01—Abstract
Summary
Summary of the 10-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Bristol Myers Squibb's 2025 results were essentially flat on the top line but substantially stronger on profitability.
Total revenues were $48.2 billiona, down roughly 0.2% from $48.3 billion in 2024. U.S. revenues fell 2% to $33.3 billion, while international revenues rose 5% to $13.8 billion, helped by a 2-point FX tailwind. Growth Portfolio sales rose 17% to $26.4 billion, led by Opdivo (+8%), Reblozyl (+31%), Breyanzi (+82%), Camzyos (+77%), and Eliquis (+8% to $14.4 billion).
This offset a 15% decline in the Legacy Portfolio to $21.8 billionb, driven by generic erosion for Revlimid (-49%), Sprycel (-62%), Abraxane (-58%), and Pomalyst (-23%). Management expects continued Legacy erosion in 2026, primarily from Revlimid and Pomalyst in the U.S. GAAP EPS was $3.46, compared with a loss of $4.41 in 2024, which included a $12.1 billion non-deductible Karuna charge. Non-GAAP EPS rose to $6.15 from $1.15.
The improvement mainly reflects far lower Acquired IPRD charges ($3.7 billionc vs. $13.4 billion), lower amortization of acquired intangibles ($3.3 billion vs. $8.9 billion), and cost savings from the strategic productivity initiative, which targets about $2.0 billion in savings by end-2027. Selling, general and administrative expense fell 14% and R&D fell 11%. Operating cash flow was $14.2 billion, dividends were $5.0 billion, and net debt declined $4.4 billion to $34.0 billion after $8.7 billion of debt was retired in tender offers and make-whole redemptions.
The key investor watch items are the pace of Legacy erosion, U.S. pricing pressure (average net selling prices fell 4%d in 2025 and GTN adjustments rose to 47% of gross sales), and pipeline readouts through 2026-2027, including milvexian (LIBREXIA-AF and STROKE), Cobenfy in Alzheimer's psychosis, and the Eliquis European patent litigation. The IRA's Medicare negotiated price for Eliquis takes effect January 1, 2026, and the company has a December 2025 U.S. government agreement that adds tariff relief through January 2029.
02—Key points
Key Highlights
- Total revenues of $48.2B were flat year over year. Growth Portfolio revenue rose 17% to $26.4B and now makes up about 55% of sales, while Legacy Portfolio revenue fell 15% to $21.8B.
- GAAP diluted EPS was $3.46 versus a $4.41 loss in 2024. Non-GAAP diluted EPS was $6.15 versus $1.15, driven by lower Acquired IPRD ($3.7B vs. $13.4B) and lower intangible amortization ($3.3B vs. $8.9B).
- Eliquis, the largest product at $14.4B (+8%), continues to grow, but it faces a Medicare Maximum Fair Price effective January 1, 2026, and a free Medicaid supply under the U.S. Government Agreement. European generic entry is also underway in several countries.
- Revlimid (-49% to $2.95B), Sprycel (-62%), Abraxane (-58%), and Pomalyst (-23%) show steep generic erosion. U.S. Pomalyst generic entry is expected in March 2026.
- Operating cash flow was $14.2B and dividends were $5.0B ($2.49/share declared). Net debt fell to $34.0B from $38.5B after $8.7B of debt was retired. No share repurchases were made in 2025, leaving $5.0B of authorization.
- Strategic productivity initiative targets about $2.0B in cost savings by end-2027. SG&A fell 14% and R&D fell 11% in 2025. The 2023 Restructuring Plan total is now about $2.5B through 2027.
- Pricing pressure is intensifying. Average U.S. net selling prices fell 4%, U.S. GTN adjustments rose to 53% of gross sales, and the company signed a December 2025 agreement with the U.S. government that includes ~80% discounts for direct-to-patient cash sales and tariff relief through January 2029.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 11, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $48.19B$48.30B | −0.2% |
| Cost of Revenue | $13.94B$13.97B | −0.2% |
| Gross Profit | $34.26B$34.33B | −0.2% |
| R&D Expenses | $9.95B$11.16B | −10.8% |
| SG&A Expenses | $7.27B$8.41B | −13.6% |
| Operating Expenses | $38.87B$56.68B | −31.4% |
| Net Income | $7.05B-$8.95B | +178.8% |
| EPS (Basic) | $3.47$-4.41 | +178.7% |
| EPS (Diluted) | $3.46$-4.41 | +178.5% |
| Shares Outstanding (Basic) | 2.03B2.03B | +0.3% |
| Shares Outstanding (Diluted) | 2.04B2.03B | +0.6% |
05—Questions
Frequently Asked Questions
Why did GAAP EPS swing from a loss of $4.41 in 2024 to earnings of $3.46 in 2025?
The 2024 loss was driven by a $12.1B one-time, non-tax-deductible Acquired IPRD charge for the Karuna acquisition and $8.9B of intangible amortization. In 2025, Acquired IPRD fell to $3.7B and amortization fell to $3.3B, mainly because the Revlimid and Pomalyst acquired product rights were fully amortized. Intangible impairments also declined to $949M from $2.9B. These effects were partly offset by a 24.4% effective tax rate, which included a $1.4B non-deductible Orbital Therapeutics charge.
How exposed is BMS to the loss of exclusivity on its legacy products?
Legacy Portfolio sales were $21.8B in 2025, or about 45% of revenue, and fell 15% during the year. Revlimid, Sprycel, Abraxane, and Pomalyst have already seen steep declines, and Eliquis faces generic entry in Europe and is set to lose U.S. exclusivity in 2028 under settlements. The Growth Portfolio, led by Opdivo (estimated U.S. minimum exclusivity 2028), needs to keep growing to offset these losses, and the company expects continued generic erosion in 2026.
What is the impact of Medicare drug price negotiation on BMS?
The HHS set a maximum fair price for Eliquis under the IRA, effective January 1, 2026, for the Medicare channel. A maximum fair price for Pomalyst takes effect January 1, 2027, and Orencia was selected in January 2026 for negotiation beginning in 2028. The company says these measures could accelerate revenue erosion before patent expiry, and it is still assessing the full impact. The IRA's Part D redesign has also raised BMS's U.S. rebate burden, with U.S. GTN adjustments reaching $38.0B in 2025.
What are the key pipeline catalysts for 2026 and 2027?
The registrational readouts include milvexian in atrial fibrillation (LIBREXIA-AF) and secondary stroke prevention (LIBREXIA-STROKE), with topline data expected in 2026, after the company stopped the LIBREXIA-ACS trial in November 2025. Other catalysts include Cobenfy in Alzheimer's disease psychosis (ADEPT-1, -2, and -4), bipolar I disorder, and Opdivo in adjuvant HCC. Sotyktu has a PsA sNDA with a PDUFA date of March 6, 2026, and Opdivo for cHL has a PDUFA date of April 8, 2026. Setbacks in 2025 included the ODYSSEY-HCM failure in nHCM and the ARISE failure for Cobenfy adjunctive schizophrenia treatment.
Is BMS's balance sheet and shareholder return policy under pressure?
BMS remains solvent with $11.1B of cash and marketable securities and $34.0B of net debt, and it paid $5.0B in dividends and $5.0B of debt repayments net of issuance in 2025. Credit ratings are A2/Prime-1 (Moody's) and A/A-1 (S&P), both with stable outlooks. No share buybacks were made in 2025, and the company has $8.9B of debt maturities through 2030. The Board controls dividend declarations, and management has said it could pause or reduce capital returns if needed, which is a risk factor for income-focused holders.
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