GALDERMA GROUP AG (GALDY) AI Stock Analysis
GALDY AI stock analysis summary
AI ResearchGalderma Group AG (GALDY) is a global dermatology company delivering aesthetics, skincare, and therapeutic treatments. The company generated $5.24B in FY2025 revenue with net income rising to $613.0M, supported by a 4-year revenue CAGR of 11.1%. It trades at a trailing P/E of 58.2x against a Healthcare peer median of 24.6x.
- Market cap
- $49.52B
- Revenue (TTM)
- $5.92B
- P/E
- 58.2x fwd 29.9x
- 1Y return
- 22.9% S&P 500 16.8%
- Avg. target
- $50.08 17.9% vs last close
Bull case
- Annual revenue expanded by 18.0% in FY2025 to $5.24B, with quarterly revenue growing 27.7% year-over-year in the latest quarter.
- Free cash flow reached $1.03B in FY2025, driven by operating cash flow of $1.19B and an expanding operating margin of 16.7%.
- Analyst projections model next fiscal year EPS growth of 47.2% to $5.16 on $7.54B in revenue.
Bear case
- Valuation multiples remain elevated, with a trailing P/E of 58.2x and EV/EBITDA of 33.4x compared to US-listed Healthcare peer medians of 24.6x and 12.0x.
- The balance sheet carries $2.58B in total debt and $1.80B in net debt against $780.0M in cash reserves.
- R&D spending declined for four straight years, falling from $342.6M in FY2021 to $245.0M in FY2025.
What GALDERMA GROUP does
Galderma Group AG operates as a dermatology company worldwide. Founded in 1981 and headquartered in Zug, Switzerland, the company delivers a science-based portfolio of brands and services across injectable aesthetics, dermatological skincare, and therapeutic dermatology. Its flagship brand portfolio includes Azzalure, ALLUZIENCE, Dysport, Restylane, Restylane Skinboosters, Sculptra, Cetaphil, ALASTIN, Soolantra, Epiduo, Epiduo Forte, Differin, AKLIEF, Oracea, Metvix, NEMLUVIO, Relfydess, Benzac, and Loceryl. The organization employed 7,676 people as of the latest reporting.
Growth and profitability
Galderma expanded revenue from $3.44B in FY2021 to $5.24B in FY2025, reflecting an 11.1% 4-year CAGR. Revenue growth accelerated to 18.0% in FY2025 following gains of 11.0% in FY2022, 7.7% in FY2023, and 7.8% in FY2024. Profitability transitioned from net losses of -$154.3M in FY2021, -$98.5M in FY2022, and -$57.0M in FY2023 to positive net income of $231.0M in FY2024 and $613.0M in FY2025. Gross margin was 68.9% in FY2025, while operating margin expanded to 16.7%. For the trailing twelve months ended December 31, 2025, revenue reached $5.92B, with quarterly revenue growing 27.7% and quarterly earnings advancing 130.7% year-over-year.
Balance sheet and cash flow
As of December 31, 2025, Galderma held $780.0M in cash and short-term investments alongside $2.58B in total debt, leaving net debt at $1.80B. Shareholders' equity was $8.15B against total assets of $13.39B, yielding a debt-to-equity ratio of 0.32 and a current ratio of 1.19. In FY2025, operating cash flow stood at $1.19B and free cash flow reached $1.03B. Cash deployment in FY2025 included $154.0M in capital expenditures, $363.0M for share buybacks, and $41.0M in dividends paid.
Valuation and performance
GALDY closed at $42.47 on October 16, 2026, delivering a 1-year return of 22.9% compared to 16.8% for the S&P 500 (SPY). The company carries a market capitalization of $49.52B and an enterprise value of $47.58B. It trades at a trailing P/E of 58.2x, a forward P/E of 29.9x, and an EV/EBITDA of 33.4x, which compare to the median of its US-listed Healthcare peers of 24.6x trailing P/E, 17.3x forward P/E, and 12.0x EV/EBITDA. Its price-to-sales ratio is 8.4x versus the peer median of 4.1x, while its PEG ratio stands at 1.17.
GALDY dividend
GALDY offers an annual forward dividend of $0.09 per share, equating to a dividend yield of 0.21%. The dividend payout ratio is 12.1%, and dividends have been paid for 2 consecutive years. The last ex-dividend date was April 27, 2026.
What analysts expect
One analyst covers the stock, issuing 1 Strong Buy rating with no Buy, Hold, Sell, or Strong Sell recommendations. The mean price target is $50.08, representing a 17.9% premium over the last close of $42.47. For the fiscal year ending December 31, 2026, the consensus expects EPS of $3.51 on revenue of $6.42B. Projections for the next fiscal year forecast EPS of $5.16 and revenue of $7.54B, representing growth of 47.2% and 17.9%, respectively.
Key risks and what to watch
- The current ratio sits at 1.19 alongside net debt of $1.80B, requiring ongoing operating cash generation.
- R&D expense dropped from $342.6M in FY2021 to $245.0M in FY2025, which may influence long-term therapeutic pipeline development.
- Premium valuation multiples, such as a price-to-sales ratio of 8.4x versus the peer median of 4.1x, leave limited buffer for operating execution.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this GALDY AI stock analysis
This page is an AI-written research summary of GALDERMA GROUP AG (GALDY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: GALDY income statement, GALDY balance sheet, GALDY key metrics, GALDY analyst forecast, GALDY chart. See the GALDY stock overview for the latest quote and news.
GALDY AI stock analysis FAQ
What was Galderma's revenue and earnings performance in FY2025?
Galderma generated $5.24B in revenue in FY2025, marking an 18.0% increase over the prior year. Net income rose to $613.0M, resulting in a net margin of 11.7%.
Does GALDY pay a dividend?
Yes, GALDY carries an annual forward dividend of $0.09, which corresponds to a dividend yield of 0.21% and a payout ratio of 12.1%.
How does GALDY's valuation compare to its sector peers?
GALDY trades at a trailing P/E of 58.2x and an EV/EBITDA of 33.4x, which are higher than the median of its US-listed Healthcare peers of 24.6x and 12.0x, respectively.
What is the consensus analyst target for GALDY?
One analyst provides coverage with a Strong Buy rating and a mean price target of $50.08, representing a 17.9% upside versus the last closing price of $42.47.