AI Takeaway
Bristol-Myers Squibb delivered Q1 2026 revenue of $11.49B (+2.6% YoY) and net income of $2.68B (+9.0% YoY), though operating cash flow fell sharply by 43.5% to $1.10B amid a 17.4% surge in R&D spending and elevated long-term debt of $44.1B.
Revenue
$11.49B
++2.57% YoY
EPS (Basic)
$1.31
++8.26% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue grew 2.6% YoY to $11.49B in Q1 2026, suggesting continued demand for BMY's key products despite ongoing patent cliff pressures on legacy franchises. The modest top-line growth reflects a transitioning portfolio as newer growth products offset declines in maturing assets.
Source: Source: 10-Q, Income Statement (XBRL Financial Data)
R&D expenses jumped 17.4% YoY to $2.65B in Q1 2026, representing approximately 23% of total revenue. This significant increase indicates management is aggressively investing in next-generation therapies to address upcoming patent expirations and sustain long-term growth.
Source: Source: 10-Q, Income Statement (XBRL Financial Data)
Cost of revenue rose 12.8% YoY to $3.42B, outpacing revenue growth of 2.6%, which signals gross margin compression. This trend may reflect product mix shifts, manufacturing cost inflation, or royalty obligations tied to acquired assets.
Source: Source: 10-Q, Income Statement (XBRL Financial Data)
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Upgrade to unlockBMY carries $44.14B in long-term debt and a debt-to-equity ratio of 3.31x, reflecting the legacy of large acquisitions such as Celgene. While deleveraging is underway, the elevated debt load constrains financial flexibility and increases vulnerability to interest rate changes or revenue shortfalls.
Source: Source: 10-Q, Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $1.58 versus the $1.43 analyst consensus — a +10.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $11.49B | $11.2B | +2.57% |
Cost of Revenue | $3.42B | $3.03B | +12.79% |
Net Income | $2.68B | $2.46B | +9.00% |
EPS (Basic) | $1.31 | $1.21 | +8.26% |
EPS (Diluted) | $1.31 | $1.20 | +9.17% |
R&D Expense | $2.65B | $2.26B | +17.37% |
SG&A Expense | $1.62B | $1.58B | +2.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $86.48B | $92.43B | -6.44% |
Current Assets | $27.21B | $30.78B | -11.61% |
Total Liabilities | $66.37B | $74.98B | -11.48% |
Current Liabilities | $19.16B | $24.07B | -20.41% |
Stockholders' Equity | $20.07B | $17.39B | +15.41% |
Cash & Equivalents | $9.57B | $10.88B | -11.96% |
Long-Term Debt | $44.14B | $49.51B | -10.84% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.1B | $1.95B | -43.50% |
Investing Cash Flow | $-131M | $-499M | +73.75% |
Financing Cash Flow | $-1.56B | $-993M | -57.10% |
Dividends Paid | $1.28B | $1.26B | +1.99% |
D&A | $594M | $1.01B | -41.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 23.3% | — | — |
ROE | 13.3% | — | — |
ROA | 3.1% | — | — |
Current Ratio | $1.42 | — | — |
Debt to Equity | $3.307 | — | — |
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BMY reported Q1 2026 revenue of $11.49B, up 2.6% YoY, and net income of $2.68B, up 9.0% YoY, with diluted EPS of $1.31 versus $1.20 in Q1 2025. However, operating cash flow declined sharply by 43.5% to $1.10B, which was a notable weak spot in an otherwise solid earnings report.
The key takeaways are: revenue grew modestly at 2.6% to $11.49B, net income improved 9.0% to $2.68B, but R&D spending surged 17.4% to $2.65B and operating cash flow dropped 43.5% to $1.10B. BMY also continued deleveraging, reducing long-term debt by 10.8% YoY to $44.14B.
Yes, BMY paid $1.28B in dividends in Q1 2026, up 2.0% from $1.26B in Q1 2025, demonstrating continued commitment to shareholder returns. However, with operating cash flow of only $1.10B in the quarter, the dividend exceeded operating cash generation, suggesting the company is drawing on its $9.57B cash balance to fund payouts.
Based on the financial data, key risks include BMY's high debt-to-equity ratio of 3.31x with $44.14B in long-term debt, the sharp 43.5% decline in operating cash flow to $1.10B, and rising costs with R&D up 17.4% and cost of revenue up 12.8% outpacing revenue growth of 2.6%. Patent cliff risks on key products also remain a structural concern for the company's medium-term revenue outlook.
BMY's financial health is mixed: the balance sheet is improving with long-term debt down 10.8% YoY to $44.14B and stockholders' equity up 15.4% to $20.07B, and the current ratio of 1.42x indicates adequate short-term liquidity. However, the sharp drop in operating cash flow to $1.10B and a debt-to-equity ratio of 3.31x remain areas of concern for investors monitoring the company's leverage and cash generation capacity.