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Gilead Sciences
(NASDAQ:GILD)
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Rating:74Outperform
Price Target:
$147.00
â–²(6.80% Upside)
Action:Reiterated
Date:05/09/26
Score is driven primarily by strong financial performance (high margins, solid free cash flow, and improved leverage) and a positive earnings update with raised guidance and strong HIV/oncology momentum. The rating is moderated by weak near-term technical momentum and near-term headline EPS/tax distortion from large acquisition-related charges, while valuation is reasonable but not notably discounted.
Positive Factors
High margins and cash generation
Sustained very high gross and operating margins underpin durable free cash flow and internal funding for R&D, launches, share repurchases, and debt flexibility. Strong margin structure supports capital allocation and cushions the business against cyclic revenue swings over the next several quarters.
Negative Factors
Limited organic revenue growth
Historical low-single-digit top-line growth constrains intrinsic upside and increases reliance on new launches, label expansions, and acquisitions to drive meaningful revenue gains. Without durable higher organic growth the company must continually execute launches or transactions to expand scale.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and cash generation
Sustained very high gross and operating margins underpin durable free cash flow and internal funding for R&D, launches, share repurchases, and debt flexibility. Strong margin structure supports capital allocation and cushions the business against cyclic revenue swings 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
$162.98B
Dividend Yield2.52%
Average Volume (3M)7.69M
Price to Earnings (P/E)17.7
Beta (1Y)0.32
Revenue Growth3.83%
EPS Growth55.01%
CountryUS
Employees17,600
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)7.42
Shares Outstanding1,241,569,800
10 Day Avg. Volume9,561,209
30 Day Avg. Volume7,688,413
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 Cap1.04
Enterprise Value/Revenue5.73
Enterprise Value/Gross Profit7.22
Enterprise Value/Ebitda12.15
Forecast
1Y Price Target
$160.37Price Target Upside16.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)-0.8
Revenue Forecast (FY)$30.45B
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 makes money primarily by selling branded prescription medicines and related therapies globally. Its revenue is largely product-based and is driven by (1) HIV medicines, which include single-tablet regimens and combination antiretroviral the...
Gilead Sciences Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial and clinical momentum across core franchises—particularly HIV (including PrEP), oncology (Trodelvy), and the rapid Libdelzi launch—resulting in raised revenue guidance, improved EPS and high margins. At the same time, near-term financials are materially impacted by large upfront acquisition-related IPR&D charges and associated tax consequences, alongside expected seasonal and cell therapy revenue headwinds. Overall the company delivered strong operational execution and a strengthened pipeline, but shareholders face short-term headline earnings pressure from the transactions.Positive Updates
Top-line growth and raised full-year guidance
Total product sales excluding Veklury of $6.8B, up 8% year-over-year; including Veklury $6.9B, up 5% year-over-year. Management increased 2026 revenue ranges by $400M and raised base business guidance to $29.4B–$29.8B (5%–6% YoY growth) and total product sales guidance to $30.0B–$30.4B.
Negative Updates
Large transaction-related charges severely depress full-year reported EPS
Upfront acquired IPR&D payments of ~ $11.5B–$11.8B and related transaction financing costs are expected to drive a full-year non-GAAP loss per share of $1.05 to $0.65. Excluding these transaction impacts, non-GAAP diluted EPS would be $8.45–$8.85, but the headline guidance includes an approximately $9.50 per-share hit related to the three transactions.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line growth and raised full-year guidance
Total product sales excluding Veklury of $6.8B, up 8% year-over-year; including Veklury $6.9B, up 5% year-over-year. Management increased 2026 revenue ranges by $400M and raised base business guidance to $29.4B–$29.8B (5%–6% YoY growth) and total product sales guidance to $30.0B–$30.4B.
Read all positive updates
Company Guidance
Gilead raised its 2026 outlook, boosting revenue guidance by $400M: base business now $29.4–$29.8B (5–6% y/y, up from 4–5%), total product sales $30.0–$30.4B (Veklury ~$600M unchanged); HIV sales are now expected to grow ~8% (vs. 6% prior) with Yes2Go guidance increased to ~$1.0B (from $0.8B). The company expects full‑year operating income of $2.4–$2.9B (or $14.0–$14.5B excluding ~ $11.5B of upfront IPR&D), acquired IPR&D investments of ~ $11.8B, R&D to rise mid‑single‑digit dollars and be <20% of product sales, SG&A to rise mid‑single‑digit percent, and a full‑year non‑GAAP loss per share of $(1.05) to $(0.65) including ~ $9.50 per‑share transaction costs (or non‑GAAP EPS $8.45–$8.85 excluding them). Q1 metrics underpinning the update: product sales excl. Veklury $6.8B (+8% y/y), total product sales $6.9B (+5% y/y), product gross margin 87%, operating margin 47%, non‑GAAP diluted EPS $2.03 (+12%), and a Q1 non‑GAAP tax rate of 18.3%; guidance also factors in an approximate 2% policy headwind and a full‑year effective tax rate of 140–190% reflecting nondeductible transaction expenses.Gilead Sciences Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.73B | 29.44B | 28.75B | 27.12B | 27.28B | 27.30B |
| Gross Profit | 23.59B | 23.21B | 22.50B | 20.62B | 21.62B | 20.70B |
| EBITDA | 14.02B | 13.58B | 4.43B | 10.50B | 8.85B | 11.33B |
| Net Income | 9.22B | 8.51B | 480.00M | 5.67B | 4.59B | 6.22B |
Balance Sheet | ||||||
| Total Assets | 56.28B | 59.02B | 58.99B | 62.13B | 63.17B | 67.95B |
| Cash, Cash Equivalents and Short-Term Investments | 9.82B | 10.61B | 11.57B | 7.26B | 6.38B | 6.52B |
| Total Debt | 22.17B | 24.59B | 26.71B | 24.99B | 25.23B | 26.70B |
| Total Liabilities | 32.85B | 36.41B | 39.75B | 39.38B | 41.96B | 46.89B |
| Stockholders Equity | 23.52B | 22.70B | 19.33B | 22.83B | 21.24B | 21.07B |
Cash Flow | ||||||
| Free Cash Flow | 10.23B | 9.46B | 10.30B | 7.42B | 8.34B | 10.80B |
| Operating Cash Flow | 10.80B | 10.02B | 10.83B | 8.01B | 9.07B | 11.38B |
| Investing Cash Flow | -2.61B | -4.79B | -3.45B | -2.27B | -2.47B | -3.13B |
| Financing Cash Flow | -8.56B | -7.75B | -3.43B | -5.13B | -6.47B | -8.88B |
Gilead Sciences Technical Analysis
Neutral
137.64
Price Trends
128.99
Negative
135.93
Negative
128.34
Negative
Market Momentum
-1.09
Negative
47.03
Neutral
58.84
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 137.64 is above the 20-day moving average (MA) of 125.67, above the 50-day MA of 128.99, and above the 200-day MA of 128.34, indicating a neutral trend. The MACD of -1.09 indicates Negative momentum. The RSI at 47.03 is Neutral, neither overbought nor oversold. The STOCH value of 58.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $162.98B | 17.69 | 42.16% | 2.52% | 3.83% | 55.01% | |
72 Outperform | $319.99B | 36.38 | 17.93% | 3.12% | 2.70% | -48.28% | |
71 Outperform | $118.71B | 16.33 | 39.05% | 4.11% | 1.78% | 33.76% | |
69 Neutral | $103.79B | 11.93 | 14.41% | 4.58% | 11.19% | -0.23% | |
66 Neutral | $201.93B | 25.84 | 89.41% | 3.00% | 9.94% | 31.14% | |
64 Neutral | $138.61B | 18.56 | 8.37% | 6.65% | 1.36% | -5.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GILD
Gilead Sciences
131.27
22.36
20.53%
AMGN
Amgen
374.15
84.61
29.22%
BMY
Bristol-Myers Squibb
58.13
13.36
29.84%
MRK
Merck & Company
129.56
51.25
65.44%
PFE
Pfizer
24.32
0.60
2.52%
SNY
Sanofi
43.16
-3.29
-7.08%
Gilead Sciences Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Gilead Shareholders Back Board, Pay Plans at 2026 Meeting
Positive
May 4, 2026
At the 2026 annual meeting of stockholders held on April 30, 2026, Gilead Sciences’ investors elected nine directors to serve one‑year terms and ratified Ernst Young LLP as the independent auditor for the fiscal year ending December 3...
Business Operations and StrategyDelistings and Listing ChangesFinancial DisclosuresM&A Transactions
Gilead Sciences Completes Acquisition of Arcellx and Anito-cel
Positive
Apr 28, 2026
On April 28, 2026, Gilead Sciences, Inc. completed its acquisition of Arcellx, Inc., consolidating a collaboration centered on anitocabtagene autoleucel (anito-cel), an investigational BCMA-directed CAR T-cell therapy for multiple myeloma that use...
Business Operations and StrategyM&A Transactions
Gilead Sciences to Acquire Arcellx in Major Cell-Therapy Deal
Positive
Feb 23, 2026
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 contin...
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.