Bristol-Myers Squibb Company (BMY) Q4 2024 earnings summary

Executive summary

• Growth portfolio revenues increased 21% year-over-year in Q4 2024, or 23% excluding foreign exchange impacts, with full-year growth portfolio revenues up 17% (19% ex-FX), driven by strong performance from new and key brands and a re-established presence in neuroscience.

• Achieved strong execution in 2024, including double-digit growth in the portfolio, key product launches such as Cobenfy for schizophrenia, and U.S. approval for Opdivo SC, marking a return to neuroscience.

• Accelerated late-stage pipeline programs, with several data readouts and regulatory milestones expected in 2025 and 2026.

• Majority of a $1.5B cost savings program achieved, with reinvestment behind growth brands and pipeline acceleration; expanded strategic productivity initiative targets an additional $2B in cost savings by 2027, with $1B to be realized in 2025.

• Major one-time IPR&D charges in FY 2024 from Karuna and Systimmune deals significantly impacted GAAP results.

Financial highlights

• Q4 2024 total revenues were $12.3B, with full-year revenues at $48.3B; Q4 U.S. revenues increased 9% to $8.6B, international revenues up 5% to $3.7B (9% ex-FX).

• Q4 2024 non-GAAP gross margin was 74.0%, and full-year non-GAAP gross margin was 75.3%; Q4 GAAP gross margin fell to 61.0% due to intangible asset impairments and product mix.

• Q4 2024 non-GAAP diluted EPS was $1.67; full-year non-GAAP diluted EPS was $1.15; Q4 GAAP diluted EPS was $0.04; full-year GAAP diluted EPS was $(4.41), impacted by one-time IPR&D charges.

• Q4 2024 non-GAAP operating expenses were $4.9B; full-year: $17.8B.

• Ended 2024 with $10.3B–$11.2B in cash and marketable securities; generated $4.3B–$4.4B in Q4 operating cash flow.

Outlook and guidance

• 2025 revenue guidance is approximately $45.5B, reflecting generic headwinds and growth portfolio strength; non-GAAP EPS for 2025 expected in the range of $6.55–$6.85.

• Gross margin for 2025 projected at 72%, with operating expenses of $16B, incorporating productivity savings.

• Legacy portfolio expected to decline 18–20% due to loss of exclusivity and FX headwinds; growth brands to partially offset.

• Cost savings of $1B expected in 2025 from the expanded program, with another $1B by 2027.

• Multiple data catalysts and potential for 10+ new medicines and 30+ indication expansions over five years.