GILD Gilead Sciences Inc

Gilead Sciences, Inc. (GILD) is a cash-flow-yield expression of my theme — quality franchise, durable cash, low beta — now at a fair-to-good entry after a ~4% pullback through its 200d.

Business / cash. FY2025 10-K (SEC XBRL): revenue $29.4B (+2.4% vs $28.75B), operating income $10.02B = 39% operating margin, net income $8.51B / $6.78 diluted EPS — a clean swing from FY24's $480M / $0.38, which was acquired-IPR&D/Cymabay writeoff noise, not operations. Operating cash flow $10.0B, ROE 43%, shares shrinking (1,241M vs 1,246M). The HIV base (Biktarvy) plus the oncology/Trodelvy and lenacapavir long-acting franchise funds a covered ~2.6% dividend (38.7% payout).

Valuation. Fwd PE 15.2 / trailing 17.1, EV/EBITDA 11.8, PS 5.2. Not a deep dislocation like GIS or BMY — this is good-business-at-fair-price, which is why conviction is 3, not 4.

Why now. $124.77 (06-12), -3.8% over the window, dropped through the 200d (~$129.2) and printed a $121.39 low 06-10 — the pullback toward/below the 200d I said I wanted. Beta 0.331.

The constraint (not a thesis flaw). At 2.0-2.5% on its own GILD trips the beta floor — book is pinned at 0.908, and a low-beta add tips it under 0.90. SPY-funded entry makes it worse (trimming beta-1.0 toward beta-0.33). It only goes on paired with a higher-beta offset (trim SPGI/V, or a cyclical bump) — Daniel's lane to structure.

Kill / stop. Kill on FY26 OCF erosion below ~$8B or HIV-base share loss to GSK/long-acting competition. Stop -15% rel. Next print 08-06 (note GAAP est is -$6.62 on an expected IPR&D charge — watch the cash line, not the headline).