Stock Analysis on Net
Stock Analysis on Net

Gilead Sciences Inc. (NASDAQ:GILD)

Common-Size Income Statement 
Quarterly Data

Gilead Sciences Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Product sales 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -20.55 -21.36 -21.28 -23.29 -20.98 -20.94 -22.34 -23.35 -29.56 -22.38 -21.97 -22.22 -19.04 -19.99 -23.49 -21.79 -36.69 -16.63 -22.59 -21.47
Gross profit on product sales 79.45% 78.64% 78.72% 76.71% 79.02% 79.06% 77.66% 76.65% 70.44% 77.62% 78.03% 77.78% 80.96% 80.01% 76.51% 78.21% 63.31% 83.37% 77.41% 78.53%
Royalty, contract and other revenues 0.28 5.77 0.40 0.82 0.44 0.40 0.61 0.59 0.62 0.81 0.53 0.73 0.78 0.92 1.99 0.86 1.17 0.88 1.06 1.31
Research and development expenses -20.03 -18.33 -21.14 -20.85 -21.78 -18.56 -19.55 -22.87 -19.90 -20.83 -21.44 -22.95 -21.11 -16.47 -17.95 -18.03 -28.31 -15.59 -18.43 -16.64
Acquired in-process research and development expenses -6.83 -2.31 -0.86 -3.83 0.15 -6.72 -0.55 -62.15 -4.91 -1.30 -3.60 -7.63 -2.15 -6.42 -5.38 -0.12 0.00 -0.26 -1.56 -0.98
In-process research and development impairments -5.06 0.00 -2.69 0.00 0.00 -23.29 0.00 -36.56 -0.71 0.00 0.00 0.00 0.00 0.00 0.00 -41.32 0.00 0.00 0.00 0.00
Selling, general and administrative expenses -22.70 -18.48 -19.35 -19.02 -25.29 -19.07 -19.92 -20.69 -22.74 -18.80 -28.17 -20.90 -27.55 -17.38 -22.11 -16.57 -23.04 -16.18 -21.96 -16.64
Operating income (loss) 25.10% 45.30% 35.07% 33.83% 32.54% 11.82% 38.25% -65.02% 22.80% 37.50% 25.37% 27.04% 30.92% 40.66% 33.06% 3.01% 13.13% 52.23% 36.51% 45.58%
Interest expense -3.21 -3.49 -3.60 -3.93 -3.29 -3.17 -3.43 -3.82 -3.56 -3.32 -3.50 -3.65 -3.08 -3.28 -3.94 -3.64 -3.32 -3.40 -4.16 -4.05
Other income (expense), net 4.39 7.76 2.96 -4.96 -0.49 4.07 -5.12 1.35 4.14 -1.04 2.33 -2.78 -0.14 -2.52 -4.63 -1.70 0.80 -2.09 -2.81 -5.82
Income (loss) before income taxes 26.28% 49.57% 34.43% 24.94% 28.76% 12.72% 29.70% -67.49% 23.38% 33.14% 24.19% 20.62% 27.70% 34.85% 24.49% -2.33% 10.60% 46.74% 29.54% 35.71%
Income tax (expense) benefit 1.34 -8.02 -6.65 -5.05 -5.10 3.95 -6.35 4.75 -3.34 -2.09 -8.36 -5.00 -5.43 -9.26 -6.00 2.51 -5.35 -11.58 -4.88 -8.55
Net income (loss) 27.62% 41.55% 27.79% 19.89% 23.66% 16.67% 23.35% -62.74% 20.04% 31.06% 15.83% 15.62% 22.27% 25.59% 18.49% 0.18% 5.25% 35.15% 24.66% 27.16%
Net loss attributable to noncontrolling interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.18 0.11 0.09 0.40 0.10 0.04 0.15 0.11 0.08 0.08 0.08 0.11
Net income (loss) attributable to Gilead 27.62% 41.55% 27.79% 19.89% 23.66% 16.67% 23.35% -62.74% 20.23% 31.17% 15.92% 16.02% 22.37% 25.64% 18.64% 0.29% 5.34% 35.24% 24.74% 27.27%

Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

The common-size income statement reveals significant fluctuations in Gilead Sciences’ profitability and expense management over the analyzed period, spanning from March 2021 to December 2025. Product sales are consistently represented at 100%, allowing for a clear view of the proportional impact of other financial items.

Gross Profit
Gross profit on product sales demonstrates considerable variability, ranging from a low of 63.31% in December 2021 to a high of 83.37% in September 2021. A general downward trend is observed from 2021 through 2023, followed by a recovery towards the end of the period. The most recent quarters show a stabilization around 78-79%, indicating potential improvements in cost management or pricing strategies.
Cost of Goods Sold
Cost of goods sold as a percentage of product sales exhibits an inverse relationship with gross profit. It peaked at -36.69% in December 2021, coinciding with the lowest gross profit margin. A noticeable increase is observed in late 2023 and early 2024, before decreasing again. The fluctuations suggest potential changes in production costs, inventory valuation, or supply chain dynamics.
Research and Development
Research and development expenses consistently represent a substantial portion of product sales, generally ranging between 15% and 23%. A significant spike is observed in December 2021 (-28.31%) and again in March 2024 (-22.87%). The inclusion of ‘Acquired in-process research and development expenses’ and ‘In-process research and development impairments’ further complicates the R&D picture, with substantial negative impacts in specific quarters, particularly in March 2022 (-41.32%) and March 2024 (-62.15%). These impairments significantly impacted net income in those periods.
Operating Income
Operating income demonstrates a strong correlation with gross profit and R&D expenses. It experienced a substantial decline in 2021 and a particularly sharp drop in March 2024 (-65.02%), largely attributable to the significant in-process R&D impairment. A recovery is evident in subsequent quarters, reaching approximately 35% by the end of 2025. The volatility highlights the company’s sensitivity to R&D investments and associated impairments.
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses remain relatively stable as a percentage of product sales, generally fluctuating between 16% and 28%. A peak is observed in December 2022 (-27.55%), followed by a decrease. These expenses appear to be less volatile than cost of goods sold or R&D, suggesting a more consistent overhead structure.
Net Income
Net income exhibits the most dramatic fluctuations, mirroring the trends in operating income and influenced by other income/expenses and taxes. A significant loss is recorded in March 2024 (-62.74%), directly linked to the large R&D impairment. The company returns to profitability in subsequent quarters, with net income reaching a high of 41.55% in September 2025. The final quarters show a consistent net income around 27-28%.
Other Income and Taxes
Other income (expense), net, and income tax (expense) benefit introduce additional variability. Other income fluctuates between negative and positive values, while the income tax rate varies depending on profitability. These items contribute to the overall volatility in net income.

In summary, the company experienced significant earnings volatility throughout the analyzed period, largely driven by fluctuations in research and development expenses, particularly those related to acquired in-process research and development. While profitability recovered in the later periods, the impact of these expenses remains a key factor in understanding the company’s financial performance.

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