Gilead Sciences (GILD) reported third-quarter revenue of $8.30B for the quarter ended Sept. 30, 2026, higher than analysts' estimate of $7.81B, and generated $4.80B of free cash flow. That cash strength is the theme here: a drug company can show a negative trailing-12-month profit on paper while the underlying business still produces large amounts of cash. Figures are current as of the Nov. 6, 2026 share price quote and the quarter ended Sept. 30, 2026.
Key facts
- Oct. 29, 2026 earnings: EPS of 2.55 versus an estimate of 2.19 (a beat of $0.36); revenue of $8.30B versus an estimate of $7.81B (a beat of $494.5M).
- Quarter ended Sept. 30, 2026: revenue was $8.30B, 6.8% higher than a year earlier. Operating income was $3.46B, net income was $2.43B and diluted EPS was 1.94.
- Year-ago quarter (ended Sept. 30, 2025): revenue $7.77B, operating income $3.33B, net income $3.05B, diluted EPS 2.43. Net income this quarter was 20.4% lower than a year earlier.
- Cash flow, quarter ended Sept. 30, 2026: operating cash flow of $5.04B and free cash flow of $4.80B. Dividends paid were $1.04B and buybacks were $370.0M.
- Share price: 166.89 USD on Nov. 6, 2026 (down 0.41% that day). The 52-week range is 116.88 to 176.58 USD.
- Next earnings date: Feb. 9, 2027, with an EPS estimate of 1.39 and a revenue estimate of $8.28B.
| Metric | Latest (Q3 FY2026) | Year-ago (Q3 FY2025) |
|---|---|---|
| Revenue | $8.30B | $7.77B |
| Operating income | $3.46B | $3.33B |
| Net income | $2.43B | $3.05B |
| Diluted EPS | 1.94 | 2.43 |
| Free cash flow | $4.80B | $3.96B |
What happened
Gilead's third quarter beat Wall Street expectations on both lines. Revenue of $8.30B topped the $7.81B estimate by 6.3%, and EPS of 2.55 beat the 2.19 estimate by 16.4%. The EPS figure used in the beat comparison is different from the diluted EPS of 1.94 in the income statement, which is why the two numbers do not match. Companies often report an adjusted figure that excludes certain items, and the estimate is often measured against that version. Our data does not label the 2.55 figure.
The growth came mostly from HIV. Revenue from HIV products outside the lines listed separately ("Other HIV" in our data) was $6.25B in the quarter, up from $5.28B a year earlier. HIV is Gilead's core franchise, and the numbers show how much of the company still rides on it. By geography, the United States contributed $6.36B, Europe $1.06B and other international markets $872.0M.
Other product lines were mixed:
- Trodelvy (a cancer treatment): $506.0M, up from $357.0M a year earlier.
- Cell therapy products: $415.0M, down from $515.0M.
- Veklury (the COVID-19 antiviral): $86.0M, down from $277.0M.
- Other products: $167.0M, down from $184.0M.
Why it matters for investors
The theme: cash flow versus accounting profit. In general terms, accounting profit (net income) can include one-time items such as charges tied to acquisitions or written-down assets; this is a general definition and not an explanation of Gilead's loss. Free cash flow, meaning cash from operations minus spending on equipment and facilities, shows what the business generates in cash. In Gilead's case the two have diverged. In the quarter ended June 30, 2026, Gilead's operating margin was -133.2% and it reported a net loss of $10.50B. Our data does not say what caused that loss, so check the company's filings for the detail. That one quarter is why the trailing-12-month numbers look poor: net margin is -12.5% and the price-to-earnings (P/E) ratio is negative (shown as -53.84), which makes P/E meaningless for comparing Gilead right now.
The five-quarter trend: one large loss quarter amid otherwise steady margins.
| Quarter ended | Revenue | Gross margin | Operating margin | Free cash flow |
|---|---|---|---|---|
| Sept. 30, 2025 | $7.77B | 79.8% | 42.8% | $3.96B |
| Dec. 31, 2025 | $7.92B | 79.5% | 37.7% | $3.12B |
| Mar. 31, 2026 | $6.96B | 79.2% | 37.2% | $2.43B |
| June 30, 2026 | $7.80B | 79.8% | -133.2% | $3.69B |
| Sept. 30, 2026 | $8.30B | 81.1% | 41.7% | $4.80B |
Gross margin (the share of revenue left after the direct cost of making drugs) reached 81.1% in the latest quarter, the highest in this five-quarter run. Operating margin returned to 41.7% from the large negative figure in the prior quarter, though it is still a bit below the 42.8% of a year earlier. Free cash flow was the highest of the five quarters. Free cash flow stayed positive at $3.69B in the loss quarter; our data does not show what caused the loss or whether it involved cash outlays outside operating cash flow, such as acquisition spending that free cash flow leaves out. That quarter's figure also includes an unusual positive capital expenditure entry in the provider's data, so we do not lean on it as evidence.
The dividend is covered by cash. In the quarter ended Sept. 30, 2026, Gilead paid $1.04B in dividends and $370.0M in buybacks against $4.80B of free cash flow. The dividend yield is 1.9%. A 247wallst.com article dated Nov. 7, 2026 asked whether the dividend is safe given negative earnings. Based on cash flow in our data, the payout was covered in each of the last five quarters, although we have not modeled future quarters.
Balance sheet. As of Sept. 30, 2026, Gilead held $6.44B in cash and short-term investments against $26.23B of total debt, leaving net debt of $19.79B. Shareholders' equity was $13.04B, and the debt-to-equity ratio is 2.01. That is a meaningful debt load. Its Altman Z score (a bankruptcy-risk gauge where higher is safer) is 3.90, and its Piotroski score (a 0-to-9 financial health checklist) is 5, which is middling.
Peer comparison. Gilead's trailing P/E cannot be compared because it is negative. Peers on the same measures:
| Company | Market cap | P/E | Net margin |
|---|---|---|---|
| AbbVie (ABBV) | $514.78B | 49.97 | 15.7% |
| AstraZeneca (AZN) | $289.13B | 26.16 | 17.7% |
| GSK (GSK) | $102.02B | 17.50 | 13.0% |
| Johnson & Johnson (JNJ) | $664.95B | 41.88 | 16.2% |
| Gilead (GILD) | $207.00B | -53.84 | -12.5% |
Every peer shows a positive net margin over the trailing 12 months, while Gilead's is negative because of the June-quarter loss. On price relative to cash, Gilead trades at 14.75 times trailing free cash flow, and its price-to-sales ratio is 6.68.
Analysts. Of 58 ratings, 38 are Buy, 19 are Hold and 1 is Sell, for a consensus of "Buy." The analyst price-target average is 165.38 USD and the median is 165.00 USD, with a range of 126.00 to 196.00 USD. The share price of 166.89 USD on Nov. 6, 2026 sits close to that average. On Oct. 30, 2026, Needham, Cantor Fitzgerald, JP Morgan, Citigroup, Scotiabank and TD Cowen all maintained their existing ratings. The FMP discounted cash flow model, a model estimate and not a forecast from us, gives a value of 137.19 USD per share, below the current price.
Our MoonshotScore. Stock Expert AI's MoonshotScore V2 for Gilead is 66.2, rated "Strong." Measured against its sector, the pillars are momentum 90, growth 75, quality 75, valuation 43 and safety 18. Momentum, growth and quality are the strengths. Valuation is middling, and safety is the clear weak spot, which fits the debt load and the recent loss.
What could go wrong
- Concentration: HIV drove the bulk of the quarter's revenue. Any change in pricing, competition or coverage for those products would hit the company's results directly.
- Shrinking lines: Cell therapy and Veklury sales were both lower than a year earlier.
- Debt: Net debt of $19.79B is large relative to cash on hand.
- Valuation: The stock trades near the analyst average target and above the DCF model value, leaving less room for disappointment.
- Insider selling: Among the 30 most recent insider filings, those dated in the last 90 days show 0 open-market purchases and 16 sales. Insider sales are common and can reflect routine planning, but there is no insider buying to balance them in this window.
- Estimates ahead: The next-quarter EPS estimate of 1.39 is well below the 2.55 just reported, so the Feb. 9, 2027 report will be compared against a different bar.
What to watch next
- Feb. 9, 2027 earnings: the EPS estimate is 1.39 and the revenue estimate is $8.28B.
- Gross and operating margin: whether they hold near the 81.1% and 41.7% levels from the latest quarter.
- Free cash flow versus dividends: whether cash generation keeps comfortably covering the dividend and buybacks.
- Trodelvy and cell therapy: whether Trodelvy's growth continues and cell therapy stabilizes.
- Debt: any change in total debt from $26.23B.
- Longer-range estimates: analysts see revenue of $7.68B for the period ending March 30, 2028 and $8.18B for the period ending June 30, 2028 (consensus estimates from only 2 analysts, so thin coverage).
Frequently asked questions
Q: Is Gilead profitable right now?
It depends on the time frame. In the quarter ended Sept. 30, 2026, Gilead earned net income of $2.43B on revenue of $8.30B. Over the trailing 12 months, however, net margin is -12.5% because of a net loss of $10.50B in the quarter ended June 30, 2026. Our data does not explain that loss, so the company's filings are the place to check.Q: Can Gilead afford its dividend if earnings are negative?
In the quarter ended Sept. 30, 2026, Gilead generated $4.80B of free cash flow and paid $1.04B in dividends, so cash covered the payout. Free cash flow was also positive in every one of the last five quarters. The dividend yield is 1.9%. This describes past coverage, not a promise about future payments.Q: How does Gilead's valuation compare with AbbVie, AstraZeneca, GSK and Johnson & Johnson?
Gilead's trailing P/E is negative, so it cannot be compared directly with AbbVie (49.97), AstraZeneca (26.16), GSK (17.50) or Johnson & Johnson (41.88). Gilead trades at 14.75 times trailing free cash flow and 6.68 times sales. Analysts' average price target is 165.38 USD, against a share price of 166.89 USD on Nov. 6, 2026.What our data could not verify
We did not have the company's release or a call transcript for this piece, so we cannot say what drove the June-quarter loss, what management guided for the coming periods, or what risks management named. Segment and cash flow figures come from the data provider's standardized statements, which may differ from the company's own presentation.
Sources: Stock Expert AI data (MoonshotScore V2) and Financial Modeling Prep (FMP) financial data, quotes, estimates and analyst ratings. A third-party headline from 247wallst.com was used for context only, not for figures.
This is educational content, not investment advice. Past performance does not guarantee future results.