Bristol-Myers Squibb Company Ce

What they do

Bristol Myers Squibb discovers, develops, licenses, manufactures, and sells innovative medicines across a single operating segment. Its products are sold worldwide primarily to wholesalers, distributors, and specialty pharmacies, with significant manufacturing operations in the U.S., Puerto Rico, the Netherlands, Ireland, and Switzerland. The company's research platforms include small molecules, biologics, ADCs, CAR-T cell therapies, and radiopharmaceutical therapeutics.

Revenue drivers

• Growth Portfolio — Generated $7.6 billion in Q2 2026, up 15% year-over-year, driven by Opdivo Qvantig, Reblozyl, Camzyos, Breyanzi, and Opdualag; includes key products like Opdivo ($2.5B), Orencia ($1.0B), and Yervoy ($0.8B).
• Legacy Portfolio — Generated $5.4 billion in Q2 2026, down 4% year-over-year, with Eliquis ($4.5B, +22%) partially offset by declines in Revlimid (-49%), Pomalyst/Imnovid (-71%), and Sprycel (-27%) due to generic competition.
• Geographic mix — U.S. revenues were $9.0 billion (+6%) and international revenues were $4.0 billion (+6% or +5% ex-FX) in Q2 2026; for full-year 2025, U.S. represented 69% of total revenues.

Recent performance

In Q2 2026, total revenues increased 6% (5% ex-FX) to $13.0 billion, with GAAP EPS of $1.62 and non-GAAP EPS of $2.04. Cost of products sold rose 11% in the quarter due to higher alliance profit sharing, while R&D expenses increased 15% due to IPRD impairment charges and a priority review voucher. The company raised its full-year 2026 revenue guidance to $49.0-$50.0 billion and non-GAAP EPS range to $6.75-$7.00.

Strategy

Bristol Myers Squibb aims to combine large pharma scale with biotech agility, focusing on transformational medicines in oncology, hematology, immunology, cardiovascular, and neuroscience. Strategy includes driving commercial execution in first-in-class/best-in-class marketed products, advancing a pipeline through internal R&D and business development (e.g., acquiring Orbital Therapeutics, collaborating with BioNTech on pumitamig, and licensing OncoACP3 from Philochem), and opening a radiopharmaceutical facility in Indianapolis. The company also emphasizes operational excellence and strategic capital allocation for long-term growth.

Risks

• Pricing pressure and IRA — Increased pricing controls, required rebates, and government negotiation under the IRA could reduce revenues and profit margins across the portfolio.
• Generic competition — Legacy products like Revlimid, Pomalyst, and Sprycel are facing significant generic erosion, with declines of 49%, 71%, and 27% respectively in Q2 2026.
• Regulatory and distribution restrictions — Products like Camzyos, Revlimid, and Pomalyst are subject to REMS programs that limit distribution channels, and any changes could impact sales.
• Inventory channel risk — Inventory levels in wholesaler and direct customer channels could exceed demand, especially given reliance on three largest wholesalers for ~90% of U.S. gross sales.

Outlook

Management raised 2026 full-year revenue guidance to $49.0-$50.0 billion and non-GAAP EPS to $6.75-$7.00, citing strong Growth Portfolio momentum and pipeline progress. They expect continued growth from new launches and label expansions, while Legacy Portfolio will continue to face generic impacts. The company also plans to pursue further business development and pipeline advancements.