Snapshot

Gilead Sciences had a market capitalisation of $189.2 billion as of September 28, 2026. Revenue was $29.4 billion, operating income was $10.0 billion, net income was $8.5 billion and diluted EPS was $6.78 in FY2025.

In Q2 FY2026, revenue was $7.8 billion and gross profit was $6.2 billion, while operating income was −$10.4 billion, net income was −$10.5 billion and diluted EPS was −$8.45. Free cash flow was $3.4 billion in Q2 FY2026. Across the TTM to Q2 FY2026, revenue was $30.5 billion, while net income was −$3.2 billion and diluted EPS was −$2.67.

Growth

Revenue was $29.4 billion in FY2025, with growth of 2.40% in FY2025 against FY2024. Revenue compound annual growth was 2.57% in FY2022–FY2025 and 3.58% in FY2020–FY2025. Diluted EPS was $6.78 in FY2025, and diluted EPS growth was 1,684.2% in FY2025 against FY2024. Diluted EPS compound annual growth was 23.0% in FY2022–FY2025 and 132.4% in FY2020–FY2025.

Free cash flow was $9.5 billion in FY2025 and declined −8.24% in FY2025 against FY2024; its compound annual growth was 4.26% in FY2022–FY2025 and 4.69% in FY2020–FY2025. Revenue was $7.8 billion in Q2 FY2026, up 12.1% against Q1 FY2026 and 10.2% against Q2 FY2025. Free cash flow was $3.4 billion in Q2 FY2026, up 41.5% against Q1 FY2026 and 376.8% against Q2 FY2025.

Profitability

Gross margin was 78.8% in FY2025, a change of 0.6 percentage points in FY2024–FY2025 and −2.7 percentage points in FY2020–FY2025. Operating margin was 34.0% in FY2025, a change of 28.3 percentage points in FY2024–FY2025 and 17.5 percentage points in FY2020–FY2025. Net margin was 28.9% in FY2025, a change of 27.2 percentage points in FY2024–FY2025 and 28.5 percentage points in FY2020–FY2025.

Return on equity was 40.7%, return on assets was 14.4%, and return on invested capital was 15.7% in FY2025. In Q2 FY2026, gross margin was 79.8%, while operating margin was −133.2%. Industry-median comparisons for profitability measures are not reported.

Balance sheet

Total debt was $24.9 billion, net debt was $17.3 billion, cash and short-term investments were $7.6 billion, and shareholders’ equity was $22.6 billion in FY2025. Working capital was $6.5 billion and book value per share was $18.18 in FY2025.

Net debt was $23.1 billion in Q2 FY2026, an increase of $8.5 billion against Q1 FY2026 and $3.3 billion against Q2 FY2025. The current ratio was 1.3× and debt to equity was 2.2× in Q2 FY2026. The quarter-end net-debt increase followed net debt of $14.5 billion in Q1 FY2026.

Cash flow & capital return

Operating cash flow was $10.0 billion in FY2025, declining −7.47% in FY2025 against FY2024. Capital expenditure was $563.0 million and free cash flow was $9.5 billion in FY2025. Free cash flow represented 111.1% of net income in FY2025.

Dividends paid were $4.0 billion and net share repurchases were $1.5 billion in FY2025, producing capital returned to shareholders of $5.5 billion in FY2025. Capital returned to shareholders was $23.5 billion in FY2021–FY2025. Weighted average shares were 1.2 billion shares in FY2025, and the share count changed −1.03% in FY2020–FY2025. Operating cash flow was $13.6 billion and free cash flow was $12.9 billion in the TTM to Q2 FY2026.

Valuation

Market capitalisation was $189.2 billion as of September 28, 2026. P/E was not meaningful: earnings or book value are negative as of September 28, 2026.

P/S was 6.2× as of September 28, 2026, higher than its 3.9× five-year median as of September 28, 2026, over the five fiscal years to FY2025, its 3.7× ten-year median as of September 28, 2026, over the ten fiscal years to FY2025, and the industry median of 3.4× as of September 28, 2026. P/B was 16.1× as of September 28, 2026, higher than its 5.1× five-year median, 4.6× ten-year median and 5.0× industry median, each as of September 28, 2026. EV/Sales was 7.0× as of September 28, 2026, higher than its 4.6× five-year median, 4.1× ten-year median and 4.0× industry median, each as of September 28, 2026. EV/Cash flow was 16.4× as of September 28, 2026, higher than its 15.2× five-year median and 11.7× ten-year median, each as of September 28, 2026.

What changed since last quarter

Revenue rose to $7.8 billion in Q2 FY2026, up 12.1% against Q1 FY2026 and 10.2% against Q2 FY2025. Management attributes the year-over-year revenue increase to higher sales of HIV products, Trodelvy and Livdelzi, plus higher royalty, contract and other revenue, partly offset by lower Veklury, Cell Therapy and HCV sales. Gross margin was 79.8% in Q2 FY2026, up 0.5 percentage points against Q1 FY2026 and 1.0 percentage point against Q2 FY2025.

Operating income moved from $2.6 billion in Q1 FY2026 to −$10.4 billion in Q2 FY2026, while net income moved from $2.0 billion in Q1 FY2026 to −$10.5 billion in Q2 FY2026. Management attributes the year-over-year net-income decrease primarily to higher operating expenses, including integration expenses associated with acquisitions. Free cash flow increased to $3.4 billion in Q2 FY2026 from $2.4 billion in Q1 FY2026 and $720.0 million in Q2 FY2025.

Open questions

• What portion of the higher operating expenses is recurring after acquisition-related integration activity?
• How will the acquired businesses affect future operating expenses and cash deployment?
• What explains the increase in net debt during the latest quarter?
• How will revenue trends in HIV products, Trodelvy and Livdelzi compare with declines in Veklury, Cell Therapy and HCV products?

Sources

• Form 10-Q filed August 6, 2026 — management’s discussion and analysis