and Trodelvy for breast cancer, while maintaining a focus on disciplined expense management and strategic investments in its pipeline. The company reaffirmed its full-year guidance, projecting total product sales between $28.2 to $28.6 billion and non-GAAP diluted EPS of $7.70 to $8.10.Gilead Sciences Corporate Events
Executive/Board ChangesShareholder Meetings
Gilead Sciences Holds Annual Stockholders Meeting
Neutral
May 8, 2025
On May 7, 2025, Gilead Sciences held its annual meeting of stockholders, where nine directors were elected to serve for the next year. The stockholders ratified the selection of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the compensation of the company’s Named Executive Officers. However, several stockholder proposals, including those requesting a CEO pay ratio factor, an independent Board Chair policy, a comprehensive human rights policy, and a report on DEI practices, were not approved.
Spark’s Take on GILD Stock
According to Spark, TipRanks’ AI Analyst, GILD is a Outperform.
Gilead Sciences’ overall score reflects its solid financial foundation, marked by strong cash flow and reduced debt, alongside moderate valuation metrics. Despite challenges in product sales and profitability, the company’s strategic initiatives and pipeline developments offer potential for future growth. Technical indicators suggest cautious optimism, balancing the company’s strengths against short-term market dynamics.
To see Spark’s full report on GILD stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.