Bristol-Myers Squibb Company (BMY) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $12.2B, up 9% year-over-year (11% ex-FX), driven by strong Growth Portfolio and Eliquis performance, partially offset by Revlimid declines.

• Growth Portfolio revenues increased 18% year-over-year (21% ex-FX), now comprising 46% of total sales, with standout gains in oncology, hematology, and immunology.

• Multiple regulatory approvals and clinical milestones achieved, including Breyanzi, Augtyro, and Krazati, with pipeline momentum and key upcoming FDA decisions.

• Major acquisitions completed: Karuna ($14B), RayzeBio ($4.1B), and Mirati ($4.8B), expanding the pipeline in neuroscience and oncology.

• Strategic focus remains on transformational medicines, operational excellence, disciplined capital allocation, and a $1.5B cost-saving initiative to drive long-term growth.

Financial highlights

• Q2 2024 total revenues: $12.2B, up 9% year-over-year; Growth Portfolio sales up 18% to $5.6B (21% ex-FX); Legacy Portfolio up 2% to $6.6B.

• Non-GAAP EPS was $2.07 (up from $1.75); GAAP EPS was $0.83 (down from $0.99); gross margin (non-GAAP) improved to 75.6%.

• Operating margin reached ~40% in Q2, supported by favorable expenses and product mix.

• Operating cash flow was $2.3B in Q2; net debt increased to $45.4B due to acquisitions.

• R&D expenses increased 28% to $2.9B (GAAP) due to IPRD impairment; non-GAAP R&D remained flat at $2.3B.

Outlook and guidance

• 2024 total revenues expected at the upper end of low single-digit growth, both reported and Ex-FX.

• Non-GAAP EPS guidance raised to $0.60–$0.90 for 2024; non-GAAP gross margin expected between 74% and 75%.

• Operating margin target of at least 37% for the year remains unchanged.

• $1.5B annual cost savings expected by end of 2025, with majority reinvested in growth.

• Guidance excludes future acquisitions, divestitures, and unquantified specified items.