Biopharmaceutical company Bristol Myers Squibb (NYSE: BMY) beat Wall Street’s revenue expectations in Q3 2026, with revenue up 6.9% year on year to $13.07 billion. The company expects the full year’s revenue to be around $50 billion, close to analysts’ consensus estimates. Its non-GAAP profit of $1.35 per share was 12.4% above analysts’ consensus estimates.
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Bristol-Myers Squibb (BMY) Q3 2026 highlights:
- Revenue $13.07 billion vs S&P analysts’ consensus estimates of $12.71 billion (6.9% year-on-year growth, 2.9% beat)
- Adjusted EPS $1.35 vs S&P analysts’ consensus estimates of $1.20 (12.4% beat)
- Revenue guidance The company lifted its revenue guidance for the full year to $50 billion at the midpoint from $49.5 billion, a 1% increase
- Adjusted EPS guidance Management lowered its full-year adjusted EPS guidance to $6.45 at the midpoint, a 6.2% decrease
- Operating margin 19.4%, down from 24.6% in the same quarter last year
- Market capitalization $123.7 billion
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Bristol-Myers Squibb’s revenue grew at a tepid 1.9% annualized rate over the last five years, falling below our standards.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Bristol-Myers Squibb’s annualized revenue growth of 2.7% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
Bristol-Myers Squibb also breaks out the revenue for its most important segment, Growth Portfolio. Over the last two years, Bristol-Myers Squibb’s Growth Portfolio revenue averaged 15.2% year-on-year growth. This segment has outperformed its total revenue during the same period, lifting the company’s performance. 
This quarter, Bristol-Myers Squibb reported year-on-year revenue growth of 6.9%, and its $13.07 billion of revenue exceeded Wall Street’s consensus estimates by 2.9%.
Looking ahead, sell-side analysts expect revenue to decline by 3.1% over the next 12 months, according to S&P, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will see some demand headwinds.
Adjusted operating margin
Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.
Bristol-Myers Squibb has performed well over the last five years. It demonstrated strong profitability for a healthcare business, with an average adjusted operating margin of 30.2%.
Analyzing the trend in its profitability, Bristol-Myers Squibb’s adjusted operating margin decreased by 11.7 percentage points over the last five years, but it rose by 19.7 percentage points on a two-year basis. Still, shareholders will want to see Bristol-Myers Squibb become more profitable in the future.
In Q3, Bristol-Myers Squibb reported an adjusted operating margin of 19.4%, down 13.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings per share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Bristol-Myers Squibb’s EPS declined by 2.7% annually over the last five years while its revenue grew by 1.9%. This indicates the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes.
We can take a deeper look into Bristol-Myers Squibb’s earnings to better understand the drivers of its performance. As we mentioned earlier, Bristol-Myers Squibb’s adjusted operating margin declined by 11.7 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q3, Bristol-Myers Squibb reported adjusted EPS of $1.35, down from $1.63 in the same quarter last year. Despite falling year on year, this result comfortably exceeded analysts’ consensus estimates. Over the next 12 months, Wall Street expects Bristol-Myers Squibb’s full-year EPS to grow 4.2% from $6.23 to $6.49, according to S&P.
Key takeaways from Bristol-Myers Squibb’s Q3 results
Bristol-Myers Squibb’s revenue and EPS beat consensus estimates in Q3, but its full-year EPS guidance fell slightly short. The quarter had some key positives despite that guidance shortfall. Shares edged higher 1.3% to $61.35 immediately after the report.
When deciding whether to buy the stock, consider valuation, business quality and the latest earnings. For more on these factors, read the full research report here (it’s free).
