Key Highlights

● The drugmaker nudged higher on Thursday as health care led the S&P 500.

● Third-quarter Revenue reached $13.1 billion, with the Growth Portfolio at $7.7 billion.

● 2026 revenue guidance was raised to $49.75 billion to $50.25 billion.

● The company is preparing for a step-down in Eliquis revenue in 2027.

Bristol Myers Squibb (NYSE:BMY) nudged higher on Thursday, joining a broad health-care rally after its newer medicines delivered $7.7 billion in quarterly sales and the company lifted its 2026 revenue forecast.

A modest move, a meaningful report

Shares of Bristol Myers Squibb traded at $61.10 late in Thursday's session, around 3:45 p.m. Eastern time, a small gain on the day, according to market data. The move was gentler than the surges in some fellow drugmakers, but it came on the back of a report that showed the company's transition strategy gathering pace.

Third-quarter revenue reached $13.1 billion, up from a year earlier, according to market data. The standout figure was the Growth Portfolio, the group of newer drugs Bristol Myers is counting on to replace revenue from ageing blockbusters. Those products generated $7.7 billion in the quarter, growing faster than the company as a whole.

Guidance up, Earnings dented by a charge

Bristol Myers raised its 2026 revenue guidance to a range of $49.75 billion to $50.25 billion. One headline put 2026 non-GAAP Earnings Per Share guidance at $6.35 to $6.55.

Adjusted earnings per share for the quarter came in at $1.35, down from a year earlier. One report attributed the decline to acquired in-process Research and Development charges amounting to $0.58 a share. Such charges arise when a company buys or licenses experimental medicines and must expense the cost up front, which can make reported profits lumpy even when the underlying Business is healthy.

Bracing for the Eliquis step-down

The biggest strategic question hanging over Bristol Myers is the eventual loss of exclusivity on some of its older drugs. According to that headline, the company is preparing for a $1.5 billion to $2 billion step-down in Eliquis revenue in 2027. Eliquis, a blood thinner co-marketed with Pfizer (NYSE:PFE), has been one of the world's best-selling medicines.

That looming revenue gap is why investors pay such close attention to the Growth Portfolio. Every dollar those newer products add helps cushion the eventual decline in legacy sales.

Health care at the top of the leaderboard

Bristol Myers was part of a powerful sector rally. Health care was the best-performing group in the S&P 500 on Thursday, led by Eli Lilly (NYSE:LLY), which rallied to an all-time high after raising its 2026 revenue guidance, and Merck (NYSE:MRK), which beat estimates and lifted its profit outlook. Pharmaceutical Exchange-traded funds climbed alongside them.

The rotation into health care helped offset a steep selloff in technology. Alphabet (NASDAQ:GOOGL) had its worst day since its 2004 IPO, erasing about $500 billion in market value, and communication services was the worst sector by a wide margin. The S&P 500 slipped 23.59 points to 7,720.39 and the Nasdaq Composite slid 365.13 points to 26,184.72, while the Dow eased 132.54 points to 52,342.56.

One report said investors rotated into health care, financials and real estate, limiting the broader indexes' losses. One analyst said that "markets are no longer rewarding companies simply for investing heavily in AI," a shift that has redirected attention toward sectors with steadier earnings.

What to watch

The key metric for Bristol Myers will remain the trajectory of its Growth Portfolio, which needs to keep expanding to offset the anticipated Eliquis decline in 2027. Investors will also watch for further acquired research charges, which have weighed on reported earnings this year, and for updates on the company's late-stage pipeline.

Sector peers will offer further read-throughs: AbbVie (NYSE:ABBV) reports on Friday, and Gilead (NASDAQ:GILD) posted results after Thursday's close. Broader market direction will hinge on the Fed's December 8–9 meeting and whether the rotation into health care continues.