BMY Bristol-Myers Squibb 10-Q 2026-09-30 section summaries

Bristol Myers Squibb — Q3 and nine months ended September 30, 2026

Consolidated results

Revenue growth reflected higher product sales, while Q3 earnings were pressured by higher expenses. Acquired IPR&D was $1.558B in Q3 and $1.651B for 9M, including collaboration milestone and anniversary payments; acquired-intangible amortization was $458M and $1.332B, respectively. R&D expense was $2.365B in Q3 and $7.973B for 9M. Q3 other expense was $307M, compared with $108M of income a year earlier; 9M other expense was $279M versus $725M of income. Lower 2026 royalty income from divestitures and a Q3 equity-investment loss contributed to the change. Effective tax rates fell to 14.8% from 29.5% in Q3 and 17.3% from 24.0% for 9M, primarily due to earnings mix and the absence of $160M of Q3 2025 tax reserves.

Product sales

BMS reports one operating segment and does not allocate profit by product. Selected product and portfolio sales illustrate the mix behind results:

Growth in Eliquis and newer products including Opdivo Qvantig, Reblozyl, Breyanzi and Camzyos was partly offset by declines in legacy products. Gross product sales fell to $17.965B from $22.494B in Q3, but gross-to-net deductions dropped to $5.358B from $10.644B, mainly due to lower charge-backs/cash discounts and Medicaid/Medicare rebates. Revenue recognized for obligations satisfied in prior periods was $469M in Q3 and $1.0B for 9M, mainly royalties and revised prior-period gross-to-net estimates.

Cash flow and balance sheet

Lower operating cash flow included a $3.869B cash outflow from rebates and discounts, versus a $1.957B inflow in 9M 2025. BMS repaid $1.720B of long-term debt maturities. Ending cash, cash equivalents and restricted cash was $9.574B, versus $15.726B a year earlier.

Total equity less goodwill and other intangible assets implies negative tangible equity of $25.267B. The decline in intangible assets reflects amortization and impairment, partly offset by reclassification of $2.3B of IPR&D to marketed product rights after Zenbexus received U.S. approval. 9M IPR&D impairment charges were $830M, including write-downs of oncology and radiopharmaceutical assets. Debt principal was $42.376B and fair value was $36.0B at September 30. The company repaid $1.7B of maturities; its $5.0B revolving credit facility was undrawn and extended to January 2031.

BMS shares outstanding were approximately 2.036B at December 31, 2025 and 2.044B at September 30, 2026. Diluted weighted-average shares were 2.053B in Q3 2026 versus 2.039B in Q3 2025. Stock-based compensation expense was $419M for 9M, with $1.074B of unrecognized compensation cost.

Business developments and risks

In July, BMS recorded $600M of acquired IPR&D for Hengrui global licensing agreements covering 13 early-stage assets; a noncancellable $175M anniversary payment is due in 2027, with potential milestones of up to $14.3B plus royalties. For pumitamig, BMS paid BioNTech a $500M first-anniversary payment in Q3; $2.0B of anniversary payments are due through 2028, in addition to potential development, regulatory and sales milestones of up to $7.6B. The 2023 restructuring plan is expected to cost about $2.5B through 2027, of which $1.9B had been incurred; the remaining provision was $260M.

Patent challenges pose risks to future product revenue, including litigation involving Camzyos, Eliquis, Opdivo and Revlimid/Pomalyst. The Celgene CVR litigation remains unresolved: the Second Circuit vacated dismissal and remanded the original case in August 2026; consolidated proceedings have a January 2028 trial date. BMS’s challenge to HRSA’s rejection of its 340B rebate model was unsuccessful, and Arkansas brought a separate 340B-related suit in 2026. IRS transfer-pricing and other proposed adjustments for 2008–2012 remain in administrative appeals. BMS estimated its share of future environmental remediation costs at $64M as of September 30, 2026.

Results and earnings

Bristol Myers Squibb’s Q3 2026 revenue grew 7%, with Growth Portfolio demand and pricing and Eliquis growth offsetting generic erosion across much of the Legacy Portfolio. Q3 GAAP earnings were slightly lower; 9M earnings increased, reflecting revenue growth and lower acquired-intangible amortization and acquired IPR&D charges. Adjusted results exclude specified items and are not substitutes for GAAP measures.

Q3 cost of products sold rose 21%, including a one-time $140M contract-termination charge and higher Eliquis alliance profit sharing. Acquired IPR&D included $775M for Hengrui and $500M for BioNTech in Q3; 9M also included $250M of SystImmune milestones. Nine-month R&D rose partly on IPR&D impairment charges and a $220M priority-review-voucher purchase, partly offset by productivity savings. Lower Pomalyst amortization contributed to the amortization decline. The 9M tax rate fell to 17.3% from 24.0%, mainly reflecting jurisdictional earnings mix and $160M of tax reserves added in Q3 2025.

Revenue by product

Growth Portfolio revenue rose 12% in Q3, led by Camzyos (+42%), Breyanzi (+46%) and Reblozyl (+22%); Opdivo declined 6%, partly as U.S. use shifted toward recently launched Opdivo Qvantig. Legacy revenue was nearly flat: Eliquis growth offset generic-driven declines. Eliquis rose 25%, supported by demand and higher U.S. realized prices after its list-price reduction lowered rebates. Revlimid fell 47%, Pomalyst/Imnovid 81%, and Sprycel 38%, mainly from generic competition.

U.S. revenue was $9.074B versus $8.329B; international revenue was $3.592B versus $3.602B. Q3 gross product sales fell to $17.965B from $22.494B while net product sales increased to $12.606B from $11.850B. Gross-to-net adjustments declined to $5.358B from $10.644B, reducing GTN to 30% of gross sales from 47%, principally due to the Eliquis U.S. list-price reduction.

Cash, debt and risks

Operating cash flow declined with lower customer receipts, including generic erosion and the Eliquis price reduction, partly offset by lower gross-to-net payments and interest and other ordinary-course payments. Investing outflows included $2.5B net purchases of marketable securities, a $600M Hengrui upfront payment and a $500M BioNTech anniversary payment. BMS paid $3.9B in dividends and repaid $1.7B of debt maturities.

At September 30, 2026, cash and cash equivalents were $9.574B, current marketable debt securities $3.007B and non-current securities $378M, totaling $12.959B, versus $11.069B at year-end 2025. Short-term debt was $1.028B and long-term debt $41.849B; net debt was $29.918B, down from $34.043B. The $5.0B revolving facility, extended to January 2031, was undrawn and has no financial covenants. BMS said available liquidity and financing access should meet anticipated needs for at least the next few years.

Key risks include generic competition and patent challenges—Eliquis’s EU patents and SPCs expire in November 2026—and Medicare negotiated prices for Eliquis from 2026, Pomalyst from 2027 and Orencia from 2028. The company also cited pricing regulation, tariffs, patent expirations and uncertainty in realizing business-development benefits. U.S. distribution-channel inventory was no more than one month of inventory or expected demand at September 30, 2026.

Pipeline and business developments

BMS reported approvals or expansions for Zenbexus (iberdomide) in multiple myeloma, Camzyos in symptomatic obstructive HCM for adults and pediatric patients weighing at least 30 kg, Sotyktu in psoriatic arthritis, and Opdivo in classical Hodgkin lymphoma. Zenbexus’s full approval depends on confirmation and description of clinical benefit.

Several late-stage results advanced the pipeline: iza-bren showed median PFS of 8.2 versus 4.0 months in HR+/HER2− advanced breast cancer and 11.1 versus 5.7 months in EGFR-mutated NSCLC, with overall-survival data immature; RYZ101 met its primary PFS endpoint in previously treated SSTR+ GEP-NETs; and mezigdomide’s Phase III study showed a 52% reduction in risk of progression or death, with an FDA decision expected by May 13, 2027. Admilparant met its primary endpoint at the 60 mg dose in Phase III IPF testing, and arlo-cel met key response endpoints in heavily pretreated multiple myeloma. BMS licensed 13 early-stage Hengrui assets and announced new manufacturing and radiopharmaceutical facilities. Expanded productivity actions target approximately $2.0B in annual savings by the end of 2027. No material changes in critical accounting policies were reported.

For the nine months ended September 30, 2026, Bristol Myers Squibb reported no material changes in market risk compared with its disclosures in the 2025 Form 10-K.

• As of September 30, 2026, management, including the CEO and CFO, concluded that disclosure controls and procedures were effective.
• No changes to internal control over financial reporting during the quarter ended September 30, 2026 materially affected, or were reasonably likely to materially affect, those controls.
• This section reported no financial results or business developments.

BMY reported no material changes to the risk factors disclosed in its 2025 Form 10-K.

For the three months ended September 30, 2026 (Q3 2026), no Bristol Myers Squibb director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement.