Bristol Myers Squibb Company (BMY Quick QuoteBMY - Free Report) has delivered strong returns over the past year, with its shares rallying 35.8%, significantly outperforming industry’s growth of 11%.

This biotech giant has outperformed both the sector and the S&P 500 during this time frame. Strong quarterly results and encouraging pipeline developments have supported investor sentiment and contributed to the stock’s gains.

BMY Outperforms Industry, Sector & S&P 500 Index

Image Source: Zacks Investment Research

Following this rally, a closer look at BMY’s fundamentals, growth prospects, valuation and potential risks can help assess whether the stock still offers an attractive investment opportunity.

BMY’s Growth Portfolio Drives Sustainable Top-Line Expansion

Bristol Myers’ Growth Portfolio is the primary driver of its top-line growth, with key brands including Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyktu, Krazati and Cobenfy. The portfolio accounted for approximately 56% of total revenues in the first half of 2026, underscoring its growing contribution to the company’s overall performance.

Opdivo Qvantig, Reblozyl, Camzyos, Breyanzi and Opdualag are among the key growth drivers. While sales of blockbuster immuno-oncology drug Opdivo declined, primarily due to the ongoing transition to subcutaneous Opdivo Qvantig in the United States, strong uptake of Qvantig across approved tumor types is helping offset the pressure. The drug has already surpassed $1 billion in annualized revenues.

Opdualag continues to benefit from strong global demand and its established position as a first-line standard of care for melanoma in the United States. Reblozyl, developed in partnership with Merck (MRK Quick QuoteMRK - Free Report) , is also delivering strong growth, supported by solid uptake in first-line MDS-associated anemia, sustained demand in the second-line setting and increasing penetration among first-line RS-negative patients.

Breyanzi is gaining momentum on the back of its differentiated profile and growing demand across approved large B-cell lymphoma indications in the United States and international markets.

Cardiovascular drug Camzyos is seeing increased adoption, supported by promotional efforts, a growing base of new prescribers and deeper penetration in community settings. The FDA recently approved Camzyos for symptomatic obstructive hypertrophic cardiomyopathy to improve functional capacity and symptoms in adults and pediatric patients weighing 30 kg (66 lbs) or more.

Sotyktu is expanding Bristol Myers’ immunology franchise following its approval in psoriatic arthritis (PsA), extending its commercial opportunity beyond plaque psoriasis. Positive two-year results from the phase III POETYK PsA-2 study and its open-label extension support sustained efficacy and a consistent safety profile with longer-term treatment.

Ongoing phase III programs in systemic lupus erythematosus and Sjögren’s disease offer additional growth opportunities, with successful development potentially broadening Sotyktu’s addressable market.

Further upside could come from ongoing phase III programs in systemic lupus erythematosus and Sjögren’s disease. Successful development in these indications could significantly broaden Sotyktu’s addressable market.

Cobenfy also offers long-term growth potential. Its early launch momentum in schizophrenia, along with potential future label expansions, could make it an increasingly meaningful contributor to the portfolio.

Overall, the breadth of Bristol Myers’ Growth Portfolio provides multiple avenues for revenue expansion and could help offset continued pressure from its legacy portfolio. Sustained commercial performance of these brands and the successful development of additional indications will be key to maintaining the company’s growth trajectory.

BMY’s Legacy Portfolio Faces Continued Generic Headwinds

BMY’s legacy portfolio continues to face headwinds from generic competition, particularly affecting key products such as Revlimid, Pomalyst, Sprycel, and Abraxane, resulting in a 5% revenue decline in the first half of 2026.

The segment also includes Eliquis, co-developed with Pfizer (PFE Quick QuotePFE - Free Report) . Eliquis continues to deliver strong, demand-driven growth, nearly offsetting declines across the remainder of the portfolio due to generic competition.

BMY now expects Eliquis revenues to grow 20-25%, up from its prior guidance of 10-15%, supported by strong global demand, which is expected to partially offset the overall segment decline.

The company now anticipates the total legacy portfolio revenue decline to be in the range of 4-6%.

BMY’s Recent Pipeline Progress Impressive

BMY’s recent pipeline progress strengthens its long-term growth prospects and could help offset pressure from its legacy portfolio.

The FDA recently granted accelerated approval to iberdomide, in combination with daratumumab and hyaluronidase-fihj and dexamethasone (ZDd), under the brand name Zenbexus, for adults with multiple myeloma who have received at least one prior line of therapy. Zenbexus is the first FDA-approved cereblon E3 ligase modulator (CELMoD), representing a novel class of cereblon-modulating protein degraders for multiple myeloma.

BMY also has a new drug application under FDA review for investigational CELMoD mezigdomide, in combination with carfilzomib and dexamethasone. The application has a target action date of May 13, 2027.

The company recently reported positive phase II results from the registrational QUINTESSENTIAL study evaluating arlocabtagene autoleucel (arlo-cel) in heavily pretreated patients with relapsed and refractory multiple myeloma (RRMM). Arlo-cel is a potential first-in-class autologous GPRC5D-directed CAR T-cell therapy.

The data are particularly encouraging because arlo-cel targets GPRC5D, potentially giving BMY an opportunity to address patients previously treated with BCMA-directed therapies.

BMY is also advancing several candidates with multi-billion-dollar commercial potential, including milvexian, an oral Factor XIa inhibitor; admilparant, an LPA1 antagonist; and pumitamig, a PD-L1 x VEGF-A bispecific antibody.

BMY’s Valuation & Estimate Revision

Going by the price/earnings ratio, BMY is inexpensive as of now. Shares currently trade at 8.94x forward earnings, higher than its mean of 8.75x but lower than the large-cap pharma industry’s 18.18x.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 EPS has dipped to $6.80 from $6.81 in the past 60 days, while that for 2027 has increased to $6.56 from $6.42.

Image Source: Zacks Investment Research

Stay Invested in BMY Stock

Bristol Myers’ recent performance reflects improving momentum across its Growth Portfolio, supported by strong demand for Opdivo Qvantig, Reblozyl, Camzyos, Breyanzi and Opdualag, alongside better-than-expected sales of Eliquis.

The company’s decision to raise its 2026 revenue and earnings guidance following its second-quarter results signals a favorable near-term operating outlook.

Pipeline progress offers additional long-term growth potential, with Zenbexus, mezigdomide, arlo-cel and other candidates potentially expanding BMY’s presence across multiple therapeutic areas. Strategic partnerships and acquisitions further strengthen the pipeline, although several programs remain in development and carry clinical and regulatory risks.

However, much of the near-term optimism appears to be reflected in BMY’s share price. The legacy portfolio continues to face generic competition, with declining sales of Revlimid, Pomalyst, Sprycel and Abraxane expected to weigh on overall revenues.

Against this backdrop, a cautious investment stance appears appropriate. New investors may prefer to wait for more attractive entry points, while existing shareholders could consider holding their positions, supported by a dividend yield of approximately 4.26%.

BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.