One-glance verdict
Undervalued
$221.34 our estimate vs market $159.08
Wall Street consensus: $160.19 (-27.6% lower than our fair-value estimate)
28% below our estimate, below the bear case
Fundamentals snapshot
Gilead Sciences, Inc.
GILD · NMS · Healthcare · Drug Manufacturers - General
Current price
$159.08
52-week range
$114.02 - $160.51
Market cap
$197.25B
Balance sheet
Watch
11.43x Adequate
Net debt $21.36B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 3.4% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Return on equity was -20.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from 40.2% to 33.7% over 3 years.
What this company does
Gilead Sciences, Inc.
Gilead Sciences makes important medicines to treat serious illnesses like HIV, hepatitis, and cancer. Their main income comes from selling these life-saving drugs, and it matters because their sales directly fund the creation of new treatments for diseases that currently have no cures.
How the company got here
Gilead Sciences was founded in 1987 and has grown into a major player in the biopharmaceutical industry. The company initially focused on antiviral drugs and made significant breakthroughs in treating HIV/AIDS. Over the years, Gilead has expanded its research and development efforts to include other serious diseases like hepatitis C, cancer, and inflammatory conditions. Key to its growth has been a strategy of acquiring promising drug candidates and companies, allowing it to build a robust pipeline of innovative medicines. This approach has helped Gilead address significant unmet medical needs and establish a strong market presence.
What it actually does
Gilead Sciences is a company that creates medicines to treat serious illnesses. Think of them like a specialized pharmacy that doesn't just dispense drugs, but actually invents and manufactures them. They focus on diseases where there aren't many good treatment options available, aiming to improve the lives of patients facing challenging health conditions. Their work involves extensive scientific research to discover new drugs, rigorous testing to ensure they are safe and effective, and then making these medicines available to doctors and patients worldwide.
HIV and Liver Diseases
This is Gilead's foundational business, where they've developed some of the most important treatments for HIV-1 infection and viral hepatitis. Medications like Biktarvy and Truvada for HIV, and Epclusa for hepatitis C, have transformed how these diseases are managed, often making them manageable chronic conditions rather than life-threatening illnesses. They also offer treatments for chronic hepatitis B and other liver-related conditions. This segment represents a significant portion of Gilead's revenue, built on decades of pioneering work in antiviral therapies.
Oncology (Cancer Treatments)
Gilead is increasingly focused on developing innovative cancer therapies, particularly through a type of treatment called CAR T-cell therapy. This advanced approach involves modifying a patient's own immune cells to help them fight cancer. Drugs like Yescarta and Tecartus are examples of these cutting-edge treatments for certain blood cancers. The company is also exploring other immunotherapies and small molecule drugs to target various types of cancer, representing a growing and strategically important area for Gilead.
Inflammatory Diseases
Beyond infectious diseases and cancer, Gilead also develops treatments for inflammatory conditions. These are diseases where the body's immune system mistakenly attacks its own tissues, leading to chronic inflammation and damage. While this segment is smaller compared to their established antiviral and growing oncology businesses, it represents an area of expansion as Gilead seeks to leverage its scientific expertise across a broader range of serious illnesses. Their work here aims to provide new options for patients suffering from debilitating inflammatory disorders.
What management is betting on now
Gilead's leadership is heavily investing in expanding its oncology portfolio, particularly in cell therapy and other innovative cancer treatments, aiming to become a leader in this rapidly evolving field. They are also focused on advancing their pipeline of drugs for inflammatory diseases, seeking to diversify their revenue streams beyond their traditional strengths. Furthermore, Gilead continues to strengthen its existing antiviral franchises while exploring new partnerships and acquisitions to bring promising new therapies to patients. The company's strategy centers on leveraging its scientific expertise to tackle complex diseases with significant unmet medical needs.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$4.17B
FY2024 Q4
$2.83B
FY2025 Q1
$1.65B
FY2025 Q2
$720.00M
FY2025 Q3
$3.96B
FY2025 Q4
$3.12B
FY2026 Q1
$2.43B
FY2026 Q2
$3.43B
Revenue
$7.80B
Net income
$-10.50B
Diluted EPS
-8.45
Operating cash flow
$3.57B
Free cash flow
$3.43B
Fetching…
Sources
Revenue
$6.96B
Net income
$2.02B
Diluted EPS
1.61
Operating cash flow
$2.54B
Free cash flow
$2.43B
Fetching…
Sources
Revenue
$7.92B
Net income
$2.18B
Diluted EPS
1.75
Operating cash flow
$3.33B
Free cash flow
$3.12B
Fetching…
Sources
Revenue
$7.77B
Net income
$3.05B
Diluted EPS
2.43
Operating cash flow
$4.11B
Free cash flow
$3.96B
Fetching…
Sources
Revenue
$7.08B
Net income
$1.96B
Diluted EPS
1.56
Operating cash flow
$827.00M
Free cash flow
$720.00M
Fetching…
Sources
Revenue
$6.67B
Net income
$1.31B
Diluted EPS
1.04
Operating cash flow
$1.76B
Free cash flow
$1.65B
Fetching…
Sources
Revenue
$7.57B
Net income
$1.78B
Diluted EPS
1.43
Operating cash flow
$2.98B
Free cash flow
$2.83B
Fetching…
Sources
Revenue
$7.54B
Net income
$1.25B
Diluted EPS
1.00
Operating cash flow
$4.31B
Free cash flow
$4.17B
Fetching…
Sources
Is it cheap or expensive?
Fair value $221.34 vs current price $159.08
Wall Street consensus is the average analyst price target: $160.19 (-27.6% lower than our fair-value estimate).
Our most-likely fair value is $221.34 a share — about 39.1% above today's price of $159.08, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $21.4B. Interest coverage 11.4x.
Net debt
$21.36B
Interest coverage
11.43x
Gilead Sciences, Inc.'s profit covers its interest bill about 11.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
GILD
BASELINE
Gilead Sciences, Inc.
Total debt $26.25B Interest coverage 11.43x This is the baseline the peer rows are being compared against.
Total debt $70.88B Interest coverage 6.94x -39% vs GILD Carries about 1.6x less debt cushion than GILD.
Total debt $57.30B Interest coverage 3.30x -71% vs GILD Carries about 3.5x less debt cushion than GILD.
Total debt $45.05B Interest coverage 7.26x -36% vs GILD Carries about 1.6x less debt cushion than GILD.
Total debt $1.98B Interest coverage 342.44x +2,897% vs GILD Carries about 30.0x more debt cushion than GILD.
Total debt $2.71B Interest coverage 84.52x +640% vs GILD Carries about 7.4x more debt cushion than GILD.
What you should know
The case for and against GILD
3 Rewards
3 Risks
Rewards
-
Revenue grew 3.4% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 2.1% with 12-year payout history.
Risks
-
Return on equity was -20.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 40.2% to 33.7% over 3 years.
-
Insider ownership is only 0.1% (peer median: 0.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
16.07x
P/B
16.69x
P/S
6.48x
EV/EBITDA
14.97x
PEG ratio
2.35x
Profitability
How much profit each dollar creates
Gross margin
79.6%
Operating margin
33.7%
Net margin
-10.6%
ROE
-20.7%
ROA
14.1%
Health
Liquidity and balance-sheet strength
Debt / equity
2.23x
Current ratio
1.26x
Quick ratio
0.90x
Total debt
$26.25B
Total cash
$4.88B
Growth
How the business has been compounding
Revenue TTM
$30.46B
Revenue 5Y CAGR
1.9%
EPS TTM
-2.65
EPS 5Y CAGR
23.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$13.55B
Free CF TTM
$9.46B
FCF margin
31.0%
Dividend
Shareholder payout
Yield
2.1%
Payout ratio
43.5%
Last ex-div date
2026-09-15