01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Bristol-Myers Squibb reported a strong second quarter of 2026, with total revenues of $12.97 billiona, up 6% year over year, and GAAP diluted EPS of $1.62 versus $0.64 a year ago.
The comparison is distorted by the prior-year $1.5 billionb BioNTech upfront Acquired IPRD charge and $336 million of Mirati CVR fair value losses, so the more meaningful comparison is non-GAAP diluted EPS of $2.04, up 40% from $1.46. Growth was driven by the Growth Portfolio (up 15% in Q2, to $7.56 billion), led by Camzyos (+60%), Breyanzi (+41%), Reblozyl (+29%), and Cobenfy (+81%), along with Eliquis (+22%, aided by a U.S. list price cut that raised net realized prices). Legacy erosion remained steep, with Revlimid (-49%) and Pomalyst (-71%) down sharply on generic competition.
Gross-to-net adjustments fell to 30% of gross sales in Q2 from 46% a year earlier, lifting net product sales 6%, though this partly reflects lower Medicaid and Medicare rebate accruals and a Eliquis list price reduction. Profitability improved on lower intangible amortization, which fell $786 millionc year to date after Pomalyst's acquired right was fully amortized in Q4 2025. R&D rose 15% in Q2 to $2.96 billion, including $643 million of specified-item IPRD impairments and a $220 million priority review voucher purchase.
Cash generation was weaker: operating cash flow fell to $4.5 billiond year to date from $5.9 billion, as lower net customer receipts (partly reflecting the Eliquis price cut) and a $3.1 billion rebates and discounts outflow weighed. Net debt improved modestly to $31.7 billion from $34.0 billion, helped by $1.7 billion of debt repayment, though cash and marketable securities declined to $11.5 billion from $11.1 billion, and dividends of $2.6 billion were paid for the half.
The filing also highlights pipeline catalysts, including iberdomide's PDUFA date of August 17, 2026, Camzyos adolescent sNDA (PDUFA September 30, 2026), and mezigdomide (PDUFA May 13, 2027). Key risks include the IRA Medicare maximum fair price for Eliquis (effective 2026) and Pomalyst (2027), the Orencia selection for 2028 negotiation, EU apixaban composition-of-matter patent expiry in November 2026, the new Hengrui in-license deal, and a new Arkansas 340B lawsuit.
02—Key points
Key Highlights
- Q2 2026 total revenues rose 6% to $12.97B; year-to-date revenues rose 4% to $24.46B, led by U.S. Growth Portfolio demand and Eliquis.
- GAAP diluted EPS was $1.62 in Q2 (vs. $0.64) and non-GAAP diluted EPS was $2.04 (vs. $1.46), up 40%; the GAAP comparison is inflated by the 2025 BioNTech $1.5B IPRD charge.
- Growth Portfolio revenue rose 15% to $7.56B, with Camzyos (+60%), Breyanzi (+41%), Reblozyl (+29%), and Cobenfy (+81%) as standouts; Opdivo declined 3%.
- Legacy Portfolio declined 4% to $5.42B as generics eroded Revlimid (-49%) and Pomalyst (-71%); Eliquis rose 22% to $4.48B.
- Operating cash flow fell to $4.5B year to date (from $5.9B), driven by a $3.1B rebates and discounts outflow and lower net customer receipts from the Eliquis price cut.
- Net debt declined to $31.7B from $34.0B; $1.7B of debt was repaid in the first half, and $2.6B of dividends were paid.
- Upcoming catalysts include the iberdomide PDUFA date (Aug 17, 2026), Camzyos adolescent PDUFA (Sep 30, 2026), and mezigdomide PDUFA (May 13, 2027); the new Hengrui deal adds 13 early-stage assets with a $600M upfront payment.
03—Questions
Frequently Asked Questions
Why did GAAP EPS rise so sharply year over year?
GAAP diluted EPS rose to $1.62 from $0.64 mainly because Q2 2025 included a one-time $1.5 billion BioNTech upfront Acquired IPRD charge and a $336 million Mirati CVR fair value charge. Lower amortization of acquired intangibles (down $393 million in Q2) and higher revenues also contributed, partly offset by the loss of diabetes royalty income after December 31, 2025. Non-GAAP EPS, which excludes these items, rose a more modest 40% to $2.04.
How is the Eliquis business performing given U.S. pricing and European generic risk?
Eliquis revenue grew 22% in Q2 to $4.48B, driven by higher demand and higher realized U.S. net prices after BMS cut the list price, which lowered rebates. The company also flagged that the U.S. Medicare maximum fair price took effect January 1, 2026, and that the EU composition-of-matter patent and SPCs expire in November 2026, with generics already on the market in the UK and Poland.
Is the company's cash generation and balance sheet under pressure?
Operating cash flow fell 23% to $4.5B year to date, largely due to a $3.1B outflow in rebates and discounts and lower net customer receipts from the Eliquis price reduction. Still, net debt fell to $31.7B from $34.0B, and the company has no revolver borrowings, a $5.0B commercial paper capacity, and $11.5B of cash and marketable securities. Dividends of $2.6B for the half were covered by operating cash flow, though with less headroom than in 2025.
What are the key pipeline and regulatory events investors should watch?
Near-term catalysts include the iberdomide NDA decision (PDUFA August 17, 2026), the Camzyos adolescent oHCM sNDA (Priority Review, PDUFA September 30, 2026), and Reblozyl in MF-associated anemia (PDUFA March 11, 2027). Mezigdomide has a PDUFA of May 13, 2027. Iza-bren and pumitamig readouts were positive in interim analyses, and the company is paying $600M upfront to Hengrui for 13 early-stage assets, with up to $14.3B in milestones.
What legal and policy risks could affect future results?
The IRA continues to pressure pricing: Orencia was selected for government price negotiation effective 2028, and Pomalyst faces a Medicare maximum fair price in 2027. Litigation risks include generic challenges to Camzyos in the U.S. (seven ANDA filers), the Texas Plavix suit, the CVR trustee case, and a new Arkansas 340B lawsuit filed in July 2026. Management says none of these are expected to be materially adverse to financial position or liquidity, though results could be affected in any single period.
04—Continue