Gilead Sciences (GILD) 10-K Red Flags
Risk signals extracted deterministically from Gilead Sciences’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (14)
- Receivables outpacing revenue: Accounts receivable grew -5.2% YoY vs revenue growth of -15.2%. The +10.1% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Earnings-cash flow divergence: Net income grew +23.4% while operating cash flow declined -11.8%. This divergence may indicate accrual-based earnings inflation — non-cash gains, aggressive revenue recognition, or working capital absorption. The accrual ratio (NI − OCF) is deteriorating.
- Operating cash flow exceeds net income: OCF is 1.41x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
- Gross margin expansion: Gross margin expanded +3.9%pp (from 15.3% to 19.2%), indicating improved pricing power, cost efficiency, or favorable product mix.
- Deferred revenue growing — future revenue visibility: Deferred revenue grew +228.4% to $440.0M, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
- R&D intensity declining: R&D as % of revenue fell from 19.5% to 16.9%. This may signal reduced innovation investment — potentially impacting long-term competitive position. Compare with peer R&D trends.
- Endogenous analysis: Revenue grew -15.2% but receivables grew -5.2% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
- 2 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- Market cap $162.98B at $131.27 per share.
- Trailing P/E 29.17, P/S 7.37, P/B 6.93.
- Receivables outpacing revenue: Accounts receivable grew -5.2% YoY vs revenue growth of -15.2%. The +10.1% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Earnings-cash flow divergence: Net income grew +23.4% while operating cash flow declined -11.8%. This divergence may indicate accrual-based earnings inflation — non-cash gains, aggressive revenue recognition, or working capital absorption. The accrual ratio (NI − OCF) is deteriorating.
Filings & ownership
- Latest annual report (10-K) filed Feb 24, 2026.
- Latest quarterly report (10-Q) filed May 7, 2026.
- 7 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 0 sell transactions.
Full GILD analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
View full report →Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.