$BMY · BRISTOL MYERS SQUIBB CO
Bristol-Myers Squibb filed its Q3 2026 10-Q, reporting total revenues of $13.069B (+6.9% YoY) and diluted EPS of $1.05, down from $1.08 in Q3 2025. The quarter included a $1.558B acquired IPRD charge, more than double the $633M in the prior-year period. Nine-month net earnings attributable to BMS reached $8.156B ($3.98 diluted EPS), up sharply from $5.967B ($2.93) in the same period last year.
- Q3 total revenues rose 6.9% YoY to $13.069B, driven by 9% U.S. growth in the Growth Portfolio and Eliquis.
- Q3 diluted EPS of $1.05 declined from $1.08 a year ago, pressured by a $1.558B acquired IPRD charge (vs. $633M in Q3 2025).
- Nine-month net earnings attributable to BMS surged to $8.156B from $5.967B, with diluted EPS of $3.98 vs. $2.93.
- Cost of products sold jumped to $4.146B in Q3 from $3.435B, reflecting higher product mix costs and lower rebate offsets.
- Operating cash flow for the nine months fell to $8.678B from $12.182B, largely due to a $3.869B rebate and discount headwind.
BMY shares are down 0.52% on the day at $60.26, essentially flat from the filing-time price of $60.27. The modest decline suggests the market had largely priced in the mixed quarter — strong top-line growth offset by margin compression from elevated acquired IPRD charges.
BMS's top-line growth story remains intact but margin pressure from aggressive external pipeline spending and the end of a lucrative royalty stream creates a more complex earnings picture heading into 2027.
BMS's 6.9% revenue growth outpaces many large-cap pharma peers facing patent cliffs, with Eliquis and the Growth Portfolio driving U.S. expansion. The sharp decline in operating cash flow ($8.68B vs. $12.18B) reflects industry-wide rebate dynamics under the Inflation Reduction Act.
Generic erosion in the Legacy Portfolio continues to pressure revenues, partially offsetting Growth Portfolio gains. The $1.558B acquired IPRD charge in Q3 — more than double the prior-year quarter — signals ongoing reliance on external pipeline acquisitions that carry lumpy expense recognition. Diabetes royalty income from AstraZeneca terminated as of December 31, 2025, removing a prior tailwind.