BMY · Q2 FY2026
BRISTOL MYERS SQUIBB CO Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $12.97B | $12.27B (yr ago) | Beat |
| EPS | $1.62 GAAP | $0.64 GAAP (yr ago) | Beat |
| Free Cash Flow | $3.09B | $3.56B (yr ago) | Miss |
| Gross Margin | 71.3% GAAP | 72.5% GAAP (yr ago) | Miss |
| Operating Margin | 31.5% GAAP | 14.5% GAAP (yr ago) | Beat |
What changed
Revenue increased 5.7% to $12.97 billion as 15.0% Growth Portfolio expansion and 22.0% Eliquis growth outweighed continued generic erosion in the Legacy Portfolio. GAAP EPS rose to $1.62 and operating margin reached 31.5%, but free cash flow declined to $3.09 billion and gross margin contracted 120 basis points to 71.3%.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $75.60 per share because management raised the midpoint of 2026 revenue guidance by 5.9% and non-GAAP EPS guidance by 10.9%, providing stronger evidence that portfolio renewal is offsetting legacy erosion.