10-Q: Bristol Myers Squibb Q1 2026 Earnings Show Revenue Growth

Bristol Myers Squibb reported a 3% increase in total revenues for the first quarter of 2026, driven by its Growth Portfolio and Eliquis, despite generic erosion in its Legacy Portfolio.

Summary

• Bristol Myers Squibb's total revenues for the first quarter of 2026 reached $11.489 billion, a 3% increase compared to $11.201 billion in the same period of 2025.
• Net product sales were $11.168 billion, up from $10.886 billion in Q1 2025.
• The Growth Portfolio saw a 12% increase in revenues, reaching $6.227 billion, primarily driven by strong performance in Breyanzi, Camzyos, and Opdualag.
• The Legacy Portfolio experienced a 6% decrease in revenues, totaling $5.277 billion, largely due to generic erosion in Revlimid and Pomalyst/Imnovid.
• GAAP diluted earnings per share were $1.31, an increase from $1.20 in Q1 2025.
• The company incurred $410 million in IPRD impairment charges in the R&D expense category.
• Amortization of acquired intangible assets decreased significantly by 47% to $437 million, mainly due to the full amortization of Pomalyst acquired marketed product rights in Q4 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive filing, with solid revenue growth driven by key products, although the significant impact of generic erosion on legacy products remains a concern.

Positives

• Total revenues increased by 3% to $11.489 billion.
• Growth Portfolio revenues increased by 12% to $6.227 billion, indicating strong performance in key products.
• Eliquis revenues increased by 16% to $4.137 billion.
• Breyanzi revenue grew by 56% to $411 million.
• Camzyos revenue increased by 97% to $314 million.
• GAAP diluted earnings per share increased to $1.31 from $1.20 in the prior year period.

Negatives

• Legacy Portfolio revenues decreased by 6% to $5.277 billion.
• Revlimid revenues decreased by 63% to $349 million due to generic erosion.
• Pomalyst/Imnovid revenues decreased by 22% to $513 million due to generic erosion.
• Sprycel revenues decreased by 58% to $73 million due to generic erosion.
• Abraxane revenues decreased by 53% to $50 million due to generic erosion.
• Research and development expenses increased by 17% to $2.649 billion, largely due to $410 million in IPRD impairment charges.
• Other (income)/expense, net decreased by 90% to $32 million, but this was primarily due to a significant reduction in litigation and other settlements compared to the prior year.

Risks

• Ongoing regulatory focus on prescription drugs has increased pressures across the portfolio, resulting in lower prices, lower reimbursement rates, and smaller populations for whom payers will reimburse, which has negatively impacted and may continue to negatively impact results of operations, operating cash flow, liquidity, and financial flexibility.
• The Inflation Reduction Act (IRA) has led to 'maximum fair price' selections for Eliquis and Pomalyst, and Orencia has been selected for 'negotiation' for government-set prices, which could accelerate revenue erosion prior to intellectual property expiry.
• Potential for more products to be selected for IRA negotiation in future years or renegotiation of 'maximum fair price' could materially impact the business.
• The U.S. Government Agreement could result in reduced prices and reimbursement for certain products and may impact cash flows and results of operations.
• Exemptions from U.S. tariffs may be terminated or not extended, and the company remains subject to future pricing mandates outside the U.S.
• Loss of market exclusivity for products earlier than expected.
• Difficulties, delays, and disruptions in the supply chain, as well as in manufacturing, distribution, and sale of products.
• Changes to tax regulations could negatively impact earnings.
• Adverse changes in U.S. and global economic and political conditions could adversely affect operations and profitability.
• Failure to successfully enforce patent rights could result in substantial decreases in product revenues from generic competition.

Future Outlook

The company is committed to strategic allocation of resources and investing in areas that maximize value and drive sustainable growth. An ongoing strategic productivity initiative is expected to yield annual cost savings of approximately $2.0 billion by the end of 2027.

Management Comments

• Our principal strategy is to combine the resources, scale and capability of a large pharmaceutical company with the speed, agility and focus on innovation typically found in the biotech industry.
• We remain committed to the strategic allocation of resources and investing in areas that maximize value and drive sustainable growth.
• We believe in the innovative science behind Eliquis and the strength of our intellectual property, which we will defend against infringement.

Industry Context

StockSavvy.ai notes that Bristol Myers Squibb's performance reflects broader trends in the pharmaceutical industry, with growth driven by newer biologics and innovative therapies, while legacy products face pressure from generic competition. The company's focus on strategic R&D and operational efficiency is a common theme among large pharmaceutical firms navigating market dynamics.

Comparison to Industry Standards

• Bristol Myers Squibb's revenue growth of 3% in Q1 2026 is in line with or slightly above the average growth rate for large-cap pharmaceutical companies, which have seen moderate growth driven by specialty drugs.
• The significant decline in Revlimid and Pomalyst revenues due to generic competition is a common challenge faced by many pharmaceutical companies as blockbuster drugs approach patent expiry.
• The company's R&D investment as a percentage of revenue remains substantial, aligning with industry standards for companies focused on innovation and pipeline development.

Legal Proceedings

• Bristol-Myers Squibb and Pfizer initiated a patent infringement action against Azurity Pharmaceuticals, Inc. concerning Eliquis.
• Litigations are ongoing throughout Europe against companies seeking to launch generic apixaban products prior to the expiration of the composition-of-matter patent for Eliquis.
• BMS and certain Sanofi entities were named defendants in a Texas state court action relating to the labeling, sales, and promotion of Plavix.
• A settlement in principle was reached for the Celgene Securities Class Action, with final approval scheduled for May 2026.
• Individual actions related to Celgene securities have been settled and closed by the court.
• A lawsuit was filed against BMS concerning alleged breaches of a Contingent Value Rights Agreement related to the Celgene acquisition.
• BMS filed a lawsuit challenging the constitutionality of the drug-pricing program in the IRA, but the Third Circuit affirmed the lower court's decision, and BMS has petitioned the Supreme Court for review.
• BMS filed a lawsuit against HRSA and HHS challenging HRSA's determination regarding a cash rebate model for the 340B drug pricing program.
• Antitrust class action lawsuits were filed against Celgene and BMS related to Pomalyst patents, with the court dismissing complaints and denying plaintiffs' motion for leave to amend.
• BMS is responsible under CERCLA and other laws for certain costs of investigating and/or remediating contamination resulting from past industrial activity.

Stakeholder Impact

• Shareholders may see continued revenue growth from the 'Growth Portfolio' but should be aware of the ongoing impact of generic competition on legacy products.
• Patients may benefit from continued access to innovative medicines, but pricing pressures from government actions could impact affordability.
• The company's focus on R&D and pipeline development suggests continued investment in future treatments.

Next Steps

• Continue to drive commercial execution in key first-in-class and/or best-in-class marketed products.
• Focus on advancing the pipeline, highlighted by positive Phase III results and FDA acceptance of an NDA.
• Continue to evaluate the impact of the IRA on results of operations.
• Monitor and defend intellectual property for key products like Eliquis.

Key Dates

Recommendation

While Bristol Myers Squibb demonstrated solid revenue growth in Q1 2026, driven by its key growth products, the significant decline in legacy product sales due to generic competition and the ongoing impact of regulatory pricing pressures (IRA) present considerable headwinds. The company's strong pipeline and strategic initiatives are positive, but the balance between growth and the challenges in its legacy portfolio warrants a 'hold' recommendation until there is clearer visibility on the long-term impact of these factors.

Keywords

Bristol Myers Squibb, 10-Q, Quarterly Report, Financial Results, Revenue, Earnings Per Share, Growth Portfolio, Legacy Portfolio, Eliquis, Breyanzi, Camzyos, Revlimid, R&D Expenses, IPRD Impairment