Highlights

  • Bristol-Myers Squibb shows 82.74% one-year basic EPS growth, P/E 13.53, PEG -16.94.
  • Second quarter net earnings attributable to BMS were $3,317 million, against $1,310 million.
  • Second quarter GAAP diluted EPS was $1.62, against $0.64; non-GAAP was $2.04.
  • Management raised 2026 revenue guidance to $49 billion to $50 billion.

Bristol-Myers Squibb (NYSE:BMY) reported second quarter 2026 net earnings attributable to BMS of $3,317 million, and the undervalued growth stock figures read 82.74% one-year growth in basic earnings per share, a trailing twelve-month P/E of 13.53 and an expected-basis PEG of -16.94, with shares trading at USD 60.72 on October 28, 2026, down 1.35%. Alongside those figures, the biopharmaceutical company entered global collaboration and license agreements with Hengrui in May, saw the FDA accept a mezigdomide application in July, and raised its full-year 2026 revenue and non-GAAP earnings per share guidance with its second quarter results.

Based in Princeton, New Jersey, and incorporated in Delaware, Bristol-Myers Squibb discovers, develops and delivers medicines for serious diseases in oncology, hematology, immunology, cardiovascular, neuroscience and other areas, and it describes its strategy as combining the scale of a large pharmaceutical company with the speed and focus on innovation typically found in biotech. Its product revenues are organized into a Growth Portfolio, including Opdivo, Reblozyl, Camzyos and Breyanzi, and a Legacy Portfolio, which includes Eliquis, Revlimid and Pomalyst.

Growth: Second Quarter Earnings, Revenues and Products

Net earnings attributable to BMS were $3,317 million in the second quarter against $1,310 million, and $5,994 million for the first six months against $3,766 million. Basic and diluted earnings per share were both $1.62 against $0.64. The company said the GAAP increase was primarily due to a one-time Acquired IPRD charge in 2025 ($1,508 million in the prior-year quarter), lower amortization of acquired intangible assets and higher revenues, partially offset by the expiry of royalty income on diabetes products. Non-GAAP diluted EPS was $2.04 against $1.46.

Total revenues were $12,973 million against $12,269 million, up 6%. Eliquis revenues rose 22%, Camzyos 60%, Sotyktu 23% and Opdualag 23%. Opdivo Qvantig revenues were $261 million against $30 million, while Opdivo revenues were $2,485 million, down 3%.

Valuation: P/E of 13.53, PEG of -16.94 and Cash Flow

The P/E ratio of 13.53 is measured on trailing twelve-month earnings, and the PEG ratio of -16.94 on expected growth. Cash provided by operating activities was $4,497 million for the first six months against $5,871 million, which the company attributed to lower net customer receipts, primarily from a list price reduction for Eliquis, partly offset by lower expenses from its productivity initiative.

On the second quarter earnings call, Chief Financial Officer David Elkins said the company deploys cash flows in a balanced way, with business development a priority and a continued commitment to the dividend.

Capital and Balance Sheet: Dividends, Debt and Hengrui

Cash dividends declared were $0.63 per share, and dividend payments were $2.6 billion in the first six months. Net debt position was $31,656 million at June 30, 2026. The company repaid $1.7 billion of debt. No borrowings were outstanding under its $5.0 billion revolving credit facility. No shares were repurchased under the program in the quarter, and $5.0 billion of repurchase capacity remained.

The Hengrui agreements, which closed in July 2026, cover 13 early stage assets. BMS will pay $600 million upfront in the third quarter of 2026 and a $175 million anniversary payment in 2027. Hengrui is eligible for up to $14.3 billion of contingent milestones.

Disclosed Risks and Outlook for 2026

The company disclosed that pricing pressure continues. Under the Inflation Reduction Act, the maximum fair price for Eliquis applies in Medicare from January 1, 2026, and for Pomalyst from January 1, 2027, and Orencia was selected for 2028. U.S. tariff relief runs until January 2029 and may be terminated. Generic erosion reduced revenues: Revlimid fell 49%, Pomalyst/Imnovid 71% and Sprycel 27%. Composition of matter patents for Eliquis in the EU expire in November 2026, and generics have entered several European markets.

Legal matters include patent suits against seven companies seeking to market generic Camzyos, a Texas Attorney General action over Plavix, contingent value rights litigation, and a July 2026 Arkansas 340B complaint seeking civil penalties and injunctive relief.

The company raised 2026 revenue guidance to $49 billion to $50 billion from $46 billion to $47.5 billion and non-GAAP EPS guidance to $6.75 to $7.00 from $6.05 to $6.35. Management expects Eliquis growth of 20% to 25%, a Legacy Portfolio decline of 4% to 6% and operating expenses of $16.5 billion, up from $16.3 billion. The FDA set action dates of August 17, 2026 for iberdomide, September 30, 2026 for Camzyos in adolescents, and May 13, 2027 for mezigdomide.