GILDGilead Sciences
Is the business good?
The checks split: 8 of 9 health tests passed, but margins compressing.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GILD?
Gilead Sciences earns −5.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 15 points below what the capital costs: growth destroys value
- Operating margin
- −8.2%
Operating margin · Drug Manufacturers - General median 24% · 12 months to Q2 2026
- Share count, year on year
- −0.96%
Share count, year on year · flat: no meaningful dilution
- R&D as % of revenue
- 20%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 16% |
| FY2021 | 36% |
| FY2022 | 27% |
| FY2023 | 28% |
| FY2024 | 5.8% |
| FY2025 | 34% |
Details›
- Gross margin12 months to Q2 2026
- 80%
- Operating margin12 months to Q2 2026
- −8.2%
- Net margin12 months to Q2 2026
- −11%
- Free cash flow margin
- 43%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $30.5B
- Free cash flow, trailing twelve months
- $12.9B
- Net income, trailing twelve months
- −$3.24B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −5.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from GILD and who it buys from, as the companies report it.
None disclosed.
- ASMBAssembly Biosciences, Inc.100%
GILD is 100% of its revenue · FY2025 10-K
- LKFTLakefront Biotherapeutics NV97%
GILD is 97% of its revenue · FY2025 20-F
- RCUSArcus Biosciences, Inc.97%
GILD is 97% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; GILD’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Drug Manufacturers, General
The closest names by size in the same industry