Gilead Sciences presents a moderately bullish thesis with a trailing P/E of 18.27, forward P/E of 15.22, market capitalization of $166.7 billion, TTM revenue of $29.7 billion, and EPS of $7.35. Quarterly revenue growth of 4.4% and strong profit margins of 31% support stability in its antiviral portfolio amid steady demand for HIV and hepatitis treatments. The stock trades near its 200-day moving average of $130.94 with a dividend yield of 2.34%, offering income alongside growth potential.
Key catalysts include ongoing earnings momentum from established products like Harvoni and Sovaldi, potential market expansion in influenza antivirals, and analyst consensus with 6 strong buy and 16 buy ratings targeting $158.30. Recent quarterly earnings growth of 54.8% year-over-year signals improving operational leverage, while pipeline advancements in antiviral therapies could drive further revenue diversification beyond the $23.6 billion gross profit TTM.
Risks center on regulatory hurdles for new drug approvals, intense competition from other biopharma firms in HIV/hepatitis markets, and macroeconomic headwinds such as pricing pressures or healthcare policy changes. These are mitigated by Gilead's robust R&D spend, high institutional ownership at 93.23%, and diversified revenue streams that have sustained a 0.31 profit margin through prior cycles. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.
Fundamental Snapshot
Revenue
29.736B
EBITDA
14.738B
Gross Profit
23.601B
Operating Margin
39.3%
Profit Margin
31.0%
ROE
43.4%
Book Value
$18.93
Beta
0.343
52-Wk High
$155.38
52-Wk Low
$105.78
Avg Volume
5.4184M
PEG Ratio
2.144
Frequently Asked Questions
What is Gilead Sciences' business model?
Gilead Sciences operates as a biopharmaceutical company focused on discovering, developing, and commercializing antiviral drugs for HIV, hepatitis B/C, and influenza. It generates revenue primarily through product sales of treatments like Harvoni and Sovaldi, with TTM revenue of $29.7 billion and a 31% profit margin.
What are Gilead's main revenue sources?
Revenue comes mainly from antiviral therapies targeting HIV and hepatitis, contributing to $29.7 billion TTM revenue and $23.6 billion gross profit. Key products include Harvoni and Sovaldi, supported by a 4.4% quarterly revenue growth rate and EPS of $7.35.
What competitive advantages does Gilead have?
Gilead benefits from a strong pipeline in antivirals, high barriers to entry in specialized drug development, and established market leadership. Its 18.27 trailing P/E, 93.23% institutional ownership, and $166.7 billion market cap reflect durable advantages over peers.
What are the key risks for GILD investors?
Primary risks include regulatory approval delays, competition in HIV/hepatitis markets, and macro factors like drug pricing reforms. The stock's 52-week range of $105.32-$155.38 and beta of 0.343 highlight volatility, though mitigated by diversified revenue and a 2.34% dividend yield.
What is the growth outlook for Gilead Sciences?
Growth is supported by 54.8% quarterly earnings growth, forward P/E of 15.22, and analyst target of $158.30 with 22 buy ratings. Expansion in influenza treatments and pipeline momentum position it for continued revenue growth beyond current $29.7 billion TTM levels.
