# Gilead Sciences Inc. (GILD)

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Report type:** Primer (steps 1–3 of 19)  
**API endpoint:** GET /api/v1/research/GILD/primer

## Business Model

---
ticker: GILD
step: 01
generated: 2026-05-12
source: quick-research
---

### Gilead Sciences, Inc. (GILD) — Business Overview

#### Business Description
Gilead Sciences is the global leader in HIV antiviral therapy and a growing player in oncology + liver disease + COVID-19 treatment. The HIV franchise (Biktarvy + Descovy + Genvoya legacy + new launches Yeztugo and bictegravir + lenacapavir combo) represents ~70% of revenue and ~85% of profit. After acquiring Immunomedics ($21B, 2020, Trodelvy), Kite Pharma ($12B, 2017, Yescarta CAR-T), and CymaBay ($4.3B, 2024, MASH), Gilead has built a diversified pipeline. The 2025 FDA approval of **lenacapavir (Yeztugo) for HIV PrEP — twice-yearly injection** is the most transformational launch in HIV prevention in a decade and represents the company's most important product cycle for the next 5+ years. No major patent expirations until 2036.

#### Revenue Model
Single reportable segment (organized by franchise):
- **HIV** ($19.6B FY24, ~70% of revenue, +8% in FY24) — Biktarvy (~$14B), Descovy (PrEP), Genvoya, Yeztugo (lenacapavir for PrEP, launched mid-2025), various legacy treatments.
- **Oncology** ($3.3B FY24, +12%) — Trodelvy (Sacituzumab govitecan TROP-2 ADC; $1.4B FY25 in breast cancer + bladder cancer + lung cancer); Yescarta (axicabtagene ciloleucel, CAR-T for lymphoma); Tecartus (CAR-T for mantle cell lymphoma).
- **Liver Disease** (~$3B) — Vemlidy (Hep B), Hepcludex (Hep D), legacy Hep C franchises (Epclusa, Harvoni), Livdelzi (PBC; from CymaBay).
- **Veklury / COVID-19** — $911M FY25 (-49% YoY); declining as pandemic-era demand normalizes.
- **Other** — Cosela, Trodelvy in non-oncology, partnership revenue.

Revenue is highly recurring (mostly chronic disease treatment requiring ongoing therapy); royalty payment streams from licensing deals add stable income.

#### Products & Services
- **Biktarvy** — Once-daily oral HIV treatment; standard-of-care; ~$14B annualized. Grew +13% in FY24.
- **Yeztugo (lenacapavir for PrEP)** — Twice-yearly injection for HIV prevention; launched Summer 2025; 2026 sales guide raised to $1B (blockbuster status in Year 1). 72% sequential growth in Q1 2026 launch.
- **Descovy** — Daily oral HIV PrEP (older standard).
- **Bictegravir + Lenacapavir** — Investigational once-daily oral HIV treatment combo; FDA priority review, decision expected August 2026.
- **Trodelvy (sacituzumab govitecan)** — TROP-2 antibody-drug conjugate; metastatic breast cancer (TNBC + HR+/HER2-); bladder cancer; expanding to lung cancer.
- **Yescarta + Tecartus** — CAR-T cell therapies for lymphoma/leukemia from Kite.
- **Veklury (remdesivir)** — IV COVID-19 antiviral.
- **Livdelzi** — Primary biliary cholangitis (from CymaBay acquisition).
- **Pipeline**: Magrolimab (CD47 — discontinued in 2024); ~7 potential HIV launches by 2033 including bictegravir-lenacapavir combo, GS-1720/GS-4182 PCSK9 (HIV), domvanalimab (lung cancer), GS-3008.

#### Customer Base & Go-to-Market
- **HIV providers**: 30,000+ infectious-disease physicians, specialty pharmacies, hospitals.
- **PrEP at-risk populations**: gay/bisexual men, female sex workers, intravenous drug users, others. PEPFAR + Global Fund + ViiV partnerships expand access globally.
- **Oncology**: Academic medical centers + community oncology + cancer centers (Yescarta CAR-T at CAR-T-certified facilities).
- **Hepatology**: Hepatologists, gastroenterologists.
- **Public Health Programs**: PEPFAR ($1B+ Yeztugo procurement), Global Fund, GAVI partnerships.

Geographic mix: ~75% US, ~20% Europe, ~5% rest of world. Significant international expansion via Yeztugo low-income markets pricing.

#### Competitive Position
Gilead is the dominant global HIV therapeutic company. Structural advantages:

1. **HIV franchise depth + Biktarvy moat** — Biktarvy is the global standard for HIV treatment; 13% growth in FY24 + 7% growth in FY25 despite an ~$14B base.
2. **Yeztugo (lenacapavir PrEP) first-mover advantage** — Twice-yearly injection vs. daily oral pills is a step-change in PrEP convenience. Years ahead of competitors (ViiV/GSK's cabotegravir is monthly oral / every-2-months injection).
3. **No major LOEs until 2036** — Multi-year patent runway is the best in big pharma; combined with strong pipeline of 7+ HIV launches by 2033, supports durable franchise.
4. **Trodelvy in oncology** — Best-in-class TROP-2 ADC; multi-indication expansion through 2027–28.
5. **Vertical integration in HIV** — Develops the molecules, conducts trials, manufactures, distributes, partners with PEPFAR/Global Fund — full-stack HIV ecosystem.

**Competitive challenges:**
- **GSK / ViiV (cabotegravir + dolutegravir)**: Direct HIV competition; cabotegravir/rilpivirine long-acting injectable is ahead of US PrEP market share but losing ground to Yeztugo.
- **Merck (islatravir, doravirine)**: Long-acting HIV pipeline.
- **AbbVie + Pfizer (ADC + oncology)**: Direct competition in TROP-2 ADC space.
- **PEPFAR + Global Fund pricing pressure**: Lenacapavir supplied at no profit in low-income markets supports a path to generics; Biktarvy + premium-market pricing under fire from drug-pricing politics.
- **IRA Medicare negotiation**: Multiple HIV drugs eligible 2027–28.

#### Key Facts
- Founded: 1987
- Headquarters: Foster City, California
- Employees: ~18,000
- Exchange: NASDAQ
- Sector / Industry: Health Care / Biotechnology
- Market Cap: ~$120B
- FY2024 Revenue: $28.6B (+6% YoY)
- HIV Revenue: $19.6B (FY24); growing +8–10% in FY25
- Trodelvy Revenue: $1.4B (FY25, +6%)
- Yeztugo 2026 Revenue Guide: $1B (blockbuster Year 1)
- Veklury (COVID): $911M (FY25, declining)
- Dividend Yield: ~3.0% (Dividend Aristocrat candidate building)
- Major Recent Acquisitions: CymaBay ($4.3B, 2024); Immunomedics ($21B, 2020); Kite ($12B, 2017)

## Financial Snapshot

---
ticker: GILD
step: 04
generated: 2026-05-12
source: quick-research
---

### Gilead Sciences, Inc. (GILD) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Revenue | $27.1B | $28.6B | $29.4B | +2.7% |
| HIV Sales | $18.2B | $19.6B | $21.5B+ | +10% |
| Oncology Sales | $3.0B | $3.3B | ~$3.5B | +6% |
| Veklury (Covid) | $2.2B | $1.8B | $0.91B | -49% |
| GAAP EPS | $4.07 | ~$3.20 | $6.78 | +110% (vs. FY24 IPR&D charge-heavy base) |
| Non-GAAP Diluted EPS | $6.79 | $4.62 | $8.15 | +76% |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$9B |
| Free Cash Flow | ~$8.5B |
| Capital Return to Shareholders | $5.9B |
| Share Repurchases | ~$3.0B |
| Dividend (Quarterly) | $0.79 |
| Dividend Yield | ~3.0% |
| Cash & Marketable Securities | ~$5B |
| Total Debt | ~$24B |
| Capital Return Commitment | "At least 50% of FCF" |

#### FY2026 Guidance

| Metric | 2026 Guide |
|--------|-----------|
| Product Sales | $29.6–30.0B (~flat to +2%) |
| Veklury Component | $600M |
| Non-GAAP Operating Income | $13.8–14.3B |
| Non-GAAP Tax Rate | ~20% |
| GAAP Diluted EPS | $6.75–7.15 |
| Non-GAAP Diluted EPS | $8.45–8.85 (+4–9% YoY) |
| HIV Total Sales (Treatment + Prevention) | +8% YoY |
| Yeztugo (Lenacapavir PrEP) | $1B+ (raised from initial guide) |

#### Key Ratios (approximate)
- P/E: ~10x (FY26 non-GAAP) | EV/EBITDA: ~7x | FCF Yield: ~7%
- Revenue Growth (FY25): +2.7% (ex-Veklury: ~+6%)
- Non-GAAP Operating Margin: ~47%
- Dividend Yield: ~3.0% | Payout Ratio: ~37% of FCF
- Net Debt / EBITDA: ~1.7x

#### Growth Profile
FY25 was the **launch year for lenacapavir (Yeztugo)** — the most transformational HIV launch since Biktarvy in 2018. Yeztugo's first full year (2026) is now guided at $1B+ in revenue — blockbuster status in Year 1. Combined with:
- Biktarvy still growing +7% YoY (at a $14B+ base)
- US PrEP business +87% in Q1 2026
- Trodelvy in expanded oncology indications
- No major patent expirations until 2036
- ~7 potential new HIV launches by 2033

Gilead's growth trajectory is the most durable in big pharma. Q1 2026 Yeztugo +72% sequential growth confirmed launch momentum is accelerating.

The Veklury decline (-49% in FY25) is the only meaningful headwind; even with Veklury fully eliminated, HIV growth more than offsets. PEPFAR + Global Fund Yeztugo procurement programs add geographic + access expansion that drives multi-decade global TAM.

#### Forward Estimates
FY2026 Guide:
- Revenue: $29.6–30.0B (ex-Veklury growth ~+5–6%)
- Non-GAAP EPS: $8.45–8.85 (+4–9%)
- Yeztugo: $1B+
- HIV (T+P): +8% YoY

Bull case: Yeztugo exceeds $1.5B in 2026 + reaches $5B+ peak; bictegravir-lenacapavir combo approval drives 2027 next-leg HIV growth; Trodelvy expansion into lung cancer + earlier-line breast adds $2B+ revenue; non-GAAP EPS reaches $10+ by FY27. Bear case: PrEP pricing pressure from public-health partnerships + Medicare IRA caps limit US lenacapavir profitability; Veklury decline continues; oncology pipeline disappoints. Consensus targets $115–135 vs. trading ~$95–105 (~15–35% implied upside given low valuation).

## Recent Catalysts

---
ticker: GILD
step: 12
generated: 2026-05-12
source: quick-research
---

### Gilead Sciences, Inc. (GILD) — Investment Catalysts & Risks

#### Bull Case Drivers

1. **Yeztugo (lenacapavir for HIV PrEP) — blockbuster Year 1 trajectory** — 2026 guide raised to $1B+ in first full year. Q1 2026 +72% sequential growth confirms launch. Twice-yearly injection is a step-change vs. daily oral PrEP and monthly cabotegravir. Multi-billion-peak potential ($5B+ at maturity).
2. **Biktarvy + HIV franchise growth at +8–10%** — Biktarvy still growing +7% on a ~$14B base; US PrEP business +87% in Q1 2026; HIV total sales (treatment + prevention) guided +8% in FY26. Largest single HIV franchise globally.
3. **No major LOEs until 2036 + 7 HIV launches by 2033** — Most defensive patent runway in big pharma. Pipeline includes bictegravir-lenacapavir combo (FDA decision August 2026), various once-yearly + every-six-month formulations.
4. **Trodelvy oncology expansion** — TROP-2 ADC growing +6% to $1.4B FY25; multi-indication expansion (breast TNBC + HR+/HER2- + bladder + lung) creates $2–3B peak potential by 2028.
5. **Compelling valuation (~10x FY26 P/E + 7% FCF yield + 3% dividend)** — Significantly cheaper than big pharma peers; ~10x P/E reflects market skepticism about Yeztugo + post-Covid normalization.
6. **Capital return discipline — $5.9B returned in FY25 (>50% FCF commitment)** — Multi-year dividend growth + buyback yields ~7% combined.
7. **PEPFAR + Global Fund Yeztugo partnerships** — Public-health procurement expands global TAM; access programs accelerate Yeztugo adoption faster than typical PrEP launches.

#### Bear Case Risks

1. **Yeztugo at no-profit pricing in low-income markets — generic path** — Lenacapavir supplied to PEPFAR + Global Fund at no profit; supports path to generics. While US/Europe pricing remains premium, the public-health pricing creates structural pricing-ceiling pressure.
2. **HIV drug pricing politically vulnerable** — US drug-pricing politics directly targeting HIV therapies; IRA Medicare negotiation will hit multiple Gilead HIV drugs starting 2027–28. Pricing power could erode.
3. **Veklury declining + headline risk** — FY25 -49%; FY26 guide $600M; eventually $0. The continuing decline weighs on headline revenue growth.
4. **Trodelvy competitive pressure** — Other TROP-2 ADCs (Daiichi Sankyo + AstraZeneca's Datroway/datopotamab + dato-DXd) compete directly; Trodelvy's lead is shrinking.
5. **Pipeline failures** — Magrolimab (CD47, discontinued 2024) was a major loss. GILD's hit rate on biotech bets has been lumpy; pipeline single-asset risk persists.
6. **CymaBay (Livdelzi PBC) integration** — $4.3B acquisition (2024) for PBC indication; early commercial uptake matters for ROIC.
7. **Aging Kite CAR-T franchise** — Yescarta + Tecartus growth has plateaued; CAR-T market competition increasing (JNJ Carvykti, BMS Breyanzi, Caribou, Allogene).
8. **Operating margin compression risk** — Non-GAAP operating margin compressed in FY25 on M&A; if integration synergies disappoint, FY27 margins miss.

#### Upcoming Events
- **Q2 2026 earnings (early August 2026)**: Yeztugo trajectory + bictegravir-lenacapavir FDA decision.
- **FDA decision on bictegravir + lenacapavir oral combo**: August 2026 (priority review).
- **Trodelvy lung cancer Phase 3 readouts**: TROPiCS-04 (urothelial), TROPiCS-02 (HR+ breast); multiple Trodelvy expansion catalysts through 2026–27.
- **Lenacapavir long-acting expansion**: Once-yearly + every-6-month formulations in development.
- **IRA Medicare negotiation**: Biktarvy, Descovy eligible for negotiation 2027–28.
- **PEPFAR Yeztugo procurement disclosures**: Multi-year contract expansion announcements.

#### Analyst Sentiment
Consensus rating is **Buy / Overweight** (~60% Buy, 35% Hold, 5% Sell). Price targets cluster $110–125 vs. trading ~$95–105 (~10–20% implied upside). Bull case targets ~$145 on Yeztugo scaling + Trodelvy expansion; bear case ~$80 on pricing pressure + Trodelvy competition. Morgan Stanley, Bernstein, JPM, BMO maintain Buy/Overweight; UBS at Neutral; Goldman at Buy with price target $128.

#### Research Date
Generated: 2026-05-12

## Full Research Available

This primer covers steps 1–3 of 19. The full deep dive (moat analysis, DCF, bull/bear,
management quality, earnings transcript analysis) is available via:

- Investment memo: /memo/gild
- Full research API: GET /api/v1/research/GILD/memo
- Coverage universe: /stocks