Bristol Myers Squibb (BMY Quick QuoteBMY - Free Report) and AbbVie (ABBV Quick QuoteABBV - Free Report) are two leading pharma/biotech players with diversified portfolios and a strong global presence.

BMY has built a robust portfolio comprising drugs for oncology, hematology, immunology, cardiovascular, neuroscience and other therapeutic areas.

AbbVie is a global, diversified biopharmaceutical company with a dominant position across key therapeutic areas, including immunology, neuroscience, oncology, aesthetics and eye care.

Both biopharma/biotech giants have strong footholds in their targeted businesses, delivering consistent returns to shareholders. Against this backdrop, choosing one stock over the other can be tricky. Let us delve into their fundamentals, growth prospects, challenges and valuation levels to make a prudent choice.

The Case for BMY

Bristol Myers Squibb’s growth portfolio remains the cornerstone of its revenue trajectory, led by key therapies such as Opdivo, Opdivo Qvantig, Orencia, Yervoy, Reblozyl, Camzyos, Breyanzi, Opdualag, Zeposia, Abecma, Sotyktu, Krazati and Cobenfy.

The portfolio generated approximately 56% of total revenues in the first half of 2026, highlighting its importance to the company’s growth strategy.

Growth is led by the immuno-oncology franchise, with newer products such as Camzyos, Breyanzi and Reblozyl gaining momentum and helping offset declines in the legacy portfolio.

Although sales of blockbuster immuno-oncology drug Opdivo declined, primarily due to the ongoing shift to the subcutaneous Opdivo Qvantig in the United States, strong uptake of Qvantig across approved tumor types is helping cushion the decline. Qvantig has already surpassed $1 billion in annualized revenues.

Opdualag continues to benefit from strong global demand and its leading position as a first-line melanoma standard of care in the United States.

Reblozyl, developed in partnership with Merck, is 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 also generating solid sales momentum, fueled by its differentiated profile and growing demand across approved large B-cell lymphoma indications in the United States and international markets.

Cardiovascular drug Camzyos continues to gain traction, supported by promotional efforts, a growing base of new prescribers and deeper penetration in community settings.

In immunology, Sotyktu is an important growth driver, with its recent approval in psoriatic arthritis expanding its commercial opportunity in rheumatology. Ongoing Phase III studies in systemic lupus erythematosus and Sjögren’s disease could further expand its addressable market, if successful.

Newer products such as Cobenfy for schizophrenia provide additional long-term growth potential, with early launch momentum and opportunities for label expansion.

However, the portfolio transition remains a key challenge. Legacy products, including Eliquis, Revlimid, Pomalyst, Sprycel and Abraxane, still account for 44% of revenues and continue to face significant erosion following the loss of exclusivity for Revlimid, Pomalyst, Sprycel and Abraxane.

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 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. The company continues to pursue strategic acquisitions and collaborations to expand its pipeline. The acquisition of Orbital Therapeutics adds OTX-201, a preclinical RNA CAR-T therapy designed to reprogram cells in vivo for autoimmune diseases, along with Orbital’s RNA platform.

In 2025, Bristol Myers partnered with BioNTech to co-develop the bispecific antibody pumitamig for solid tumors. Early phase II data in triple-negative breast cancer showed encouraging antitumor activity and manageable safety with chemotherapy. By targeting both PD-L1 and VEGF-A, pumitamig could offer a differentiated approach in solid tumors and provide another long-term growth opportunity for BMY.

Bristol Myers is focusing on cost optimization to support margins. However, its aggressive deal-making strategy has significantly increased leverage. As of June 30, 2026, the company reported a debt-to-capital ratio of 65.9%, with $11.5 billion in cash and equivalents versus $42.1 billion in long-term debt, highlighting a key financial risk alongside its growth ambitions.

The Case for ABBV

AbbVie’s flagship drug Humira has lost patent protection in the United States and Europe. Biosimilar competition significantly eroded the drug’s sales.

Nonetheless, AbbVie has successfully navigated this headwind by launching two other successful new immunology drugs, Skyrizi and Rinvoq.  Both these drugs are witnessing strong uptake across their approved indications, especially in the popular inflammatory bowel disease space, which includes two conditions, ulcerative colitis and Crohn’s disease. Strong sales of these drugs have enabled AbbVie to offset the decline in sales of the blockbuster drug Humira.

However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years. Competition has also intensified for Skyrizi with the launch of J&J’s new oral pill for moderate-to-severe plaque psoriasis, Icotyde, which can impact the product’s prescription trends.

AbbVie’s oncology franchise comprises drugs like Venclexta, Imbruvica and Elahere. While Imbruvica is facing generic erosion, Venclexta and Elahere maintain momentum.

The robust neuroscience portfolio is driven by higher sales of Botox Therapeutic, depression drug Vraylar, newer migraine drugs Ubrelvy and Qulipta, and new Parkinson’s disease drug Vyalev.

Approval of new drugs further expands ABBV’s portfolio.

AbbVie has been active in M&A in recent years to strengthen its early-stage pipeline and support long-term growth. Its recent acquisition of Apogee Therapeutics bolsters its immunology pipeline with a diverse portfolio of assets targeting dermatologic, respiratory and other inflammatory and immunological diseases.

AbbVie has a robust pipeline, with several important data readouts, regulatory submissions and potential approvals expected over the next couple of years, which could support future growth.

The company faces near-term headwinds, including continued Humira biosimilar erosion, slowing oncology sales and weakness in its Aesthetics business amid persistent macroeconomic challenges and economic uncertainty.

A Look at Estimates: BMY versus ABBV

The Zacks Consensus Estimate for BMY’s 2026 sales implies a year-over-year increase of 3.4%, while that for earnings per share (EPS) suggests an increase of 6.7%. The Zacks Consensus Estimate for 2026 EPS has moved south to $6.56 from $6.86 in the past 60 days, while that for 2027 EPS has moved up to $6.50 from $6.44 in the same time frame.

BMY’s Estimate Movement

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ABBV’s 2026 sales implies a year-over-year increase of 10.6%, while that for EPS suggests a rise of 39.6%.  The Zacks Consensus Estimate for 2026 earnings has declined from $14.06 per share to $13.96 over the past 60 days, while that for 2027 earnings has dropped from $16.16 to $16.06 per share.

ABBV Estimate Movement

Image Source: Zacks Investment Research

Price Performance and Valuation of BMY and ABBV

From a price-performance perspective, ABBV has fetched better returns than BMY in the year-to-date period. ABBV shares have rallied 28.5%, outperforming BMY’s 19.3% gain. The large-cap pharma industry has gained 19.3% in the said period.

Image Source: Zacks Investment Research

From a valuation standpoint, we use the P/E ratio of the large-cap pharma industry to compare these companies. Going by the same, ABBV shares currently trade at 18.21X forward earnings, higher than 9.68X for BMY. The industry is trading at 19.01X. 
 

Image Source: Zacks Investment Research

GILD and BMY’s attractive dividend yield is a strong positive for investors. However, ABBV’s dividend yield of 2.43% is lower than BMY’s 4%.

Which Stock Is a Better Pick for Now?

While BMY carries a Zacks Rank #3 (Hold), ABBV has a Zacks Rank #4 (Sell), giving BMY the edge in this faceoff.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Overall, Bristol Myers Squibb appears to be the more attractive investment option at present, despite AbbVie’s stronger revenue and earnings growth outlook and superior year-to-date stock performance. BMY trades at a significant valuation discount to both ABBV and the industry, while offering a higher dividend yield and a more favorable Zacks Rank. However, its reliance on successful pipeline execution, declining sales of legacy drugs and elevated debt levels remain key concerns.

AbbVie continues to benefit from robust growth in Skyrizi and Rinvoq. However, its premium valuation, intensifying competition and downward revisions to earnings estimates remain key concerns for its prospects.