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GILD · Q2 FY2026

GILEAD SCIENCES, INC. Q2 FY2026 earnings analysis

By SageNoodle ResearchNeutral
Reported results versus estimates
MetricActualEstimateResult
Revenue$7.80B$7.08B (yr ago)Beat
EPS-$8.45$1.56 (yr ago)Miss
Free Cash Flow$3.43B$0.72B (yr ago)Beat
Gross Margin76.0%Not disclosed (yr ago)Miss
Operating Margin-133.2%34.9% (yr ago)Miss

What changed

Revenue increased 10.2% year over year to $7.80B, while quarterly free cash flow rose to $3.43B from $0.72B. Those gains were overshadowed by a $10.39B operating loss, -133.2% operating margin and -$8.45 EPS; net debt also increased to $23.07B from $19.80B in Q2 FY2025.

Impact on the investment thesis

We establish fair value at $137.10 per share, modestly below the $144.81 market price. Strong cash generation supports the valuation, but the unexplained operating loss and higher net debt prevent assigning a richer multiple until subsequent filings establish whether the charge was nonrecurring.

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