Gilead Sciences
GILD
$149.61
-0.21%
Gilead Sciences is a biopharmaceutical company that develops and markets therapies for life-threatening infectious diseases, with a core focus on HIV and hepatitis B and C, and is expanding into oncology through acquisitions like Kite Pharma and Immunomedics. As a market leader in HIV treatment and prevention, Gilead holds a dominant position with a portfolio that includes blockbuster drugs like Biktarvy and Descovy, while also building a presence in cell therapy and targeted cancer treatments. The current investor narrative centers on Gilead's aggressive M&A strategy to bolster its oncology and inflammation pipelines, including the $7.8 billion acquisition of Arcellx and a $3 billion deal with Tubulis, alongside recent clinical setbacks such as the discontinuation of a Trodelvy-Keytruda lung cancer trial. These moves highlight the company's pivot toward high-growth areas beyond its traditional antiviral franchise, with investors weighing the potential of new therapies against the risks of pipeline execution and near-term earnings dilution.…
GILD
Gilead Sciences
$149.61
Related headlines
GILD 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Gilead Sciences's 12-month outlook, with a consensus price target around $157.41 and implied upside of +5.2% versus the current price.
Average Target
$157.41
0 analysts
Implied Upside
+5.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$123 - $180
Analyst target range
Gilead is covered by 27 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.69 (where 1 is Strong Buy and 5 is Sell). The average target price is $157.41, implying an upside of 8.05% from the current price of $145.68. The distribution of ratings is bullish, with 15 Buy ratings, 10 Hold ratings, and 2 Sell ratings, indicating a generally positive sentiment but with some caution. Recent institutional actions show a mix of reaffirmations and upgrades: Morgan Stanley reiterated Overweight, HSBC upgraded from Hold to Buy, and Maxim Group upgraded from Hold to Buy, while RBC Capital maintained Sector Perform. The target price range spans from a low of $123.00 to a high of $180.00, representing a wide spread of 46% from low to high, which reflects significant uncertainty about the company's future. The high target of $180 implies a 23.5% upside and likely assumes successful execution of the oncology pipeline, including Arcellx's CART-ddBCMA therapy and Trodelvy label expansions, along with continued HIV franchise strength. The low target of $123 suggests a 15.6% downside, potentially pricing in clinical failures, competitive pressures, or a broader market downturn. The wide range indicates that analysts have divergent views on the risk-reward profile, with the consensus leaning bullish but acknowledging the high-stakes nature of Gilead's strategic bets.
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GILD Technical Analysis
Gilead's stock is in a clear uptrend over the past year, with a 1-year price change of +29.42%, significantly outperforming the S&P 500's +18.56% over the same period. The current price of $145.68 sits at approximately 87% of the 52-week range (low $108.46, high $157.29), indicating the stock is trading near its highs but not at an extreme overextension. This positioning suggests strong momentum, though the proximity to the 52-week high of $157.29 could present resistance, while the 52-week low of $108.46 serves as a major support level. The stock's beta of 0.336 indicates it is significantly less volatile than the broader market, making it a defensive holding in a portfolio context.
Beta
0.34
0.34x market volatility
Max Drawdown
-22.0%
Largest decline past year
52-Week Range
$108-$157
Price range past year
Annual Return
+32.7%
Cumulative gain past year
| Period | GILD Return | S&P 500 |
|---|---|---|
| 1m | +14.1% | +1.0% |
| 3m | +15.8% | +1.1% |
| 6m | +3.9% | +13.8% |
| 1y | +32.7% | +19.5% |
| ytd | +23.0% | +12.2% |
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GILD Fundamental Analysis
Gilead's revenue trajectory shows steady growth, with the most recent quarter (Q1 2026) reporting revenue of $6.96 billion, a 4.39% year-over-year increase. This growth is supported by a multi-quarter trend: Q4 2025 revenue was $7.924 billion, Q3 2025 was $7.769 billion, and Q2 2025 was $7.081 billion, indicating a generally upward trend despite some quarterly fluctuations. The HIV franchise remains the primary driver, contributing $5.03 billion in product sales, while oncology products like Trodelvy ($402 million) and cell therapies ($482 million) are growing but still represent a smaller portion of the mix. The company's gross margin is robust at 79.24% (Q1 2026), reflecting the high profitability of its drug portfolio, and net income for the quarter was $2.021 billion, yielding a net margin of 29.04%. Operating margin stood at 37.16%, demonstrating strong operational efficiency, though this is slightly below the 42.82% operating margin seen in Q3 2025, indicating some margin pressure from increased R&D spending. Gilead's balance sheet shows a debt-to-equity ratio of 1.10, which is elevated but manageable given its strong cash generation, with free cash flow of $10.229 billion over the trailing twelve months. The current ratio of 1.55 indicates adequate liquidity, and the company's ROE of 37.49% is exceptionally high, reflecting efficient use of shareholder equity. The company's ability to generate substantial free cash flow supports its aggressive acquisition strategy and dividend payments, with a payout ratio of 47.04%.
Quarterly Revenue
$7.0B
2026-03
Revenue YoY Growth
+4.4%
YoY Comparison
Gross Margin
79.2%
Latest Quarter
Free Cash Flow
$10.2B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GILD Overvalued?
Given Gilead's positive net income, the price-to-earnings (PE) ratio is the primary valuation metric. The trailing PE is 17.94x, while the forward PE is 14.73x, indicating that the market expects earnings growth, which is consistent with the company's pipeline and acquisition-driven expansion. The gap between trailing and forward PE suggests an anticipated earnings increase of roughly 22%, reflecting optimism about new product launches and cost synergies. Compared to the industry average PE of 22x (based on the provided valuation data), Gilead trades at a 18% discount, which is notable given its superior profitability (net margin of 28.9% vs. industry average of 15%) and strong growth prospects. This discount may be attributed to concerns about patent expirations and the high-risk nature of its oncology pipeline, but it also presents a potential value opportunity. Historically, Gilead's PE has ranged from a low of 8.48x (Q3 2021) to a high of 1548x (Q1 2022, due to a one-time charge), with the current trailing PE of 17.94x sitting near the middle of its historical band. The price-to-sales ratio of 5.19x is above the historical average of around 14x, but this is skewed by the low revenue base in earlier years; the current PS is actually below the 5-year average of 15x, indicating the stock is not overvalued on a sales basis. The PEG ratio of 0.01 is extremely low, suggesting the stock is undervalued relative to its growth rate, though this metric should be interpreted with caution given the low forward PE.
PE
17.9x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 8x~26x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.5x
Enterprise Value Multiple
