Bristol Myers (BMY) Q2 EPS Jumps 36%

Core Insights - Bristol Myers Squibb (BMY) reported strong Q2 2025 results, with GAAP revenue of $12.269 billion exceeding analyst estimates of $11.385 billion and non-GAAP EPS of $1.46 surpassing the expected $1.07 per share [1][2] - Despite the revenue beat, year-over-year performance was impacted by declines in legacy drugs, margin compression, and significant R&D expenses, leading to a revision in non-GAAP EPS guidance [1][11] Financial Performance - Q2 2025 non-GAAP EPS was $1.46, down 29.5% from $2.07 in Q2 2024 [2] - GAAP EPS was $0.64, a decrease of 22.9% from $0.83 in Q2 2024 [2] - Revenue for Q2 2025 was $12.3 billion, a slight increase of 0.8% from $12.2 billion in Q2 2024 [2] - Non-GAAP gross margin narrowed to 72.6% from 75.6% year-over-year, while operating margin decreased to 40.4% from 41.1% [2][7] Product Performance - The Growth Portfolio generated $6.6 billion in sales for Q2 2025, an 18% increase, driven by immuno-oncology products and new therapies [5] - Breyanzi revenue surged 125%, Camzyos increased by 86%, and Reblozyl rose by 33% in Q2 2025 [5][6] - The Legacy Portfolio saw a 14% decline, with Revlimid down 38%, Pomalyst/Imnovid down 26%, and Sprycel down 72% year-over-year [6] Strategic Focus - The company is focused on building its "Growth Portfolio" through new product launches and global expansion while managing declines from older drugs [4] - A significant $1.5 billion R&D charge related to a partnership with BioNTech impacted EPS guidance [9][11] - The company raised its fiscal 2025 non-GAAP revenue outlook to $46.5 billion to $47.5 billion but lowered non-GAAP EPS guidance to $6.35–$6.65 due to the BioNTech charge [11] Pipeline and Development - Progress was made in the drug pipeline, with new indications for Sotyktu and label updates for Breyanzi [10] - Opdivo received European approval for a new subcutaneous form, and the company launched initiatives to improve access to Eliquis [10] - The company is actively pursuing strategic partnerships and business development opportunities to enhance its pipeline [10]