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BMY Q3 Earnings Tops Estimates, Higher Charges Weigh on Outlook
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Key Takeaways
Bristol Myers' Q3 revenues rose 7% to $13.07 billion, beating estimates, while adjusted EPS fell 17%.
Growth Portfolio sales climbed 12% to $7.66 billion, while Eliquis revenue surged 25% to $4.69 billion.
BMY raised 2026 revenue guidance but cut EPS outlook as higher IPRD charges weighed on profits.
Bristol-Myers Squibb Company (BMY - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.35, which beat the Zacks Consensus Estimate of $1.21. However, earnings declined 17% from $1.63 in the year-ago quarter due to higher acquired in-process research and development (IPRD) charges and lower gross margins.
Total revenues of $13.07 billion surpassed the Zacks Consensus Estimate of $12.56 billion. Revenues increased 7% year over year, driven by strong Growth Portfolio performance and higher Eliquis sales.
The stock is trading up in response to the better-than-expected quarterly results.
BMY’s shares have gained 17.3% year to date compared with the industry's growth of 8.4%.
Image Source: Zacks Investment Research
BMY's Growth Portfolio Maintains Momentum in Q3
Revenues from BMY's Growth Portfolio increased 12% year over year to $7.66 billion, driven by Opdivo Qvantig, Breyanzi, Reblozyl, Camzyos and Opdualag. Growth was also 12% when adjusted for foreign exchange impacts.
Sales of the immuno-oncology drug Opdivo declined 6% year over year to $2.37 billion. However, sales beat the Zacks Consensus Estimate of $2.36 billion but missed our model estimate of $2.40 billion.
Opdivo Qvantig generated revenues of $334 million compared with $67 million in the year-ago quarter.
Sales of rheumatoid arthritis drug Orencia increased 2% to $983 million. Melanoma drug Yervoy contributed $793 million, up 7% year over year, beating the Zacks Consensus Estimate of $756 million and our model estimate of $767 million.
Reblozyl sales rose 22% to $750 million, beating the Zacks Consensus Estimate of $739 million and our model estimate of $734 million.
Breyanzi sales surged 46% to $526 million, exceeding the Zacks Consensus Estimate of $493 million and our model estimate of $489 million.
Opdualag sales increased 23% to $367 million, beating the Zacks Consensus Estimate of $359 million and our model estimate of $363 million.
Camzyos sales jumped 42% to $420 million but missed the Zacks Consensus Estimate of $444 million and our model estimate of $447 million.
Zeposia sales increased 5% to $168 million. Sotyktu generated $100 million, while Krazati and Cobenfy contributed $58 million and $57 million, respectively.
BMY’s Legacy Portfolio Records Modest Growth
Revenues from the Legacy Portfolio increased 1% year over year to $5.42 billion. Strong Eliquis sales offset continued generic competition affecting older drugs, including Revlimid, Pomalyst and Sprycel.
Eliquis sales rose 25% to $4.69 billion, beating the Zacks Consensus Estimate of $4.59 billion and our model estimate of $4.44 billion. U.S. sales increased 39%, while international revenues declined 7%.
Please note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Multiple myeloma drug Revlimid revenues plunged 47% to $303 million but exceeded the Zacks Consensus Estimate of $221 million and our model estimate of $196.8 million.
Pomalyst/Imnovid sales declined 81% to $130 million. Sprycel revenues fell 38% to $73 million, while Abraxane sales decreased 13% to $65 million.
Adjusted gross margin declined to 68.4% from 72.9% in the year-ago quarter, primarily due to an unfavorable product mix and a one-time contract termination charge.
Adjusted research and development expenses decreased 3% to $2.36 billion. Adjusted selling, general and administrative expenses declined 5% to $1.70 billion.
However, acquired in-process research and development charges increased 146% to $1.56 billion, reflecting licensing agreements and ongoing collaborations. These charges, along with licensing income, had a net negative EPS impact of 58 cents.
BMY Raises Revenue Outlook, Cuts EPS View
Bristol Myers raised its 2026 revenue guidance to $49.75-$50.25 billion from the previous projection of $49-$50 billion, reflecting continued momentum across its portfolio.
However, management lowered its adjusted EPS guidance to $6.35-$6.55 from $6.75-$7.00. The revised outlook includes a negative 60-cent impact from acquired IPRD charges and licensing income, compared with the previously assumed 2-cent impact.
The company maintained its adjusted gross margin forecast of 69-70% and operating expense guidance of approximately $16.5 billion. It also reaffirmed its projection for worldwide Eliquis revenue growth of 20-25%.
BMY's Pipeline Advances With Key Regulatory Milestones
In August, the FDA approved Zenbexus in combination with daratumumab and dexamethasone for the treatment of adult patients with multiple myeloma who have received at least one prior line of therapy, including a proteasome inhibitor and an immunomodulatory agent.
The FDA also expanded Camzyos' label in September for the treatment of symptomatic obstructive hypertrophic cardiomyopathy to improve functional capacity and symptoms in adults and pediatric patients weighing 30 kg (66 lbs) or more.
Additionally, positive phase III results were reported for iza-bren in breast and lung cancer, RYZ101 in neuroendocrine tumors and admilparant in idiopathic pulmonary fibrosis.
BMY and partner BioNTech SE (BNTX - Free Report) also announced positive data from the phase II ROSETTA Lung-107 study evaluating pumitamig in combination with docetaxel in patients with metastatic NSCLC whose disease progressed on or after first-line immunotherapy plus chemotherapy.
Data showed encouraging anti-tumor activity, with responses observed in both squamous and non-squamous NSCLC and across PD-L1 expression levels, together with a manageable safety profile consistent with prior global datasets for pumitamig.
Our Take on Bristol Myers' Q3 Performance
BMY delivered better-than-expected third-quarter earnings and revenues, supported by robust Growth Portfolio performance and strong Eliquis demand. Continued momentum across Qvantig, Breyanzi, Reblozyl and Opdualag helped offset generic erosion in older products.
The higher revenue outlook reflects sustained commercial strength. However, declining adjusted margins and substantial acquired IPRD charges weighed on profitability and prompted a reduction in earnings guidance.
Recent regulatory approvals and positive late-stage pipeline results strengthen the company's portfolio of potential growth drivers, even as generic competition remains a significant headwind.
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BMY Q3 Earnings Tops Estimates, Higher Charges Weigh on Outlook
Key Takeaways
Bristol-Myers Squibb Company (BMY - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of $1.35, which beat the Zacks Consensus Estimate of $1.21. However, earnings declined 17% from $1.63 in the year-ago quarter due to higher acquired in-process research and development (IPRD) charges and lower gross margins.
Total revenues of $13.07 billion surpassed the Zacks Consensus Estimate of $12.56 billion. Revenues increased 7% year over year, driven by strong Growth Portfolio performance and higher Eliquis sales.
The stock is trading up in response to the better-than-expected quarterly results.
BMY’s shares have gained 17.3% year to date compared with the industry's growth of 8.4%.
Image Source: Zacks Investment Research
BMY's Growth Portfolio Maintains Momentum in Q3
Revenues from BMY's Growth Portfolio increased 12% year over year to $7.66 billion, driven by Opdivo Qvantig, Breyanzi, Reblozyl, Camzyos and Opdualag. Growth was also 12% when adjusted for foreign exchange impacts.
Sales of the immuno-oncology drug Opdivo declined 6% year over year to $2.37 billion. However, sales beat the Zacks Consensus Estimate of $2.36 billion but missed our model estimate of $2.40 billion.
Opdivo Qvantig generated revenues of $334 million compared with $67 million in the year-ago quarter.
Sales of rheumatoid arthritis drug Orencia increased 2% to $983 million. Melanoma drug Yervoy contributed $793 million, up 7% year over year, beating the Zacks Consensus Estimate of $756 million and our model estimate of $767 million.
Reblozyl sales rose 22% to $750 million, beating the Zacks Consensus Estimate of $739 million and our model estimate of $734 million.
Breyanzi sales surged 46% to $526 million, exceeding the Zacks Consensus Estimate of $493 million and our model estimate of $489 million.
Opdualag sales increased 23% to $367 million, beating the Zacks Consensus Estimate of $359 million and our model estimate of $363 million.
Camzyos sales jumped 42% to $420 million but missed the Zacks Consensus Estimate of $444 million and our model estimate of $447 million.
Zeposia sales increased 5% to $168 million. Sotyktu generated $100 million, while Krazati and Cobenfy contributed $58 million and $57 million, respectively.
BMY’s Legacy Portfolio Records Modest Growth
Revenues from the Legacy Portfolio increased 1% year over year to $5.42 billion. Strong Eliquis sales offset continued generic competition affecting older drugs, including Revlimid, Pomalyst and Sprycel.
Eliquis sales rose 25% to $4.69 billion, beating the Zacks Consensus Estimate of $4.59 billion and our model estimate of $4.44 billion. U.S. sales increased 39%, while international revenues declined 7%.
Please note that Bristol-Myers has a collaboration agreement with Pfizer (PFE - Free Report) for Eliquis. The companies collaborated in 2007. Profits and losses are shared equally on a global basis, except in certain countries where Pfizer commercializes Eliquis and pays BMY a sales-based fee.
Multiple myeloma drug Revlimid revenues plunged 47% to $303 million but exceeded the Zacks Consensus Estimate of $221 million and our model estimate of $196.8 million.
Pomalyst/Imnovid sales declined 81% to $130 million. Sprycel revenues fell 38% to $73 million, while Abraxane sales decreased 13% to $65 million.
BMY's Margins Contract Despite Lower Operating Costs
Adjusted gross margin declined to 68.4% from 72.9% in the year-ago quarter, primarily due to an unfavorable product mix and a one-time contract termination charge.
Adjusted research and development expenses decreased 3% to $2.36 billion. Adjusted selling, general and administrative expenses declined 5% to $1.70 billion.
However, acquired in-process research and development charges increased 146% to $1.56 billion, reflecting licensing agreements and ongoing collaborations. These charges, along with licensing income, had a net negative EPS impact of 58 cents.
BMY Raises Revenue Outlook, Cuts EPS View
Bristol Myers raised its 2026 revenue guidance to $49.75-$50.25 billion from the previous projection of $49-$50 billion, reflecting continued momentum across its portfolio.
However, management lowered its adjusted EPS guidance to $6.35-$6.55 from $6.75-$7.00. The revised outlook includes a negative 60-cent impact from acquired IPRD charges and licensing income, compared with the previously assumed 2-cent impact.
The company maintained its adjusted gross margin forecast of 69-70% and operating expense guidance of approximately $16.5 billion. It also reaffirmed its projection for worldwide Eliquis revenue growth of 20-25%.
BMY's Pipeline Advances With Key Regulatory Milestones
In August, the FDA approved Zenbexus in combination with daratumumab and dexamethasone for the treatment of adult patients with multiple myeloma who have received at least one prior line of therapy, including a proteasome inhibitor and an immunomodulatory agent.
The FDA also expanded Camzyos' label in September for the treatment of symptomatic obstructive hypertrophic cardiomyopathy to improve functional capacity and symptoms in adults and pediatric patients weighing 30 kg (66 lbs) or more.
Additionally, positive phase III results were reported for iza-bren in breast and lung cancer, RYZ101 in neuroendocrine tumors and admilparant in idiopathic pulmonary fibrosis.
BMY and partner BioNTech SE (BNTX - Free Report) also announced positive data from the phase II ROSETTA Lung-107 study evaluating pumitamig in combination with docetaxel in patients with metastatic NSCLC whose disease progressed on or after first-line immunotherapy plus chemotherapy.
Data showed encouraging anti-tumor activity, with responses observed in both squamous and non-squamous NSCLC and across PD-L1 expression levels, together with a manageable safety profile consistent with prior global datasets for pumitamig.
Our Take on Bristol Myers' Q3 Performance
BMY delivered better-than-expected third-quarter earnings and revenues, supported by robust Growth Portfolio performance and strong Eliquis demand. Continued momentum across Qvantig, Breyanzi, Reblozyl and Opdualag helped offset generic erosion in older products.
The higher revenue outlook reflects sustained commercial strength. However, declining adjusted margins and substantial acquired IPRD charges weighed on profitability and prompted a reduction in earnings guidance.
Recent regulatory approvals and positive late-stage pipeline results strengthen the company's portfolio of potential growth drivers, even as generic competition remains a significant headwind.
BMY’s Zacks Rank
BMY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.