We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Buy, Hold, or Sell BMY Stock Ahead of Q2 Earnings?
Read MoreHide Full Article
Key Takeaways
Bristol-Myers Squibb reports Q2 2026 results on July 30, with sales and EPS estimates at $11.67B and $1.59.
BMY's growth portfolio is expected to offset part of the continued decline in legacy product sales.
Bristol-Myers Squibb is advancing cost savings while expanding its pipeline and newer drug portfolio.
Biotech giant Bristol-Myers Squibb Company (BMY - Free Report) is scheduled to report second-quarter 2026 results on July 30, before market open. The Zacks Consensus Estimate for sales and earnings is pegged at $11.67 billion and $1.59 per share, respectively.
Earnings estimate for 2026 has increased to $6.34 from $6.32 per share over the past 30 days, while that for 2027 has improved to $6.12 from $6.05.
Image Source: Zacks Investment Research
BMY’s Earnings Surprise History
BMY has an excellent track record. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.47%. In the previously reported quarter, the company’s earnings beat estimates by 9.72%.
What Our Model Predicts for BMY
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP for BMY is +0.51%. The company currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Factors Influencing BMY’s Q2 Results
BMY’s top line has likely gained from an increase in growth portfolio sales. The growth portfolio primarily comprises sales from drugs like Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyku, Krazati and Cobenfy.
Opdivo sales declined in the first quarter due to lower U.S. revenues. The decline was mainly caused by wholesaler inventory drawdowns, with inventory levels at the low end of the normal range. The company also saw continued conversion to Opdivo Qvantig, whose launch is progressing well.
The Zacks Consensus Estimate and our model estimate for Opdivo sales are pegged at $2.4 billion.
The approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use has boosted BMY’s immuno-oncology portfolio. Initial uptake is robust across all approved tumor types in the United States.
The trend has likely continued in the second quarter as well.
Opdualag sales remain robust, particularly in the United States, where it continues to serve as a standard of care in first-line melanoma.
The Zacks Consensus Estimate and our model estimate for Opdualag sales are pegged at $331 million and $334 million, respectively.
The Zacks Consensus Estimate and our model estimate for Orencia sales are pegged at $940 million and $971 million, respectively.
The Zacks Consensus Estimate and our model estimate for Yervoy sales are pegged at $726 million and $728 million, respectively.
Reblozyl, the thalassemia drug that BMY co-developed with Merck (MRK - Free Report) , posted solid growth in both the U.S. and international markets in the last reported quarter, driven by strong growth in demand from first- and second-line MDS-associated anemia patients. The trend has likely continued in the second quarter.
The Zacks Consensus Estimate and our model estimate for Reblozyl sales are pegged at $660 million and $642 million, respectively.
Breyanzi sales have likely benefited from ongoing uptake across its approved large B-cell lymphoma indications in both the United States and international markets. The strong performance of the drug in the last quarter highlights sustained demand for the therapy and supports expectations for continued commercial expansion.
The Zacks Consensus Estimate and our model estimate for Breyanzi sales are pegged at $447 million and $432 million, respectively.
Camzyos sales, too, have likely seen strong growth, supported by growing demand and increased adoption among eligible patients.
The newly launched schizophrenia drug Cobenfy is off to a solid start, and sales have likely grown sequentially in the second quarter.
Increase in demand for psoriasis drug Sotyktu has likely boosted sales of the drug.
However, as in the previous quarters, total quarterly revenues have likely been adversely impacted by a decline in sales from the legacy portfolio, which includes Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, among others.
Generic competition for Sprycel, Revlimid, Abraxane and Pomalyst has likely pulled down revenues from this portfolio.
The Zacks Consensus Estimate for Pomalyst’s second-quarter sales is pegged at $210 million and our model estimate for the same is pinned at $208 million.
Eliquis sales continue to benefit from strong global demand.
Both the Zacks Consensus Estimate and our model estimate for Eliquis’ second-quarter sales are pegged at $4 billion.
Bristol-Myers collaborated with Pfizer (PFE - Free Report) for Eliquis in 2007. Profits and losses are shared equally worldwide, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
BMY expects Eliquis sales to grow 10-15% in 2026, supported by sustained global demand.
Operating expenses have likely declined in the second quarter, primarily due to the company’s ongoing strategic productivity initiative.
BMY’s Price Performance and Valuation
Shares of BMY have gained 15.1% year to date compared with the industry’s growth of 1.8%. The stock has also outperformed the sector and the S&P 500 in this time frame.
BMY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Going by the price/earnings ratio, BMY’s shares currently trade at 9.99X forward earnings, higher than its mean of 9.07X but lower than 19.07X for the large-cap pharma industry.
Image Source: Zacks Investment Research
Investment Thesis for BMY
Legacy products accounted for 46% of total sales in the first quarter of 2026, and the continued erosion of these revenues will weigh on overall top-line growth.
While drugs like Reblozyl, Breyanzi, Camzyos and Opdualag have enabled BMY to stabilize its revenue base, these drugs will take some time to fully offset the significant decline in legacy drug sales.
Approvals of additional new drugs and label expansions of key drugs should boost BMY’s top-line growth.
BMY boasts a deep and promising pipeline. Key pipeline candidates with multi-billion-dollar potential are milvexian (Oral factor XIa inhibitor), admilparant (LPA1 antagonist), pumitamig (PD-L1 x VEGF-A bispecific antibody) and iberdomide & mezigdomide (oral CELMoD protein degraders).
BMY’s strategic collaborations and acquisitions aimed at bolstering its pipeline are noteworthy, though they have been funded by a significant increase in debt, which remains a concern.
The company is also making steady progress on its cost optimization program, targeting $2 billion in annualized savings by 2027, with approximately $1 billion already realized in 2025.
Stay Invested in BMY Stock
BMY is one of the largest biotechs and such large biotech companies are generally considered safe havens for investors interested in this sector.
Regardless of how the second-quarter results turn out, we recommend prospective investors to adopt a wait-and-watch approach before turning constructive on the stock. For existing shareholders, however, remaining invested appears prudent, supported by the company’s attractive dividend yield of 4.06%, which provides a compelling incentive to hold the stock.
View the Zacks #1 Rank List
Image: Shutterstock
Should You Buy, Hold, or Sell BMY Stock Ahead of Q2 Earnings?
Key Takeaways
Biotech giant Bristol-Myers Squibb Company (BMY - Free Report) is scheduled to report second-quarter 2026 results on July 30, before market open. The Zacks Consensus Estimate for sales and earnings is pegged at $11.67 billion and $1.59 per share, respectively.
Earnings estimate for 2026 has increased to $6.34 from $6.32 per share over the past 30 days, while that for 2027 has improved to $6.12 from $6.05.
Image Source: Zacks Investment Research
BMY’s Earnings Surprise History
BMY has an excellent track record. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 16.47%. In the previously reported quarter, the company’s earnings beat estimates by 9.72%.
What Our Model Predicts for BMY
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP for BMY is +0.51%. The company currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Factors Influencing BMY’s Q2 Results
BMY’s top line has likely gained from an increase in growth portfolio sales. The growth portfolio primarily comprises sales from drugs like Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyku, Krazati and Cobenfy.
Opdivo sales declined in the first quarter due to lower U.S. revenues. The decline was mainly caused by wholesaler inventory drawdowns, with inventory levels at the low end of the normal range. The company also saw continued conversion to Opdivo Qvantig, whose launch is progressing well.
The Zacks Consensus Estimate and our model estimate for Opdivo sales are pegged at $2.4 billion.
The approval of Opdivo Qvantig (nivolumab and hyaluronidase-nvhy) injection for subcutaneous use has boosted BMY’s immuno-oncology portfolio. Initial uptake is robust across all approved tumor types in the United States.
The trend has likely continued in the second quarter as well.
Opdualag sales remain robust, particularly in the United States, where it continues to serve as a standard of care in first-line melanoma.
The Zacks Consensus Estimate and our model estimate for Opdualag sales are pegged at $331 million and $334 million, respectively.
The Zacks Consensus Estimate and our model estimate for Orencia sales are pegged at $940 million and $971 million, respectively.
The Zacks Consensus Estimate and our model estimate for Yervoy sales are pegged at $726 million and $728 million, respectively.
Reblozyl, the thalassemia drug that BMY co-developed with Merck (MRK - Free Report) , posted solid growth in both the U.S. and international markets in the last reported quarter, driven by strong growth in demand from first- and second-line MDS-associated anemia patients. The trend has likely continued in the second quarter.
The Zacks Consensus Estimate and our model estimate for Reblozyl sales are pegged at $660 million and $642 million, respectively.
Breyanzi sales have likely benefited from ongoing uptake across its approved large B-cell lymphoma indications in both the United States and international markets. The strong performance of the drug in the last quarter highlights sustained demand for the therapy and supports expectations for continued commercial expansion.
The Zacks Consensus Estimate and our model estimate for Breyanzi sales are pegged at $447 million and $432 million, respectively.
Camzyos sales, too, have likely seen strong growth, supported by growing demand and increased adoption among eligible patients.
The newly launched schizophrenia drug Cobenfy is off to a solid start, and sales have likely grown sequentially in the second quarter.
Increase in demand for psoriasis drug Sotyktu has likely boosted sales of the drug.
However, as in the previous quarters, total quarterly revenues have likely been adversely impacted by a decline in sales from the legacy portfolio, which includes Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, among others.
Generic competition for Sprycel, Revlimid, Abraxane and Pomalyst has likely pulled down revenues from this portfolio.
The Zacks Consensus Estimate for Pomalyst’s second-quarter sales is pegged at $210 million and our model estimate for the same is pinned at $208 million.
Eliquis sales continue to benefit from strong global demand.
Both the Zacks Consensus Estimate and our model estimate for Eliquis’ second-quarter sales are pegged at $4 billion.
Bristol-Myers collaborated with Pfizer (PFE - Free Report) for Eliquis in 2007. Profits and losses are shared equally worldwide, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
BMY expects Eliquis sales to grow 10-15% in 2026, supported by sustained global demand.
Operating expenses have likely declined in the second quarter, primarily due to the company’s ongoing strategic productivity initiative.
BMY’s Price Performance and Valuation
Shares of BMY have gained 15.1% year to date compared with the industry’s growth of 1.8%. The stock has also outperformed the sector and the S&P 500 in this time frame.
BMY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
Going by the price/earnings ratio, BMY’s shares currently trade at 9.99X forward earnings, higher than its mean of 9.07X but lower than 19.07X for the large-cap pharma industry.
Image Source: Zacks Investment Research
Investment Thesis for BMY
Legacy products accounted for 46% of total sales in the first quarter of 2026, and the continued erosion of these revenues will weigh on overall top-line growth.
While drugs like Reblozyl, Breyanzi, Camzyos and Opdualag have enabled BMY to stabilize its revenue base, these drugs will take some time to fully offset the significant decline in legacy drug sales.
Approvals of additional new drugs and label expansions of key drugs should boost BMY’s top-line growth.
BMY boasts a deep and promising pipeline. Key pipeline candidates with multi-billion-dollar potential are milvexian (Oral factor XIa inhibitor), admilparant (LPA1 antagonist), pumitamig (PD-L1 x VEGF-A bispecific antibody) and iberdomide & mezigdomide (oral CELMoD protein degraders).
BMY’s strategic collaborations and acquisitions aimed at bolstering its pipeline are noteworthy, though they have been funded by a significant increase in debt, which remains a concern.
The company is also making steady progress on its cost optimization program, targeting $2 billion in annualized savings by 2027, with approximately $1 billion already realized in 2025.
Stay Invested in BMY Stock
BMY is one of the largest biotechs and such large biotech companies are generally considered safe havens for investors interested in this sector.
Regardless of how the second-quarter results turn out, we recommend prospective investors to adopt a wait-and-watch approach before turning constructive on the stock. For existing shareholders, however, remaining invested appears prudent, supported by the company’s attractive dividend yield of 4.06%, which provides a compelling incentive to hold the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.