1、CrispIdea|R E S E A R C HGilead Science IncE Q U I T Y R E S E A R C H Healthcare|Diagnostics&Research|Jul 25,2025Gilead Science IncWith strong cash,strong science,Gilead eyes its next chapter We maintain a“Hold”rating for GILD,with the upgrade TP of$116.26 for FY26.This provides an upside potential

2、 of 7%over the CMP of$108.8.We estimated the adjusted EPS of$8.61 for FY26.We estimate a forward P/E multiple of 13.5x and EV/EBITDA of 10.97x for FY26.Our estimates are based on the following factors:1)Strong Financial Discipline Driving Bottom line outperformance 2)HIV Portfolio remains the growth

3、 engine 3)Oncology Underperforms despite clinical wins and 4)Liver Disease Franchise Sees Steady Uptick.Strong Financial Discipline Driving Bottom line outperformance:Revenues of Gilead in Q1FY25 remained flat at$6.67bn compared to last year same period,but has showed a comeback in terms of profitab

4、ility.Non-GAAP EPS stood at$1.81,compared to a EPS of($1.32),which is a big swing.The reason behind this was one time charges on IPR&D cost for CymaBay and impairment for Immunomedics assets.Management has also kept a tight control over R&D and SG&A expenses.Gross margin remained stable at 85.5%and

5、operating margin stood at 43%,which shows that Gilead is focusing on cost efficiency.Gilead has done a robust capital allocation.In Q1FY25 Gilead generated$1.8bn in operating cash flow,which was used in$1bn towards dividend,$730mn in stock repurchases and paid the remaining towards debt repayment.Th

6、is capital allocation has rewarded the shareholders and also strengthened its balance sheet.HIV Portfolio remains the growth engine:Gileads HIV portfolio is still its biggest dependable revenue stream.In Q1FY25 HIV portfolio has generated$4.6bn in revenue which is 6%growth from Q1FY24.This growth is