Bristol-Myers Squibb Company

New York Stock Exchange
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Somewhat Bullish +45

Bristol Myers Squibb vs. Pfizer: Which Healthcare Stock Is a Better Buy in 2026?

Patent expiry AI-generated analysis

📈 Bristol Myers Squibb reported FY 2025 revenue of nearly $48.2 billion, representing a slight decline of 0.2% compared to the prior year.

💰 The company generated net income close to $7.1 billion in FY 2025, resulting in a net margin of 14.6%.

📉 BMY's debt-to-equity ratio stood at 2.6x as of December 2025, indicating significant leverage relative to shareholder equity.

💵 Free cash flow for Bristol Myers Squibb was roughly $12.8 billion in the latest fiscal year.

⚖️ The company faces intense pricing pressure from government-mandated controls and the Inflation Reduction Act.

⚠️ Significant revenue risks exist as major products lose patent exclusivity and face generic competition.

⚖️ Ongoing litigation adds uncertainty, including a $6.7 billion legal challenge and a lawsuit from Cytokinetics.

📈 BMY just raised its full-year revenue outlook, signaling improved near-term business performance.

🚀 Newer growth brands grew at an impressive pace last quarter, defying analyst expectations for Eliquis.

🏆 The Motley Fool Stock Advisor team identified Bristol Myers Squibb as a more compelling near-term bet than its beaten-down stock price implies.

Bullish Signals
  • Bristol Myers Squibb just raised its full-year revenue outlook, indicating strong management confidence in near-term performance.
  • Newer growth brands grew at an impressive pace last quarter, demonstrating successful portfolio expansion.
  • Eliquis is defying expectations with growth well above what analysts projected, providing a solid earnings anchor.
  • The company achieved a significant recovery in net income, moving from a net loss in the previous fiscal year to $7.1 billion in FY 2025.
  • Analysts view BMY as a compelling near-term bet that is delivering tangible results despite a beaten-down stock price.
Risk Factors
  • The company faces intense pricing pressure from government-mandated controls and the Inflation Reduction Act, which could compress margins.
  • Significant revenue risks exist as major products lose patent exclusivity and face generic competition, threatening future growth.
  • Ongoing litigation adds substantial uncertainty, including a $6.7 billion legal challenge and a lawsuit from Cytokinetics.
  • The debt-to-equity ratio of 2.6x indicates high leverage, which may limit financial flexibility compared to peers like Pfizer.
Full Analysis
The article compares Bristol Myers Squibb (BMY) and Pfizer, noting BMY's focus on oncology and immunology versus Pfizer's transformation into high-growth areas like obesity. In fiscal year 2025, BMY reported revenue of nearly $48.2 billion, a slight decline of 0.2%, with net income of approximately $7.1 billion and a net margin of 14.6%. This performance marks a recovery from the previous year's net loss. Bristol Myers Squibb maintains a debt-to-equity ratio of 2.6x and a current ratio of 1.3x, with free cash flow reaching roughly $12.8 billion. The company faces challenges including pricing pressure from government mandates, patent expirations on blockbuster drugs, and ongoing litigation involving a $6.7 billion legal challenge and a lawsuit from Cytokinetics. Analysts suggest BMY is a compelling near-term bet due to raised full-year revenue outlooks and impressive growth in newer brands, with Eliquis defying expectations. However, the article notes that BMY was not included in The Motley Fool Stock Advisor's list of top 10 stocks for immediate purchase, contrasting its short-term strength with Pfizer's longer-term transformational potential.