Bristol-Myers Squibb Company (BMY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached $11.9 billion, up 8% year-over-year, or 10% excluding FX, driven by strong Growth Portfolio and Eliquis sales, partially offset by generic erosion in Sprycel and Revlimid.

• Growth Portfolio revenues rose 18% year-over-year, or 20% ex-FX, now representing about half of total revenues, led by Reblozyl, Breyanzi, Camzyos, and Opdualag.

• U.S. approval and launch of Cobenfy for schizophrenia re-established neuroscience presence, with broad payer engagement and multi-billion-dollar potential.

• Major 2024 acquisitions, including Karuna, RayzeBio, and Mirati, expanded the neuroscience and oncology pipelines.

• Focus remains on innovation, operational excellence, and strategic capital allocation for long-term growth.

Financial highlights

• Q3 2024 total revenues were $11.9B (up 8% YoY); non-GAAP EPS was $1.80, GAAP EPS was $0.60, both impacted by acquired IPRD charges and higher interest expense.

• Gross margin declined to 75.1% GAAP (from 77.1%) and 76.0% non-GAAP (from 77.3%) due to product mix.

• Operating cash flow for Q3 was $2.8B; cash and equivalents at quarter-end were $8.4B.

• Effective tax rate increased to 27.5% GAAP (from 9.5%) and 18.5% non-GAAP (from 11.6%), reflecting jurisdictional mix and IRS guidance.

• Net debt position as of September 30, 2024, was $41.3B, up from $27.1B at year-end 2023, mainly from acquisitions.

Outlook and guidance

• 2024 revenue guidance raised to approximately 5% growth (6% ex-FX); non-GAAP EPS range increased to $0.75–$0.95.

• Gross margin expected between 74–75%; operating expenses to rise 4–5% in Q4 to support portfolio and pipeline.

• $1.5B in annual cost savings targeted by end of 2025, with most reinvested in innovation and growth.

• Continued focus on delivering $10B in debt reduction by first half of 2026.

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