Gilead Sciences, Inc (GILD) stock analysis
Gilead Sciences, Inc (GILD) clears 2 of this site's 8 mechanical value filters, 5 of 8 Buffett-style checks and 1 of 5 Lynch-style checks. At $157.19 it trades 11.3% below this site's neutral DCF value (a margin of safety of +11.3%). Its earnings quality rates Strong and it returns +2.6% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Gilead Sciences do?
Gilead Sciences makes antiviral medicines: its HIV treatment and prevention drugs are the core, alongside hepatitis, COVID-19 and cancer treatments.
Brands and businesses it owns
- Biktarvy
- Descovy
- Yeztugo
- Veklury
- Trodelvy
- Epclusa
- Kite
What stands out about Gilead Sciences?
- The share price implies 5.0% yearly growth. At $157.19, GILD's free cash flow of $10.37 per share would have to grow 5.0% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for less growth than the baseline. Change the assumptions.
- Misses 1 of the 8 value filters. It fails Price/Book < 8 (16.31); the other 2 pass and 5 were not evaluated. See every filter.
- The margin of safety is falling. It went from +18% on Oct 7 to +11% on Oct 23 across 5 weekly readings. See the trend.
- Weakest against peers: return on equity. At −16% (peer median 23%) it ranks 14th of 15 among pharma & biotech stocks this site tracks. See the ranking.
- Dividend raises 1 of 6 flags. Its trailing yield is 3.15%. See the Sustainable Dividend Screener.
How has Gilead Sciences' share price moved?
The interactive price chart needs JavaScript.
Is Gilead Sciences undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) +11.3%
- Wall St. analyst rating Buy · 4.05/5 37 analysts this month: 9 strong buy, 21 buy, 7 hold, 0 sell, 0 strong sell (Finnhub).
- Altman Z″-Score (bankruptcy risk) 3.28 · Safe zone
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.45 · accruals −2.6% of assets · 197% of profit arrived as cash · stock comp 3.0% of revenue · share count −0.1% a year. From the latest 10-K (year to Dec 2025) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +2.6% net Latest fiscal year (2025): dividends 2.1% + buybacks 1.0% − stock comp 0.5%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 21%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) Profit did not grow in 10 years Operating profit $13B → $6.4B, capital needed $18B → $43B, 2016–2025 (3-year averages); return on capital now 15% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) n/a (no PEG reported)
- Compounder lenses (4) 2 of 4 · misses capital-light, price (n/a) Capital-light growth: not cleared (profit grew 0.5×, under 2×); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cannot be measured (no PEG reported). See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 2 of 6 measures above the median Compared with the 14 other pharma & biotech stocks this site tracks: 1 in the top third, 3 in the bottom third.
- Dividend payout sustainability 1/6 flags
How does Gilead Sciences compare with its peers?
2 of 6 measures sit above the median of the 14 other pharma & biotech stocks tracked here, 1 in the top third and 3 in the bottom third.
- Free-cash-flow yieldhigher is cheaper · peer median 4.5% 6.6% –6th of 15
- Return on equityhigher is better · peer median 23% −16% ✕14th of 15
- Net marginhigher is better · peer median 16.2% −10.6% ✕14th of 15
- Revenue growthhigher is better, year on year · peer median 5.5% 5.5% –8th of 15
- Debt / equitylower is safer · peer median 0.94 2.22 ✕12th of 15
- Dividend yieldamong dividend payers · peer median 2.38% 3.15% ✓3rd of 11
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and GILD doesn't clear enough of it yet. In its favor: GILD and has kept that profitability up over five years, not just this year, has grown earnings per share at a solid clip over five years, earns many times its interest expense, so debt service isn't a worry, is trading below what a conservative discounted-cash-flow estimate says it's worth - his own "price is what you pay, value is what you get" test, not a fixed multiple ceiling, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: GILD isn't clearing the return-on-equity bar he'd want to see right now, carries more debt relative to equity than he typically tolerates, and runs thinner pretax margins than he'd like to see.
- ROE (TTM) > 11% ✕
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✕
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✓
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2025
Lynch looked for growth stories that weren't overpriced for that growth, and GILD falls short of his bar. In its favor: GILD is backing its growth up with real free cash flow. Where it comes up short: GILD fails his signature PEG test, he'd call this pricey for the growth on offer, is growing earnings outside the 10–25% range he considered the sustainable sweet spot, is leaning on more debt than he liked a growth story to carry, and is asking investors to pay a steep multiple for that growth.
- PEG < 1 n/a
- EPS growth 10%-25% ✕
- Debt/Equity < 0.5 ✕
- P/E < 27 n/a
- Price/FCF < 30 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Gilead Sciences pass?
- Market Cap > $25B $192.9B
- Trailing P/E < 25 n/a
- PEG Ratio < 1.5 n/a
- Price/Book < 8 16.31
- Price/Sales < 7 6.33
- EPS Growth YoY > -5% n/a
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Gilead Sciences' margin of safety?
+18% on 2026-10-07 → +11% on 2026-10-23 (5 weekly readings).
Where is Gilead Sciences in its 52-week range?
What is the short interest in Gilead Sciences?
21,828,725 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Gilead Sciences? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +48%
- Short interest under 5% of float 1.8%
- Passes most of the 6 fundamental filters 5/6 passed
- Price run-up backed by value, not just momentum +34% off 52wk low
- Debt/equity stable since 2016 1.40 → 1.10
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Gilead Sciences shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from GILD's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Gilead Sciences' 10-year financials show?
From GILD's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Gilead Sciences
What kind of company is Gilead Sciences?
Gilead Sciences makes antiviral medicines: its HIV treatment and prevention drugs are the core, alongside hepatitis, COVID-19 and cancer treatments. Brands and businesses it owns include Biktarvy, Descovy, Yeztugo, Veklury, Trodelvy and Epclusa. This site groups it with Biotechnology stocks.
Is Gilead Sciences trading above or below its DCF value?
At $157.19, GILD trades 11.3% below this site's neutral DCF value of $177.16 per share, a margin of safety of +11.3%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Gilead Sciences pass?
GILD passes 2 of 8. It passes Market Cap > $25B ($192.9B) and Price/Sales < 7 (6.33). It misses Price/Book < 8 (16.31). Trailing P/E < 25, PEG Ratio < 1.5, EPS Growth YoY > -5%, vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
How much cash does Gilead Sciences return to shareholders?
GILD's net shareholder yield is +2.6%: the cash it returns through dividends and buybacks, minus stock-based compensation, as a share of its market value. Latest fiscal year (2025): dividends 2.1% + buybacks 1.0% − stock comp 0.5%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 21%. Its trailing dividend yield is 3.15%, paid out of 47% of its free cash flow; the dividend-sustainability check raises 1 of 6 flags (high leverage). See Shareholder Yield Leaders and the Sustainable Dividend Screener.
How fast has Gilead Sciences grown its revenue and profit?
From fiscal 2016 to fiscal 2025, GILD's revenue fell from $30.4 billion to $29.4 billion, 0.4% a year. Net income went from $13.5 billion to $8.5 billion, and its net profit margin from 44.4% to 28.9%. Earnings per share went from $9.94 to $6.78 on today's share count, -4.2% a year. In fiscal 2025 it produced $9.5 billion of free cash flow (cash from operations minus capital spending), 32.1% of its revenue. All figures are from GILD's own 10-K filings (SEC EDGAR) and are shown year by year in the 10-Year Financials section of the card above.
When does Gilead Sciences report earnings next?
Gilead Sciences's next earnings report is expected on October 29, 2026 after the market closes, with analysts expecting earnings of $2.24 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +6.7%.
Where do these numbers come from?
- Financial statements: Gilead Sciences's 10-K annual report for the year ended Dec 31, 2025, filed Feb 24, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Gilead Sciences, Inc analysis
This page shows every value-investing check the site runs on Gilead Sciences, Inc (GILD) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.