Bristol-Myers Squibb Company

(New York Stock Exchange)
Back to all articles
Slightly Bullish +15

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

Dividend AI-generated analysis

πŸ“Š Bristol-Myers Squibb reported FY 2025 revenue of $48.2 billion, a slight 0.2% decrease compared to the prior year.

πŸ’° The company achieved a net income recovery to approximately $7.1 billion in FY 2025 following a substantial loss the previous fiscal year.

πŸ“‰ Bristol-Myers Squibb faces intense pricing pressure from the Inflation Reduction Act targeting key products like Eliquis and Pomalyst.

βš–οΈ The company is managing a reinstated $6.7 billion lawsuit related to its Celgene acquisition and complex integration of recent deals.

πŸ’Έ Bristol-Myers Squibb holds $11 billion in cash against over $45 billion in debt with an 18.8% profit margin.

πŸš€ Growth portfolio revenues climbed 15% in the second quarter of 2026 to reach $7.6 billion.

πŸ’Ή The stock currently offers a dividend yield of 4.1%, providing solid income for investors.

⚠️ The company faces uncertainty regarding patent expirations for major drugs and legal challenges from generic manufacturers.

πŸ”¬ Key partnerships with BioNTech and the U.S. Government support its global reach and development efforts.

Bullish Signals
  • Bristol-Myers Squibb reported a significant net income recovery to approximately $7.1 billion in FY 2025 after a substantial loss in the prior year.
  • The company's growth portfolio revenues climbed 15% in the second quarter of 2026, reaching $7.6 billion.
  • Bristol-Myers Squibb maintains a strong dividend yield of 4.1%, offering solid income to shareholders.
  • The company holds $11 billion in total cash and has established key partnerships with BioNTech and the U.S. Government.
Risk Factors
  • Bristol-Myers Squibb faces intense pricing pressure from the Inflation Reduction Act targeting key products like Eliquis and Pomalyst.
  • The company is managing a reinstated $6.7 billion lawsuit related to its Celgene acquisition and complex integration of recent acquisitions.
  • Patent expirations for major drugs and legal challenges from generic manufacturers add uncertainty to future revenue streams.
  • The stock appears cheaper on a multiple basis, which may reflect market concerns about finding new drug hits to counter patent cliffs.
Full Analysis
The article compares Bristol-Myers Squibb (BMY) and Johnson & Johnson (JNJ), noting that BMY focuses on specialized biopharmaceuticals in oncology, hematology, and cardiovascular health, while JNJ operates as a diversified conglomerate with significant medical technology segments. In fiscal year 2025, Bristol-Myers Squibb reported revenue of approximately $48.2 billion, a slight decrease of 0.2% from the prior year, alongside a net income recovery to roughly $7.1 billion after a previous loss. Bristol-Myers Squibb holds total cash of $11 billion against over $45 billion in debt, maintaining an 18.8% profit margin and a 34.4% trailing operating margin. The company faces specific headwinds including pricing pressure from the Inflation Reduction Act on key products like Eliquis and Pomalyst, patent expirations for major drugs, and legal challenges regarding its Celgene acquisition integration. In contrast, Johnson & Johnson reported revenue of nearly $94.2 billion in FY 2025, a 6% increase, with net income reaching close to $26.8 billion. JNJ has cash of $20.7 billion and debt exceeding $49 billion, operating with a 16.2% profit margin and a 25% trailing operating margin. The article highlights that BMY offers a higher dividend yield of 4.1%, whereas JNJ is a Dividend King with 64 consecutive years of payout increases. The analysis concludes that while Bristol-Myers Squibb appears cheaper on a multiple basis, it carries risks related to finding new drug hits to counter patent cliffs. Conversely, Johnson & Johnson benefits from larger revenue opportunities and stability following the spin-off of its consumer healthcare division in August 2023, though it faces its own litigation and competition challenges.