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HealthcareGilead Sciences
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XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.2B | $5.3B | $7.0B | $7.9B | $8.4B | $9.7B | $11.2B | $24.9B | $32.6B | $30.4B | $26.1B | $22.1B | $22.4B | $24.7B | $27.3B | $27.3B | $27.1B | $28.8B | $29.4B | +2.4% |
| Gross Profit | $3.5B | $4.2B | $5.4B | $6.1B | $6.3B | $7.2B | $8.3B | $21.1B | $28.6B | $26.1B | $21.7B | $17.3B | $17.8B | $20.1B | $20.7B | $21.6B | $20.6B | $22.5B | $23.2B | +3.1% |
| Gross Margin | 81.8% | 78.9% | 77.2% | 76.5% | 74.7% | 74.5% | 74.5% | 84.8% | 87.7% | 86.0% | 83.3% | 78.1% | 79.2% | 81.5% | 75.8% | 79.3% | 76.0% | 78.3% | 78.8% | +0.6pp |
| Operating Income | $2.2B | $2.7B | $3.5B | $4.0B | $3.8B | $4.0B | $4.5B | $15.3B | $22.2B | $17.6B | $14.1B | $8.2B | $4.3B | $4.1B | $9.9B | $7.3B | $7.6B | $1.7B | $10.0B | +503.0% |
| Operating Margin | 51.2% | 50.2% | 50.3% | 49.8% | 45.2% | 41.3% | 40.4% | 61.3% | 68.0% | 58.0% | 54.1% | 37.1% | 19.1% | 16.5% | 36.3% | 26.9% | 28.0% | 5.8% | 34.0% | +28.3pp |
| Net Income | $1.6B | $2.0B | $2.6B | $2.9B | $2.8B | $2.6B | $3.1B | $12.1B | $18.1B | $13.5B | $4.6B | $5.5B | $5.4B | $123.0M | $6.2B | $4.6B | $5.7B | $480.0M | $8.5B | +1672.9% |
| Net Margin | 37.5% | 37.1% | 37.6% | 36.5% | 33.4% | 26.7% | 27.4% | 48.6% | 55.5% | 44.4% | 17.7% | 24.7% | 24.0% | 0.5% | 22.8% | 16.8% | 20.9% | 1.7% | 28.9% | +27.2pp |
| Free Cash Flow | $1.6B | $2.0B | $2.8B | $2.8B | $3.5B | $2.8B | $3.0B | $12.3B | $19.6B | $15.9B | $11.3B | $7.5B | $8.3B | $7.5B | $10.8B | $8.3B | $7.4B | $10.3B | $9.5B | -8.2% |
| FCF Margin | 37.6% | 38.0% | 40.6% | 34.9% | 41.8% | 28.8% | 26.5% | 49.3% | 60.0% | 52.4% | 43.3% | 33.8% | 37.1% | 30.5% | 39.6% | 30.6% | 27.4% | 35.8% | 32.1% | -3.7pp |
| EPS (Diluted) | $1.64 | $2.06 | $2.82 | $3.32 | $3.55 | $1.64 | $1.81 | $7.35 | $11.91 | $9.94 | $3.51 | $4.17 | $4.22 | $0.10 | $4.93 | $3.64 | $4.50 | $0.38 | $6.78 | +1684.2% |
1. THE BIG PICTURE
Gilead Sciences is a biopharmaceutical powerhouse in transition, currently functioning as a high-margin cash machine for its shareholders while racing to diversify beyond its maturing HIV franchise. While it leads its peer group in converting sales to cash, Gilead Sciences faces a structural "cliff" in 2028 when its primary revenue driver, Biktarvy, loses its pricing autonomy to federal mandate.
2. WHERE THE RISKS HIT HARDEST
Gilead’s "first-in-class" therapeutic leadership is directly threatened by the Inflation Reduction Act because the Department of Health and Human Services has already selected Biktarvy for price negotiations (10-K Item 1A). Management expects these negotiated prices to be "substantially lower" than current rates, which could erode the 26.1% net margin Gilead Sciences currently enjoys (XBRL).
Furthermore, Gilead’s operational stability is threatened by extreme wholesaler concentration. Because 90% of U.S. gross product sales flow through just three distributors—Cardinal Health, Cencora, and McKesson—any mismatch between their inventory levels and actual patient demand creates artificial volatility in Gilead’s quarterly earnings (10-K Item 1A). This concentration makes Gilead Sciences’s 30.7% operating margin more fragile than the headline number suggests.
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company that is exceptionally efficient but relatively stagnant. Gilead ranks first among its peers in Free Cash Flow (FCF) margin at 36.1%, yet it ranks near the bottom in revenue growth at just 2.4% (Peer Benchmarking). This suggests that while Gilead is a master at extracting profit from its existing portfolio, it is struggling to find new engines of expansion.
Recent results show a divergence in the growth narrative. While the fourth quarter of 2025 saw a 5% revenue increase—outpacing the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter average—this was largely driven by a 33% surge in Descovy and 17% growth in liver disease (8-K). Conversely, the high-tech Cell Therapy segment declined 6%, citing competitive headwinds. This decline is particularly concerning because Gilead has invested heavily in in-house manufacturing for this segment, and any inability to scale capacity or maintain demand risks future impairment charges similar to the one taken after the Phase 3 EVOKE-01 study failure.
4. IS IT WORTH IT AT THIS PRICE?
At a Forward P/E of 15.4x, Gilead Sciences is trading exactly in line with the peer median (Peer Benchmarking). According to the market-implied growth analysis, this valuation suggests investors are pricing in a long-term growth rate of just 0.1% (CAPM analysis).
This "fair value" assessment is justified by Gilead Sciences's fundamentals. While Gilead’s 78.7% gross margin is the second-highest in its peer group, its revenue growth (+2.4%) lags significantly behind faster-growing peers like Amgen (+10.0%) and Vertex (+8.9%). The market is effectively giving Gilead credit for its massive $9.46B in annual free cash flow but refusing to pay a premium because of the 2028 Biktarvy price cliff. If long-term growth were to align even with modest GDP expectations of 2.5%, the justified multiple would jump to 24.6x (CAPM analysis). However, there is currently no evidence in the pipeline results to support such a re-rating.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the Cell Therapy segment (Yescarta and Tecartus) reverses its 6% decline and returns to double-digit growth, proving the oncology pivot is gaining traction.
- Cautious if 2026 product sales fall toward the lower end of the $29.6 billion guidance range, suggesting the HIV portfolio is peaking earlier than anticipated.
- Cautious if Gilead Sciences reports further impairment charges related to its R&DR&DResearch & Development — spending on creating new products or technologies pipeline, signaling that its "strategic collaborations" are failing to yield commercial results.
6. BOTTOM LINE
Structural Advantage: Dominant HIV market share protected by enforceable patents and a peer-leading 36.1% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin that funds aggressive shareholder returns.
Bottom Line: Gilead is a high-yielding defensive play that will remain range-bound until it proves it can grow the business faster than regulators can cut its prices.
1. Top 5 Material Risks
- Medicare Price Negotiation: Under the Inflation Reduction Act, the Department of Health and Human Services selected Biktarvy for price negotiation effective in 2028. Gilead Sciences anticipates these negotiated prices will be substantially lower than current Medicare rates, potentially leading to increased Medicaid rebates and reduced ceiling prices for 340B-covered entities.
- Wholesaler Concentration: Approximately 90% of gross product sales in the U.S. are concentrated among three wholesalers: Cardinal Health, Inc., Cencora, Inc., and McKesson Corporation. Mismatches between these wholesalers' inventory levels and actual end-user demand can cause unexpected fluctuations in operating results.
- Clinical Trial Failure: Gilead Sciences faces a high rate of failure in drug development, as evidenced by the Phase 3 EVOKE-01 study for sacituzumab govitecan-hziy failing to meet its primary endpoint, which necessitated an impairment charge in the first quarter of 2024.
- Cell Therapy Manufacturing: Gilead Sciences relies on complex, in-house manufacturing for Yescarta and Tecartus. Any quality issues, delays, or inability to scale capacity to meet demand could damage Gilead Sciences's reputation and financial results.
- Pricing and Reimbursement Pressures: As products mature, Gilead Sciences faces consistent downward pressure on net product prices from private insurers and government payers, compounded by legislative actions like the OBBB Act, which may decrease patient enrollment in ACA exchange plans.
2. Company-Specific Risks
- Contract Pharmacy Integrity Initiative: Gilead Sciences’ implementation of an integrity initiative for its branded hepatitis C virus products has led to legal and administrative disputes with the U.S. Department of Health and Human Services, creating potential for civil monetary penalties.
- Geographic Concentration of Facilities: Gilead Sciences’s corporate headquarters and critical R&DR&DResearch & Development — spending on creating new products or technologies and manufacturing facilities are located in California, a region prone to earthquakes and wildfires, which could cause prolonged operational interruptions.
- Counterfeit Supply Chain: Gilead Sciences has identified and seized thousands of bottles of Gilead-labeled medication with counterfeit supply chain documentation sold to independent pharmacies, posing risks to patient safety and company reputation.
- Capital Investment Risks: Gilead Sciences has committed to a $32 billion investment in U.S. manufacturing and R&DR&DResearch & Development — spending on creating new products or technologies through 2030, which is subject to risks including cost inflation, contractor performance, and potential underutilization of assets if projects are not completed cost-effectively.
3. Regulatory/Legal Risks
- BIOSECURE Act: This legislation prohibits U.S. executive agencies from contracting with entities that use biotechnology equipment from certain foreign-owned companies, which could limit Gilead Sciences' supply chain and increase costs for clinical trials and manufacturing.
- MFN Pricing Agreements: In December 2025, Gilead Sciences reached an agreement with the U.S. administration to implement Most Favored-Nation (MFN) prices in Medicaid for select products and set a new direct-to-patient price for Epclusa to avoid potential tariffs.
- 340B Program Scrutiny: The growth of the 340B program has resulted in an increasing percentage of sales at deeply discounted prices due to program violations, and Gilead Sciences faces ongoing litigation regarding its efforts to enforce contract pharmacy integrity.
- AI Regulation: The FDA and EMA have established new principles for AI use in drug development, which may lead to future regulatory requirements that could affect Gilead Sciences's research and manufacturing processes.
4. Financial Impact Map
Medicare Price Negotiation → Net Product Sales → Anticipated reduction in profitability due to lower negotiated prices and increased rebate obligations. Wholesaler Concentration → Operating Results → Potential for quarterly earnings volatility due to inventory draw-downs or mismatches with end-user demand. Clinical Trial Failure → Goodwill and Intangible Assets → Risk of impairment charges and write-offs of R&DR&DResearch & Development — spending on creating new products or technologies expenses when product candidates fail to meet endpoints. Capital Investment Program → Cash Flows and Margins → $32 billion investment commitment may increase variability in margins and reduce financial flexibility. Foreign Currency Exposure → Net Product Sales → Exposure to the Euro; Gilead Sciences is a net receiver of foreign currencies and is adversely affected by a stronger U.S. dollar.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Nov 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Gilead EPS projected to rise 52% amid AIDS drug program disruptions
- ▸EPS growth projected at 52% YoY
- ▸AIDS drug program disruptions reported in Florida and other states
- ▸AHF cites program failures as primary driver for earnings outlook
- ▸Gilead remains primary supplier for affected state-run drug programs
Gilead Extends Arcellx Tender Offer Expiration Date to April 24, 2026
- ▸Tender offer expiration extended from April 2 to April 24, 2026
- ▸Purchase price remains $115.00 per share plus $5.00 contingent value right
- ▸Transaction expected to close in Q2 2026
- ▸Approximately 4.39 million shares tendered as of March 31, 2026
- ▸Closing subject to regulatory approvals and majority share tender condition
Gilead Acquires Arcellx for $7.8B and Ouro Medicines for $1.675B to Expand Oncology Pipeline
- ▸Acquired Arcellx for $7.8B to secure full economic rights to anito-cel
- ▸Acquired Ouro Medicines for $1.675B upfront plus $500M in milestones
- ▸Anito-cel regulatory decision expected by December 2026
- ▸Arcellx transaction expected to be earnings accretive by 2028
- ▸Strategy shifts focus toward oncology and immunology to diversify beyond HIV franchise
Gilead to Acquire Ouro Medicines for $2.2 Billion to Expand Pipeline
- ▸Acquisition price set at $2.2 billion cash
- ▸Lead drug candidate gamgertamig to be developed for future portfolio
- ▸Strategic partnership with Belgian pharma firm included in development plan
Gilead Sciences to Acquire Ouro Medicines in Deal Valued Up to $2.18 Billion
- ▸Gilead Sciences to acquire Ouro Medicines for up to $2.18 billion
- ▸Ouro Medicines specializes in autoimmune disease therapy development
- ▸Acquisition expands Gilead's immunology pipeline
- ▸Deal structure includes upfront and milestone-based payments
Gilead Sciences to acquire Ouro Medicines for $2.18 billion in collaboration with Galapagos
- ▸Acquisition value up to $2.18 billion
- ▸Gilead to develop acquired assets in collaboration with Galapagos
- ▸Strategic expansion of Gilead's pipeline through Ouro Medicines assets
Gilead Sciences to acquire Ouro Medicines for up to $2.18 billion
- ▸Acquisition value up to $2.18 billion
- ▸Target Ouro Medicines is a privately held biotech firm
- ▸Deal expands Gilead's clinical-stage pipeline
- ▸Transaction expected to close following customary regulatory approvals
Gilead Sciences nears acquisition of Ouro Medicines for up to $2 billion
- ▸Gilead Sciences in advanced talks to acquire Ouro Medicines
- ▸Deal valuation estimated at up to $2 billion
- ▸Target company specializes in autoimmune disease therapeutics
- ▸Acquisition aims to expand Gilead's immunology pipeline
Gilead to acquire Arcellx for $8B to bolster oncology and cell therapy pipeline
- ▸Acquiring Arcellx for approximately $8 billion to secure full control of anito-cel
- ▸Anito-cel targets >$20B multiple myeloma cell therapy market with differentiated safety profile
- ▸Oncology revenue reached $3B in 2024, representing 12% of total company revenue
- ▸YEZTUGO and LIVDELZI launches driving new growth cycle for base business
- ▸Anito-cel BCMA binder technology to support Gilead's in vivo CAR T efforts
Gilead Sciences to Acquire Arcellx for $7.8 Billion at $115 Per Share
- ▸Gilead Sciences acquiring Arcellx for $7.8 billion in cash
- ▸Shareholders to receive $115 per share plus potential milestone payments
- ▸Cormorant Asset Management liquidated entire 775,000 share position for $63.63 million
- ▸Arcellx shares up 80% year-to-date following takeover announcement
- ▸Deal expands Gilead's oncology pipeline via Arcellx's ddCAR and ARC-T platforms