AI Takeaway
Gilead Sciences delivered a strong Q1 FY2026 with revenue up 4.4% to $6.96B, net income surging 53.7% to $2.02B, and operating cash flow jumping 44.8% to $2.54B, driven by lower cost of revenue and improved operating leverage.
Revenue
$6.96B
++4.39% YoY
EPS (Basic)
$1.63
++53.77% YoY
Operating Income
$2.59B
++15.60% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 4.4% year-over-year to $6.96B in Q1 FY2026, compared to $6.67B in the prior-year period, reflecting continued demand for Gilead's antiviral and oncology franchises.
Source: Source: 10-Q Income Statement, Q1 FY2026
Cost of revenue declined 6.2% year-over-year to $1.45B from $1.54B, meaningfully expanding gross profit and contributing to an operating margin improvement of approximately 3.6 percentage points to 37.2%.
Source: Source: 10-Q Income Statement, Q1 FY2026
Net income rose 53.7% to $2.02B from $1.32B in the prior-year quarter, with diluted EPS climbing 54.8% to $1.61, indicating strong bottom-line leverage on modest top-line growth.
Source: Source: 10-Q Income Statement, Q1 FY2026
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Upgrade to unlockDespite a reduction, Gilead carries $22.17B in long-term debt, which represents a significant financial obligation. Rising interest rates or revenue shortfalls could strain debt servicing capacity and limit strategic flexibility.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
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Upgrade to unlockReported EPS of $2.03 versus the $1.95 analyst consensus — a +4.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.96B | $6.67B | +4.39% |
Cost of Revenue | $1.45B | $1.54B | -6.17% |
Operating Income | $2.59B | $2.24B | +15.60% |
Net Income | $2.02B | $1.31B | +53.69% |
EPS (Basic) | $1.63 | $1.06 | +53.77% |
EPS (Diluted) | $1.61 | $1.04 | +54.81% |
SG&A Expense | $1.45B | $1.26B | +15.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $56.28B | $56.43B | -0.28% |
Current Assets | $18.64B | $16.9B | +10.30% |
Current Liabilities | $9.48B | $12.34B | -23.23% |
Stockholders' Equity | $23.52B | $19.16B | +22.72% |
Long-Term Debt | $22.17B | $24.95B | -11.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.54B | $1.76B | +44.79% |
Investing Cash Flow | $1.77B | $-415M | +526.51% |
Financing Cash Flow | $-4.24B | $-3.43B | -23.73% |
Dividends Paid | $1.04B | $1.01B | +2.97% |
Share Buybacks | $419M | $730M | -42.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 37.2% | 33.6% | +3.60% |
Net Margin | 29.0% | — | — |
ROE | 8.6% | — | — |
ROA | 3.6% | — | — |
Current Ratio | $1.967 | — | — |
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Gilead Sciences reported strong Q1 FY2026 results with revenue of $6.96B (+4.4% YoY), net income of $2.02B (+53.7% YoY), and diluted EPS of $1.61 (+54.8% YoY). Operating cash flow also surged 44.8% to $2.54B, reflecting robust underlying business performance.
Gilead's net income surged 53.7% to $2.02B in Q1 FY2026, driven by a 6.2% decline in cost of revenue to $1.45B and a 15.6% increase in operating income to $2.59B. The net income gain outpaced operating income growth, suggesting additional benefits from below-the-line items such as reduced interest expense from $2.78B in long-term debt paydown.
Gilead's financial health improved meaningfully in Q1 FY2026, with a current ratio of approximately 1.97, stockholders' equity growing 22.7% to $23.52B, and long-term debt declining 11.1% to $22.17B. Operating cash flow of $2.54B comfortably covered $1.04B in dividends and $419M in share buybacks.
Yes, Gilead's operating margin expanded approximately 3.6 percentage points to 37.2% in Q1 FY2026, up from 33.6% in the prior-year period. This improvement was driven by lower cost of revenue despite a 15.3% increase in SG&A expenses.
Gilead paid $1.04B in dividends in Q1 FY2026, up 3.0% from $1.01B in the prior-year quarter, while share repurchases declined 42.6% to $419M from $730M. Total capital returned to shareholders was approximately $1.46B, well-supported by operating cash flow of $2.54B.