Why did non-GAAP EPS decline even though revenue grew?

Non-GAAP EPS fell 9% to $1.63 mainly because of a higher net charge from Acquired IPRD and licensing activity ($(0.20) per share in Q3 versus $(0.09) a year earlier), along with lower gross margin (72.9% versus 76.0%) from product mix and a higher non-GAAP tax rate of 22.3% versus 18.5%. These were partly offset by a 10% decline in SG&A.

What drove the increase in full-year revenue guidance?

Management raised 2025 revenue guidance to ~$47.5–$48.0B, primarily reflecting ~$750M of favorability from Growth Portfolio strength. The company continues to expect Legacy Portfolio sales to decline 15–17% and worldwide Revlimid sales of about $3B for the year.

How significant is the Orbital Therapeutics acquisition?

The Orbital deal adds OTX-201, an in vivo CAR T candidate in IND-enabling studies for autoimmune diseases, plus access to Orbital's RNA delivery platform. It is expected to close in Q4 2025 and is excluded from guidance. Its near-term financial impact is likely limited, since the lead asset is preclinical, but the deal supports BMS's immune reset strategy.

Is the Legacy Portfolio decline a concern for investors?

The Legacy decline is expected and is part of the planned transition. Legacy sales fell 12% to $5.4B, mainly from generic erosion of Revlimid (-59%) and Pomalyst (-25%), and management guided to a 15–17% full-year decline. The main offset is Eliquis, which grew 25% in the quarter, and the Growth Portfolio, which is now larger than Legacy.

BMY 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.

Bristol Myers Squibb reported third-quarter 2025 results on October 30, 2025, with total revenues up 3% (2% ex-FX) to $12.2 billion^a.

The quarter was driven by the Growth Portfolio, which rose 18% (17% ex-FX) to $6.9 billion^b on strength in immuno-oncology (Opdivo, Opdualag, Yervoy), Reblozyl, Breyanzi and Camzyos. The Legacy Portfolio fell 12% to $5.4 billion as generic erosion from Revlimid, Pomalyst and Sprycel more than offset strong Eliquis demand (+25%). U.S. revenue rose 1% to $8.3 billion and international revenue rose 6% (3% ex-FX).

Profitability was mixed. GAAP EPS rose to $1.08^c from $0.60, helped by much lower acquired intangible amortization ($831 million versus $2.4 billion a year earlier), but non-GAAP EPS fell 9% to $1.63 from $1.80. Both figures absorb a $(0.20) per-share net charge from Acquired IPRD and licensing activity, including the Philochem deal and a SystImmune milestone.

Gross margin compressed to 71.9% GAAP and 72.9% non-GAAP, reflecting product mix, while SG&A fell 10% on the strategic productivity initiative. Management raised full-year 2025 revenue guidance to approximately $47.5 to $48.0 billion^d from $46.5 to $47.5 billion, citing Growth Portfolio strength.

Non-GAAP EPS guidance was narrowed to $6.40 to $6.60 from $6.35 to $6.65, and now includes an $(0.80) per-share Acquired IPRD impact, up from $(0.60). The company also announced a definitive agreement to acquire Orbital Therapeutics, which is expected to close in Q4 2025, and reported net debt of $32.1 billion at quarter end, down from $38.5 billion at year end 2024.

02—Key points

Key Highlights

Total revenue of $12.2B rose 3% (2% ex-FX), while Growth Portfolio sales rose 18% to $6.9B and now represent a majority of the business versus Legacy.
Full-year 2025 revenue guidance was raised to ~$47.5–$48.0B, up roughly $750M at the midpoint, mainly on Growth Portfolio strength.
Non-GAAP EPS fell 9% to $1.63 year over year, and full-year non-GAAP EPS guidance was narrowed to $6.40–$6.60 after a higher $(0.80) Acquired IPRD and licensing headwind.
GAAP EPS rose 81% to $1.08, largely because amortization of acquired intangibles dropped 65% to $831M as Revlimid amortization rolled off.
Gross margin contracted to 71.9% GAAP and 72.9% non-GAAP (from 75.1% and 76.0%), driven by product mix; full-year gross margin guidance of ~72% is unchanged.
Eliquis (+25% to $3.7B) and Camzyos (+89% to $296M) were key contributors, while Revlimid fell 59% and Pomalyst fell 25% on generic competition.
Net debt declined to $32.1B from $38.5B at year-end 2024, and management reiterated its target of paying down ~$10B of debt by the end of Q2 2026 (~$6.7B achieved).

03—Questions

Frequently Asked Questions

Why did non-GAAP EPS decline even though revenue grew?
Non-GAAP EPS fell 9% to $1.63 mainly because of a higher net charge from Acquired IPRD and licensing activity ($(0.20) per share in Q3 versus $(0.09) a year earlier), along with lower gross margin (72.9% versus 76.0%) from product mix and a higher non-GAAP tax rate of 22.3% versus 18.5%. These were partly offset by a 10% decline in SG&A.
What drove the increase in full-year revenue guidance?
Management raised 2025 revenue guidance to ~$47.5–$48.0B, primarily reflecting ~$750M of favorability from Growth Portfolio strength. The company continues to expect Legacy Portfolio sales to decline 15–17% and worldwide Revlimid sales of about $3B for the year.
How significant is the Orbital Therapeutics acquisition?
The Orbital deal adds OTX-201, an in vivo CAR T candidate in IND-enabling studies for autoimmune diseases, plus access to Orbital's RNA delivery platform. It is expected to close in Q4 2025 and is excluded from guidance. Its near-term financial impact is likely limited, since the lead asset is preclinical, but the deal supports BMS's immune reset strategy.
Is the Legacy Portfolio decline a concern for investors?
The Legacy decline is expected and is part of the planned transition. Legacy sales fell 12% to $5.4B, mainly from generic erosion of Revlimid (-59%) and Pomalyst (-25%), and management guided to a 15–17% full-year decline. The main offset is Eliquis, which grew 25% in the quarter, and the Growth Portfolio, which is now larger than Legacy.

04—Continue

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