01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Bristol-Myers Squibb's first quarter 2026 results show GAAP revenue growth of 3% to $11.5 billiona, with the Growth Portfolio up 12% to $6.2 billion, led by Breyanzi (+56%), Camzyos (+97%), Reblozyl (+16%), and Eliquis (+16%).
Growth was partly offset by steep generic erosion in the Legacy Portfolio, where Revlimid fell 63% and Pomalyst 22%. Excluding foreign exchange, revenue rose only about 1%. GAAP diluted EPS rose to $1.31b from $1.20, mainly because amortization of acquired intangibles fell sharply ($437 million versus $830 million) after Pomalyst's product right was fully amortized.
Non-GAAP diluted EPS fell to $1.58c from $1.80, reflecting the loss of diabetes royalty income that ended December 31, 2025, and a $410 million IPRD impairment in R&D. Cash generation weakened. Operating cash flow fell to $1.1 billion from $1.95 billion, driven by lower net customer receipts from the Eliquis list price cut and higher litigation disbursements, while rebates and discounts were a $3.5 billion outflow in the quarter.
Dividend payments of $1.3 billiond, plus $500 million of floating rate note repayment, meant the net debt position improved only modestly, by $436 million to $33.6 billion. Total cash and marketable securities were $10.9 billion. Management said liquidity is sufficient for at least the next few years.
The filing also highlights regulatory and litigation exposure. The U.S. Government Agreement brings tariff relief through January 2029 and an exemption from future U.S. pricing mandates, though it requires Eliquis to be provided free to Medicaid and deep direct-to-patient discounts. Eliquis faces U.S. patent litigation with Azurity and European generic challenges ahead of EU composition-of-matter expiry in November 2026.
The IRS transfer pricing dispute for 2008–2012 remains unresolved, and the Celgene securities class action is set to receive final approval in May 2026. Pipeline progress was notable, including positive Phase III data for mezigdomide and Camzyos in adolescents, and an FDA PDUFA date of August 17, 2026 for iberdomide.
02—Key points
Key Highlights
- Total revenues rose 3% to $11.5 billion (about 1% excluding FX), with the Growth Portfolio up 12% to $6.2 billion while the Legacy Portfolio declined 6% to $5.3 billion.
- GAAP diluted EPS rose to $1.31 from $1.20, driven by a $393 million decline in amortization of acquired intangibles, while non-GAAP diluted EPS fell to $1.58 from $1.80 on the loss of diabetes royalty income.
- Operating cash flow dropped to $1.1 billion from $1.95 billion, reflecting lower net customer receipts tied to the Eliquis list price reduction and higher litigation payments.
- Net debt improved modestly to $33.6 billion from $34.0 billion, with $10.9 billion in cash and marketable securities against $44.5 billion in gross debt; $1.3 billion was paid in dividends.
- A $410 million IPRD impairment in R&D (radiopharmaceutical and oncology assets) drove R&D expense up 17% to $2.6 billion.
- Key growth products were strong: Breyanzi +56%, Camzyos +97%, Cobenfy +107%, Reblozyl +16%, and Eliquis +16% (to $4.1 billion).
- Legacy generic erosion continued with Revlimid down 63%, Sprycel down 58%, and Pomalyst down 22%; the U.S. Government Agreement provides tariff relief and pricing-mandate protection through January 2029.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $11.49B$11.20B | +2.6% |
| Cost of Revenue | $3.42B$3.03B | +12.8% |
| Gross Profit | $8.07B$8.17B | −1.2% |
| R&D Expenses | $2.65B$2.26B | +17.4% |
| SG&A Expenses | $1.62B$1.58B | +2.1% |
| Operating Expenses | $8.25B$8.23B | +0.2% |
| Net Income | $2.68B$2.46B | +9.0% |
| EPS (Basic) | $1.31$1.21 | +8.3% |
| EPS (Diluted) | $1.31$1.20 | +9.2% |
| Shares Outstanding (Basic) | 2.04B2.03B | +0.3% |
| Shares Outstanding (Diluted) | 2.05B2.04B | +0.3% |
05—Questions
Frequently Asked Questions
Why did GAAP EPS increase while non-GAAP EPS declined?
GAAP EPS rose to $1.31 from $1.20 mainly because amortization of acquired intangible assets fell to $437 million from $830 million, after the Pomalyst product right was fully amortized in Q4 2025. Non-GAAP EPS excludes amortization, so it is not helped by that decline. Non-GAAP EPS fell to $1.58 from $1.80 because the diabetes royalty income from AstraZeneca ended December 31, 2025, and the $410 million IPRD impairment is excluded from non-GAAP results only partially, since it is treated as a specified item in the reconciliation.
Why did operating cash flow fall so sharply this quarter?
Operating cash flow decreased $850 million to $1.1 billion. Management attributed this to lower net customer receipts, primarily from the Eliquis list price reduction in the U.S., and higher litigation-related disbursements. Rebates and discounts were a $3.5 billion outflow in the quarter, compared with $627 million a year earlier, partly offset by a $1.7 billion receivables decline and lower operating expenses from the strategic productivity initiative.
How is the company's debt and liquidity position?
Net debt stood at $33.6 billion at March 31, 2026, down from $34.0 billion at year-end. Gross debt was $44.1 billion, including $2.3 billion of short-term obligations, and $500 million of floating rate notes were repaid during the quarter. Cash and marketable securities totaled $10.9 billion. The $5.0 billion revolving credit facility was undrawn and was extended to January 2031. Management believes existing resources are sufficient for at least the next few years.
What are the main risks to Eliquis and other legacy products?
Eliquis faces the loss of European composition-of-matter protection in November 2026, ongoing European generic litigation, and a new U.S. Paragraph IV challenge from Azurity. Its Medicare maximum fair price took effect January 1, 2026, and it is being provided free to Medicaid under the U.S. Government Agreement. Revlimid, Pomalyst, Sprycel, and Abraxane are already seeing steep generic erosion, and Orencia faces biosimilar agreements in the U.S. from 2026 onward, with a subcutaneous version possible as early as February 2028.
What are the key upcoming catalysts disclosed in the filing?
Key catalysts include the FDA PDUFA date of August 17, 2026 for iberdomide in RRMM, the final approval hearing for the Celgene securities class action in May 2026, and the Third Circuit's pending decisions on related pricing litigation, including the IRA petition at the Supreme Court and the 340B appeal at the D.C. Circuit. Pipeline data from SUCCESSOR-2 (mezigdomide), SCOUT-HCM (Camzyos in adolescents), and iza-bren's Phase III TNBC study may also inform future filings.
06—Continue