Stock Markets February 5, 2026

Bristol Myers Sees Strong 2026; Eliquis Price Cut Positioned as Growth Engine

Drugmaker projects revenue above Street estimates and reports quarterly beat driven by Opdivo sales

By Nina Shah
Bristol Myers Sees Strong 2026; Eliquis Price Cut Positioned as Growth Engine

Bristol Myers Squibb forecast 2026 revenue and adjusted earnings above Wall Street expectations, attributing anticipated growth to a strategic price reduction for blood thinner Eliquis and sustained strength in cancer therapy Opdivo. The company also disclosed progress on cost-savings and a reduction in research spending for 2025.

Key Points

  • Bristol Myers forecast 2026 revenue of $46.0 billion to $47.5 billion, above the $44.2 billion consensus estimate.
  • Eliquis is expected to grow 10% to 15% in 2026 after price reductions and strategies to avoid Medicare penalties; Opdivo sales rose 9% in Q4 to $2.69 billion, contributing to a quarterly revenue beat.
  • Company achieved $1 billion of a planned $2 billion cost-savings program and cut research and development spending by 18% in 2025.

Bristol Myers Squibb on Thursday set 2026 targets that exceed analysts' estimates, saying it expects a price cut for its blood thinner Eliquis to support higher revenue next year. The company projected total revenue for 2026 in a range of $46.0 billion to $47.5 billion, compared with a consensus forecast of $44.2 billion, according to LSEG data.

Management expects Eliquis revenue to increase 10% to 15% in 2026. The anticoagulant generated $14.4 billion in revenue in 2025. Analysts had been anticipating a marked decline in sales this year for Eliquis because of the lower list price and the drug's inclusion among the first 10 medicines subject to Medicare price negotiations under the Inflation Reduction Act. Bristol Myers said the lower Eliquis price will help the company avoid penalties imposed by the U.S. government's Medicare program.

"The broader pricing dynamics starting this year for Eliquis really was the impetus to reevaluate our pricing strategy," Chief Commercialization Officer Adam Lenkowsky said in an interview. "Eliquis will be an important driver of growth in 2026." Bristol Myers sells Eliquis in partnership with Pfizer Inc. The two firms announced plans in June to begin offering Eliquis directly to cash-paying U.S. patients at a discount of more than 40%, and they implemented a January 1 price reduction for commercial patients.


Earnings and quarterly results

For 2026 Bristol Myers expects adjusted earnings per share of $6.05 to $6.35, above the consensus analyst estimate of $6.02. The company also reported fourth-quarter results that topped Street estimates, driven by strong performance from the cancer immunotherapy Opdivo.

Quarterly adjusted earnings came in at $1.26 per share, ahead of an average analyst projection of $1.12. Quarterly revenues rose 1% to $12.5 billion, beating a consensus forecast of $12.28 billion.

Opdivo sales increased 9% to $2.69 billion, exceeding forecasts of $2.34 billion, and the newly available subcutaneous formulation contributed an additional $133 million. Lenkowsky attributed Opdivo's quarterly strength to demand related to new indications for the drug and to robust market share in first-line lung cancer treatment.


Cost savings and investment trends

Chief Financial Officer David Elkins said the company’s cost-reduction program has realized $1 billion of planned savings so far, against a target of $2 billion in total. The company reported an 18% reduction in research and development spending in 2025 versus the prior year.


Implications and context

Bristol Myers' guidance and quarterly beat reflect management's view that a lower Eliquis price, combined with continued Opdivo momentum and cost savings, can lift revenue and earnings in 2026. The company’s actions on pricing and direct-to-patient discounts for Eliquis, together with the Medicare negotiation environment, are central elements of its planning for next year.

Investors will be watching execution of the remaining cost-savings plan and any further developments related to Eliquis pricing and Medicare negotiations as the company moves into 2026.

Risks

  • Analysts had expected Eliquis sales to fall significantly this year due to the lower price and its inclusion among the first 10 medicines subject to Medicare price negotiations under the Inflation Reduction Act - this creates uncertainty around sales trajectory despite the companys forecast.
  • Only half of the planned $2 billion in cost savings has been realized so far, leaving execution risk for the remaining $1 billion in targeted savings.
  • An 18% reduction in research and development spending in 2025 reduces visibility on near-term investment in the pipeline and could affect future product development plans.

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