Gilead Sciences, Inc. (GILD) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Gilead Sciences, Inc.

Updated on October 30, 2026 · accounts published on October 29, 2026

Reading of October 29, 2026: A cash-generative drugmaker with a solid balance sheet and a weak trailing year

Gilead Sciences trades at a P/E of 17.9 for fiscal 2025, far below its ten-year average of 97.0, and has raised its dividend 10 years in a row.

• Is Gilead Sciences expensive or cheap? At a P/E of 17.9 for fiscal 2025, Gilead Sciences trades far below its ten-year average of 97.0.
• How is the business doing? The fiscal 2025 operating margin of 40 % beat the 2014-2025 average of 38 %, but the last 12 months show −4.4 %.
• How strong is the balance sheet? Net debt was 1.3× EBITDA in fiscal 2025, and the dividend has risen for 10 consecutive fiscal years.
• What to expect from the next earnings? 39 of 58 analysts recommend buying; the next results are due February 9, 2027, with EPS of $2.11 expected.
• Does it invest enough in R&D and turn profit into cash? R&D took 19.7 % of fiscal 2025 revenue, above the 15 % healthy mark, and free cash flow was 111 % of net income.

Is Gilead Sciences expensive or cheap?

Gilead Sciences trades at a P/E of 17.9 for fiscal 2025. That is far below its ten-year average of 97.0 and under the 90 % line that marks a cheap P/E in healthcare. Over the last 12 months the earnings yield is 4.3 % and the free cash flow yield is 4.7 %. The EV/EBITDA of 964.1× looks absurd because the trailing operating margin is negative, so it reflects a weak twelve months more than the price. The market has already reacted: the stock is up 42 % in 12 months and sits within 1 % of its 52-week high of $165.61.

How is the business doing?

Revenue grew 2.4 % over the last 12 months, a slow pace. Over the same period the operating margin was −4.4 % and the net margin −12.5 %, a sharp break with the company's record. In fiscal 2025 the operating margin was 40 %, above the 2014-2025 average of 38 %, so the trailing loss stands out against twelve years of high profitability. ROIC of −4.3 % over the last 12 months is 9.9 points below the sector median of 5.6 %, yet it cleared 10 % in 6 of the last 10 fiscal years. The question is whether the trailing figures are a one-off.

How strong is the balance sheet?

Net debt was $13.14 per share in fiscal 2025, equal to 7.9 % of the current price. That is 1.3× EBITDA, comfortably under the 2.5× ceiling considered healthy in healthcare. Over the last 12 months, a current ratio of 1.32, an Altman Z of 4.1 in the safe zone and a Piotroski score of 8 of 9 point to solid footing. The dividend yields 2.0 % and has grown for 10 consecutive fiscal years. The fiscal 2025 payout was 47 % of earnings, which leaves room to keep raising it.

What to expect from the next earnings?

Gilead Sciences has beaten EPS estimates in each of the last 8 quarters. On October 29, 2026 it reported EPS of $2.55 against $2.19 expected, a 16.4 % surprise and the largest of those eight quarters. Of 58 analysts, 39 recommend buying, 18 holding and 1 selling, and the 2026 revenue consensus has barely moved in the last 30 days. For the quarter due on February 9, 2027, analysts expect EPS of $2.11, below the figure just reported, so the bar is lower than the latest result.

Does it invest enough in R&D and turn profit into cash?

In healthcare the R&D pipeline is the invisible asset. Expiring patents are revenue that disappears, so investors watch innovation and cash flow. Gilead Sciences spent 19.7 % of revenue on R&D in fiscal 2025, above the 15 % healthy mark. Its gross margin of 79 % clears the 70 % bar for branded pharma. Free cash flow was 111 % of net income, above the 90 % threshold, and EPS grew 133.8 % a year over fiscal 2020-2025 against an 8 % benchmark. The one miss is ROIC, at −4.3 % over the last 12 months versus a healthy level of 12 %.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.