Bristol-Myers Squibb Company

04/30/2026 | Press release | Distributed by Public on 04/30/2026 09:45

Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's discussion and analysis of financial condition and results of operations is provided as a supplement to and should be read in conjunction with the consolidated financial statements and related footnotes included elsewhere in this Quarterly Report on Form 10-Q to enhance the understanding of our results of operations, financial condition and cash flows. Certain amounts in this Quarterly Report on Form 10-Q may not sum due to rounding. Percentages have been calculated using unrounded amounts.
EXECUTIVE SUMMARY
Our principal strategy is to combine the resources, scale and capability of a large pharmaceutical company with the speed, agility and focus on innovation typically found in the biotech industry. Our focus as a biopharmaceutical company is on discovering, developing and delivering transformational medicines for patients facing serious diseases in areas where we believe that we have an opportunity to make a meaningful difference: oncology, hematology, immunology, cardiovascular, neuroscience and other areas where we can also create long-term value. Our priorities are to focus on transformational medicines where we have a competitive advantage, drive operational excellence and strategically allocate capital for long-term growth and shareholder returns. Our R&D strategy is designed to invest in the most promising science and to consistently execute in a way that translates that science into new medicines with the highest probability of success. To execute this strategy, we focus on three key priorities: science, execution, and value. Additionally, we are driving commercial execution in our key first-in-class and/or best-in-class marketed products, where we continue to expand and see potential for further expansion into the future. For further information on our strategy, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Executive Summary-Strategy" in our 2025 Form 10-K. Refer to the Summary of Abbreviated Terms at the end of this Quarterly Report on Form 10-Q for terms used throughout the document.
During the first quarter of 2026, we made meaningful progress advancing our pipeline, highlighted by: (i) positive interim Phase III results from the SUCCESSOR-2 study of oral mezigdomide in RRMM, (ii) positive Phase III results from the SCOUT-HCM trial of Camzyos in adolescents with symptomatic oHCM, (iii) positive top-line results from a Phase II trial for Reblozyl in adults with Alpha (α)-Thalassemia, (iv) positive interim top-line results from a Phase III trial conducted in China for iza-bren in previously treated unresectable locally advanced or metastatic TNBC, and (v) FDA acceptance of our NDA for iberdomide in combination with standard therapy for patients with RRMM. Additionally, Sotyktu was approved in the U.S. for the treatment of adults with active PsA and Opdivo was approved in the U.S. and EU for cHL.
We remain committed to the strategic allocation of resources and investing in areas that maximize value and drive sustainable growth. As previously announced, our ongoing strategic productivity initiative includes acceleration of the delivery of medicines to patients by evolving and streamlining our enterprise operating model in key areas such as R&D, manufacturing, commercial and other functions. As a result of an expansion in 2025, we expect to realize annual cost savings of approximately $2.0 billion by the end of 2027. The exit costs resulting from these actions are included in our updated 2023 Restructuring Plan.
Financial Highlights
Three Months Ended March 31,
Dollars in millions, except per share data 2026 2025
Total Revenues $ 11,489 $ 11,201
Diluted earnings/(loss) per share
GAAP $ 1.31 $ 1.20
Non-GAAP 1.58 1.80
Revenues increased 3% during the first quarter of 2026. Demand increased across the Growth Portfolio and for Eliquis, which was partially offset by the impact of generics across the remainder of the Legacy Portfolio. Additionally, revenues were impacted by lower average net selling prices for the Legacy Portfolio and foreign exchange impacts of 2%. Excluding foreign exchange impacts, revenues increased 1%.
The $0.11 increase in GAAP EPS for the first quarter of 2026 was primarily due to the impact of certain specified items, including lower amortization of acquired intangible assets, partially offset by higher IPRD impairment charges in 2026 and the expiry of royalty income on diabetes products at the end of 2025. After adjusting for specified items, the $0.22 decrease in non-GAAP EPS was primarily due to the expiry of royalty income on diabetes products at the end of 2025.
Our non-GAAP financial measures, including non-GAAP earnings and related EPS information, are adjusted to exclude specified items that represent certain costs, expenses, gains and losses and other items impacting the comparability of financial results. For further information and reconciliations relating to our non-GAAP financial measures refer to "-Non-GAAP Financial Measures."
Economic and Market Factors
Governmental Actions
Ongoing regulatory focus on prescription drugs has increased pressures across our portfolio. These pressures have resulted in lower prices, lower reimbursement rates and smaller populations for whom payers will reimburse, which have negatively impacted, and may continue to negatively impact our results of operations (including intangible asset impairment charges), operating cash flow, liquidity and financial flexibility. Under the IRA, the HHS announced the "maximum fair price" for a 30-day equivalent supply of Eliquis, which applies to the U.S. Medicare channel effective January 1, 2026 and the "maximum fair price" for a 30-day supply of Pomalyst, which applies to the U.S. Medicare channel effective January 1, 2027. Additionally, in January 2026, the HHS selected Orencia as a medicine subject to "negotiation" for government-set prices beginning in 2028. It is possible that more of our products could be selected in future years based upon the selection criteria currently utilized by the HHS or potentially expanded future criteria, or that the "maximum fair price" for our previously selected products could be renegotiated, each of which could, among other things, accelerate revenue erosion prior to expiry of intellectual property protections. We continue to evaluate the impact of the IRA on our results of operations, and it is possible that these changes may result in a material impact on our business and results of operations.
In December 2025, we announced the U.S. Government Agreement pursuant to which we agreed to, among other things: (i) provide Eliquis for free to the Medicaid program effective January 1, 2026; (ii) donate more than seven tons of Eliquis API to fill the U.S. Strategic Active Ingredient Reserve; (iii) enable direct-to-patient access to Sotyktu, Zeposia, Reyataz, Baraclude and Orencia for cash-paying patients at discounts approximately 80% off current list prices; (iv) adopt a more balanced pricing approach for new launches across developed nations; and (v) continue to expand domestic production. This agreement, and any potential future agreements with government entities, by us or our competitors, could result in reduced prices and reimbursement for certain of our or competing products and may impact our cash flows and results of operations.
In accordance with the U.S. Government Agreement, BMS will receive certain U.S. tariff relief until January 2029, including for recently imposed tariffs relating to patented pharmaceuticals and associated pharmaceutical ingredients pursuant to the Presidential Proclamation dated April 2, 2026, and will not be subject to future pricing mandates in the U.S. while the agreement remains in effect. However, such exemptions may be terminated or may not be extended. In addition, we remain subject to any current or future pricing mandates implemented outside of the U.S. It is possible that such regulations may result in a material impact on our business and results of operations.
See risk factors on governmental action items included under "Part I-Item 1A. Risk Factors-Product, Industry and Operational Risks-Increased pricing pressure and other restrictions in the U.S. and abroad continue to negatively affect our revenues and profit margins", "-We could lose market exclusivity of a product earlier than expected", "-We could experience difficulties, delays and disruptions in our supply chain as well as in the manufacturing, distribution and sale of our products", "-Changes to tax regulations could negatively impact our earnings" and "-Adverse changes in U.S. and global economic and political conditions could adversely affect our operations and profitability" in our 2025 Form 10-K.
Significant Product and Pipeline Approvals
The following is a summary of the significant approvals received in 2026 as of April 30, 2026:
Product Date Approval
Breyanzi
April 2026
Japan's Ministry of Health Labour and Welfare approval of Breyanzi for the treatment of both relapsed or refractory MCL and relapsed or refractory MZL.
Opdivo
March 2026
Announced FDA approval of Opdivo in combination with doxorubicin, vinblastine and dacarbazine (AVD), for the treatment of adult and pediatric patients 12 years and older with previously untreated, Stage III or IV cHL.
Announced EC approval of Opdivo in combination with brentuximab vedotin, for the treatment of children 5 years of age and older, adolescents, and adults up to 30 years of age with relapsed or refractory cHL after one prior line of therapy.
Sotyktu March 2026
Announced FDA approval of Sotyktu, for the treatment of adults with active PsA.
Refer to "-Product and Pipeline Developments" for a listing of other developments in our marketed products and late-stage pipeline since the start of the first quarter of 2026.
Acquisitions, Divestitures, Licensing and Other Arrangements
Refer to "Item 1. Financial Statements-Note 3. Alliances" and "-Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements" for information on significant acquisitions, divestitures, licensing and other arrangements.
RESULTS OF OPERATIONS
Regional Revenues
The composition of the changes in revenues was as follows:
Three Months Ended March 31,
Dollars in millions 2026 2025 % Change
Foreign Exchange(b)
United States $ 7,788 $ 7,873 (1) % - %
International
3,444 3,110 11 % 8 %
Other(a)
257 218 18 % (7) %
Total revenues $ 11,489 $ 11,201 3 % 2 %
(a) Includes royalties and alliance-related revenues for products not sold by our regional commercial organizations, including royalties received from Merck on Winrevair*.
(b) Foreign exchange impacts were derived by applying the prior period average currency rates to the current period revenues.
United States
•U.S. revenues decreased 1% during the first quarter of 2026, reflecting higher demand across the Growth Portfolio and for Eliquis, offset by the impact of generic erosion within the remainder of the Legacy Portfolio. Additionally, revenues were impacted by lower average net selling prices for the Legacy Portfolio. Average U.S. net selling prices decreased 1% compared to the corresponding period a year ago.
International
•International revenues increased 11% during the first quarter of 2026, primarily due to higher demand across the Growth Portfolio and for Eliquis, partially offset by generic erosion within the remainder of the Legacy Portfolio. Excluding the impacts of foreign exchange, international revenues increased 3% during the first quarter of 2026.
No single country outside the U.S. contributed more than 10% of total revenues during the three months ended March 31, 2026 and 2025. Our business is typically not seasonal; however, in the first quarter we typically see an unwinding of sales channel inventory build-up from the fourth quarter of the prior year.
GTN Adjustments
The reconciliation of gross product sales to net product sales by each significant category of GTN adjustments was as follows:
Three Months Ended March 31,
Dollars in millions 2026 2025 % Change
Gross product sales $ 16,926 $ 19,874 (15) %
GTN adjustments
Charge-backs and cash discounts (2,467) (2,958) (17) %
Medicaid and Medicare rebates (1,875) (3,840) (51) %
Other rebates, returns, discounts and adjustments (1,416) (2,190) (35) %
Total GTN adjustments (5,758) (8,988) (36) %
Net product sales $ 11,168 $ 10,886 3 %
GTN adjustments percentage 34 % 45 % (11) %
U.S. 38 % 51 % (13) %
Non-U.S. 21 % 21 % - %
Reductions/(increases) to provisions for product sales made in prior periods resulting from changes in estimates were $(21) million and $289 million for the three months ended March 31, 2026 and 2025, respectively. The reduction to provision recognized for the three months ended March 31, 2025 primarily related to lower than expected Medicaid utilization. The changes in gross product sales and GTN adjustments were primarily due to a list price reduction for Eliquis in the U.S. in 2026.
GTN adjustments are primarily a function of product sales volume, regional and payer channel mix, contractual or legislative discounts and rebates.
Product Revenues
Three Months Ended March 31,
Dollars in millions 2026 2025 % Change
Growth Portfolio
Opdivo $ 2,146 $ 2,265 (5) %
U.S. 1,159 1,332 (13) %
International & Other
988 933 6 %
Opdivo Qvantig
163 9 >200%
U.S. 131 8 >200%
International & Other
32 - >200%
Orencia 818 770 6 %
U.S. 590 555 6 %
International & Other
228 215 6 %
Yervoy 651 624 4 %
U.S. 367 394 (7) %
International & Other
284 230 24 %
Reblozyl 555 478 16 %
U.S. 440 390 13 %
International & Other
116 89 30 %
Breyanzi 411 263 56 %
U.S. 292 204 43 %
International & Other
120 60 101 %
Opdualag 295 252 17 %
U.S. 246 228 8 %
International & Other
49 25 98 %
Camzyos 314 159 97 %
U.S. 229 126 82 %
International & Other
85 33 155 %
Zeposia 118 107 11 %
U.S. 69 61 14 %
International & Other
49 46 7 %
Sotyktu 69 55 24 %
U.S. 35 32 10 %
International & Other
33 23 43 %
Krazati 50 48 4 %
U.S. 46 44 4 %
International & Other
3 4 (6) %
Cobenfy
56 27 107 %
U.S. 56 27 107 %
International & Other
- - N/A
Other Growth Products(a)
581 507 15 %
U.S. 212 233 (9) %
International & Other
369 274 35 %
Total Growth Portfolio $ 6,227 $ 5,563 12 %
U.S. 3,872 3,633 7 %
International & Other
2,355 1,930 22 %
Legacy Portfolio
Eliquis $ 4,137 $ 3,565 16 %
U.S. 3,077 2,646 16 %
International & Other
1,059 919 15 %
Revlimid 349 936 (63) %
U.S. 278 809 (66) %
International & Other
71 127 (44) %
Pomalyst/Imnovid 513 658 (22) %
U.S. 439 537 (18) %
International & Other
74 122 (39) %
Sprycel 73 175 (58) %
U.S. 36 126 (71) %
International & Other
37 49 (25) %
Abraxane 50 105 (53) %
U.S. 12 40 (71) %
International & Other
38 65 (42) %
Other Legacy Products(b)
156 199 (21) %
U.S. 74 82 (10) %
International & Other
82 116 (30) %
Total Legacy Portfolio
$ 5,277 $ 5,638 (6) %
U.S. 3,916 4,240 (8) %
International & Other
1,361 1,398 (3) %
Other revenue(c)
$ (15) $ - N/A
International & Other
(15) - N/A
Total Revenues
$ 11,489 $ 11,201 3 %
U.S. 7,788 7,873 (1) %
International & Other
3,701 3,328 11 %
(a) Includes Abecma, Augtyro, Onureg, Inrebic, Nulojix, Empliciti and royalty revenues, including royalties received from Merck on Winrevair*.
(b) Includes other mature brands.
(c) Includes revenue hedging activities in 2026.
Growth Portfolio
•Opdivo revenues decreased 5% during the first quarter of 2026, primarily due to changes in sales channel inventory and timing of customer orders in the U.S., partially offset by foreign exchange impacts of 3%. Excluding foreign exchange impacts, revenues decreased 8%.
•Opdivo Qvantig revenues increased more than 200% during the first quarter of 2026, primarily due to higher demand as a result of the product's launch in 2025.
•Orencia revenues increased 6% during the first quarter of 2026, primarily due to higher demand in the U.S. and foreign exchange impacts of 2%. Excluding foreign exchange impacts, revenues increased 5%. Formulation and additional patents expire in 2026 and beyond. In April 2026, BMS entered into agreements with Dr. Reddy's Laboratories that allow for (i) an Orencia biosimilar for intravenous administration to be marketed in the U.S. upon approval and (ii) an Orencia biosimilar for subcutaneous administration to be marketed in the U.S. as early as February 2028. BMS is not aware of an Orencia biosimilar currently on the market in the U.S., EU or Japan.
•Yervoy revenues increased 4% during the first quarter of 2026, primarily due to higher demand across international markets and foreign exchange impacts of 3%. Excluding foreign exchange impacts, revenues increased 2%. BMS is not aware of a Yervoy biosimilar on the market in the U.S., EU or Japan.
•Reblozyl revenues increased 16% during the first quarter of 2026, primarily due to higher demand and foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 15%.
•Breyanzi revenues increased 56% during the first quarter of 2026, primarily due to higher demand and foreign exchange impacts of 3%. Excluding foreign exchange impacts, revenues increased 53%.
•Opdualag revenues increased 17% during the first quarter of 2026, primarily due to higher demand and foreign exchange impacts of 2%. Excluding foreign exchange impacts, revenues increased 15%.
•Camzyos revenues increased 97% during the first quarter of 2026, primarily due to higher demand and foreign exchange impacts of 4%. Excluding foreign exchange impacts, revenues increased 94%.
•Zeposia revenues increased 11% during the first quarter of 2026, primarily due to higher demand in the U.S. and foreign exchange impacts of 4%. Excluding foreign exchange impacts, revenues increased 7%.
•Sotyktu revenues increased 24% during the first quarter of 2026, primarily due to higher demand across international markets and foreign exchange impacts of 4%. Excluding foreign exchange impacts, revenues increased 20%.
•Krazati revenues increased 4% during the first quarter of 2026, primarily due to higher demand in the U.S. and foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 3%.
•Cobenfy revenues increased 107% during the first quarter of 2026, primarily due to higher demand in the U.S.
Legacy Portfolio
•Eliquis revenues increased 16% during the first quarter of 2026, primarily due to higher demand in the U.S. and foreign exchange impacts of 3%. Excluding foreign exchange impacts, revenues increased 13%. Following the May 2021 expiration of regulatory exclusivity for Eliquis in Europe, generic manufacturers have sought to challenge our Eliquis patents and related SPCs and have begun marketing generic versions of Eliquis in certain countries prior to the expiry of our patents and related SPCs, which has led to the filing of infringement and invalidity actions involving our Eliquis patents and related SPCs being filed in various countries in Europe. In the EU, the apixaban composition of matter patents and related SPCs expire in November 2026. Additionally, in November 2025, BMS and Pfizer initiated a patent infringement action against an applicant seeking approval to market apixaban products in the U.S. We believe in the innovative science behind Eliquis and the strength of our intellectual property, which we will defend against infringement. Refer to "Item 1. Financial Statements-Note 18. Legal Proceedings and Contingencies-Intellectual Property" for further information.
•Revlimid revenues decreased 63% during the first quarter of 2026, primarily due to lower demand in the U.S. as a result of generic erosion. In the U.S., certain third parties have been granted volume-limited licenses to sell generic lenalidomide. Pursuant to these licenses, several generics have entered or are expected to enter the U.S. market with volume-limited quantities of generic lenalidomide. As of January 31, 2026, these licenses are no longer volume-limited. In the EU and Japan, generic lenalidomide products have entered the market.
•Pomalyst/Imnovid revenues decreased 22% during the first quarter of 2026, primarily due to lower demand as a result of generic erosion. In the U.S. (March 2026) and EU, generics have entered the market.
•Sprycel revenues decreased 58% during the first quarter of 2026, primarily due to lower demand as a result of generic erosion. Excluding foreign exchange impacts, revenues decreased 59%. In the U.S., EU and Japan, generics have entered the market.
•Abraxane revenues decreased 53% during the first quarter of 2026, primarily due to lower demand as a result of generic erosion, partially offset by foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues decreased 54%.
Estimated End-User Demand
Pursuant to the SEC Consent Order described under "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations- SEC Consent Order" in our 2025 Form 10-K, we monitor inventory levels on hand in the U.S. wholesaler distribution channel and outside of the U.S. in the direct customer distribution channel. We disclose products with levels of inventory in excess of one month on hand or expected demand, subject to certain limited exceptions. There were none as of March 31, 2026, for our U.S. distribution channels, and as of December 31, 2025, for our non-U.S. distribution channels.
In the U.S., we generally determine our months on hand estimates using inventory levels of product on hand and the amount of out-movement provided by our three largest wholesalers, which accounted for approximately 90% of total gross sales of U.S. products during the three months ended March 31, 2026. Factors that may influence our estimates include generic erosion, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.
Camzyos is only available through a restricted program called the Camzyos REMS Program. Product distribution is limited to REMS certified pharmacies, and enrolled pharmacies must only dispense to patients who are authorized to receive Camzyos. Revlimid and Pomalyst are distributed in the U.S. primarily through contracted pharmacies under the Lenalidomide REMS (Revlimid) and Pomalyst REMS programs, respectively. These are proprietary risk-management distribution programs tailored specifically to provide for the safe and appropriate distribution and use of Revlimid and Pomalyst. Internationally, Revlimid and Imnovid are distributed under mandatory risk-management distribution programs tailored to meet local authorities' specifications to provide for the products' safe and appropriate distribution and use. These programs may vary by country and, depending upon the country and the design of the risk-management program, the product may be sold through hospitals or retail pharmacies.
Our non-U.S. businesses have significantly more direct customers. Information on available direct customer product level inventory and corresponding out-movement information and the reliability of third-party demand information varies widely. We limit our direct customer sales channel inventory reporting to where we can influence demand. When this information does not exist or is otherwise not available, we have developed a variety of methodologies to estimate such data, including using historical sales made to direct customers and third-party market research data related to prescription trends and end-user demand. Given the difficulties inherent in estimating third-party demand information, we evaluate our methodologies to estimate direct customer product level inventory and to calculate months on hand on an ongoing basis and make changes as necessary. Factors that may affect our estimates include generic competition, seasonality of products, price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations. As such, all of the information required to estimate months on hand in the direct customer distribution channel for non-U.S. business during the three months ended March 31, 2026 is not available prior to the filing of this Quarterly Report on Form 10-Q. We will disclose any product with levels of inventory in excess of one month on hand or expected demand for the current quarter, subject to certain limited exceptions, in our next quarterly report on Form 10-Q.
Expenses
Three Months Ended March 31,
Dollars in millions 2026 2025 % Change
Cost of products sold(a)
$ 3,421 $ 3,033 13 %
Selling, general and administrative
1,617 1,584 2 %
Research and development 2,649 2,257 17 %
Acquired IPRD 94 188 (50) %
Amortization of acquired intangible assets 437 830 (47) %
Other (income)/expense, net 32 339 (90) %
Total Expenses $ 8,250 $ 8,230 - %
(a) Excludes amortization of acquired intangible assets.
Cost of Products Sold
Cost of products sold increased by $388 million in the first quarter of 2026, primarily due to higher alliance profit sharing and product mix.
Selling, General and Administrative
Selling, general and administrative expense increased by $32 million in the first quarter of 2026, primarily due to higher investments in new product launches, partially offset by cost savings from the Company's ongoing strategic productivity initiative.
Research and Development
Research and development expense increased by $393 million in the first quarter of 2026, primarily due to IPRD impairment charges of $410 million, partially offset by cost savings from the Company's ongoing strategic productivity initiative.
Acquired IPRD
Acquired IPRD charges resulting from upfront or contingent milestone payments in connection with asset acquisitions or licensing of third-party intellectual property rights were as follows:
Three Months Ended March 31,
Dollars in millions 2026 2025
BioArctic upfront fee
$ - $ 100
Evotec designation and opt-in license fees 10 83
Other 84 5
Acquired IPRD $ 94 $ 188
Amortization of Acquired Intangible Assets
Amortization of acquired intangible assets decreased by $393 million in the first quarter of 2026, primarily due to the lower amortization expense related to Pomalyst. The Pomalyst acquired marketed product right was fully amortized in the fourth quarter of 2025.
Other (Income)/Expense, Net
Other (income)/expense, net changed by $306 million in the first quarter of 2026 as discussed below.
Three Months Ended March 31,
Dollars in millions 2026 2025
Interest expense $ 411 $ 494
Royalty income - divestitures - (272)
Royalty and licensing income
(195) (259)
Investment income (104) (138)
Provision for restructuring 5 133
Litigation and other settlements 4 257
Equity investment (gains)/losses
(134) 78
Integration expenses
19 41
Other 27 4
Other (income)/expense, net
$ 32 $ 339
•As part of our diabetes termination agreement with AstraZeneca, we received royalty payments based on net sales, which terminated as of December 31, 2025.
•Litigation and other settlements includes amounts related to pricing, sales and promotional practices disputes in the first quarter of 2025.
•Gains on equity investments during the first quarter of 2026 are primarily driven by upward adjustments in equity investments without RDFV. Refer to "Item 1. Financial Statements-Note 9. Financial Instruments and Fair Value Measurements" for more information.
Income Taxes
Three Months Ended March 31,
Dollars in millions 2026 2025
Earnings/(Loss) before income taxes $ 3,240 $ 2,971
Income tax provision
561 509
Effective tax rate 17.3 % 17.1 %
Impact of specified items 0.9 % (2.1) %
Effective tax rate excluding specified items 18.3 % 15.1 %
Provision for income taxes in interim periods is determined based on the estimated annual effective tax rates and the tax impact of discrete items that are reflected immediately. The increase in the effective tax rate was primarily driven by jurisdictional earnings mix, partially offset by the impact of certain discrete adjustments. Excluding the impact of specified items, the increase in the effective tax rate was primarily driven by jurisdictional earnings mix.
Non-GAAP Financial Measures
Our non-GAAP financial measures, such as non-GAAP earnings and related EPS information, are adjusted to exclude certain costs, expenses, gains and losses and other specified items that are evaluated on an individual basis. These items are adjusted after considering their quantitative and qualitative aspects and typically have one or more of the following characteristics, such as being highly variable, difficult to project, unusual in nature, significant to the results of a particular period or not indicative of past or future operating results. These items are excluded from non-GAAP earnings and related EPS information because the Company believes they neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business performance. Similar charges or gains were recognized in prior periods and will likely reoccur in future periods, including (i) amortization of acquired intangible assets, including product rights that generate a significant portion of our ongoing revenue and will recur until the intangible assets are fully amortized, (ii) unwinding of inventory purchase price adjustments, (iii) integration expenses, (iv) restructuring costs, (v) accelerated depreciation and impairment of property, plant and equipment and intangible assets, (vi) divestiture gains or losses, (vii) pension, legal and other contractual settlement charges, (viii) equity investment and contingent value rights fair value adjustments (including fair value adjustments attributed to limited partnerships and other investments), and (ix) amortization of fair value adjustments of debt acquired from Celgene in our 2019 exchange offer, among other items. Deferred and current income taxes attributed to these items are also adjusted for considering their individual impact to the overall tax expense, deductibility and jurisdictional tax rates, as well as certain other significant tax items. We also provide worldwide and international revenues for our priority products excluding the impact of foreign exchange. We calculate foreign exchange impacts by converting our current-period local currency financial results using the prior period average currency rates and comparing these adjusted amounts to our current-period results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are included in Exhibit 99.1 to our Form 8-K filed on April 30, 2026 and are incorporated herein by reference.
Non-GAAP information is intended to portray the results of our baseline performance, supplement or enhance management's, analysts' and investors' overall understanding of our underlying financial performance and facilitate comparisons among current, past and future periods. This information is not intended to be considered in isolation or as a substitute for the related financial measures prepared in accordance with GAAP and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
Specified items were as follows:
Three Months Ended March 31,
Dollars in millions 2026 2025
Inventory purchase price accounting adjustments $ 13 $ 13
Site exit and other costs - 2
Cost of products sold 13 14
Site exit and other costs - 1
Selling, general and administrative
- 1
IPRD impairments 410 -
Site exit and other costs 1 21
Research and development 411 21
Amortization of acquired intangible assets 437 830
Interest expense
(9) (12)
Provision for restructuring 5 133
Litigation and other settlements - 246
Equity investment (gains)/losses (134) 77
Integration expenses 19 41
Other (22) 3
Other (income)/expense, net (140) 489
Increase to earnings/(loss) before income taxes
721 1,356
Income taxes on items above (161) (143)
Increase to net earnings/(loss) attributable to BMS
$ 560 $ 1,212
The reconciliations from GAAP to Non-GAAP were as follows:
Three Months Ended March 31,
Dollars in millions, except per share data 2026 2025
Net earnings/(loss) attributable to BMS
GAAP $ 2,677 $ 2,456
Specified items 560 1,212
Non-GAAP $ 3,237 $ 3,668
Weighted-average common shares outstanding - diluted 2,047 2,040
Diluted earnings/(loss) per share attributable to BMS
GAAP $ 1.31 $ 1.20
Specified items 0.27 0.59
Non-GAAP $ 1.58 $ 1.80
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
Our net debt position was as follows:
Dollars in Millions March 31,
2026 		December 31,
2025
Cash and cash equivalents $ 9,574 $ 10,209
Marketable debt securities - current 912 464
Marketable debt securities - non-current 366 396
Total cash, cash equivalents and marketable debt securities 10,853 11,069
Short-term debt obligations (2,308) (2,261)
Long-term debt (42,152) (42,850)
Net debt position $ (33,607) $ (34,043)
We believe that our existing cash, cash equivalents and marketable debt securities together with our ability to generate cash from operations and our access to short-term and long-term borrowings are sufficient to satisfy our existing and anticipated cash needs for at least the next few years, including dividends, capital expenditures, milestone payments, working capital, income taxes, restructuring initiatives, business development, business combinations, asset acquisitions, repurchase of common stock, debt maturities, as well as any debt repurchases through redemptions or tender offers. During the three months ended March 31, 2026, our net debt position decreased by $436 million primarily driven by cash provided by operations of $1.1 billion and proceeds from the sale of equity investment securities, partially offset by dividend payments of $1.3 billion.
During the three months ended March 31, 2026, $500 million of floating rate notes matured and were repaid.
Under our commercial paper program, we may issue a maximum of $5.0 billion of unsecured notes with maturities of not more than 365 days from the date of issuance.
As of March 31, 2026 and December 31, 2025, we had a five-year $5.0 billion revolving credit facility, which is extendable annually by one year with the consent of the lenders. In January 2026, we extended the termination date of the credit facility from January 2030 to January 2031. No borrowings were outstanding under the revolving credit facility as of March 31, 2026 and December 31, 2025.
Dividend payments were $1.3 billion during the three months ended March 31, 2026. The decision to authorize dividends is made on a quarterly basis by our Board of Directors.
During the three months ended March 31, 2026 and 2025, income tax payments were $239 million and $235 million.
Cash Flows
The following is a discussion of cash flow activities:
Three Months Ended March 31,
Dollars in millions 2026 2025
Cash flow provided by/(used in):
Operating activities $ 1,104 $ 1,954
Investing activities (131) (499)
Financing activities (1,560) (993)
Operating Activities
The $850 million decrease in cash provided by operating activities compared to 2025 was driven by lower net customer receipts, primarily due to a list price reduction for Eliquis, and higher litigation-related disbursements, partially offset by lower expenses due to the ongoing strategic productivity initiative.
Investing Activities
Cash used in investing activities during 2026 was primarily driven by net purchases of marketable debt securities of $422 million, partially offset by proceeds from the sale of equity investment securities of $391 million.
Financing Activities
Cash used in financing activities during 2026 was primarily driven by dividend payments of $1.3 billion and the repayment of $500 million of floating rate notes.
Product and Pipeline Developments
Our R&D programs are managed on a portfolio basis from early discovery through late-stage development and include a balance of early-stage and late-stage programs to support future growth. Our late-stage R&D programs in Phase III development include both investigational compounds for initial indications and additional indications or formulations for marketed products. The following are the developments in our marketed products and our late-stage pipeline since the start of the first quarter of 2026 as of April 30, 2026:
Product Indication Date Developments
Breyanzi
MCL & MZL April 2026
Japan's Ministry of Health Labour and Welfare approval of Breyanzi for the treatment of both relapsed or refractory MCL and relapsed or refractory MZL. This approval is based on Cohort 4 of the Phase II TRANSCEND FL study and the MCL cohort of the Phase I TRANSCEND NHL study.
Camzyos
oHCM
March 2026
Announced positive data from the Phase III SCOUT-HCM trial of Camzyos, the first study of a cardiac myosin inhibitor (CMI) in adolescents (ages 12 years to <18 years) with symptomatic oHCM. The trial met its primary endpoint, demonstrating a clinically meaningful and statistically significant reduction from baseline in Valsalva left ventricular outflow tract (LVOT) gradient at Week 28 versus placebo. Additionally, Camzyos showed meaningful improvement over placebo in multiple secondary endpoints at 28 weeks, and similar safety findings were observed in the Camzyos and placebo groups.
Cobenfy
Schizophrenia
March 2026
Announced data from Phase IV clinical trial evaluating the symptom stability, safety and tolerability of Cobenfy when switching adult outpatients with schizophrenia from an oral atypical antipsychotic to Cobenfy monotherapy. Through 8 weeks, patients remained stable with mean Positive and Negative Syndrome Scale (PANSS) total scores remaining below baseline, and no new safety signals were observed, regardless of cross-titration duration. These findings provide important evidence to help inform treatment switch strategies in clinical practice.
iberdomide
RRMM
February 2026
The FDA has accepted an NDA for iberdomide combined with standard treatment (daratumumab + dexamethasone - IberDd) in patients with RRMM. The FDA has granted a PDUFA date of August 17, 2026 for this indication. The filing was based on results from a planned analysis of MRD negativity rates in the Phase III EXCALIBER-RRMM study evaluating iberdomide as a treatment for RRMM patients. The EXCALIBER-RRMM trial is ongoing and patients continue to be evaluated for PFS.
iza-bren
TNBC
February 2026
Announced with SystImmune that SystImmune's parent company, Sichuan Biokin Pharmaceutical Co., Ltd., reported positive interim topline results from BL-B01D1-307, a Phase III study conducted in China evaluating iza-bren in patients with unresectable locally advanced or metastatic TNBC whose disease progressed following prior taxane therapy. In the pre-specified interim analysis, topline results showed that iza-bren demonstrated statistically significant and clinically meaningful improvement in both PFS and overall survival (OS) compared to chemotherapy of physician's choice, meeting both dual primary endpoints.
mezigdomide
RRMM
March 2026
Announced positive interim Phase III results from the SUCCESSOR-2 study. In the trial, oral mezigdomide in combination with carfilzomib and dexamethasone (MeziKd) demonstrated statistically significant and clinically meaningful improvement in PFS versus carfilzomib and dexamethasone alone (Kd) in patients with RRMM. Safety findings were consistent with the known profile of mezigdomide and the combination regimen. Patients will continue to be followed for survival and safety.
obexelimab
IgG4-RD
January 2026
Our partner, Zenas BioPharma, Inc., announced positive results from the Phase III INDIGO trial of obexelimab in Immunoglobulin G4-Related Disease (IgG4-RD). Obexelimab met the primary endpoint, demonstrating a highly statistically significant and clinically meaningful 56% reduction in the risk of IgG4-RD flare compared to placebo during the 52-week randomized placebo-controlled period. Obexelimab also met and demonstrated highly statistically significant activity compared to placebo on all four key secondary endpoints, which were reduction in investigator assessed IgG4-RD flare, the number of flares requiring rescue therapy, the proportion of patients achieving complete remission and the cumulative use of IgG4-RD rescue therapy. Rates of infections, including Grade 3, were lower in the obexelimab arm compared to placebo, and the incidence of injection site reactions was similar across both study arms.
Opdivo
cHL
March 2026
Announced FDA approval of Opdivo in combination with doxorubicin, vinblastine and dacarbazine (AVD) for the treatment of adult and pediatric patients 12 years and older with previously untreated, Stage III or IV cHL. The approval is based on results from the Phase III SWOG 1826 study, which demonstrated a statistically significant improvement in the primary endpoint of PFS for patients who received Opdivo in combination with AVD.
Announced EC approval of Opdivo in combination with brentuximab vedotin, for the treatment of children 5 years of age and older, adolescents, and adults up to 30 years of age with relapsed or refractory cHL after one prior line of therapy. The approval is based on results from the Phase II CheckMate -744 study.
Reblozyl
Anemia
February 2026
Announced positive topline Phase II results from the registrational study NCT05664737, evaluating Reblozyl versus placebo for anemia in adults with Alpha-Thalassemia. The NTD and TD cohorts of the study met their respective primary endpoints, with Reblozyl demonstrating a statistically significant and clinically meaningful increase in hemoglobin levels in NTD patients with Alpha-Thalassemia, and a statistically significant and clinically meaningful decrease in red blood cell (RBC) transfusion burden in TD patients with Alpha-Thalassemia. The study also met all key secondary endpoints.
Sotyktu PsA March 2026
Announced FDA approval of Sotyktu, for the treatment of adults with active PsA. This approval is based on the positive results from the pivotal Phase III POETYK PsA-1 and POETYK PsA-2 trials.
Critical Accounting Policies
The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenue and expenses. Our critical accounting policies are those that significantly impact our financial condition and results of operations and require the most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of this uncertainty, actual results may vary from these estimates. For a discussion of our critical accounting policies, refer to "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Form 10-K. There have been no material changes to our critical accounting policies during the three months ended March 31, 2026. For information regarding the impact of recently adopted accounting standards, refer to "Item 1. Financial Statements-Note 1. Basis of Presentation and Recently Issued Accounting Standards."
Special Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q (including documents incorporated by reference) and other written and oral statements we make from time to time contain certain "forward-looking" statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. You can identify these forward-looking statements by the fact they use words such as "should," "could," "expect," "anticipate," "estimate," "target," "may," "project," "guidance," "intend," "plan," "believe," "will" and other words and terms of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on our current expectations and projections about our future financial results, goals, plans and objectives and involve inherent risks, assumptions and uncertainties, including internal or external factors that could delay, divert or change any of them in the next several years, and could cause our future financial results, goals, plans and objectives to differ materially from those expressed in, or implied by, the statements. These statements are likely to relate to, among other things, our goals, plans and objectives regarding our financial position, results of operations, cash flows, market position, product development, product approvals, sales efforts, expenses, performance or results of current and anticipated products, our business development strategy and in relation to our ability to realize the projected benefits of our acquisitions, alliances and other business development activities, the impact of any pandemic or epidemic on our operations and the development and commercialization of our products, laws, agreements and regulations to lower drug prices, government actions relating to the imposition of new tariffs, market actions taken by private and government payers to manage drug utilization and contain costs, the expiration of patents or data protection on certain products, including assumptions about our ability to retain marketing exclusivity of certain products, and the outcome of contingencies such as legal proceedings and financial results. No forward-looking statement can be guaranteed. This Quarterly Report on Form 10-Q, our 2025 Form 10-K, particularly under the section "Item 1A. Risk Factors," and our other filings with the SEC, include additional information on the factors that we believe could cause actual results to differ materially from any forward-looking statement.
Although we believe that we have been prudent in our plans and assumptions, no assurance can be given that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. Additional risks that we may currently deem immaterial or that are not presently known to us could also cause the forward-looking events discussed in this Quarterly Report on Form 10-Q not to occur. Except as otherwise required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise after the date of this Quarterly Report on Form 10-Q.
Bristol-Myers Squibb Company published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 30, 2026 at 15:45 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]