The latest medicines from Bristol Myers Squibb (BMY +1.81%) were the driving force behind the company's considerable share price gain on Thursday. The pharmaceutical company's first-quarter results were juiced by double-digit sales gains in its growth portfolio, which, in turn, drove stronger-than-expected fundamentals. Grateful investors sent the stock soaring by more than 5% in response.
Two beats in the first quarter
For the quarter, Bristol Myers Squibb's overall revenue rose by 3% year over year to $11.5 billion. That was largely due to the growth portfolio, which saw a 12% improvement and contributed $6.2 billion to the tally. By contrast, the legacy portfolio of older medicines slipped by 6% to under $5.3 billion.
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Going in the opposite direction was net income not under generally accepted accounting practices (GAAP). This fell to $3.2 billion ($1.58 per share) from the first quarter 2025 profit of $3.7 billion.
The bottom-line drop wasn't ideal, however, Bristol Myers Squibb still convincingly beat the average analyst estimate of $1.42 per share for non-GAAP (adjusted) profitability. Ditto for revenue, as the consensus pundit expectation was $10.9 billion.
Every drug in the growth portfolio, save for cancer treatment Opdivo, saw year-over-year sales increases. Conversely, every drug in the legacy portfolio save for one (blockbuster blood thinner Eliquis) experienced declines.
NYSE: BMY
Key Data Points
Growth for the win
In its earnings release, Bristol Myers Squibb reaffirmed its existing guidance for the entirety of 2026. Total revenue should come in at $46 billion to $47.5 billion, while per-share adjusted earnings are forecast at $6.05 to $6.35. The average analyst projections -- $47.1 billion and $6.25, respectively -- fall within these ranges.
The company's growth portfolio has become an increasingly powerful driver of top-line expansion and sustained profitability. It's a large portfolio packed with treatments across numerous therapeutic areas. This, combined with a wide pipeline, makes Bristol Myers Squibb a dynamic company and a stock worth considering as a buy.
