BRISTOL MYERS SQUIBB CO (BMY) Q3 2025 Earnings Summary

Executive Summary

• Q3 revenue was $12.22B (+3% YoY; +2% ex-FX) and non-GAAP EPS was $1.63; GAAP EPS was $1.08 . BMY beat Wall Street consensus with EPS $1.63 vs $1.52 and revenue $12.22B vs $11.80B, driven by strong Growth Portfolio performance (Opdivo, Reblozyl, Camzyos, Breyanzi). Values retrieved from S&P Global.*
• Growth Portfolio net sales rose 18% to $6.86B (+17% ex-FX); Legacy Portfolio fell 12% to $5.37B as generic erosion offset Eliquis strength .
• Full-year 2025 revenue guidance raised to ~$47.5–$48.0B; non-GAAP EPS narrowed to $6.40–$6.60, with OI&E raised to ~$500M (royalties/licensing/interest income) .
• Capital and pipeline catalysts: $6.3B operating cash flow in Q3 and continued deleveraging ($6.7B of targeted $10B debt paydown achieved); definitive agreement to acquire Orbital Therapeutics to advance in vivo CAR-T for autoimmune diseases .

What Went Well and What Went Wrong

What Went Well

• Growth Portfolio momentum: “We delivered strong results this quarter…ongoing Growth Portfolio momentum” (CEO Christopher Boerner) . Opdivo $2.53B (+7% YoY), Reblozyl $615M (+37%), Camzyos $296M (+89%), Breyanzi $359M (+60%) .
• Guidance raised and OI&E uplift: FY revenue raised by ~$0.75B at midpoint to ~$47.5–$48.0B; OI&E now ~$500M income (higher royalties/licensing/interest) . CFO highlighted strong execution and cost discipline .
• Eliquis strength and policy tailwinds: Eliquis $3.75B (+25% YoY) with favorable impact from Medicare Part D redesign; U.S. +29%, ex-U.S. +11% .

What Went Wrong

• Legacy Portfolio declines: Legacy revenues fell 12%; Revlimid ($575M) -59%, Pomalyst ($675M) -25%, Sprycel ($119M) -59%, Abraxane ($74M) -71% YoY .
• Margin compression: GAAP gross margin 71.9% vs 75.1% prior year; non-GAAP 72.9% vs 76.0%, reflecting mix shift toward growth brands .
• Non-GAAP EPS headwind from IPRD/licensing net impact (-$0.20/share in Q3) amid strategic BD activity (Philochem milestone, SystImmune milestone) .

Financial Results

Values retrieved from S&P Global.*

Segment breakdown (net sales):

Key product KPIs (Q3 2025):

Balance sheet and cash flow:

Guidance Changes

Dividend commitment and capital allocation priorities maintained .

Earnings Call Themes & Trends

Management Commentary

• “We delivered strong results this quarter as a result of continued execution across the business and ongoing Growth Portfolio momentum.” — Christopher Boerner, CEO .
• “We generated cash flow from operations of about $6.3B…on track to pay down $10B of debt by H1 2026, with $6.7B achieved.” — David Elkins, CFO .
• “We are integrating digital technology and AI across the company…to drive additional efficiencies and enhance agility.” — CEO .
• “In vivo CAR T represents a novel treatment approach that could redefine how we treat autoimmune diseases.” — BMS Chief Research Officer on Orbital deal .

Q&A Highlights

• Cobenfy/ADEPT program: Management reaffirmed confidence; ADEPT-2 readout by year-end; ADEPT-4 similar design; emphasis on execution and physician education including switch studies .
• PD-1/VEGF bispecific (BioNTech partnership): Strategy targets both SOC indications and MSS CRC/gastric cancer where 1st-gen PD-1s lack activity; focus on speed to market and novel combinations (ADCs/targets) .
• Milvexian (Factor XIa): BID dosing rationale for exposure coverage; all three Phase 3 readouts expected in 2026; potential first/only XIa in AFib/ACS; positive competitor SSP trial would validate mechanism .
• Policy: Active D.C. engagement on MFN/tariffs; Direct-to-Patient access programs scaling (Eliquis discounts >40%) .
• Cost discipline: On track for ~$1B savings in 2025 and $2B by 2027 while investing behind Growth Portfolio and BD .

Estimates Context

• BMY delivered broad-based beats vs Wall Street consensus in Q3: EPS $1.63 vs $1.52*, revenue $12.22B vs $11.80B*; also beat in Q1 and Q2 (see table). Values retrieved from S&P Global.*
• Implications: Consensus likely to adjust upward for FY revenue on raised guidance and stronger OI&E; EPS midpoint unchanged due to increased acquired IPRD/licensing net charges, but underlying operating momentum remains solid .

Key Takeaways for Investors

• Growth engine intact: Growth Portfolio (+18% YoY) is offsetting legacy erosion; watch continued ramp in Opdivo, Reblozyl, Camzyos, Breyanzi .
• Guidance raise and OI&E uplift are catalysts: FY revenue range increased; OI&E now ~$500M income; EPS narrowed with unchanged midpoint, reflecting BD-driven charges .
• Neuroscience optionality: Near-term readout for ADEPT-2 (Cobenfy in Alzheimer’s disease psychosis) is a key stock mover; management reiterates confidence but maintains prudent tone .
• Cardiovascular durability: Eliquis gains from Part D redesign and global share; Camzyos >$1B annualizing with sustained TRx growth .
• Cell therapy expansion: Orbital Therapeutics acquisition adds in vivo CAR-T capability to extend autoimmune franchise; potential long-term growth lever .
• Balance sheet strength: $16.9B cash/marketable securities and $6.3B CFO in Q3 support deleveraging and BD; net debt improved to $(32.1)B .
• Execution and productivity: Margin compression reflects mix, but ongoing cost savings and AI-enabled operating model underpin medium-term margin resilience .

Values retrieved from S&P Global.*