Bristol Myers Squibb Company (BMY) Earnings & Analysis

Latest quarter

Bristol Myers Squibb reported Q2 FY2026 revenue of $13.0 billion, up 5.74% from $12.3 billion in Q2 FY2025. The company reported adjusted EPS, as the consensus counts it, of $2.04, compared with the consensus estimate of $1.59; revenue of $13.0 billion compared with the consensus estimate of $11.7 billion. The company’s adjusted EPS was 28.3% above the consensus and its revenue was 11.2% above the consensus.

The filing said higher demand and higher average net selling prices across the Growth Portfolio and Eliquis drove the revenue increase, partly offset by generic erosion in the rest of the Legacy Portfolio. It reported revenue gains for Reblozyl, Breyanzi, Opdualag, Camzyos, Cobenfy and Eliquis, while Revlimid, Pomalyst/Imnovid, Sprycel and Abraxane declined as generics affected demand.

Bristol Myers Squibb reported diluted EPS of $1.62, versus $0.64 a year earlier. Gross margin was 71.3%, compared with 72.5%, while operating margin was 31.5%, compared with 14.4%. The company reported free cash flow of $3.1 billion, versus $3.6 billion a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the earnings call, Chief Executive Officer Chris Boerner said sales in the Growth Portfolio rose 14% in Q2 and that 10 products across the portfolio recorded double-digit growth. Chief Financial Officer David Elkins said the Growth Portfolio represented nearly 60% of total revenue and described Eliquis as contributing demand-driven growth that nearly offset generic-entry declines in the rest of the Legacy Portfolio.

Elkins said Eliquis revenue was approximately $4.5 billion, up 21%, driven by demand and market-share gains. He said the U.S. price decrease implemented at the start of the year was expected to benefit second-half sales through elimination of the accumulated CPI penalty and in certain government channels. He also said the company saw wholesale inventory build for Opdivo during the quarter, reversing part of the first-quarter drawdown.

On profitability and investment, Elkins said second-quarter gross margin was 71.4%, reflecting product mix, and operating expenses were $4.1 billion. He said the strategic productivity initiative was reducing expenses in identified areas while allowing investment in growth-oriented opportunities. Boerner said the company had announced agreements with Anthropic and NVIDIA to support research and enterprise operations, including work to understand disease biology, design and test candidate molecules, and make earlier decisions.

Boerner said the company expected pivotal readouts across therapeutic areas by the end of 2026, while the Milvexian atrial-fibrillation study was now expected to read out in Q1 2027 because it is event-driven. He said Cobenfy’s ADEPT program top-line readouts were anticipated to begin in early 2027, based on enrollment and relapse-event timing. In response to questions on business development, Boerner said the company did not feel compelled to pursue deals but had financial flexibility to consider opportunities that could reduce near-term growth risk. The call did not quantify prospective business-development transactions.

Guidance

Bristol Myers Squibb raised its FY2026 non-GAAP revenue outlook from approximately $46.0 billion to $47.5 billion to $49.0 billion to $50.0 billion. The company raised its FY2026 non-GAAP diluted EPS outlook to $6.75 to $7.00 and raised expected worldwide Eliquis revenue growth to 20.0% to 25.0%. It now expects FY2026 non-GAAP operating expenses of approximately $16.5 billion, citing investment behind pipeline programs and new product launches.