Gilead Sciences (GILD) Valuation After Kymera Oncology Partnership and Revenue Growth Momentum

Gilead Sciences (GILD) is drawing attention after announcing an exclusive agreement with Kymera to develop a molecular glue degrader program targeting CDK2 in oncology, signaling fresh progress in its drug development pipeline. This collaboration comes as the company reports steady revenue growth supported by strong HIV treatment sales and ongoing investor interest in its business strategy.

See our latest analysis for Gilead Sciences.

Gilead’s announcement of its Kymera partnership comes on the heels of a steady stream of business updates, from solid revenue growth to new grants in STEM education and continued leadership in HIV and oncology therapies. The latest momentum has drawn renewed investor attention, with Gilead’s total shareholder return edging up 0.37% over the past year and its stock maintaining a resilient long-term performance. This is evidence that the market still sees growth potential even amid industry headwinds.

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With Gilead trading at a discount to analyst targets and measurable progress in drug development, the key question is whether the current share price offers genuine value or if the market has already accounted for its growth prospects.

Most Popular Narrative: 9.8% Undervalued

Compared to its most widely cited fair value, Gilead’s stock is trading below the consensus target. The narrative valuation suggests potential upside from the last close price. This environment may serve as a catalyst for the company, with bullish factors positioning it for expanded growth and capital returns.

Disciplined operating expense management and expanded share buybacks backed by strong free cash flow are increasing efficiency. These efforts are supporting progressively higher operating margins and EPS growth, and updated guidance reflects confidence in both operating leverage and capital returns.

Read the complete narrative.

Want to unlock the engine behind this optimistic valuation? It is more than just incremental growth; there is a compelling blend of margin expansion, earnings ambition, and a future profit multiple rarely seen in large pharmaceutical companies. Curious about the underlying assumptions driving this valuation gap? Review the numbers that set this narrative apart.

Result: Fair Value of $124.91 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, key risks remain, including potential policy changes and ongoing reliance on HIV drugs. These factors could impact Gilead’s growth trajectory and narrative outlook.

Find out about the key risks to this Gilead Sciences narrative.

Build Your Own Gilead Sciences Narrative

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A great starting point for your Gilead Sciences research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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