Bristol Myers Squibb Raises 2026 Revenue Outlook, Cuts EPS View on IPR&D Charge

Bristol Myers Squibb reported higher third-quarter revenue as its Growth Portfolio and Eliquis offset pressure on older medicines, prompting the drugmaker to increase its 2026 revenue outlook. However, the company lowered its non-GAAP earnings forecast after incorporating a $0.58-per-share impact from acquired in-process research and development and licensing activity recorded in the quarter.

Third-quarter net revenue rose to $13.1 billion from $12.2 billion a year earlier. Growth Portfolio revenue increased 12% on both a reported and foreign-exchange-adjusted basis to $7.7 billion, while Legacy Portfolio revenue was unchanged at $5.4 billion.

GAAP diluted earnings per share were $1.05, compared with $1.08 in the prior-year quarter. Non-GAAP diluted EPS fell to $1.35 from $1.63. Acquired IPR&D expense rose to $1.6 billion from $600 million and reduced both GAAP and non-GAAP EPS by $0.58, versus a $0.20 impact a year earlier.

Profitability also reflected a less favorable product mix. GAAP gross margin declined to 68.3% from 71.9%, while non-GAAP gross margin fell to 68.4% from 72.9%. Operating expenses, defined as selling, general and administrative costs plus research and development, were $4.1 billion on both a GAAP and non-GAAP basis. That compared with $4.3 billion under GAAP and $4.2 billion on a non-GAAP basis in the third quarter of 2025.

Eliquis and newer medicines drive growth

Eliquis remained the company’s largest product, with global sales rising 25% to $4.69 billion, or 26% excluding currency effects. Bristol Myers attributed the performance to continued U.S. demand and market-share gains. Camzyos revenue increased 42% to $420 million, supported by global demand, deeper penetration in obstructive hypertrophic cardiomyopathy and launch momentum outside the United States.

In oncology, Opdivo sales declined 6% to $2.37 billion. Yervoy revenue rose 7% to $793 million, while Opdualag grew 23% to $367 million on strong demand in first-line melanoma. Opdivo Qvantig generated $334 million, increasing more than 200%, as adoption benefited from the convenience of its subcutaneous administration, according to the presentation. Krazati sales increased 10% to $58 million.

Hematology results were mixed. Reblozyl sales advanced 22% to $750 million on continued global demand in myelodysplastic syndrome-associated anemia, and Breyanzi revenue climbed 46% to $526 million. By contrast, Revlimid sales fell 47% to $303 million after volume restrictions on generic lenalidomide products in the United States ended in January. Pomalyst revenue dropped 81% to $130 million following U.S. generic pomalidomide entry in March.

Sotyktu revenue rose 26% to $100 million. The company is continuing engagement with rheumatologists ahead of pivotal readouts in systemic lupus erythematosus and Sjögren’s disease. Cobenfy generated $57 million, up 33%, as Bristol Myers focused on prescriber education and dose utilization while pursuing additional indications.

Revenue outlook increases, EPS forecast declines

Bristol Myers now expects 2026 revenue of approximately $49.75 billion to $50.25 billion, compared with its July forecast of $49 billion to $50 billion. The company said the revised range reflects year-to-date Growth Portfolio strength, an expected 3% to 5% decline in the Legacy Portfolio and projected worldwide Eliquis growth of 20% to 25%.

The company lowered its full-year non-GAAP diluted EPS forecast to $6.35 to $6.55 from $6.75 to $7.00. The updated range includes $0.60 per share of acquired IPR&D charges and licensing income, compared with $0.02 in the prior guidance, and incorporates the $0.58 third-quarter impact.

Bristol Myers maintained its non-GAAP gross-margin forecast of approximately 69% to 70%, operating-expense projection of about $16.5 billion and tax-rate assumption of roughly 18%. Expected other expense improved to approximately $650 million from $700 million because of favorable net interest. The outlook excludes potential strategic acquisitions, divestitures and acquired IPR&D charges or licensing income incurred after Sept. 30.

Pipeline and capital priorities

The company highlighted recent U.S. regulatory approvals for Zenbexus in second-line or later multiple myeloma and an expanded pediatric obstructive hypertrophic cardiomyopathy indication for Camzyos. It also reported positive pivotal readouts for Zenbexus in relapsed or refractory multiple myeloma, admilparant in idiopathic pulmonary fibrosis, RYZ101 in gastroenteropancreatic neuroendocrine tumors and arlo-cel in heavily treated multiple myeloma.

Near-term milestones include detailed Phase 3 progression-free-survival data for Zenbexus and Phase 2 data for golcadomide in first-line follicular lymphoma. The U.S. Food and Drug Administration has set a May 13, 2027, target date for mezigdomide in multiple myeloma. Other expected readouts include studies of Sotyktu in lupus, delocamten in heart failure with preserved ejection fraction and milvexian in secondary stroke prevention.

Management said its priorities include sustaining momentum across the Growth Portfolio, advancing regulatory filings and launches, improving research and development productivity and maintaining financial discipline. Eight medicines in the Growth Portfolio were annualizing at more than $1 billion in revenue, according to the presentation.

Operating cash flow totaled $4.2 billion in the quarter. Bristol Myers ended September with about $13 billion of cash, cash equivalents and marketable debt securities and approximately $42.9 billion of debt. The company said it remains committed to its dividend, subject to board approval, and had about $5 billion remaining under its share-repurchase authorization.

The outlook remains subject to clinical and regulatory outcomes, competition from generic products, pricing and market-access policies, tariffs and trade restrictions, intellectual-property protection, manufacturing and commercialization risks, and the execution of acquisitions and partnerships. The company also cautioned that delays or unfavorable results in clinical trials could affect expected development timelines and future growth.