GILEAD SCIENCES, INC. (GILD)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look fairly priced because solid cash generation is offset by costly pipeline bets.

Because the research time was before Monday's open, the latest completed session was August 14: $138.36. With 1.241 billion shares, that implies a $171.7 billion market value. Free cash flow—cash left after running and investing in the business—was $9.46 billion in 2025 and $12.94 billion over the latest four quarters. The price is therefore about 18 times the lower, steadier figure, or 13 times the recent figure. Neither is extreme; the 2.4% dividend yield and higher debt support a Fair-priced verdict.

Big pictureReliable medicine sales and cash flows are growing, but drug replacement remains essential.

Revenue climbed from $24.7 billion in 2020 to $29.4 billion in 2025, roughly 3.6% yearly growth, while annual operating cash stayed between $8.0 billion and $11.4 billion. Second-quarter 2026 revenue then rose 10% to $7.8 billion and operating cash reached $3.6 billion, despite a $10.5 billion accounting loss driven mainly by acquired research. Medicine demand is not very tied to recessions, but results remain product-cyclical: COVID treatment sales fade, patents expire, and trial outcomes decide whether newer cancer and human immunodeficiency virus products replace them.

Business strengthCash comfortably funds shareholder payments, although recent purchases have weakened the balance sheet.

At June 2026, cash was $3.18 billion versus $26.25 billion of debt, leaving $23.07 billion of net debt, up from $17.37 billion at year-end 2025 after acquisitions. Current assets of $13.95 billion still exceeded current liabilities of $11.02 billion. In 2025, $9.46 billion of free cash flow covered $4.00 billion of dividends and $1.92 billion of buybacks. Shares fell only 1% from 2020, so buybacks mostly offset employee-stock dilution; $894 million of 2025 stock compensation remains a real owner cost. The balance sheet is serviceable, not conservative.

What could change the storyNew medicines must succeed for today’s price and heavier debt load to remain justified.

The bull case needs the core human immunodeficiency virus franchise, Trodelvy and Livdelzi to keep expanding while acquired cancer and inflammation programs become profitable medicines. The bear case is that roughly $12 billion of announced upfront acquisition values produce weak returns while interest and dividends consume cash. At today's price, a reasonable inferred requirement is sustained annual free cash flow near $10–13 billion plus modest growth. Approval and uptake of anito-cel, weekly lenacapavir regimens and first-line Trodelvy would help; cash flow below $9 billion or net debt staying above $20 billion would weaken the case.

$138.36 price considered

AI: News

Quarterly sales beatStrong medicine sales beat expectations, while acquisition charges caused a large accounting loss.

On August 4, Gilead reported second-quarter revenue of $7.80 billion, up 10% and above the $7.40 billion analyst estimate cited by Reuters. Sales excluding Veklury rose 10% to $7.6 billion, while acquisition-related research charges drove a $10.50 billion net loss. Management raised full-year product-sales guidance to $30.1–$30.4 billion. Shares closed 2.6% lower on August 5, but timing alone cannot establish that the results caused the move.

Pipeline acquisition spreeThree pipeline purchases broadened future growth options but sharply increased debt and execution risk.

Arcellx closed April 28 for about $7.1 billion cash beyond Gilead’s existing stake; Tubulis closed May 21 for $3.15 billion upfront plus up to $1.85 billion; Ouro closed June 4 for $1.675 billion upfront, shared equally with Lakefront, plus milestones. By June 30, cash had fallen $4.45 billion from March and debt had risen $4.07 billion. Reported figures show the balance-sheet cost; it is an inference that future value depends on anito-cel and early cancer and inflammation assets earning more than their purchase and financing costs.

Trodelvy moves first-lineA major cancer approval expands Trodelvy into earlier treatment, potentially increasing its reachable market.

On June 24, the Food and Drug Administration approved Trodelvy as first treatment for advanced triple-negative breast cancer, alone for patients unsuitable for immune therapy or with Keytruda for qualifying tumors. In the supporting late-stage studies, Trodelvy regimens reduced the risk of disease worsening or death by 38% and 35% versus the comparison treatments. This expands use earlier in care, where more patients are treated, but sales impact still depends on physician adoption, reimbursement and competition.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$29.44B	$28.75B	$27.12B	$27.28B	$27.30B	$24.69B	$22.45B	$22.13B	$26.11B	$30.39B	$32.64B	$24.89B	$11.20B	$9.70B	$8.39B	$7.95B	$7.01B	$5.34B	$4.23B
Research & development	$5.80B	$5.91B	$5.72B	$4.98B	$4.60B	$4.93B	$4.05B	$3.92B	$3.73B	$5.10B	$3.01B	$2.85B	$2.12B	$1.76B	$1.23B	$1.07B	$939.9M	$721.8M	$591.0M
Operating income	$10.02B	$1.66B	$7.61B	$7.33B	$9.92B	$4.07B	$4.29B	$8.20B	$14.12B	$17.63B	$22.19B	$15.27B	$4.52B	$4.01B	$3.79B	$3.96B	$3.53B	$2.68B	$2.16B
EBITDAderived	$12.79B	$4.44B	$10.26B	$9.45B	$11.95B	$5.56B	—	—	—	—	—	—	—	$4.16B	$3.93B	$4.09B	—	—	—
Net income	$8.51B	$480.0M	$5.67B	$4.59B	$6.22B	$123.0M	$5.39B	$5.46B	$4.63B	$13.50B	$18.11B	$12.10B	$3.08B	$2.59B	$2.80B	$2.90B	$2.64B	$1.98B	$1.58B
Basic EPSper diluted share	$6.84	$0.38	$4.54	$3.66	$4.96	$0.10	$4.24	$4.20	$3.54	$10.08	$12.37	$7.95	$2.01	$1.71	$1.81	$1.69	$2.91	$2.15	$1.71
Diluted EPSper diluted share	$6.78	$0.38	$4.50	$3.64	$4.93	$0.10	$4.22	$4.17	$3.51	$9.94	$11.91	$7.35	$1.81	$1.64	$1.77	$1.66	$2.82	$2.06	$1.64

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)105$163.95M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 15, 2026Form 4 · 10b5-1	Mercier JohannaChief Comm & Corp Aff Officer	SellCommon Stock	450	$125.40	$56.4K	124.2K
Jun 15, 2026Form 4 · 10b5-1	Mercier JohannaChief Comm & Corp Aff Officer	SellCommon Stock	1.1K	$124.00	$132.7K	124.7K
Jun 15, 2026Form 4 · 10b5-1	Mercier JohannaChief Comm & Corp Aff Officer	SellCommon Stock	1.5K	$123.42	$182.7K	125.8K
Jun 15, 2026Form 4 · 10b5-1	Dickinson Andrew DChief Financial Officer	SellCommon Stock	3.0K	$125.40	$376.2K	171.6K
Jun 1, 2026Form 4 · 10b5-1	O'Day Daniel PatrickChairman & CEO	SellCommon Stock	1.0K	$132.97	$138.0K	617.6K

Review ownership filings at SEC.gov ↗

GILEAD SCIENCES, INC. (GILD)

Financial charts

Financial statements

Insider buys & sells