Biopharmaceutical company Bristol Myers Squibb (NYSE: BMY) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 1.4% year on year to $12.5 billion. The company’s full-year revenue guidance of $46.75 billion at the midpoint came in 5.7% above analysts’ estimates. Its non-GAAP profit of $1.26 per share was 4.6% above analysts’ consensus estimates.

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StockStory’s Take

Bristol-Myers Squibb’s fourth quarter saw continued momentum in its growth portfolio, which management credited as the primary driver behind the company’s positive results. CEO Christopher Boerner highlighted significant contributions from newer products such as Opdualag, Breyanzi, and Camzyos, each surpassing $1 billion in annual sales, and emphasized their early-stage potential. The company also benefited from steady uptake in recently launched therapies, with Reblozyl notably achieving over $2 billion in sales for the year. Management pointed to disciplined execution on cost-saving initiatives, which helped offset declines in legacy brands, including ongoing generic competition. As Boerner summarized, “These are differentiated durable products early in their life cycles with meaningful runway ahead that further strengthen the foundation for long-term growth.”

Looking forward, Bristol-Myers Squibb’s guidance reflects confidence in the scalability of its growth portfolio and the impact of upcoming clinical data readouts. Management is banking on pivotal studies across multiple therapeutic areas, with six new product readouts and several key label extensions expected in the coming year. Boerner noted, “The increasing pace of pivotal readouts later this year will serve to better define the potential of our pipeline candidates.” Cost discipline is expected to continue, with additional savings reinvested into product launches and research. However, management acknowledged that loss of exclusivity on legacy products and evolving pricing strategies, particularly for Eliquis, will influence results. CFO David Elkins stated, “Our cost savings program has provided us with the flexibility to increase commercial investment where appropriate and support newer development programs.”

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to robust execution in advancing key brands and steady progress in early-stage launches, while ongoing productivity initiatives supported margin expansion.

• Growth portfolio momentum: The company’s growth portfolio, including products like Opdualag, Breyanzi, Camzyos, and Reblozyl, drove a 15% year-over-year increase in revenue for this segment, nearly compensating for declines in the legacy portfolio.
• New launches gaining traction: CoBinfy and Qvantik, both recent launches, demonstrated consistent uptake, with CoBinfy’s adoption surpassing other schizophrenia treatments in its first year and Qvantik receiving positive feedback for efficiency and patient preference.
• Pipeline progress and approvals: Breyanzi received expanded FDA approval, now covering five cancer types, and the company initiated multiple new registrational studies, including for pemigatinib and Zolacel, supporting future growth opportunities.
• Cost savings and reinvestment: Bristol-Myers Squibb achieved $1 billion in cost savings during the year and remains on track to realize its targeted $2 billion productivity initiative, enabling selective reinvestment in commercial and research activities.
• Legacy portfolio headwinds: Despite revenue growth from Eliquis, the legacy segment continues to face pressure from generic competition and anticipated loss of exclusivity in major markets, particularly with upcoming patent expirations.

Drivers of Future Performance

Management expects pivotal data readouts, ongoing cost reductions, and strategic investments in the pipeline to drive revenue and margin trends in the year ahead.

• Pipeline catalysts and product launches: Six potential new products and multiple label extensions are scheduled for pivotal data releases, particularly in oncology, hematology, and cardiovascular disease. Management believes successful outcomes could enhance the long-term growth profile and offset legacy declines.
• Cost management and reinvestment: The ongoing productivity initiative is expected to reduce operating expenses by another $1 billion over the next two years, with targeted reinvestment supporting commercial launches and pipeline development. Management cautioned that these efforts are balanced against the need for continued investment in growth drivers.
• Legacy revenue transitions and risks: The company anticipates further revenue erosion in the legacy portfolio due to generic competition and patent expirations, especially for Eliquis in Europe. Management acknowledged that these headwinds will require strong execution from the growth portfolio and successful product launches to sustain overall momentum.

Catalysts in Upcoming Quarters

In the quarters ahead, our analysts will be watching (1) progress on pivotal data readouts for new and existing pipeline candidates, (2) the execution of cost savings and reinvestment into launch and research activities, and (3) the impact of patent expirations and generic competition on legacy brands—especially Eliquis. The ability of recently launched products to accelerate adoption will also be a key performance indicator.

Bristol-Myers Squibb currently trades at $59.40, up from $57.62 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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