Operating Profit Margin
since 2005
Calculation
Gilead Sciences Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Product sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 34.66% | = | 100 | × | 10,022) | ÷ | 28,915) |
| Dec 31, 2024 | 5.81% | = | 100 | × | 1,662) | ÷ | 28,610) |
| Dec 31, 2023 | 28.24% | = | 100 | × | 7,605) | ÷ | 26,934) |
| Dec 31, 2022 | 27.17% | = | 100 | × | 7,330) | ÷ | 26,982) |
| Dec 31, 2021 | 36.72% | = | 100 | × | 9,918) | ÷ | 27,008) |
| Dec 31, 2020 | 16.72% | = | 100 | × | 4,071) | ÷ | 24,355) |
| Dec 31, 2019 | 19.38% | = | 100 | × | 4,287) | ÷ | 22,119) |
| Dec 31, 2018 | 37.83% | = | 100 | × | 8,200) | ÷ | 21,677) |
| Dec 31, 2017 | 55.04% | = | 100 | × | 14,124) | ÷ | 25,662) |
| Dec 31, 2016 | 58.87% | = | 100 | × | 17,633) | ÷ | 29,953) |
| Dec 31, 2015 | 69.03% | = | 100 | × | 22,193) | ÷ | 32,151) |
| Dec 31, 2014 | 62.37% | = | 100 | × | 15,265) | ÷ | 24,474) |
| Dec 31, 2013 | 41.87% | = | 100 | × | 4,524) | ÷ | 10,804) |
| Dec 31, 2012 | 42.67% | = | 100 | × | 4,010) | ÷ | 9,398) |
| Dec 31, 2011 | 46.77% | = | 100 | × | 3,790) | ÷ | 8,102) |
| Dec 31, 2010 | 53.62% | = | 100 | × | 3,962) | ÷ | 7,390) |
| Dec 31, 2009 | 54.55% | = | 100 | × | 3,529) | ÷ | 6,469) |
| Dec 31, 2008 | 52.68% | = | 100 | × | 2,679) | ÷ | 5,085) |
| Dec 31, 2007 | 57.98% | = | 100 | × | 2,165) | ÷ | 3,733) |
| Dec 31, 2006 | -29.32% | = | 100 | × | (759) | ÷ | 2,588) |
| Dec 31, 2005 | 61.41% | = | 100 | × | 1,111) | ÷ | 1,809) |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The operating profit margin exhibited considerable fluctuation between 2005 and 2025. Initial years showed strong profitability, followed by a period of volatility, a surge in margins, and a subsequent decline before a recent partial recovery.
- Initial Period (2005-2006)
- From 2005 to 2006, the operating profit margin experienced a significant shift from a high of 61.41% to a negative value of -29.32%. This indicates a substantial decrease in profitability during this period, likely driven by increased costs or decreased revenue. The operating income (loss) reflects this, moving from a positive US$1,111 million to a loss of US$759 million.
- Recovery and Stability (2007-2010)
- The operating profit margin recovered notably between 2007 and 2010, ranging between 52.68% and 57.98%. This period demonstrates a return to profitability and relative stability in operational efficiency. Operating income increased consistently during these years, suggesting successful cost management or revenue growth.
- Mid-Range Performance (2011-2015)
- From 2011 to 2015, the operating profit margin generally decreased, moving from 46.77% to 69.03% and then to 58.87%. While still positive, the trend suggests a gradual erosion of profitability. However, operating income saw a dramatic increase in 2014 and 2015, driven by substantial growth in product sales. The margin increase in 2014 and 2015 suggests that the increased sales were highly profitable.
- Decline and Low Point (2016-2018)
- A marked decline in the operating profit margin occurred between 2016 and 2018, falling from 58.87% to 19.38%. This corresponds with a decrease in operating income, indicating challenges in maintaining profitability despite continued product sales. The margin decline suggests increasing costs or pricing pressures.
- Recent Fluctuations (2019-2025)
- The period from 2019 to 2025 shows considerable volatility. The operating profit margin decreased to 16.72% in 2020, then increased to 36.72% in 2021, before declining again to 5.81% in 2022. A recovery to 34.66% is observed in 2025. This suggests the company is experiencing external pressures and/or internal challenges impacting profitability, with some recent signs of improvement. Product sales have fluctuated during this period, but do not fully explain the margin changes, indicating cost of goods sold or operating expenses are also significant factors.
Overall, the operating profit margin demonstrates a complex pattern over the analyzed period. While periods of strong profitability were observed, the company has experienced significant fluctuations, particularly in recent years, requiring further investigation into the underlying drivers of these changes.
Comparison to Competitors
Gilead Sciences Inc., operating profit margin, long-term trends, comparison to competitors
| Gilead Sciences Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 34.66% | 24.65% | 25.83% | 19.09% | 24.95% | 17.38% | 34.77% |
| Dec 31, 2024 | 5.81% | 16.22% | 22.66% | 20.37% | 28.10% | 17.11% | -2.11% |
| Dec 31, 2023 | 28.24% | 23.49% | 29.35% | 21.77% | 30.85% | 16.00% | 38.83% |
| Dec 31, 2022 | 27.17% | 31.21% | 38.57% | 27.61% | 38.93% | 18.69% | 48.23% |
| Dec 31, 2021 | 36.72% | 31.89% | 31.44% | 25.35% | 55.67% | 25.57% | 36.73% |
| Dec 31, 2020 | 16.72% | 24.81% | 37.70% | 18.99% | 42.09% | 24.19% | 46.03% |
| Dec 31, 2019 | 19.38% | 39.03% | 43.57% | 18.25% | 28.10% | 17.99% | 28.77% |
| Dec 31, 2018 | 37.83% | 19.49% | 45.55% | 17.11% | 37.77% | 15.53% | 20.84% |
| Dec 31, 2017 | 55.04% | 33.99% | 45.76% | 16.48% | 35.41% | 14.19% | 4.95% |
| Dec 31, 2016 | 58.87% | 36.60% | 44.74% | 16.29% | 27.38% | 13.40% | 0.58% |
| Dec 31, 2015 | 69.03% | 32.97% | 40.44% | 16.87% | 30.51% | 13.77% | -45.23% |
| Dec 31, 2014 | 62.37% | 17.09% | 32.03% | 17.23% | 29.74% | 14.82% | -119.30% |
| Dec 31, 2013 | 41.87% | 30.14% | 32.25% | 17.13% | 36.11% | 12.30% | -74.54% |
| Dec 31, 2012 | 42.67% | 31.65% | 33.52% | 17.33% | 33.20% | 11.85% | 0.15% |
| Dec 31, 2011 | 46.77% | — | 28.19% | 16.27% | -46.02% | 10.62% | 8.07% |
| Dec 31, 2010 | 53.62% | — | 37.82% | 16.41% | -21.23% | 11.72% | -485.51% |
| Dec 31, 2009 | 54.55% | — | 38.37% | 13.79% | -19.54% | 10.38% | -602.63% |
| Dec 31, 2008 | 52.68% | — | 35.50% | 14.72% | -37.67% | 11.71% | -263.65% |
| Dec 31, 2007 | 57.98% | — | 27.81% | 15.79% | -91.55% | 10.00% | -210.94% |
| Dec 31, 2006 | -29.32% | — | 27.71% | 15.82% | -169.68% | 6.38% | -105.86% |
| Dec 31, 2005 | 61.41% | — | 40.33% | 15.84% | -187.97% | 10.01% | -93.15% |
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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).