AI Takeaway
Gilead Sciences delivered a dramatic FY2025 turnaround, with net income surging 1,673% to $8.51B and operating margin expanding to 34% as prior-year charges reversed, while revenue grew modestly 2.4% to $29.44B driven by continued HIV and oncology franchise strength.
Revenue
$29.44B
++2.40% YoY
EPS (Basic)
$6.84
++1700.00% YoY
Operating Income
$10.02B
++503.01% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 2.4% year-over-year to $29.44B in FY2025 from $28.75B in FY2024, reflecting continued demand for Gilead's HIV portfolio and oncology products, even as the overall top-line growth remained measured.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income surged 503% to $10.02B from $1.66B in the prior year, implying that FY2024 results were significantly weighed down by large one-time charges (likely acquisition-related IPR&D or impairment charges) that did not recur in FY2025, lifting operating margin from 5.8% to 34.0%.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Selling, General & Administrative expenses declined 5.2% to $5.77B from $6.09B, demonstrating improved cost management and operational efficiency that contributed to the significant margin expansion in FY2025.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockGilead's revenue base remains heavily concentrated in its HIV antiviral portfolio. Any significant competitive disruption, pricing pressure from generics, or changes in government reimbursement policies could materially impact revenues. Loss of exclusivity on key HIV products would pose a substantial top-line risk.
Source: Source: 10-K Risk Factors (inferred from financial profile)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.86 versus the $1.85 analyst consensus — a +0.7% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $29.44B | $28.75B | +2.40% |
Cost of Revenue | $6.23B | $6.25B | -0.27% |
Operating Income | $10.02B | $1.66B | +503.01% |
Net Income | $8.51B | $480M | +1672.92% |
EPS (Basic) | $6.84 | $0.38 | +1700.00% |
EPS (Diluted) | $6.78 | $0.38 | +1684.21% |
SG&A Expense | $5.77B | $6.09B | -5.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $59.02B | $58.99B | +0.05% |
Current Assets | $18.34B | $19.17B | -4.33% |
Current Liabilities | $11.81B | $12B | -1.59% |
Stockholders' Equity | $22.7B | $19.33B | +17.45% |
Long-Term Debt | $24.94B | $26.71B | -6.64% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $10.02B | $10.83B | -7.47% |
Investing Cash Flow | $-4.79B | $-3.45B | -38.97% |
Financing Cash Flow | $-7.75B | $-3.43B | -125.60% |
Dividends Paid | $4B | $3.92B | +2.17% |
Share Buybacks | $1.92B | $1.15B | +67.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 34.0% | 5.8% | +28.26% |
Net Margin | 28.9% | — | — |
ROE | 37.5% | — | — |
ROA | 14.4% | — | — |
Current Ratio | $1.553 | — | — |
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Gilead had an exceptional FY2025, with net income surging 1,673% to $8.51B and diluted EPS jumping to $6.78 from $0.38 in FY2024. Revenue grew a more modest 2.4% to $29.44B, while operating margin expanded dramatically to 34% from 5.8% as large prior-year one-time charges did not recur.
The massive net income increase from $480M to $8.51B was primarily driven by the absence of large non-recurring charges that had weighed heavily on FY2024 results, likely acquisition-related in-process R&D write-offs or impairments. Underlying business performance also improved, with SG&A expenses declining 5.2% and revenue growing 2.4%.
Gilead's financial health appears solid: it generated $10.02B in operating cash flow, holds a current ratio of 1.55, and grew stockholders' equity 17.4% to $22.70B. The main concern is $24.94B in long-term debt, though this declined 6.6% year-over-year as the company made deleveraging progress.
Gilead returned approximately $5.93B to shareholders in FY2025, comprising $4.00B in dividends (up 2.2% YoY) and $1.92B in share buybacks (up 67.1% YoY). This reflects strong management confidence in the company's cash generation capacity.
Key risks include heavy revenue concentration in the HIV franchise (vulnerable to competition and pricing pressure), a significant long-term debt load of $24.94B, and pipeline execution risk in oncology and other therapeutic areas. A 7.5% decline in operating cash flow despite higher reported earnings also warrants investor attention.