Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Gilead Sciences Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Product sales	28,915)	28,610)	26,934)	26,982)	27,008)
Cost of goods sold	(6,234)	(6,251)	(6,498)	(5,657)	(6,601)
Gross profit on product sales	22,681)	22,359)	20,436)	21,325)	20,407)
Royalty, contract and other revenues	528)	144)	182)	299)	297)
Research and development expenses	(5,799)	(5,907)	(5,718)	(4,977)	(5,363)
Acquired in-process research and development expenses	(1,024)	(4,663)	(1,155)	(944)	(177)
In-process research and development impairment	(590)	(4,180)	(50)	(2,700)	—)
Selling, general and administrative expenses	(5,774)	(6,091)	(6,090)	(5,673)	(5,246)
Operating income	10,022)	1,662)	7,605)	7,330)	9,918)
Interest expense	(1,024)	(977)	(944)	(935)	(1,001)
Gain (loss) from equity securities, net	451)	(274)	(167)	(657)	—)
Interest income	349)	281)	376)	106)	—)
Other, net	(2)	(2)	(11)	(30)	(639)
Other income (expense), net	798)	5)	198)	(581)	(639)
Income before income taxes	9,796)	690)	6,859)	5,814)	8,278)
Income tax expense	(1,286)	(210)	(1,246)	(1,248)	(2,077)
Net income	8,510)	480)	5,613)	4,566)	6,201)
Net loss attributable to noncontrolling interest	—)	—)	52)	26)	24)
Net income attributable to Gilead	8,510)	480)	5,665)	4,592)	6,225)

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The income statement reveals a period of fluctuating performance between 2021 and 2025. Product sales demonstrate relative stability, with a slight increase from $27.008 billion in 2021 to $28.915 billion in 2025. However, profitability metrics exhibit more pronounced variations over the five-year period.

Gross Profit: Gross profit on product sales initially increased from $20.407 billion in 2021 to $21.325 billion in 2022, before declining to $20.436 billion in 2023. A subsequent rise is observed in 2024 and 2025, reaching $22.359 billion and $22.681 billion respectively. This suggests potential fluctuations in production costs or pricing strategies.
Operating Income: Operating income experienced a significant decrease from $9.918 billion in 2021 to $7.330 billion in 2022, followed by a modest increase to $7.605 billion in 2023. A substantial decline occurred in 2024, with operating income falling to $1.662 billion, before rebounding strongly to $10.022 billion in 2025. This volatility is likely influenced by substantial changes in acquired in-process research and development expenses and in-process research and development impairment.
Research and Development: Research and development expenses remained relatively consistent between 2021 and 2023, fluctuating around $5.363 to $5.718 billion. However, acquired in-process research and development expenses and associated impairments increased significantly in 2022, 2023, and particularly in 2024, reaching $4.663 billion. This large expense in 2024 contributed to the low operating income that year. The impairment charges decreased in 2025, coinciding with the increase in operating income.
Net Income: Net income mirrored the trends in operating income, decreasing from $6.201 billion in 2021 to $4.566 billion in 2022, increasing to $5.613 billion in 2023, plummeting to $480 million in 2024, and then rising sharply to $8.510 billion in 2025. Net income attributable to Gilead follows the same pattern. These fluctuations are consistent with the changes in operating income and other income/expenses.
Other Income and Expenses: Other income (expense), net, experienced considerable volatility. A significant expense of $639 million was recorded in 2021, followed by smaller expenses in 2022 and 2023. A large expense was recorded in 2024, but this was offset by a substantial income of $798 million in 2025. Gains (losses) from equity securities and interest income also contributed to these fluctuations.

Overall, the period demonstrates a cyclical pattern of profitability, with a particularly challenging year in 2024 followed by a strong recovery in 2025. The significant impact of acquired in-process research and development expenses and impairments on the bottom line is evident. Fluctuations in other income and expenses also play a role in the overall financial performance.

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Gilead Sciences Inc. (NASDAQ:GILD)

Income Statement