BRISTOL MYERS SQUIBB CO (BMY) Q1 2025 Earnings Summary

Executive Summary

BMY delivered a clean beat: non-GAAP EPS $1.80 vs S&P Global consensus $1.50*, and revenue $11.20B vs $10.71B*, driven by 16% Growth Portfolio expansion (Opdivo, Breyanzi, Reblozyl, Camzyos; plus Cobenfy launch) .
2025 guidance raised: revenues to ~$45.8–$46.8B (from ~$45.5B), non-GAAP EPS to $6.70–$7.00; OI&E revised to ~$100M income, reflecting higher royalties and interest income .
Mix headwinds moderated YoY: GAAP gross margin 72.9% (non-GAAP 73.1%); operating expenses down materially on productivity actions; Legacy decline now expected ~16–18% vs prior ~18–20% .
Call tone confident: management emphasized disciplined execution, BD priority, pipeline catalysts (Cobenfy AD psychosis readout H2; Opdivo+Yervoy approvals; Camzyos label update) and cost savings trajectory .
Near-term stock catalysts: raised FY guide, Growth Portfolio momentum, Camzyos label easing echo monitoring, Opdivo/Yervoy approvals; adj. schizophrenia miss (ARISE) does not alter strategy (focus remains monotherapy) .

What Went Well and What Went Wrong

What Went Well
- Growth Portfolio +16% WW; Opdivo +12% WW, Breyanzi +146% WW, Reblozyl +35% WW, Camzyos +89% WW; Cobenfy $27M first full quarter .
- Guidance raised on stronger Growth and better-than-expected Legacy; FX swing now ~$500M favorable vs prior negative .
- Camzyos US label update simplifies maintenance monitoring, expected to support adoption; management: “early customer feedback has been very positive” .
Quotes:
- CEO: “Our strong execution… drove continued momentum across our Growth Portfolio and meaningful progress in the pipeline” .
- CFO: “Operating expenses were more than $500 million lower vs last year, reflecting our strategic productivity initiative” .
What Went Wrong
- Non-obstructive HCM (Camzyos ODYSSEY) and Cobenfy ARISE (adjunctive schizophrenia) missed primary endpoints; management sees limited financial impact and keeps focus on core indications/monotherapy .
- Legacy Portfolio -20% WW, with steep declines in Revlimid (-44%), Sprycel (-53%), Abraxane (-52%) and Pomalyst (-24%), reflecting generics and Part D redesign .
- Gross margin down vs prior year on mix; GAAP 72.9% (prior year GAAP 75.3%) .

Financial Results

Income statement and margin trajectory vs prior year and prior quarter, plus estimates comparison.

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$11.87	$12.34	$11.20
GAAP Diluted EPS	$(5.89)	$0.04	$1.20
Non-GAAP Diluted EPS	$(4.40)	$1.67	$1.80
GAAP Gross Margin %	75.3%	61.0%	72.9%
Non-GAAP Gross Margin %	75.5%	74.0%	73.1%

Results vs S&P Global Consensus	Q1 2025
Revenue ($USD Billions)	$11.20 vs $10.71*
Non-GAAP EPS ($)	$1.80 vs $1.50*
EPS # of Estimates	20*
Revenue # of Estimates	19*

Values with asterisk retrieved from S&P Global.

Segment breakdown (WW; includes U.S. and Int’l):

Segment	WW Revenue ($USD Millions)	YoY % (Reported)	YoY % Ex-FX
Growth Portfolio	$5,563	+16%	+18%
Legacy Portfolio	$5,638	-20%	-20%
Total Revenues	$11,201	-6%	-4%

Key product WW revenue (Q1 2025):

Product	WW Revenue ($USD Millions)	YoY % (Reported)	YoY % Ex-FX
Opdivo	$2,265	+9%	+12%
Yervoy	$624	+7%	+9%
Reblozyl	$478	+35%	+36%
Breyanzi	$263	+146%	+148%
Camzyos	$159	+89%	+90%
Eliquis	$3,565	-4%	-3%
Cobenfy	$27	N/A	N/A

KPIs (Q1 2025 and context):

KPI	Q1 2025
Cash, cash equivalents & marketable debt securities	$12.13B
Net Debt	$(37.58)B
Cash Flow from Operations	~$2.0B (quarter)
Effective Tax Rate (GAAP / Non-GAAP)	17.1% / 15.1%
Diluted Shares (mm)	2,040

Guidance Changes

Metric	Period	Previous Guidance (Feb)	Current Guidance (Apr)	Change
Total Revenues (Reported & Ex-FX)	FY 2025	~$45.5B	~$45.8–$46.8B	Raised
Gross Margin %	FY 2025	~72%	No change	Maintained
Operating Expenses (SG&A + R&D)	FY 2025	~$16.0B	~$16.2B	Raised (FX impact)
Other Income/(Expense)	FY 2025	~$30M	~$100M	Raised
Effective Tax Rate	FY 2025	~18%	No change	Maintained
Non-GAAP Diluted EPS	FY 2025	$6.55–$6.85	$6.70–$7.00	Raised
Dividend (Common)	Q2 2025 Payable May 1	$0.62 declared Mar 3	$0.62	Maintained

Notes: Legacy decline now expected ~16–18% (vs ~18–20% prior), Revlimid FY sales $2.0–$2.5B now seen at top end .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
Guidance trajectory	Raised 2024 revenue/EPS; set 2025 guide ~$45.5B, $6.55–$6.85	Raised 2025 revenue to ~$45.8–$46.8B and EPS to $6.70–$7.00	Positive
Tariffs/macro	Not central; FX headwind in 2025 prior guide	Tariff exposure included in guidance; sector tariffs TBD; substantial US manufacturing footprint	Elevated focus
AI/operational efficiency	Productivity initiatives expanded; cost discipline	“Continue to leverage AI and further automate” to drive efficiency	Increasing
Product performance	Growth drivers highlighted (Reblozyl, Breyanzi, Camzyos, Opdualag)	Growth Portfolio +16%; strong Opdivo, Breyanzi, Reblozyl, Camzyos; Cobenfy launch traction	Strengthening
Regulatory/legal	Approvals: Opdivo+Yervoy HCC/mCRC; Camzyos label; Breyanzi EU FL	Continued approvals; Camzyos US label easing monitoring; pipeline readouts ahead	Positive cadence
R&D execution	Catalyst-rich period; 10+ NMEs/30+ LCM through decade	CEO reiterates confidence; 43 major approvals over ~5 years cited; multiple Phase 3s slated	Confidence sustained
Cobenfy positioning	Launch underway; majority of access expected by 2H25	Adjunctive miss acknowledged; monotherapy remains focus; strong weekly TRx	Strategy clarified

Management Commentary

Strategy and execution: “We are advancing our multi-year plan to become a more agile and efficient company… strengthening the foundation for top-tier, long-term growth” .
On Growth vs Legacy mix: CFO: “Total company revenues were approximately $11.2 billion… Global sales of the growth portfolio increased ~18%” .
On productivity: CFO: “Operating expenses were more than $500 million lower… reflecting our strategic productivity initiative” .
On tariffs: CEO: “Tariffs around China have been reflected in guidance… too early to provide more on pharma-specific sectors” .
On Cobenfy: “We don’t expect these data to have a meaningful impact… focus is moving Cobenfy earlier in treatment” .

Q&A Highlights

Tariffs and policy: Multiple questions on tariffs, MFN pricing, tax policy; management incorporated current China tariffs into guidance, emphasized US manufacturing flexibility and advocated for competitive US corporate tax rates .
Cobenfy launch dynamics: Strong weekly TRx (~1,600 per week); virtually 100% Medicaid/Medicare access; gross-to-net true-up in Q1 with expectations for higher gross-to-net through the year as access expands .
Opdivo Qvantig (subcutaneous): Early adoption across tumor types; permanent J-code expected July 1; ramp anticipated in 2H .
Pipeline readouts: Cobenfy AD psychosis trial readout expected H2; milvexian AF trial enrollment complete, timing unchanged .
BD focus: Top capital allocation priority; science-fit and growth profile improvement are key filters, size-agnostic .

Estimates Context

Q1 2025: BMY beat both revenue and EPS consensus. Revenue $11.20B vs $10.71B*, non-GAAP EPS $1.80 vs $1.50*; 19 revenue estimates, 20 EPS estimates*. Values retrieved from S&P Global.
Implication: With raised FY revenue/EPS guidance, Street models likely need upward revisions to Growth Portfolio product run-rates and FY OI&E assumptions .

Key Takeaways for Investors

Guidance raise plus visible Growth Portfolio momentum are the primary near-term catalysts; Legacy declines are moderating (now ~16–18% decline expected) aided by Revlimid strength .
Mix headwinds persist but are manageable; non-GAAP gross margin held >73% with operating expense discipline from productivity initiatives .
Cobenfy strategy is intact despite adjunctive miss; monotherapy remains the focus with strong access and weekly TRx supporting a 2H ramp .
Camzyos label update should ease care burden and support adoption; Opdivo/Yervoy approvals extend IO durability .
Expect 2H heavier spend cadence and subcu Opdivo reimbursement ramp; OI&E upward revision to ~$100M supports FY EPS guide .
BD remains the top use of capital; management highlighted flexibility and discipline to augment growth exiting the decade .
Monitor policy risk (tariffs, MFN, IRA) but note current tariffs are embedded in guidance; macro shifts could alter FX/OI&E tailwinds .

Values marked with an asterisk were retrieved from S&P Global.