NYSE:BMY
BRISTOL MYERS SQUIBB CO
A major global biopharmaceutical leader specializing in oncology and immunology therapies with a robust pipeline and strong cash flow generation.
Key Metrics
Investment Thesis
Bull Case
Investors may buy BMY for its diversified product portfolio spanning oncology and cardiovascular markets, providing stable cash flows to fund R&D and potential share repurchases once patent cliffs mitigate. The company's strong balance sheet with over $10 billion in cash offers significant defensive characteristics against market downturns.
Bear Case
Bearish investors should consider the recurring threat of generic competition eroding margins on blockbuster drugs and the recent financial instability shown by a loss in 2024. High debt levels relative to equity and substantial accumulated other comprehensive income losses suggest underlying valuation pressures.
About BRISTOL MYERS SQUIBB CO
Bristol Myers Squibb is a global biopharmaceutical company focused on oncology, immunology, cardiovascular disease, fibrosis, and rare diseases. The company generates revenue through innovative therapies and commercialization of its extensive pipeline across developed markets. Key products include Opdivo for cancer treatment and Eliquis for blood clot prevention.
Analysis
Management Discussion
Despite a challenging 2024 where net income turned negative at -$8.93 billion, likely due to restructuring charges or impairment costs not fully reflected in standard operating lines, the company recovered strongly in 2025 with $7.05B profit. Operational cash flow remains robust at $14.16B, indicating healthy underlying business performance despite accounting adjustments.
Industry Overview
The pharmaceutical industry is characterized by high R&D costs, long development cycles, and intense competition for regulatory approval. Companies must continuously innovate to maintain market share as patent expirations introduce generic alternatives that drastically reduce pricing power.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $46.16B | $45.01B | $48.30B | $48.19B |
| Cost of Revenue | $10.14B | $10.69B | $13.97B | $13.94B |
| Gross Profit | $36.02B | $34.31B | $34.33B | $34.26B |
| Operating Expenses | $28.31B | $25.87B | $42.71B | $24.93B |
| Operating Income | $7.71B | $8.44B | $-8.38B | $9.33B |
| R&D | $9.51B | $9.30B | $11.16B | $9.95B |
| G&A | $7.81B | $7.77B | $8.41B | $7.27B |
| Stock-Based Comp | $457.0M | $518.0M | $507.0M | $553.0M |
| D&A | $10.28B | $9.76B | $9.60B | $4.01B |
| Depreciation | $587.0M | $611.0M | $651.0M | $621.0M |
| Amortization | $9.70B | $9.20B | $9.00B | $3.50B |
| Other OpEx | $10.99B | $8.80B | $23.14B | $7.71B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $1.23B | $1.17B | — | — |
| Interest Income | $171.0M | $449.0M | $478.0M | $586.0M |
| Pre-Tax Income | $7.71B | $8.44B | $-8.38B | $9.33B |
| Income Tax | $1.37B | $400.0M | $554.0M | $2.27B |
| Continuing Ops | $6.34B | $8.04B | $-8.93B | $7.06B |
| Discontinued Ops | $0 | $0 | $0 | $-1.0M |
| Net Income | $6.34B | $8.04B | $-8.93B | $7.05B |
| Minority Interest | $18.0M | $0 | $0 | $0 |
| Net to Common | $6.33B | $8.04B | $-8.93B | $7.05B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $27.27B | $31.77B | $29.78B | $29.39B |
| Cash & Equivalents | $9.12B | $11.46B | $10.35B | $10.21B |
| Marketable Securities | $130.0M | — | — | — |
| Accounts Receivable | $8.15B | $8.88B | $9.01B | $9.59B |
| Inventory | $2.34B | $2.66B | $2.56B | $2.69B |
| Other Current Assets | $7.53B | $8.76B | $7.87B | $6.90B |
| Long-Term Assets | $69.55B | $63.39B | $62.82B | $60.65B |
| PP&E (Net) | $6.25B | $6.65B | $7.14B | $7.54B |
| Intangibles | $35.86B | $27.07B | $23.31B | $19.10B |
| Goodwill | $21.15B | $21.17B | $21.72B | $21.75B |
| Operating Leases | $1.22B | $1.39B | $1.22B | $1.58B |
| Other LT Assets | $4.52B | $6.57B | $8.84B | $9.93B |
| Total Assets | $96.82B | $95.16B | $92.60B | $90.04B |
| Current Liabilities | $21.89B | $22.26B | $23.77B | $23.42B |
| Accounts Payable | $3.04B | $3.26B | $3.60B | $3.58B |
| Current Debt | $3.90B | $2.87B | $1.83B | $1.98B |
| Current Leases | $136.0M | $162.0M | $181.0M | $202.0M |
| Taxes Payable | $942.0M | $1.37B | $1.51B | $979.0M |
| Other Current Liab | $12.68B | $13.38B | $15.39B | $15.40B |
| Long-Term Liabilities | $43.81B | $43.41B | $52.44B | $48.12B |
| Long-Term Debt | $35.06B | $36.65B | $47.60B | $42.85B |
| LT Operating Leases | $1.26B | $1.53B | $1.37B | $1.83B |
| Other LT Liab | $3.50B | $1.94B | $1.98B | $2.03B |
| Total Liabilities | $65.70B | $65.67B | $76.22B | $71.53B |
| Shareholders' Equity | $31.12B | $29.48B | $16.39B | $18.51B |
| Paid-In Capital | $45.16B | $45.68B | $46.02B | $46.39B |
| Retained Earnings | $25.50B | $28.77B | $14.91B | $16.90B |
| AOCI | $-1.28B | $-1.55B | $-1.24B | $-1.52B |
| Total L&E | $96.82B | $95.16B | $92.60B | $90.04B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $6.34B | $8.04B | $-8.93B | $7.05B |
| Non-Cash Adjustments | $6.27B | $2.91B | $24.12B | $7.54B |
| Working Capital Changes | $455.0M | $2.91B | $6.0M | $-439.0M |
| Cash from Operations | $13.07B | $13.86B | $15.19B | $14.16B |
| Capital Expenditures | $1.12B | $1.21B | $1.25B | $1.31B |
| Cash from Investing | $-1.06B | $-2.29B | $-21.35B | $-4.13B |
| Debt Issuances | $5.93B | $4.46B | $12.88B | $5.74B |
| Debt Repayments | $11.43B | $3.88B | $2.87B | $10.94B |
| Share Buybacks | $8.00B | $5.16B | $0 | $0 |
| Dividends Paid | $4.63B | $4.74B | $4.86B | $5.04B |
| Cash from Financing | $-16.96B | $-9.42B | $5.13B | $-10.35B |
| FX Effect | $-33.0M | $45.0M | $-137.0M | $195.0M |
| Net Change in Cash | $-4.99B | $2.19B | $-1.17B | $-129.0M |
| Beginning Cash | $14.32B | $9.32B | $11.52B | $10.35B |
| Ending Cash | $9.32B | $11.52B | $10.35B | $10.22B |
Frequently Asked Questions
How does BRISTOL MYERS SQUIBB CO make money?
The company operates primarily through innovative medicine segments focusing on oncology, immunology, cardiovascular, fibrosis, and rare diseases, complemented by its commercialization business which manages external product partnerships.
What are the main risks for BMY?
Intense patent cliffs on key products like Eliquis and Opdivo leading to potential revenue erosion, high regulatory risks associated with drug approvals and pricing negotiations, and the volatility inherent in biotech R&D outcomes including the recent net loss in 2024 affecting investor sentiment.
What is BMY's competitive advantage?
Strong proprietary drug portfolio in high-growth oncology markets, a deep R&D pipeline with significant research and development investments of nearly $10 billion annually, and substantial cash reserves providing financial flexibility for acquisitions or buybacks.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.