Gilead Sciences, Inc. (GILD)

FairStock Score: 60/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Gilead as a Graham-style bargain hunter and Buffett-style business appraiser. The franchise is real: HIV and hepatitis therapies produce recurring demand, and Gilead generated $12.9 billion of trailing free cash flow, a 6.6% FCF yield at the 2026-10-26 close. Fiscal 2025 revenue was $29.4B with $8.5B net income and $6.78 diluted EPS, a sharp rebound from fiscal 2024's $480M net income and $0.38 EPS. Revenue has moved from $27.1B in fiscal 2023 to $29.4B in fiscal 2025, modest but steady. FairStock's Lynch tag is STALWART, based on 133.3% annual profit growth over five years but only 3.6% revenue growth. The blemish is the latest filed quarter: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $7.8B but net income was -$10.5B and diluted EPS -$8.45. That makes trailing P/E -59.66 and EPS -$2.66, so the headline multiple is meaningless. Balance sheet and valuation need caution: debt-to-equity 2.23, P/B 16.65, EV/EBITDA 120.11. Yet ROCE is 14.09%, Altman Z 3.55, Piotroski 5/9. The dividend yields 2.19% and beta 0.35 adds defensiveness. My conclusion: a cash-generative but leveraged stalwart whose latest loss distorts optics. Price is not Graham-cheap; the 6.6% FCF yield is the main valuation support. I would want evidence the Q2 loss is non-recurring and revenue growth improves before calling it a margin-of-safety bargain.

In plain English: Gilead makes medicines for HIV, hepatitis and some cancers. The business brings in steady sales and a lot of cash, but it reported a very large loss in its latest quarter. At the recent price, the shares look expensive compared with the company's assets and operating earnings, though its cash generation gives some support.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer