Bristol-Myers Squibb Company

(New York Stock Exchange)
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Slightly Bearish -20

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

Drug pricing Patent expiry AI-generated analysis

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

πŸ’° The company returned to profitability in FY 2025 with net income of approximately $7.1 billion and a net margin of roughly 15%.

🏦 As of December 2025, BMY maintained a debt-to-equity ratio of nearly 2.6x and generated free cash flow of around $12.8 billion.

πŸ“ˆ Analysts forecast revenue growth of 3% to approximately $49.8 billion for the current fiscal year with net income rising over 40% to $11.2 billion.

⚠️ BMY faces significant pressure from the U.S. Inflation Reduction Act, which allows government price negotiations on top-selling drugs.

πŸ“‰ The company is exposed to patent expirations that lead to rapid revenue declines as generic competitors enter the market.

πŸ”¬ Bristol Myers Squibb recently ended a manufacturing partnership for its Breyanzi platform due to difficulties in scaling complex cell therapies.

πŸ’Έ Valuation metrics indicate BMY has lower Forward P/E and P/S ratios compared to Eli Lilly, reflecting a cheaper stock price.

πŸ“‰ The article concludes that despite low ratios, the stock is not an obvious buy right now due to a hard-to-predict recovery timeline.

Bullish Signals
  • Bristol Myers Squibb returned to profitability in FY 2025 with net income of approximately $7.1 billion after a significant loss in the previous fiscal year.
  • The company generated strong free cash flow of around $12.8 billion, providing ample room for dividends and financial flexibility.
  • Analysts project revenue to edge up 3% to roughly $49.8 billion in the current fiscal year with net income rising more than 40% to $11.2 billion.
Risk Factors
  • Bristol Myers Squibb faces significant pressure from the U.S. Inflation Reduction Act, which allows the government to negotiate prices for its top-selling drugs.
  • The company deals with the constant threat of patent expirations, where losing exclusivity leads to rapid revenue declines as generic competitors enter the market.
  • Clinical trial failures or safety warnings on advanced therapies pose risks to BMY's long-term growth pipeline and ability to replace aging brands.
  • The company recently ended a manufacturing partnership for its Breyanzi platform, highlighting the difficulty of scaling complex cell therapies in a competitive market.
Full Analysis
The article compares Bristol Myers Squibb (BMY) and Eli Lilly (LLY), positioning BMY as a deep-value dividend payer with a maturing portfolio focused on oncology and hematology blockbusters like Eliquis and Opdivo. In contrast, LLY is characterized as a high-growth juggernaut driven by its dominant position in metabolic treatments for weight loss and diabetes. Bristol Myers Squibb reported FY 2025 revenue of approximately $48.2 billion, a slight decline of 0.2%, but achieved a net income of roughly $7.1 billion, marking a return to profitability after a prior year's loss with a net margin near 15%. The company maintains a debt-to-equity ratio of nearly 2.6x and generated free cash flow of around $12.8 billion. Looking forward, analysts project BMY revenue to edge up 3% to roughly $49.8 billion in the current fiscal year, with net income expected to rise more than 40% to $11.2 billion. However, the article notes that while the stock appears cheap due to lower valuation multiples, investors have priced in significant difficulties ahead, making it a less obvious buy compared to LLY's explosive growth trajectory. The text highlights specific risks for BMY, including pressure from the U.S. Inflation Reduction Act regarding price negotiations and the constant threat of patent expirations leading to rapid revenue declines. Additionally, the company recently ended a manufacturing partnership for its Breyanzi platform, signaling challenges in scaling complex cell therapies and a strategic shift toward internal capabilities.