Bristol-Myers' Q2 earnings surpass market expectations, leading to an adjustment in the FY2025 forecast beyond Street estimates, resulting in a pre-market stock rise.
In a positive turn of events, Bristol-Myers Squibb (BMY) has announced its Q2 2025 financial results, showing a beat in both adjusted earnings and revenue compared to market estimates. The company reported total revenues of $12.3 billion, slightly higher than the analysts' expectations of $11.38 billion.
The growth was primarily driven by an 18% increase in the company's Growth Portfolio revenues, which includes immuno-oncology drugs like Breyanzi, Reblozyl, and Camzyos. Despite a lower profit on a GAAP basis due to acquisition-related charges and in-process research and development (IPR&D) expenses, the adjusted (non-GAAP) earnings per share came in at $1.46, higher than the prior year’s $2.07 on a non-GAAP basis.
Operating expenses were also lower on a non-GAAP basis, contributing to the stronger financial performance. International sales increased 10%, offsetting some US market headwinds such as generic competition and Medicare Part D redesign effects.
For fiscal 2025, Bristol-Myers Squibb has revised its outlook, expecting adjusted earnings per share in a range of $6.35 to $6.65, up from previous estimates. This revision reflects the strength of the Growth Portfolio, better-than-expected Legacy Portfolio sales, and a favorable impact of approximately $200 million related to foreign exchange rates.
In the second quarter, net income attributable to Bristol Myers Squibb was $1.31 billion or $0.64 per share, lower than last year's $1.68 billion or $0.83 per share. However, the company's shares were gaining around 3.5 percent in pre-market activity on the NYSE, trading at $47.65.
The Street expects the company to report earnings of $6.32 per share on revenues of $46.26 billion for fiscal 2025. The outlook includes an unfavorable $0.57 per share impact from the BioNTech Acquired IPRD charge in the second quarter.
In summary, Bristol-Myers Squibb's Q2 2025 financial results show a strong performance, with adjusted earnings and revenue beating market estimates, despite a lower profit on a GAAP basis. The company's revised fiscal 2025 outlook reflects the strength of its Growth Portfolio and better-than-expected Legacy Portfolio sales.
In light of the improved financial results, Bristol-Myers Squibb's focus on investing in its Growth Portfolio, which includes immuno-oncology drugs like Breyanzi, Reblozyl, and Camzyos, appears to have significantly contributed to the company's performance. This strong performance in Q2 2025, despite a lower profit on a GAAP basis, signals Bristol-Myers Squibb's commitment to business growth and enhancing shareholder value.
