On April 24, 2025, Bristol-Myers Squibb Co (BMY, Financial) released its 8-K filing for the first quarter of 2025, showcasing a mixed financial performance. The company reported revenues of $11.2 billion, a 6% decline compared to the previous year, yet exceeding the analyst estimate of $10,698.69 million. The GAAP earnings per share (EPS) was $1.20, aligning with the estimated EPS of $1.20. The non-GAAP EPS was reported at $1.80.
Bristol-Myers Squibb, a leader in drug development, focuses on discovering, developing, and marketing drugs for various therapeutic areas, including cardiovascular, cancer, and immune disorders. The company derives nearly 70% of its sales from the U.S., indicating a significant reliance on the domestic market.
Performance and Challenges
The first quarter results reflect a continued momentum in Bristol-Myers Squibb's Growth Portfolio, which saw a 16% increase in revenues, driven by strong performances from products like Opdivo, Breyanzi, Reblozyl, and Camzyos. However, the Legacy Portfolio faced a 20% decline, primarily due to the impact of generics on key products such as Revlimid and Pomalyst, alongside changes in U.S. Medicare Part D.
Financial Achievements and Industry Importance
Bristol-Myers Squibb's ability to maintain a robust Growth Portfolio amidst challenges in its Legacy Portfolio is crucial for sustaining its leadership in the drug manufacturing industry. The company's strategic focus on immuno-oncology and its pipeline advancements are pivotal for long-term growth and delivering transformational medicines to patients.
Key Financial Metrics
From the income statement, the company's gross margin decreased to 72.9% on a GAAP basis, down from 75.3% the previous year, primarily due to product mix changes. Selling, general, and administrative expenses decreased by 33% on a GAAP basis, reflecting strategic productivity initiatives. Research and development expenses also saw a reduction, attributed to one-time acquisition-related expenses in the prior year.
| Metric | Q1 2025 | Q1 2024 | Change |
|---|---|---|---|
| Total Revenues | $11.2 billion | $11.865 billion | -6% |
| GAAP EPS | $1.20 | $(5.89) | N/A |
| Non-GAAP EPS | $1.80 | $(4.40) | N/A |
Analysis and Outlook
Bristol-Myers Squibb's performance in the first quarter of 2025 underscores the company's strategic execution and resilience in a challenging market environment. The increase in Growth Portfolio revenues highlights the firm's successful product launches and market penetration. However, the decline in Legacy Portfolio revenues poses a challenge that the company must address to maintain its competitive edge.
Looking ahead, Bristol-Myers Squibb has raised its 2025 revenue guidance to a range of $45.8 billion to $46.8 billion, reflecting confidence in its Growth Portfolio and favorable foreign exchange impacts. The company also increased its non-GAAP EPS guidance to a range of $6.70 to $7.00, indicating a positive outlook for the remainder of the year.
Our strong execution in the first quarter drove continued momentum across our Growth Portfolio and meaningful progress in the pipeline," said Christopher Boerner, Ph.D., board chair and chief executive officer, Bristol Myers Squibb.
Explore the complete 8-K earnings release (here) from Bristol-Myers Squibb Co for further details.
