01—Abstract
Summary
Summary of the 10-Q filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Bristol-Myers Squibb's Q2 2025 results show a sharp contrast between GAAP and underlying performance.
Total revenues rose 1% to $12.27 billiona in the quarter, driven by Growth Portfolio demand (up 18%, led by Breyanzi, Opdivo, Reblozyl, Camzyos and Yervoy) and Eliquis (up 8%), which offset steep generic erosion in the Legacy Portfolio (down 14%, with Revlimid down 38%). Year-to-date revenues fell 2% to $23.47 billion. GAAP diluted EPS was $0.64, down from $0.83, primarily due to a $1.5 billion upfront payment to BioNTech recorded as Acquired IPRD.
Non-GAAP diluted EPS was $1.46b, down from $2.07. Year-to-date GAAP EPS of $1.85 compares favorably with a prior-year loss of $(5.05), which reflected the Karuna acquisition charge, but the comparison is distorted by one-time items in both periods. Margins and cash generation were supported by cost discipline.
SG&A fell 11% in the quarter and 23% year-to-date, and R&D fell 11% and 14%, reflecting the strategic productivity initiative, which management now expects to deliver about $2.0 billionc in annual savings by end-2027. Operating cash flow was $5.9 billion year-to-date, up from $5.2 billion, and cash plus marketable securities rose to $13.95 billion. Net debt declined $3.2 billion to $35.2 billion, and the company paid $2.5 billion in dividends.
Pressures remain significant: U.S. net selling prices fell 7% year-to-date, the Medicare Part D redesign weighed on net pricing, a $700 milliond Hawaii Plavix settlement ($350 million paid by BMS) was recorded, and a $336 million non-cash contingent consideration charge reflected higher probability assumptions on the Mirati CVR. Looking ahead, the pipeline and business development activity is substantial. The BioNTech collaboration includes $2.0 billion in anniversary payments through 2028 and up to $7.6 billion in milestones, and the Philochem license adds a $350 million upfront payment expected in Q3 2025.
Several late-stage readouts were mixed: Camzyos in nHCM and Cobenfy adjunctive schizophrenia did not meet their primary endpoints, and Reblozyl in myelofibrosis-associated anemia also missed. Pending catalysts include the Sotyktu PsA filings (PDUFA March 2026) and the Eliquis Medicare maximum fair price effective 2026. Investors will need to weigh the durability of Growth Portfolio momentum against accelerating Legacy erosion and IRA/MFN pricing exposure.
02—Key points
Key Highlights
- Total revenues rose 1% to $12.27B in Q2 2025 but fell 2% to $23.47B year-to-date, as Growth Portfolio growth (+18% in Q2) and Eliquis (+8%) offset Legacy Portfolio declines (-14% in Q2).
- GAAP diluted EPS was $0.64 in Q2 2025 versus $0.83 a year ago, mainly due to a $1.5B BioNTech upfront payment recorded as Acquired IPRD; non-GAAP diluted EPS was $1.46 versus $2.07.
- Operating costs fell materially: SG&A declined 23% and R&D declined 14% year-to-date, supporting the strategic productivity initiative targeting about $2.0B in annual savings by end-2027.
- Operating cash flow of $5.9B year-to-date (up from $5.2B) and a $3.2B reduction in net debt to $35.2B, despite $2.5B of dividend payments.
- Pricing pressure intensified: average U.S. net selling prices fell 7% year-to-date, and U.S. GTN adjustments rose to 52% of gross sales, reflecting the Medicare Part D redesign.
- Legal and other charges included a $700M Hawaii Plavix settlement ($350M paid by BMS) and a $336M non-cash contingent consideration charge on the Mirati CVR.
- Several late-stage trials missed primary endpoints in 2025, including Camzyos in nHCM, Cobenfy adjunctive schizophrenia (ARISE) and Reblozyl in myelofibrosis-associated anemia (INDEPENDENCE).
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 31, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $12.27B$12.20B | +0.6% |
| Cost of Revenue | $3.37B$3.27B | +3.2% |
| Gross Profit | $8.90B$8.93B | −0.4% |
| R&D Expenses | $2.58B$2.90B | −11.0% |
| SG&A Expenses | $1.71B$1.93B | −11.2% |
| Operating Expenses | $10.50B$10.91B | −3.8% |
| Net Income | $1.31B$1.68B | −22.0% |
| EPS (Basic) | $0.64$0.83 | −22.9% |
| EPS (Diluted) | $0.64$0.83 | −22.9% |
| Shares Outstanding (Basic) | 2.04B2.03B | +0.4% |
| Shares Outstanding (Diluted) | 2.04B2.03B | +0.4% |
05—Questions
Frequently Asked Questions
Did Bristol Myers Squibb's earnings decline in Q2 2025?
Yes on a GAAP basis. Diluted EPS fell to $0.64 from $0.83, largely because of a one-time $1.5B Acquired IPRD charge for the BioNTech collaboration. Non-GAAP diluted EPS fell to $1.46 from $2.07, with the decline attributed to the same charge partly offset by cost savings. Net earnings attributable to BMS were $1.31B versus $1.68B. Year-to-date GAAP EPS of $1.85 is much higher than the prior-year loss of $(5.05), but that comparison is distorted by the 2024 Karuna charge.
What is driving revenue performance, and where is the weakness?
Growth is coming from the Growth Portfolio, which rose 18% in Q2 to $6.6B, led by Breyanzi (+125%), Reblozyl (+34%), Camzyos (+87%), Opdivo (+7%) and Yervoy (+16%), along with Eliquis (+8%). Weakness is concentrated in the Legacy Portfolio, which fell 14% to $5.7B in Q2 because of generic erosion, with Revlimid down 38%, Sprycel down 72%, Pomalyst down 26% and Abraxane down 55%. Net product sales were roughly flat in Q2 at $11.9B, as gross sales growth of 7% was largely absorbed by higher GTN adjustments.
How strong is the balance sheet and liquidity position?
Liquidity improved. Cash and equivalents rose to $12.6B, and total cash plus marketable debt securities reached $13.95B. Total debt was $48.9B, with $4.7B classified as short-term, including a $4.5B current portion of long-term debt. Net debt declined to $35.2B from $38.5B at year-end 2024. The company has a $5.0B revolving credit facility undrawn and a $5.0B commercial paper program, and it states that existing resources are sufficient for its cash needs.
What are the main risks and upcoming catalysts for investors?
Key risks include the IRA maximum fair price for Eliquis in Medicare starting in 2026, the Pomalyst selection for government price negotiation in 2027, the May 2025 U.S. most-favored-nation executive order, expanding state-level pricing actions, and tariff uncertainty. Legacy erosion continues, with U.S. generic lenalidomide volume-limited licenses ending January 31, 2026 and generic pomalidomide expected in the U.S. in March 2026. Catalysts include the Sotyktu PsA FDA decision (PDUFA March 6, 2026), Breyanzi MZL data, and the ongoing BioNTech BNT327 Phase III program. The Mirati CVR liability also rose to $592M, reflecting higher probability of the regulatory milestone.
Is the BioNTech deal a sign of a changed capital allocation approach?
The filing shows a shift toward larger external bets. The BioNTech collaboration carries a $1.5B upfront payment (expected to be paid in Q3 2025), $2.0B in anniversary payments from 2026 through 2028, and up to $7.6B in milestones, with profits and losses shared equally. Smaller deals include the $350M Philochem upfront and the $100M BioArctic upfront. Management frames these as strengthening the pipeline and portfolio, while the disclosed charges reduce near-term GAAP earnings. Investors will likely focus on whether these assets offset Legacy declines as they reach the market.
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