Gilead Sciences, Inc. is revolutionizing the healthcare landscape with its innovative biopharmaceuticals that tackle some of the most pressing medical challenges of our time. Renowned for its flagship products like Biktarvy and Veklury, Gilead stands at the forefront of HIV and liver disease treatment, while also making strides in oncology and cell therapy. As we delve into the company’s financial health, we must ask: do Gilead’s fundamentals still support its current market valuation and future growth potential?
Table of contents
Company Description
Gilead Sciences, Inc. is a leading biopharmaceutical company founded in 1987 and headquartered in Foster City, California. The firm specializes in discovering, developing, and commercializing innovative medicines to address unmet medical needs, particularly in the United States and Europe. Gilead’s extensive product portfolio includes treatments for HIV/AIDS, liver diseases, and various cancers, exemplified by drugs such as Biktarvy, Veklury, and Yescarta. With a strong focus on research and strategic collaborations, Gilead is well-positioned within the healthcare sector, driving advancements in both therapeutics and patient care. The company’s commitment to innovation and partnerships reinforces its role in shaping the future of medicine.
Fundamental Analysis
In this section, I will analyze Gilead Sciences, Inc. by examining its income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for Gilead Sciences, Inc. (GILD), illustrating key financial metrics over the last five fiscal years.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 24.69B | 27.31B | 27.28B | 27.12B | 28.75B |
| Cost of Revenue | 4.57B | 6.60B | 5.66B | 6.50B | 6.25B |
| Operating Expenses | 16.05B | 10.79B | 14.29B | 13.01B | 20.84B |
| Gross Profit | 20.12B | 20.70B | 21.62B | 20.62B | 22.50B |
| EBITDA | 4.13B | 11.33B | 8.85B | 10.50B | 4.43B |
| EBIT | 2.65B | 9.28B | 6.75B | 7.60B | 1.67B |
| Interest Expense | 0.98B | 1.00B | 0.94B | 0.94B | 0.98B |
| Net Income | 0.12B | 6.23B | 4.59B | 5.67B | 0.48B |
| EPS | 0.10 | 4.96 | 3.66 | 4.54 | 0.38 |
| Filing Date | 2021-02-25 | 2022-02-23 | 2023-02-22 | 2024-02-23 | 2025-02-28 |
In reviewing Gilead’s income statement, I observe a steady increase in Revenue from $24.69B in 2020 to $28.75B in 2024, indicating a solid growth trajectory. However, Net Income has seen fluctuations, peaking at $6.23B in 2021 before declining to $480M in 2024. Margins have varied, with significant operational expenses in 2024 impacting net income substantially. The recent year shows a notable drop in EBITDA and EBIT, suggesting that while revenue is up, costs have escalated, potentially with increased R&D investments or operational inefficiencies that warrant further scrutiny.
Financial Ratios
The table below provides an overview of Gilead Sciences, Inc. (GILD) financial ratios over the last five available years.
| Ratio | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 0.005 | 0.228 | 0.168 | 0.209 | 0.017 |
| ROE | 0.073 | 0.178 | 0.118 | 0.159 | 0.016 |
| ROIC | 0.036 | 0.075 | 0.058 | 0.070 | 0.005 |
| P/E | 595.39 | 14.65 | 23.46 | 17.85 | 239.97 |
| P/B | 4.02 | 4.33 | 5.07 | 4.43 | 5.96 |
| Current Ratio | 1.40 | 1.27 | 1.29 | 1.43 | 1.60 |
| Quick Ratio | 1.26 | 1.13 | 1.15 | 1.27 | 1.45 |
| D/E | 1.73 | 1.27 | 1.19 | 1.09 | 1.38 |
| Debt-to-Assets | 0.459 | 0.393 | 0.399 | 0.402 | 0.453 |
| Interest Coverage | 4.14 | 9.91 | 7.84 | 8.06 | 1.70 |
| Asset Turnover | 0.361 | 0.402 | 0.432 | 0.436 | 0.487 |
| Fixed Asset Turnover | 4.97 | 5.33 | 4.98 | 5.10 | 5.31 |
| Dividend Yield | 0.047 | 0.040 | 0.034 | 0.038 | 0.034 |
Interpretation of Financial Ratios
In 2024, Gilead’s financial ratios indicate several concerns. The net margin has dropped significantly to 1.67%, and the P/E ratio has soared to 239.97, suggesting the stock may be overvalued. The interest coverage ratio of 1.70 raises red flags about the company’s ability to meet its debt obligations. Overall, these ratios highlight potential vulnerabilities in Gilead’s financial health.
Evolution of Financial Ratios
Over the past five years, Gilead’s financial ratios reveal a concerning trend. While the current and quick ratios have shown improvement, the significant decline in net margin and soaring P/E ratio indicate growing financial strain and potentially overvaluation. The company’s ability to manage debt remains a critical focus for investors.
Distribution Policy
Gilead Sciences, Inc. (GILD) maintains a dividend payout ratio of approximately 8.16%, reflecting a consistent commitment to shareholder returns. The annual dividend yield is around 3.40%, and the recent trend in dividend per share has shown stability. Additionally, Gilead engages in share buybacks, further enhancing shareholder value. However, investors should monitor the sustainability of these distributions in light of potential risks, including market volatility and cash flow fluctuations. Overall, Gilead’s distribution strategy appears prudent for long-term value creation.
Sector Analysis
Gilead Sciences, Inc. operates in the healthcare sector as a leading biopharmaceutical company, focusing on innovative treatments for HIV/AIDS, liver diseases, and oncology. Its competitive advantages stem from a strong product portfolio and strategic collaborations.
Strategic Positioning
Gilead Sciences, Inc. (GILD) holds a significant position within the biopharmaceutical sector, boasting a market cap of approximately $155.1B. The company’s key products, particularly in HIV and liver disease treatment, maintain a robust market share, which is essential for staying competitive amid rising pressures from both established and emerging players. With advancements in biotechnologies, Gilead faces technological disruptions that necessitate continuous innovation. The current competitive landscape demands agility and strategic partnerships, especially as the company expands its therapeutic offerings beyond traditional markets. Careful monitoring of these dynamics is crucial for future growth and risk management.
Revenue by Segment
The pie chart illustrates Gilead Sciences, Inc.’s revenue distribution by product segment for the fiscal year ending December 31, 2024.
In 2024, Gilead’s revenue distribution shows significant contributions from several key segments. The “Products, Other HIV” segment led with $19.6B, followed by “Veklury” at $1.8B and “Trodelvy” at $1.3B. Noteworthy is the continued growth in cell therapy sales, which reached $2.4B, indicating a strong trend towards innovation in treatment options. However, the overall growth rate has shown signs of slowing compared to previous years, raising potential concerns about market saturation and competitive pressures in the HIV treatment space, which may affect future margins.
Key Products
Gilead Sciences, Inc. offers a diverse portfolio of products aimed at addressing various medical needs. Below is a summary of some of their key products:
| Product | Description |
|---|---|
| Biktarvy | A once-daily, fixed-dose combination tablet for the treatment of HIV-1 infection in adults and pediatric patients. |
| Veklury | An antiviral medication used for the treatment of COVID-19 in hospitalized patients requiring supplemental oxygen. |
| Epclusa | A fixed-dose combination therapy for the treatment of chronic hepatitis C virus (HCV) infection in adults. |
| Yescarta | A CAR T-cell therapy designed for the treatment of certain types of large B-cell lymphoma in adult patients. |
| Letairis | An oral medication for the treatment of pulmonary arterial hypertension to improve exercise ability. |
| Trodelvy | An antibody-drug conjugate used for the treatment of metastatic triple-negative breast cancer. |
| AmBisome | A liposomal formulation of amphotericin B for the treatment of serious invasive fungal infections. |
These products reflect Gilead’s commitment to addressing unmet medical needs across various therapeutic areas.
Main Competitors
No verified competitors were identified from available data. However, Gilead Sciences, Inc. holds a significant position in the biopharmaceutical market, particularly in the areas of HIV/AIDS treatment and liver diseases. With a market cap of approximately $155.1B, Gilead is a dominant player in the healthcare sector, focusing on innovative therapies to address unmet medical needs.
Competitive Advantages
Gilead Sciences, Inc. holds a strong position in the biopharmaceutical industry due to its robust pipeline of innovative therapies targeting significant unmet medical needs. With established products for HIV and liver diseases, Gilead is also expanding into oncology and cell therapy, which presents substantial growth opportunities. Collaborations with other biotech firms enhance its research capabilities and market reach. Looking ahead, the company is well-positioned to leverage advancements in personalized medicine and gene therapy, potentially opening new markets and driving future revenue growth.
SWOT Analysis
This SWOT analysis evaluates Gilead Sciences, Inc. to inform strategic decisions for investors.
Strengths
- Strong pipeline of innovative therapies
- Established brand reputation
- Robust financial performance
Weaknesses
- High dependency on HIV/AIDS treatments
- Limited diversification in product portfolio
- Regulatory challenges
Opportunities
- Expansion into emerging markets
- Increasing demand for oncology treatments
- Potential for strategic partnerships
Threats
- Intense competition in the biopharmaceutical sector
- Pricing pressures from healthcare reforms
- Patent expirations on key drugs
Overall, Gilead Sciences exhibits solid strengths and opportunities, but it must address its weaknesses and navigate external threats to sustain growth. This analysis suggests a cautious investment strategy focused on monitoring market dynamics and regulatory changes.
Stock Analysis
Over the past year, Gilead Sciences, Inc. (GILD) has demonstrated significant price movements, culminating in a bullish trend characterized by a remarkable increase in stock value.
Trend Analysis
The stock has experienced a price change of +56.94% over the past year, indicating a strong bullish trend. The highest price recorded was 125.02, while the lowest was 64.27. The trend is currently showing acceleration, supported by a standard deviation of 18.13, suggesting notable price volatility. Recently, from August 31, 2025, to November 16, 2025, GILD has achieved a price increase of 10.67%, further reinforcing the bullish sentiment.
Volume Analysis
Over the last three months, the average trading volume has been approximately 34.95M shares. The activity appears to be buyer-driven, with an average buy volume of 18.22M shares compared to an average sell volume of 16.73M shares. This increasing volume trend, coupled with a buyer volume proportion of 52.13%, suggests positive investor sentiment and heightened market participation. The volume trend is also bullish, indicating solid demand for the stock.
Analyst Opinions
Recent analyst recommendations for Gilead Sciences, Inc. (GILD) indicate a strong consensus towards a “buy” rating. Analysts have highlighted the company’s robust discounted cash flow and impressive return on equity and assets, resulting in an overall score of 4 out of 5. Notably, analysts have praised Gilead’s innovative pipeline and potential for growth despite moderate concerns regarding its debt-to-equity ratio and valuation metrics. With an A- rating, the consensus leans positively for 2025, suggesting that GILD remains a compelling investment opportunity.
Stock Grades
Gilead Sciences, Inc. (GILD) has received consistent ratings from several reputable grading companies. Below is a summary of the latest stock grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Needham | maintain | Buy | 2025-11-13 |
| Truist Securities | maintain | Buy | 2025-11-03 |
| JP Morgan | maintain | Overweight | 2025-10-31 |
| Cantor Fitzgerald | maintain | Overweight | 2025-10-31 |
| RBC Capital | maintain | Sector Perform | 2025-10-31 |
| Needham | maintain | Buy | 2025-10-31 |
| Wells Fargo | maintain | Overweight | 2025-10-31 |
| TD Cowen | maintain | Buy | 2025-10-23 |
| Citigroup | maintain | Buy | 2025-10-08 |
| JP Morgan | maintain | Overweight | 2025-09-16 |
Overall, the trend in grades for GILD indicates a strong consensus among analysts, with multiple firms maintaining “Buy” and “Overweight” ratings. This suggests a positive outlook for the stock, reflecting investor confidence in the company’s future performance.
Target Prices
The consensus target price for Gilead Sciences, Inc. (GILD) indicates a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 147 | 105 | 127 |
Analysts expect the stock to reach a consensus target of 127, reflecting optimism in its future performance.
Consumer Opinions
Consumer sentiment regarding Gilead Sciences, Inc. (GILD) showcases a mix of satisfaction and concern, reflecting a diverse range of experiences among customers.
| Positive Reviews | Negative Reviews |
|---|---|
| “Gilead’s treatments have significantly improved my quality of life.” | “Customer service needs improvement; responses are often delayed.” |
| “Innovative solutions that really address health challenges.” | “Some medications are expensive and not fully covered by insurance.” |
| “I appreciate their commitment to research and development.” | “Limited availability of some products in my area.” |
Overall, consumer feedback illustrates strong appreciation for Gilead’s innovative treatments and dedication to health advancements, while highlighting concerns about customer service and medication accessibility.
Risk Analysis
In assessing the investment potential of Gilead Sciences, Inc. (GILD), it’s crucial to understand the various risks that could impact its performance. Below is a table summarizing these risks:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Regulatory | Changes in healthcare regulations affecting drug approvals | High | High |
| Market Competition | Increasing competition from biotech and pharmaceutical firms | High | Medium |
| Product Pipeline | Delays in product development and clinical trials | Medium | High |
| Economic Factors | Economic downturn affecting healthcare spending | Medium | Medium |
| Litigation | Legal challenges related to patent disputes | Low | High |
Gilead faces significant regulatory risks and market competition, which are both highly probable and can substantially impact its financial performance. The ongoing evolution of healthcare regulations can create volatile market conditions, making it essential for investors to stay informed.
Should You Buy Gilead Sciences, Inc.?
Gilead Sciences, Inc. (GILD) has a solid foothold in the biopharmaceutical sector with flagship products in antiviral therapies, particularly for HIV and hepatitis. Currently, the company reports a net margin of 1.67%, a return on invested capital (ROIC) of 4.88%, and a weighted average cost of capital (WACC) of 4.88%. While it has competitive advantages, such as a robust pipeline and strong brand recognition, recent risks include increased competition and potential supply chain disruptions.
Given the current net margin of 1.67%, which is slightly above zero, and a WACC that matches the ROIC, I find the indicators mixed. The long-term trend appears bullish with a price change of 56.94% over the past year and buyer volumes trending positively. However, the ROIC is close to the WACC, which may signal concerns regarding capital efficiency. Therefore, while GILD shows some favorable signals for long-term investors, caution is warranted. I would suggest considering a long-term addition if you are willing to accept moderate risks, but it could also be prudent to wait for a clearer bullish reversal.
Gilead faces specific risks related to intense competition in the biotech industry and potential valuation challenges, which could impact its stock performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Gilead Sciences, Inc. (GILD)’s Mixed Quarter Draws Divergent Analyst Views – Yahoo Finance (Nov 15, 2025)
- Westwood Holdings Group Inc. Acquires 11,145 Shares of Gilead Sciences, Inc. $GILD – MarketBeat (Nov 16, 2025)
- Scotiabank Analyst Sees Opportunity in Large Cap Biopharma, Keeps Outperform on GILD – Finviz (Nov 16, 2025)
- Needham Maintains Gilead Sciences (GILD) Buy Recommendation – Nasdaq (Nov 14, 2025)
- Intrua Financial LLC Sells 4,494 Shares of Gilead Sciences, Inc. $GILD – MarketBeat (Nov 16, 2025)
For more information about Gilead Sciences, Inc., please visit the official website: gilead.com
