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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
33.5%
Sector: -43.5%
Dividend Analysis audit
INCOME
2.83%
Trailing Yield
$2.83
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
66%MID
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, GILEAD SCIENCES, INC. (GILD) receives a "Hold" rating with a composite score of 52.5/100, ranked #604 out of 4446 stocks. Key factor scores: Quality 50/100, Value 60/100, Momentum 61/100. This is quantitative analysis only — not investment advice.
GILEAD SCIENCES, INC. (GILD) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does GILEAD SCIENCES, INC. Do?
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, an injection for intravenous use, for the treatment of coronavirus disease 2019; and Epclusa, Harvoni, Vosevi, Vemlidy, and Viread for the treatment of liver diseases. It also offers Yescarta, Tecartus, Trodelvy, and Zydelig products for the treatment of hematology, oncology, and cell therapy patients. In addition, the company provides Letairis, an oral formulation for the treatment of pulmonary arterial hypertension; Ranexa, an oral formulation for the treatment of chronic angina; and AmBisome, a liposomal formulation for the treatment of serious invasive fungal infections. Gilead Sciences, Inc. has collaboration agreements with Arcus Biosciences, Inc.; Pionyr Immunotherapeutics Inc.; Tizona Therapeutics, Inc.; Tango Therapeutics, Inc.; Jounce Therapeutics, Inc.; Galapagos NV; Janssen Sciences Ireland Unlimited Company; Japan Tobacco, Inc.; Gadeta B.V.; Bristol-Myers Squibb Company; and Merck & Co, Inc. The company was incorporated in 1987 and is headquartered in Foster City, California. GILEAD SCIENCES, INC. (GILD) is classified as a large-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Daniel P. O'Day and employs approximately 17,000 people, headquartered in Foster City, California. With a market capitalization of $174.1B, GILD is one of the prominent companies in the Healthcare sector.
GILEAD SCIENCES, INC. (GILD) Stock Rating — Hold (April 2026)
As of April 2026, GILEAD SCIENCES, INC. receives a Hold rating with a composite score of 52.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GILD ranks #604 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, GILEAD SCIENCES, INC. ranks #32 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GILD Stock Price and 52-Week Range
GILEAD SCIENCES, INC. (GILD) currently trades at $141.21. The stock lost $0.88 (0.6%) in the most recent trading session. The 52-week high for GILD is $157.29, which means the stock is currently trading -10.2% from its annual peak. The 52-week low is $93.37, putting the stock 51.2% above its annual trough. Recent trading volume was 4.4M shares, reflecting moderate market activity.
Is GILD Overvalued or Undervalued? — Valuation Analysis
GILEAD SCIENCES, INC. (GILD) carries a value factor score of 60/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 23.18x, compared to the Healthcare sector average of 23.63x — a discount of 2%. The price-to-book ratio stands at 7.77x, versus the sector average of 2.75x. The price-to-sales ratio is 6.04x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, GILD trades at 22.48x EV/EBITDA, versus 6.34x for the sector.
Overall, GILD's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
GILEAD SCIENCES, INC. Profitability — ROE, Margins, and Quality Score
GILEAD SCIENCES, INC. (GILD) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 33.5%, compared to the Healthcare sector average of -43.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 12.8% versus the sector average of -33.1%.
On a margin basis, GILEAD SCIENCES, INC. reports gross margins of 78.7%, compared to 71.5% for the sector. The operating margin is 30.8% (sector: -66.1%). Net profit margin stands at 25.8%, versus -58.7% for the average Healthcare stock. Revenue growth is running at 11.7% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
GILD Debt, Balance Sheet, and Financial Health
GILEAD SCIENCES, INC. has a debt-to-equity ratio of 110.0%, compared to the Healthcare sector average of 32.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.55x, suggesting adequate working capital coverage. Total debt on the balance sheet is $24.94B. Cash and equivalents stand at $7.33B.
GILD has a beta of 0.37, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for GILEAD SCIENCES, INC. is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
GILEAD SCIENCES, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, GILEAD SCIENCES, INC. reported revenue of $29.06B and earnings per share (EPS) of $6.84. Net income for the quarter was $7.58B. Gross margin was 78.7%. Operating income came in at $8.93B.
In FY 2025, GILEAD SCIENCES, INC. reported revenue of $29.44B and earnings per share (EPS) of $6.84. Net income for the quarter was $8.51B. Gross margin was 78.8%. Revenue grew 2.4% year-over-year compared to FY 2024. Operating income came in at $10.02B.
In Q3 2025, GILEAD SCIENCES, INC. reported revenue of $7.77B and earnings per share (EPS) of $2.46. Net income for the quarter was $3.05B. Gross margin was 79.8%. Revenue grew 3.0% year-over-year compared to Q3 2024. Operating income came in at $3.33B.
In Q2 2025, GILEAD SCIENCES, INC. reported revenue of $7.08B and earnings per share (EPS) of $1.57. Net income for the quarter was $1.96B. Gross margin was 78.8%. Revenue grew 1.8% year-over-year compared to Q2 2024. Operating income came in at $2.47B.
Over the past 8 quarters, GILEAD SCIENCES, INC. has demonstrated a growth trajectory, with revenue expanding from $6.95B to $29.06B. Investors analyzing GILD stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GILD Dividend Yield and Income Analysis
GILEAD SCIENCES, INC. (GILD) currently pays a dividend yield of 2.8%. At this yield, a $10,000 investment in GILD stock would generate approximately $$283.00 in annual dividend income. With a net margin of 25.8%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
GILD Momentum and Technical Analysis Profile
GILEAD SCIENCES, INC. (GILD) has a momentum factor score of 61/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GILD vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing GILD against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GILD vs S&P 500 (SPY) comparison to assess how GILEAD SCIENCES, INC. stacks up against the broader market across all factor dimensions.
GILD Next Earnings Date
No upcoming earnings date has been announced for GILEAD SCIENCES, INC. (GILD) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GILD? — Investment Thesis Summary
GILEAD SCIENCES, INC. presents a balanced picture with arguments on both sides. The value score of 60/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 61/100, suggesting the trend favors buyers. Low volatility (stability score 85/100) reduces downside risk.
In summary, GILEAD SCIENCES, INC. (GILD) earns a Hold rating with a composite score of 52.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GILD stock.
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Institutional Research Dossier
GILEAD SCIENCES, INC. (GILD) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Gilead Sciences, Inc. currently holds a BCR Action Rating of Hold, a reflection of its mixed profile. While the company exhibits strong profitability and attractive valuation multiples compared to its sector, concerns arise from its relatively weak investment score, indicating potential challenges in capital allocation and growth prospects. The current rating suggests that the market has largely priced in Gilead's strengths and weaknesses, warranting a neutral stance for now.
The primary takeaway is that Gilead's future performance hinges on its ability to effectively deploy capital into promising growth opportunities, particularly within its oncology and cell therapy segments, to offset potential declines in its legacy HIV franchise. Investors should closely monitor the company's pipeline progress, strategic acquisitions, and ability to generate sustainable revenue growth to reassess its long-term investment potential.
Business Strategy & Overview
Gilead Sciences operates as a biopharmaceutical company focused on discovering, developing, and commercializing medicines for unmet medical needs. Its core business revolves around developing and selling treatments for HIV/AIDS, liver diseases, and hematology/oncology. The company's revenue streams are primarily generated through the sales of its proprietary drugs, including Biktarvy (HIV), Veklury (COVID-19), and Yescarta (oncology). Gilead's strategic positioning involves a multi-pronged approach: maintaining its leadership in the HIV market, expanding its presence in oncology and cell therapy, and exploring new therapeutic areas through internal research and development, as well as strategic collaborations and acquisitions.
Gilead's product pipeline is a critical component of its long-term growth strategy. The company invests heavily in R&D to develop new drugs and expand the indications of its existing products. Key areas of focus include oncology, inflammation, and virology. Gilead actively pursues collaborations with other companies to access innovative technologies and expand its pipeline. These collaborations often involve licensing agreements, joint development programs, and strategic investments.
The pharmaceutical industry is characterized by intense competition, high regulatory hurdles, and significant R&D costs. Gilead competes with other large pharmaceutical companies, as well as smaller biotech firms, in each of its therapeutic areas. The company's success depends on its ability to develop innovative drugs, obtain regulatory approvals, and effectively market its products. Patent protection is crucial for maintaining market exclusivity and generating returns on investment. However, patents eventually expire, leading to generic competition and price erosion.
Gilead's strategic decisions regarding capital allocation are crucial for its long-term success. The company must balance investments in R&D, acquisitions, and shareholder returns. Gilead has historically used its strong cash flow to repurchase shares and pay dividends. However, the company has also made significant acquisitions to expand its pipeline and diversify its revenue streams. The success of these acquisitions will be critical for driving future growth.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
11.7%
Sector: 10.6%
+10% VS SCTR
Economic Moat Analysis
Gilead possesses a narrow economic moat, primarily stemming from intangible assets in the form of patents and regulatory exclusivity surrounding its key drugs. The pharmaceutical industry inherently benefits from patent protection, which grants companies exclusive rights to manufacture and sell their drugs for a defined period. This exclusivity allows Gilead to command premium pricing and generate substantial profits. However, these patents eventually expire, exposing the company to generic competition and eroding its pricing power.
The strength of Gilead's moat is further supported by the brand recognition and physician familiarity associated with its established HIV franchise. Biktarvy, Genvoya, and other HIV drugs have become standard treatments, creating a degree of customer loyalty and inertia. However, this advantage is not insurmountable, as new and improved therapies from competitors can gradually gain market share. The company's success in maintaining its market leadership in HIV will depend on its ability to innovate and develop next-generation treatments.
Switching costs in the pharmaceutical industry are relatively low, as patients can easily switch to alternative therapies if they are more effective or less expensive. This limits Gilead's ability to retain customers solely based on brand loyalty. The company must continuously demonstrate the clinical superiority and cost-effectiveness of its drugs to maintain its competitive position. Furthermore, the increasing focus on value-based healthcare and the rise of biosimilars are putting pressure on pharmaceutical companies to justify their prices.
Gilead's moat is not wide due to the inherent risks and uncertainties associated with drug development. The company faces the constant threat of clinical trial failures, regulatory setbacks, and the emergence of competing therapies. Furthermore, the pharmaceutical industry is subject to intense regulatory scrutiny and pricing pressures. These factors limit Gilead's ability to generate consistently high returns on invested capital over the long term. The company's future success will depend on its ability to effectively manage these risks and develop a pipeline of innovative drugs that can sustain its growth.
Financial Health & Profitability
Gilead's financial health presents a mixed picture. The company boasts strong profitability metrics, with a TTM net income of $8.51 billion and a net margin of 25.8%, significantly outperforming the healthcare sector average of -54.1%. Its gross margin of 78.7% and operating margin of 30.8% also demonstrate efficient cost management and pricing power. However, the company's debt-to-equity ratio of 110.00 is considerably higher than the sector average of 30.00, indicating a relatively leveraged balance sheet.
Analyzing the quarterly financial history reveals a volatile earnings trend. While FY2025 shows a strong rebound in net income compared to FY2024, the latter was significantly impacted by a large loss in Q1. This volatility highlights the inherent risks associated with the pharmaceutical industry, including clinical trial failures, regulatory setbacks, and patent expirations. The consistent gross margin performance across the quarters suggests a stable pricing environment for Gilead's key products.
Revenue growth has been positive, with a TTM revenue of $29.44 billion representing an 11.7% increase compared to the previous year. This growth rate is slightly above the healthcare sector average of 10.7%. However, the sustainability of this growth is uncertain, as it depends on the continued success of Gilead's existing products and the successful launch of new drugs. The lack of free cash flow data makes it difficult to assess the company's ability to generate cash from its operations and fund future investments.
The current ratio of 1.55 indicates a healthy level of liquidity, suggesting that Gilead has sufficient current assets to cover its short-term liabilities. However, the high debt-to-equity ratio raises concerns about the company's long-term solvency. Gilead's ability to manage its debt burden and generate consistent cash flow will be crucial for maintaining its financial health and funding its growth initiatives. The company's capital allocation decisions, including R&D spending, acquisitions, and share repurchases, will play a critical role in shaping its future financial performance.
Valuation Assessment
Gilead's valuation appears attractive relative to its sector, based on several key metrics. The company's P/E ratio of 20.1x is lower than the healthcare sector average of 24.3x, suggesting that the stock is undervalued compared to its peers. Similarly, its EV/EBITDA ratio of 4.9x is significantly lower than the sector average of 6.4x, further indicating a potential undervaluation. These metrics suggest that the market may be discounting Gilead's future growth prospects or assigning a higher risk premium to its earnings.
However, it's important to consider Gilead's historical valuation trends and its growth prospects when assessing its current valuation. The company's P/E ratio has fluctuated significantly over time, reflecting changes in its earnings and investor sentiment. The current P/E ratio is within its historical range, but it's not necessarily indicative of a bargain. The company's future growth will depend on its ability to develop and commercialize new drugs, as well as its success in managing the decline of its legacy products.
The lack of free cash flow data makes it difficult to assess Gilead's valuation using traditional discounted cash flow (DCF) analysis. However, the company's strong profitability and cash flow generation suggest that it has the potential to generate significant free cash flow in the future. If Gilead can successfully execute its growth strategy and maintain its profitability, its stock price could appreciate significantly. However, if the company fails to meet expectations, its stock price could decline.
Overall, Gilead's valuation appears reasonable, but it's not necessarily a screaming buy. The stock is trading at a discount to its sector, but this discount may be justified by the company's slower growth prospects and higher risk profile. Investors should carefully consider Gilead's growth potential, competitive landscape, and regulatory environment before making an investment decision. The company's ability to execute its strategy and generate consistent earnings growth will be crucial for driving its stock price higher.
Risk & Uncertainty
Gilead faces several specific risks that could negatively impact its business and financial performance. One of the most significant risks is the potential for generic competition to erode the sales of its key drugs. As patents expire, generic manufacturers can enter the market with lower-priced versions of Gilead's drugs, leading to a decline in revenue and profitability. The company must continuously innovate and develop new drugs to offset the impact of generic competition.
Another significant risk is the uncertainty surrounding the regulatory environment. The pharmaceutical industry is subject to intense regulatory scrutiny, and changes in regulations can have a significant impact on Gilead's business. For example, changes in drug pricing regulations could limit the company's ability to charge premium prices for its drugs. Furthermore, delays in regulatory approvals for new drugs could delay their launch and reduce their potential sales.
Gilead also faces the risk of clinical trial failures. The development of new drugs is a complex and risky process, and many drugs fail to make it through clinical trials. A failure in a key clinical trial could significantly impact Gilead's pipeline and reduce its future growth prospects. The company must carefully manage its clinical trial programs and diversify its pipeline to mitigate this risk.
Finally, Gilead faces the risk of competition from other pharmaceutical companies. The pharmaceutical industry is highly competitive, and Gilead competes with other large pharmaceutical companies, as well as smaller biotech firms. The company must continuously innovate and develop new drugs to maintain its competitive position. Furthermore, the company must effectively market its products to gain market share.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGilead's strong HIV franchise provides a stable and predictable revenue stream, allowing the company to invest in new growth areas like oncology and cell therapy.
BULL VIEWThe company's attractive valuation multiples, particularly its low P/E and EV/EBITDA ratios compared to the sector, suggest that the stock is undervalued and has significant upside potential.
BULL VIEWGilead's strategic acquisitions and collaborations are expanding its pipeline and diversifying its revenue streams, positioning the company for long-term growth.
The Bear Case
BEAR VIEWGilead's reliance on its HIV franchise makes it vulnerable to competition from new and improved therapies, potentially leading to a decline in revenue and profitability.
BEAR VIEWThe company's high debt-to-equity ratio raises concerns about its financial flexibility and ability to fund future acquisitions and R&D investments.
BEAR VIEWThe inherent risks and uncertainties associated with drug development, including clinical trial failures and regulatory setbacks, could significantly impact Gilead's future growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GILD and 4,400+ other equities.
GILEAD SCIENCES, INC. exhibits a 175% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
12.8%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
78.7%
Sector: 71.5%
Operating Margin
Core business profitability
30.8%
Sector: -66.1%
Net Margin
Bottom-line profitability
25.8%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $283 annually in dividends at the current trailing rate.
