Merck vs Gilead Sciences stock: the numbers side by side (October 2026)
How do Merck and Gilead Sciences compare?
| Merck MRK | Gilead Sciences GILD | |
|---|---|---|
| Revenue growth | 1.3%2025 | 2.4%2025 |
| Operating margin | 32.6%2025 | 34.0%2025 |
| Free cash flow | 12,360US$ millions · 2025 | 9,456US$ millions · 2025 |
| Free cash flow yield | 3.6%Today (Oct 29, 2026) | 4.6%Today (Oct 29, 2026) |
| Dividend yield | 2.4%Today (Oct 29, 2026) | 2.0%Today (Oct 29, 2026) |
| P/E, last 12 months | 145.5xToday (Oct 29, 2026) | not meaningfulToday (Oct 29, 2026) |
| P/E, next 12 months | 15.3xToday (Oct 29, 2026) | 16.6xToday (Oct 29, 2026) |
| Weighted price forecast, about 1 year | 134.03 (-3 %)October 2027 | 161.11 (-1 %)October 2027 |
| Weighted price forecast, about 3 years | 101.17 (-21 %)October 2029 | 158.32 (+2 %)October 2029 |
Who leads on what?
| Leads | The lead is | |
|---|---|---|
| Revenue growth | Gilead Sciences | The higher figure |
| Operating margin | Gilead Sciences | The higher figure |
| Free cash flow | Merck | The higher figure |
| Free cash flow yield | Gilead Sciences | The higher figure |
| Dividend yield | Merck | The higher figure |
| P/E, last 12 months | — | The lower figure |
| P/E, next 12 months | Merck | The lower figure |
| Weighted price forecast, about 1 year | Gilead Sciences | The higher weighted return |
| Weighted price forecast, about 3 years | Gilead Sciences | The higher weighted return |
What does each company do?
Merck & Co. sells medicines and vaccines for people and animals.
Merck (MRK), from our memo of October 29, 2026 · Merck stock forecast
Gilead Sciences sells HIV treatments and prevention, liver-disease medicines, cancer therapies and other specialty drugs.
Gilead Sciences (GILD), from our memo of October 30, 2026 · Gilead Sciences stock forecast
How fast are Merck and Gilead Sciences growing, and what did their latest results show?
Revenue at Merck grew 1.3% in 2025, and revenue at Gilead Sciences grew 2.4% in 2025.
Revenue reached $18.1 billion, up 4.7% from the September 2025 quarter. Keytruda and Keytruda Qlex grew together, while Winrevair, Merck’s pulmonary-arterial-hypertension treatment, grew 93%. Bridion fell 67% and Januvia/Janumet fell 39% as generic competition and lost exclusivity hurt older products.
Merck (MRK), from our memo of October 29, 2026 · Merck earnings
How much cash do Merck and Gilead Sciences generate, and where does it go?
Merck’s free cash flow was US$12,360 million in 2025; Gilead Sciences’ was US$9,456 million in 2025. At Merck, the dividend yield was 2.4% on October 29, 2026; at Gilead Sciences, it was 2.0% on October 29, 2026.
Free cash flow means operating cash after capital spending on factories and equipment. Merck generated $16.5 billion from operations and spent $4.1 billion on capital assets in 2025, leaving $12.4 billion of free cash flow. That fell from $18.1 billion in 2024 even though reported net income increased.
Merck (MRK), from our memo of October 29, 2026 · Merck stock forecast
Free cash flow subtracts capital spending on property and equipment from operating cash. Gilead generated $9.5 billion of free cash flow in 2025, equal to 32.1% of revenue. The measure is useful for dividends, debt and deals, but it excludes acquisition payments and does not represent every investment needed to sustain a drug portfolio.
Gilead Sciences (GILD), from our memo of October 30, 2026 · Gilead Sciences stock forecast
What does an investor pay for Merck and Gilead Sciences today?
Merck traded at 15.3x the next 12 months’ earnings on October 29, 2026; Gilead Sciences traded at 16.6x the next 12 months’ earnings on October 29, 2026. Merck’s free cash flow yield was 3.6% on October 29, 2026; Gilead Sciences’ was 4.6% on October 29, 2026.
The price-to-earnings ratio, or P/E, compares a share price with profit per share. A trailing P/E uses the past twelve months; a forward P/E uses an estimate of the next twelve months. Merck’s two measures differ sharply because acquisition and licensing charges made recent profit unusually small, while forward earnings assume those charges will not recur. The forward figure may be more useful for ordinary earning power, but it still depends on forecasts and on successful replacement drugs.
Merck (MRK), from our memo of October 29, 2026 · Merck stock forecast