Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Gilead Sciences Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net income	8,510)	480)	5,613)	4,566)	6,201)
Depreciation expense	370)	381)	354)	323)	329)
Amortization expense	2,390)	2,386)	2,339)	1,780)	1,721)
Stock-based compensation expense	894)	835)	766)	637)	635)
Deferred income taxes	160)	(1,844)	(962)	(1,552)	(116)
Net (gain) loss from equity securities	(451)	274)	167)	657)	610)
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)	—)
Other, net	480)	353)	827)	780)	1,338)
Accounts receivable, net	(367)	139)	157)	(406)	313)
Inventories	(1,036)	(426)	(842)	(310)	11)
Prepaid expenses and other	(311)	(259)	39)	(134)	(45)
Accounts payable	(132)	290)	(347)	226)	(118)
Income tax assets and liabilities, net	(2,108)	(732)	(1,768)	(364)	(361)
Accrued and other liabilities	6)	108)	458)	(775)	689)
Changes in operating assets and liabilities	(3,948)	(880)	(2,303)	(1,763)	489)
Adjustments to reconcile net income to net cash provided by operating activities	1,509)	10,348)	2,393)	4,506)	5,183)
Net cash provided by operating activities	10,019)	10,828)	8,006)	9,072)	11,384)
Purchases of marketable debt securities	(3,939)	(244)	(1,930)	(1,770)	(3,517)
Proceeds from sales of marketable debt securities	854)	2,265)	510)	412)	730)
Proceeds from maturities of marketable debt securities	55)	327)	1,334)	1,590)	2,180)
Acquisitions, including in-process research and development, net of cash acquired	(1,070)	(4,840)	(1,152)	(1,797)	(1,402)
Purchases of equity securities	(133)	(492)	(442)	(172)	(380)
Purchases of property, plant and equipment	(563)	(523)	(585)	(728)	(579)
Other investing activities, net	3)	58)	—)	(1)	(163)
Net cash used in investing activities	(4,793)	(3,449)	(2,265)	(2,466)	(3,131)
Proceeds from debt financing, net of issuance costs	—)	3,464)	1,980)	—)	—)
Proceeds from issuances of common stock	408)	422)	232)	309)	169)
Repurchases of common stock under repurchase programs	(1,922)	(1,150)	(1,000)	(1,396)	(546)
Repayments of debt and other obligations	(1,788)	(1,970)	(2,250)	(1,500)	(4,750)
Payments of dividends	(4,003)	(3,918)	(3,809)	(3,709)	(3,605)
Other financing activities, net	(440)	(281)	(278)	(173)	(145)
Net cash used in financing activities	(7,745)	(3,433)	(5,125)	(6,469)	(8,877)
Effect of exchange rate changes on cash and cash equivalents	91)	(40)	57)	(63)	(35)
Net change in cash and cash equivalents	(2,428)	3,906)	673)	74)	(659)
Cash and cash equivalents at beginning of period	9,992)	6,085)	5,412)	5,338)	5,997)
Cash and cash equivalents at end of period	7,564)	9,991)	6,085)	5,412)	5,338)

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 cash flow statement reveals a fluctuating pattern of cash generation and usage over the five-year period. While net cash provided by operating activities generally remains positive, significant variations exist, influenced by changes in working capital and non-cash expenses. Investing and financing activities consistently represent cash outflows, with notable shifts in magnitude across the years.

Operating Activities: Net cash provided by operating activities demonstrates volatility, beginning at US$11,384 million in 2021, decreasing to US$9,072 million in 2022, then declining further to US$8,006 million in 2023. A substantial increase is observed in 2024, reaching US$10,828 million, followed by a slight decrease to US$10,019 million in 2025. This variability is partially attributable to adjustments to reconcile net income, which show a significant peak in 2024 at US$10,348 million. Changes in operating assets and liabilities consistently represent cash outflows, increasing in magnitude over the period, particularly in 2025 at US$3,948 million. Net income itself exhibits fluctuations, impacting overall operating cash flow.
Investing Activities: Net cash used in investing activities consistently represents a significant outflow, ranging from approximately US$2.265 billion to US$4.793 billion annually. Acquisitions, including in-process research and development, are a primary driver of these outflows, with a peak of US$4,840 million in 2024. Purchases of marketable debt securities also contribute substantially to the cash outflow. While proceeds from sales and maturities of marketable debt securities provide some offset, they are insufficient to counteract the overall investment-related cash drain.
Financing Activities: Net cash used in financing activities also consistently represents a substantial outflow. Repayments of debt and payments of dividends are the largest components of this outflow. Repurchases of common stock also contribute significantly, particularly in 2025 at US$1,922 million. Proceeds from debt financing and issuances of common stock provide some offsetting inflows, but these are generally smaller than the outflows. The year 2023 shows a relatively lower cash outflow from financing activities compared to other years.
Non-Cash Expenses & Significant Items: Depreciation and amortization expenses are consistently positive contributors to cash flow from operations, though amortization expense is considerably larger than depreciation. Stock-based compensation also adds to cash flow. Deferred income taxes show significant fluctuations, representing both inflows and outflows across the years. Acquired in-process research and development expenses and related impairments are substantial, particularly in 2024 and 2025, impacting both investing and operating activities. The net gain/loss from equity securities is relatively small compared to other items, but does fluctuate between gains and losses.
Cash and Cash Equivalents: The net change in cash and cash equivalents is variable, with a decrease in 2021, a small increase in 2022, an increase in 2023 and a substantial increase in 2024, followed by a decrease in 2025. Despite these fluctuations, the company maintains a significant cash balance, beginning at US$5,997 million in 2021 and ending at US$7,564 million in 2025. The effect of exchange rate changes on cash is relatively small, but does contribute to the overall change in cash position.

Overall, the company demonstrates a capacity to generate cash from operations, but this is consistently offset by significant investments in research and development, acquisitions, and shareholder returns through debt repayment, dividends, and stock repurchases. The substantial increase in operating cash flow in 2024 appears to be a key driver of the increased cash balance at the end of that year, but this was followed by a decrease in 2025.

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Gilead Sciences Inc. (NASDAQ:GILD)

Cash Flow Statement