Recent News
On June 15, 2026 the U.S. FDA accepted Gilead’s supplemental application for an investigational once-weekly oral formulation of Yeztugo (lenacapavir) with a PDUFA target date of February 2, 2027; Gilead described the filing as an extension of its long‑acting PrEP strategy. On September 8, 2026 Gilead opened a new state‑of‑the‑art research center to support discovery and early development. The company also announced a schedule of investor presentations for Q3 2026 and faced a third‑party patent challenge filed in mid‑June related to an integrase inhibitor family.
Technical Analysis
Directional indicators show a strong trend environment (ADX 35.57) with directional sentiment tilting bearish: DI+ at 28.14 decreasing (bearish) while DI- executed a dip-and-reversal (now increasing), which reinforces downside pressure relative to the valuation backdrop and supports a cautious near‑term bias.
MACD registers a peak-and-reverse pattern and sits below its signal line (MACD 3.13 vs signal 3.59), indicating bearish momentum; that weakening momentum increases the probability of mean reversion toward WMDST’s valuation context over the next several weeks.
MRO at 34.67 and marked peak-and-reversal implies the price currently sits above the WMDST short-term target and faces downward potential; this signal aligns with the technical momentum deterioration and argues for reduced upside conviction until momentum stabilizes.
RSI at 57.36 with a peak-and-reversal shows momentum rolling over from neutral‑bullish levels, consistent with MACD and MRO signals and supporting a near‑term price bias toward short-term support rather than renewed breakout attempts.
Price sits below the 20‑day average (price close $144.81 vs 20‑day avg $147.82) and the 12‑day EMA shows a peak‑and‑reverse; the 200‑day average remains lower ($133.69), so the medium‑term trend stays constructive while short‑term momentum favors consolidation. Bollinger bands place the close just inside the lower 1x band ($145.47), reinforcing the case for short‑term mean reversion risk toward the $142–$148 technical band and tying to the valuation gap identified by WMDST.
Fundamental Analysis
Revenue totaled $7,803,000,000; revenue growth year‑over‑year registers 95.04% while quarter‑over‑quarter showed a decline of −199.56% as reported, reflecting timing and one‑off items in the period. Gross margin equals 79.76% and operating margin equals 32.54%, indicating strong core product economics that contrast with reported accounting losses driven by non‑operating charges.
Net income landed at −$10,496,000,000 and EBIT registered −$10,007,000,000, producing an EBIT margin of −128.25% versus an industry peer mean EBIT margin of −96.56%; the negative EBIT margin reflects sizable acquired IPR&D and tax expenses disclosed for the quarter rather than core operating deterioration. Operating income (reported separately) remained positive at $2,539,000,000, underlining that operating performance stayed resilient before non‑operating adjustments.
EPS came in at −$6.75 versus an estimate of −$7.25, beating consensus by $0.50, a +6.90% surprise. Forward EPS sits at $2.47 with a forward PE of 53.05, implying the market prices a return to profitability; that implied forward valuation contrasts with the current negative trailing PE and supports the “over‑valued” label assigned by WMDST given present fundamentals.
Balance‑sheet metrics show $3.18B in cash and short‑term investments, total debt of $26.25B and net debt of $23.07B; debt‑to‑equity equals 222% and debt‑to‑assets equals 53.17%, indicating elevated leverage relative to typical non‑financial companies and reinforcing sensitivity to cash generation. Free cash flow totaled $3.433B with a free cash flow yield of 2.11%, which sits above the industry peer mean free cash flow yield of 0.025% and provides some cushion for near‑term obligations.
Market multiples show price‑to‑book at 13.74x, above the industry peer mean price‑to‑book of 7.37x, while PEG (0.04) sits below the industry peer mean PEG of 0.81. Enterprise‑value‑to‑revenue (EVR) equals 23.78x, consistent with a valuation premium. WMDST values the stock as over‑valued given the combination of stretched market multiples and reported non‑operating losses that materially depress trailing profitability.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-08-04 |
| NEXT REPORT DATE: | 2026-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 7.6 B |
| Operating Cash Flow | $ -10.12 B | |
| Capital Expenditures | $ -140.00 M | |
| Change In Working Capital | $ 36.0 M | |
| Dividends Paid | $ -1.03 B | |
| Cash Flow Delta | $ -4.45 B | |
| End Period Cash Flow | $ 3.2 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 7.8 B | |
| Forward Revenue | $ -569.29 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.6 B | |
| Depreciation | $ 98.0 M | |
| Depreciation and Amortization | $ 698.0 M | |
| Research and Development | $ 1.8 B | |
| Total Operating Expenses | $ 5.3 B | |
| PROFITABILITY | ||
| Gross Profit | $ 6.2 B | |
| EBITDA | $ -9.31 B | |
| EBIT | $ -10.01 B | |
| Operating Income | $ 2.5 B | |
| Interest Income | $ 45.0 M | |
| Interest Expense | $ 247.0 M | |
| Net Interest Income | $ -202.00 M | |
| Income Before Tax | $ -10.25 B | |
| Tax Provision | $ 242.0 M | |
| Tax Rate | 40.0 % | |
| Net Income | $ -10.50 B | |
| Net Income From Continuing Operations | $ -10.50 B | |
| EARNINGS | ||
| EPS Estimate | $ -7.25 | |
| EPS Actual | $ -6.75 | |
| EPS Difference | $ 0.50 | |
| EPS Surprise | 6.897 % | |
| Forward EPS | $ 2.47 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 49.4 B | |
| Intangible Assets | $ 22.3 B | |
| Net Tangible Assets | $ -10.52 B | |
| Total Current Assets | $ 13.9 B | |
| Cash and Short-Term Investments | $ 3.2 B | |
| Cash | $ 3.2 B | |
| Net Receivables | $ 5.1 B | |
| Inventory | $ 2.0 B | |
| Long-Term Investments | $ 4.8 B | |
| LIABILITIES | ||
| Accounts Payable | $ 674.0 M | |
| Short-Term Debt | $ 2.4 B | |
| Total Current Liabilities | $ 11.0 B | |
| Net Debt | $ 23.1 B | |
| Total Debt | $ 26.2 B | |
| Total Liabilities | $ 37.6 B | |
| EQUITY | ||
| Total Equity | $ 11.8 B | |
| Retained Earnings | $ 2.2 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.53 | |
| Shares Outstanding | 1.241 B | |
| Revenue Per-Share | $ 6.29 | |
| VALUATION | Market Capitalization | $ 162.5 B |
| Enterprise Value | $ 185.6 B | |
| Enterprise Multiple | -19.937 | |
| Enterprise Multiple QoQ | -137.93 % | |
| Enterprise Multiple YoY | -142.224 % | |
| Enterprise Multiple IPRWA | high: 90.978 median: 38.141 mean: 16.655 GILD: -19.937 low: -129.549 |
|
| EV/R | 23.784 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 4.173 | |
| Asset To Liability | 1.312 | |
| Debt To Capital | 0.689 | |
| Debt To Assets | 0.532 | |
| Debt To Assets QoQ | 34.946 % | |
| Debt To Assets YoY | 18.765 % | |
| Debt To Assets IPRWA | high: 0.97 GILD: 0.532 mean: 0.12 median: 0.018 low: 0.0 |
|
| Debt To Equity | 2.219 | |
| Debt To Equity QoQ | 135.317 % | |
| Debt To Equity YoY | 75.011 % | |
| Debt To Equity IPRWA | GILD: 2.219 high: 1.719 mean: 0.136 median: 0.037 low: -1.043 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 13.741 | |
| Price To Book QoQ | 90.167 % | |
| Price To Book YoY | 93.691 % | |
| Price To Book IPRWA | high: 19.854 GILD: 13.741 mean: 7.372 median: 5.872 low: -9.25 |
|
| Price To Earnings (P/E) | -19.402 | |
| Price To Earnings QoQ | -128.79 % | |
| Price To Earnings YoY | -135.598 % | |
| Price To Earnings IPRWA | high: 76.582 median: 23.207 mean: 0.397 GILD: -19.402 low: -132.822 |
|
| PE/G Ratio | 0.045 | |
| Price To Sales (P/S) | 20.828 | |
| Price To Sales QoQ | -14.68 % | |
| Price To Sales YoY | 5.667 % | |
| Price To Sales IPRWA | high: 879.061 mean: 61.488 median: 32.549 GILD: 20.828 low: 0.181 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 53.049 | |
| Forward PE/G | -0.123 | |
| Forward P/S | -285.483 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -37.554 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.148 | |
| Asset Turnover Ratio QoQ | 22.364 % | |
| Asset Turnover Ratio YoY | 16.995 % | |
| Asset Turnover Ratio IPRWA | high: 0.491 GILD: 0.148 mean: 0.114 median: 0.107 low: 0.0 |
|
| Receivables Turnover | 1.593 | |
| Receivables Turnover Ratio QoQ | 10.487 % | |
| Receivables Turnover Ratio YoY | 3.143 % | |
| Receivables Turnover Ratio IPRWA | high: 5.573 GILD: 1.593 mean: 1.425 median: 1.306 low: 0.004 |
|
| Inventory Turnover | 0.817 | |
| Inventory Turnover Ratio QoQ | 4.215 % | |
| Inventory Turnover Ratio YoY | -2.502 % | |
| Inventory Turnover Ratio IPRWA | high: 3.295 GILD: 0.817 mean: 0.557 median: 0.437 low: 0.004 |
|
| Days Sales Outstanding (DSO) | 57.278 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 137.73 | |
| Cash Conversion Cycle Days QoQ | 7.026 % | |
| Cash Conversion Cycle Days YoY | 9.151 % | |
| Cash Conversion Cycle Days IPRWA | high: 1415.294 mean: 200.135 median: 197.717 GILD: 137.73 low: -1418.404 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.668 | |
| CapEx To Revenue | -0.018 | |
| CapEx To Depreciation | -1.429 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 35.7 B | |
| Net Invested Capital | $ 38.1 B | |
| Invested Capital | $ 38.1 B | |
| Net Tangible Assets | $ -10.52 B | |
| Net Working Capital | $ 2.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.288 | |
| Current Ratio | 1.265 | |
| Current Ratio QoQ | -35.68 % | |
| Current Ratio YoY | -3.799 % | |
| Current Ratio IPRWA | high: 31.351 mean: 3.108 GILD: 1.265 median: 0.597 low: 0.026 |
|
| Quick Ratio | 1.088 | |
| Quick Ratio QoQ | -38.359 % | |
| Quick Ratio YoY | -5.562 % | |
| Quick Ratio IPRWA | high: 13.027 mean: 2.945 median: 2.737 GILD: 1.088 low: 0.047 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | -2.819 | |
| Cost Of Debt | 0.798 % | |
| Interest Coverage Ratio | -40.514 | |
| Interest Coverage Ratio QoQ | -444.801 % | |
| Interest Coverage Ratio YoY | -483.548 % | |
| Interest Coverage Ratio IPRWA | high: 672.667 mean: -14.396 GILD: -40.514 median: -59.087 low: -1866.8 |
|
| Operating Cash Flow Ratio | -0.919 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 41.647 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | -10.2 | |
| Dividend Payout Ratio | -0.098 | |
| Dividend Rate | $ 0.83 | |
| Dividend Yield | 0.006 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -12.289 % | |
| Revenue Growth | 12.112 % | |
| Revenue Growth QoQ | -199.556 % | |
| Revenue Growth YoY | 95.04 % | |
| Revenue Growth IPRWA | high: 330.841 % mean: 16.207 % median: 15.902 % GILD: 12.112 % low: -242.388 % |
|
| Earnings Growth | -432.512 % | |
| Earnings Growth QoQ | -4832.079 % | |
| Earnings Growth YoY | -4014.136 % | |
| Earnings Growth IPRWA | high: 168.75 % median: 10.345 % mean: 10.028 % low: -155.294 % GILD: -432.512 % |
|
| MARGINS | ||
| Gross Margin | 79.764 % | |
| Gross Margin QoQ | 0.663 % | |
| Gross Margin YoY | 1.221 % | |
| Gross Margin IPRWA | high: 100.0 % median: 84.203 % GILD: 79.764 % mean: 77.876 % low: -70.566 % |
|
| EBIT Margin | -128.246 % | |
| EBIT Margin QoQ | -416.524 % | |
| EBIT Margin YoY | -438.469 % | |
| EBIT Margin IPRWA | high: 212.221 % median: 34.225 % mean: -96.566 % GILD: -128.246 % low: -4214.74 % |
|
| Return On Sales (ROS) | 32.539 % | |
| Return On Sales QoQ | -15.872 % | |
| Return On Sales YoY | -15.415 % | |
| Return On Sales IPRWA | high: 78.757 % median: 32.607 % GILD: 32.539 % mean: -100.74 % low: -3837.989 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 3.4 B | |
| Free Cash Flow Yield | 2.112 % | |
| Free Cash Flow Yield QoQ | 47.899 % | |
| Free Cash Flow Yield YoY | 309.302 % | |
| Free Cash Flow Yield IPRWA | high: 13.939 % GILD: 2.112 % median: 0.739 % mean: 0.025 % low: -48.052 % |
|
| Free Cash Growth | 41.45 % | |
| Free Cash Growth QoQ | -286.2 % | |
| Free Cash Growth YoY | -173.437 % | |
| Free Cash Growth IPRWA | high: 185.644 % GILD: 41.45 % median: 24.96 % mean: 19.525 % low: -209.632 % |
|
| Free Cash To Net Income | -0.327 | |
| Cash Flow Margin | -129.719 % | |
| Cash Flow To Earnings | 0.964 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | -19.871 % | |
| Return On Assets QoQ | -666.771 % | |
| Return On Assets YoY | -668.555 % | |
| Return On Assets IPRWA | high: 34.781 % mean: -8.198 % median: -13.258 % GILD: -19.871 % low: -66.894 % |
|
| Return On Capital Employed (ROCE) | -26.099 % | |
| Return On Equity (ROE) | -0.887 | |
| Return On Equity QoQ | -1132.449 % | |
| Return On Equity YoY | -990.775 % | |
| Return On Equity IPRWA | high: 0.746 mean: -0.133 median: -0.259 GILD: -0.887 low: -1.147 |
|
| DuPont ROE | -59.396 % | |
| Return On Invested Capital (ROIC) | -15.77 % | |
| Return On Invested Capital QoQ | -426.163 % | |
| Return On Invested Capital YoY | -424.887 % | |
| Return On Invested Capital IPRWA | high: 37.515 % median: 4.279 % mean: 1.664 % GILD: -15.77 % low: -47.859 % |
|