Bristol-Myers Squibb(BMY) - 2025 Q4 - Annual Results

Revenue Performance - Fourth quarter revenues increased 1% to $12.5 billion; Growth Portfolio revenues increased 16% to $7.4 billion[3] - Full-year revenues were $48.2 billion; Growth Portfolio revenues increased 17% to $26.4 billion[3] - Total revenues were $48.2 billion, relatively flat on a reported basis, with U.S. revenues at $33.3 billion and international revenues at $14.9 billion[17] - Total revenues for Q4 2025 were $12,502 million, a slight increase from $12,342 million in Q4 2024, representing a 1% growth[45] - Total revenues for the company reached $48.194 billion, a decrease of 2% compared to the previous year, with a 5% increase in international revenues[51] Earnings and EPS - GAAP EPS for the fourth quarter was $0.53, and non-GAAP EPS was $1.26, reflecting a net impact of $(0.60) due to Acquired IPRD charges and licensing income[3] - Full-year GAAP EPS was $3.46, and non-GAAP EPS was $6.15, with a net impact of $(1.40) from Acquired IPRD charges and licensing income[5] - The earnings per diluted share for Q4 2025 were $0.53, compared to $0.04 in Q4 2024, indicating a substantial improvement[45] - Diluted earnings per share for Q4 2025 were $1.26, compared to $1.67 in Q4 2024[67] Growth Portfolio Highlights - Growth Portfolio revenue growth was primarily driven by immuno-oncology products, including Camzyos, Breyanzi, and Reblozyl[7] - Growth Portfolio revenues reached $26.4 billion, an increase of 17% on a reported basis, driven by the immuno-oncology portfolio, Breyanzi, Reblozyl, and Camzyos[17] - The Growth Portfolio generated total revenues of $7,393 million in Q4 2025, a 16% increase compared to $6,363 million in Q4 2024[47] - The company anticipates continued growth in the Growth Portfolio, with a projected increase of 17% for the upcoming year[54] Legacy Portfolio Performance - Legacy Portfolio revenues decreased 15% to $5.1 billion, impacted by generic competition and higher U.S. government channel rebates[7] - The Legacy Portfolio saw a decline in total revenues to $5,109 million in Q4 2025, down 15% from $5,979 million in Q4 2024[47] - The Legacy Portfolio's total revenues decreased by 15% to $21.785 billion, primarily due to a 49% decline in Revlimid sales[51] Research and Development - Research and development expenses decreased 19% on a GAAP basis, primarily due to strategic productivity initiatives[11] - Research and development expenses for Q4 2025 were $2,586 million, a decrease from $3,191 million in Q4 2024, representing a reduction of 19%[45] - Research and development expenses were $10.0 billion, a decrease of 11% on a GAAP basis, attributed to lower IPRD impairment charges[20] Financial Guidance - 2026 revenue guidance is projected at approximately $46.0 billion to $47.5 billion, with non-GAAP EPS expected in the range of $6.05 to $6.35[3] - Total revenues for 2026 are estimated to be approximately $46.0 billion to $47.5 billion, reflecting a projected decline of 12-16% for the Legacy Portfolio, partially offset by the Growth Portfolio[24] - The company expects a gross margin percentage of approximately 69% to 70% and operating expenses around $16.3 billion for 2026[25] - The effective tax rate is projected to be around 18%, with diluted EPS guidance set between $6.05 and $6.35[25] Dividend Information - Increased quarterly dividend on common stock to $0.63 per share, marking the 17th consecutive annual increase[3] - The Board of Directors declared a quarterly dividend of $0.63 per share, marking a 1.6% increase from last year, with an annual dividend rate for fiscal year 2026 set at $2.52 per share[23] Collaborations and Strategic Initiatives - The company announced a collaboration with Microsoft to accelerate early detection of lung cancer using FDA-cleared radiology AI algorithms[21] - The collaboration aims to expand access to early detection in medically underserved communities across the U.S.[22] - The company is focusing on strategic acquisitions and partnerships to bolster its product pipeline and market presence[54] Financial Position and Cash Flow - Cash and cash equivalents decreased to $10,209 million in 2025 from $10,346 million in 2024, a decline of 1.3%[70] - Current marketable debt securities decreased to $464 million in 2025 from $513 million in 2024, a decline of 9.5%[70] - Non-current marketable debt securities increased to $396 million in 2025 from $320 million in 2024, an increase of 23.8%[70] - Total cash, cash equivalents, and marketable debt securities decreased to $11,069 million in 2025 from $11,179 million in 2024, a decline of 1.0%[70] - Short-term debt obligations increased to $(2,261) million in 2025 from $(2,046) million in 2024, an increase of 10.5%[70] - Long-term debt decreased to $(42,850) million in 2025 from $(47,603) million in 2024, a decrease of 10.0%[70] - The net debt position improved to $(34,043) million in 2025 from $(38,470) million in 2024, an improvement of 11.2%[70] Risks and Forward-Looking Statements - The company acknowledges inherent risks and uncertainties that could affect future financial results, including pricing pressures and regulatory changes[41] - Forward-looking statements are subject to various risks, and the company does not undertake any obligation to update these statements[43]