tapebrief

BMY · Q2 2025 Earnings

Cautious

Bristol Myers Squibb

Reported July 31, 2025

30-second summary

Revenue of $12.27B was roughly flat YoY (+1%) as an 18% surge in the Growth Portfolio nearly offset a 14% decline in Legacy. Management raised FY25 revenue guidance by ~$700M at the midpoint to $46.5–47.5B and tightened non-GAAP EPS to $6.35–6.65, citing a more moderate Legacy decline (now -15% to -17% vs. prior worse expectation) and growth-brand momentum. The headline is the $11B+ BioNTech BNT327 deal — a tacit acknowledgement that the internal late-stage pipeline alone won't carry the post-Eliquis/Opdivo era.

Headline numbers

EPS

Q2 FY2025

$1.46

Revenue

Q2 FY2025

$12.27B

+1.0% YoY

Gross margin

Q2 FY2025

72.6%

Operating margin

Q2 FY2025

40.4%

Key financials

Q2 FY2025
MetricQ2 FY2025YoY
Revenue$12.27B+1.0%
EPS$1.46
Gross margin72.6%
Operating margin40.4%

Guidance

Prior quarter data unavailable — comparison not possible.

Segment KPIs

Q2 FY2025
SegmentQ2 FY2025YoY
Growth Portfolio$6.596B+18.0%
Legacy Portfolio$5.673B-14.0%
Opdivo Revenue$2,560M
Breyanzi Revenue$344M
Camzyos Revenue$260M
Eliquis Revenue$3,680M
Revlimid Revenue$838M

Other KPIs

Q2 FY2025
SegmentQ2 FY2025YoY
U.S.$8.519B-3.0%
International$3.75B+10.0%
Growth Portfolio Revenue Growth+18%
Non-GAAP Operating Margin40.4%
Non-GAAP Gross Margin72.6%

Management tone

Management's posture this quarter is more assertive about strategic repositioning and notably less defensive about pipeline setbacks than what BMS has historically sounded like — but the assertiveness leans heavily on external BD rather than internal pipeline conviction.

Pipeline framing shifted from defending recent failures to forward visibility. Management opened with explicit acknowledgement: "Recognizing we've had a few studies read out this year where results were not as expected, we are reviewing all of our near-term studies to best ensure the timely delivery of these programs with the highest probability of success." This is unusual candor. The pivot then leans on seven registration assets and seven lifecycle opportunities in the next 12–24 months — a quantified forward roadmap intended to redirect attention from misses.

IO strategy reframed from Opdivo-centric to bispecific-led. The BioNTech BNT327 deal recasts how BMS talks about its oncology franchise duration. Management called the asset "potentially transformative" and said it "has the potential to become another needle-moving IO therapy and accelerate our overall growth trajectory." The tonal signal: BMS is no longer betting durability on Opdivo subQ life-cycle alone.

Legacy portfolio language softened. The shift from prior unspecified high single-to-mid-teens decline framing to an explicit "approximately 15% to 17%" range — labeled "more moderate than previously anticipated" — is the proximate driver of the guidance raise. Revlimid resilience is doing most of that work.

Cost structure framed as enabler, not retrenchment. The $2B strategic productivity initiative (atop the prior completed $1.5B) is now presented as financial flexibility for BD rather than margin defense, with management noting $1B will flow to bottom line by 2027.

Recurring themes management leaned on this quarter:

Growth portfolio acceleration and strength (17% YoY growth)Pipeline de-risking with near-term data catalysts (7 registration assets, 7 lifecycle management opportunities)Strategic business development to extend IO leadership (BioNTech partnership, radiopharmaceutical focus)Legacy portfolio stabilization better than expected (15-17% decline vs. prior guidance)Cost structure optimization enabling margin sustainability at 37% operating margin targetNew product launches gaining traction (CoBinfi, CuVantic showing strong momentum)

Risks management surfaced:

Recent pipeline study failures requiring review of near-term studiesForeign exchange headwinds (offset by $200M favorable impact in Q2)Legacy portfolio continued decline despite moderationReimbursement dependency for newer products (CuVantic requires J-code conversion for full uptake)Manufacturing execution risks (mitigated by improved manufacturing success rate noted for Breonzi)

Q&A highlights

Jeff Meacham · Citibank

Asked about phase three results and potential faster paths to line extensions or label expansions, particularly regarding ablosal in myelofibrosis

Management stated failed studies have limited long-term impact on company growth. For ablosal, they highlighted clinically meaningful impacts on transfusion independence and other endpoints, and plan to interact with health agencies to optimize the drug's chance of success

Clinically meaningful impact on transfusion independence endpoint for ablosalPlanning regulatory interactions for ablosal in anemia-associated myelofibrosisLimited forward read from failed studies to future opportunities

Chris Schott · JP Morgan

Two-part question on CoBENFI launch dynamics including primary hurdles to physician adoption and expectations for Alzheimer's psychosis results needed to support filing

Management reported CoBENFI tracking over 2,000 TRXs weekly with positive physician feedback. Acknowledged decades of entrenched prescribing behavior. For Alzheimer's, stated two of three ADAPT trials must be positive for filing; targeting end-of-year data for ADAPT2; ADAPT1 and ADAPT4 readout in 2026

Over 2,000 TRXs per week for CoBENFI45,000+ cumulative TRXs since launchPrimary challenge: switching patients from D2s to CoBENFI20-25% of new patient initiation in hospital setting

Evan Sigerman · BMO

Asked about rationale for BioNTech partnership, specifically what attracted Bristol to the PD-L1 VEGF bispecific and differentiation versus competitors

Management emphasized positioning to be first or second in class as critical (learned from Opdivo). Highlighted PD-L1 VEGF bispecific delivers drug to tumor via PD-L1 expression, differentiating from PD-1 VEGF inhibitors. Leveraging Bristol's 50+ country footprint for clinical trials. Initial indications: small cell lung cancer, non-small cell lung cancer, triple negative breast cancer

Asset positioned to be first or second in classTwo validated targets: PD-L1 and VEGFClinical trial initiation in SCLC, NSCLC, TNBCLarge clinical development program (CDP) being built

David Rissinger · Leerink Partners

Asked why investors underappreciate milvexian's potential given street consensus models only $2.3B in 2032 sales; sought better understanding of likelihood of success in secondary stroke, ACS, and AF

Management argued street is underappreciating differential dosing strategy (100mg BID for AF, 25mg BID for ACS/stroke) based on Phase II data and competitor experience. Emphasized multi-blockbuster potential across three indications; cited high unmet need (40% untreated AF patients, one in three ACS patients have second event within year, 25% of stroke survivors have additional strokes)

Differentiated dosing: 100mg BID for AF; 25mg BID for ACS/stroke20,000 patients enrolled in AF trial40% of AF patients remain untreated/undertreated due to bleeding concerns1 in 3 ACS patients experience second cardiac event within one year

Asad Haider · Goldman Sachs

Multi-part: how cost optimization program balances against $40B CapEx, BioNTech deal R&D spend, and debt paydown; how ADAPT2 readout informs read-across to ADAPT1 and ADAPT4 in 2026

Management outlined $1.5B reallocation from prior year and new $2B productivity initiative (half delivered in 2024, full impact by 2027). Emphasized flexibility from productivity gains enables business development and up-investment. Explained ADAPT study design: ADAPT1 is relapse prevention (36 weeks with 12-week open label); ADAPT4 focuses on biomarker-positive enrollment. Two of three trials required for regulatory engagement

$1.5B productivity initiative completed and reallocated$2B strategic productivity initiative announced; $1B delivered 2024, full $2B by 2027$1B savings to flow to bottom line by 2027ADAPT1: 36-week relapse prevention study with 12-week open-label run-in

What to watch into next quarter

Cobenfy weekly TRx trajectory — currently ~2,000/week. Sustained acceleration above 2,500/week would suggest the D2-switching barrier is breaking; flatlining would call peak sales assumptions into question well before the Alzheimer's data.

ADAPT2 top-line data (end of 2025) — binary readout. A clear positive is essential to derisk ADAPT1/ADAPT4 in 2026 and the entire Alzheimer's psychosis expansion thesis.

Milvexian Phase 3 readouts — ACS and secondary stroke prevention expected in 2026; AF (20,000-patient trial) in 2027. Even one strong readout would force consensus models above the cited $2.3B 2032 number; broad disappointment would gut a multi-blockbuster narrative.

Eliquis Q3 trajectory and IRA-related 2026 setup — Eliquis at $3.68B is the single largest line and the foundation of Legacy. Watch for any incremental commentary on Part D negotiation impact and competitive dynamics.

Legacy Portfolio decline rate — guidance now anchors -15% to -17%. If Q3 prints inside or better than that, the FY raise sticks; a step-down past -17% would force a guide cut and undermine the moderation narrative.

Productivity initiative pacing — $1B already delivered against the $2B target by 2027. Watch for specific 2026 phasing on the next call.

Sources

  1. BMY Q2 2025 Press Release / 10-Q exhibit, filed July 31, 2025 — https://www.sec.gov/Archives/edgar/data/14272/000001427225000129/a2025q2ex991-filing.htm
  2. BMY Q2 2025 earnings call commentary (management prepared remarks and Q&A)

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