A Surprising Turn: Stronger Guidance and Strategic Moves
Bristol-Myers Squibb (BMY) has caught the attention of Wall Street with a series of positive surprises in 2025, prompting analysts to upgrade their outlook on the stock. Despite a 6% year-over-year revenue decline in Q1, the company beat profit expectations and raised both its revenue and earnings guidance for the full year. BMY now expects 2025 revenue between $45.8 and $46.8 billion, and adjusted EPS of $6.70 to $7.00—both up from previous forecasts.
| Metric | Q1 2025 | YoY Change | 2025 Guidance (revised) |
|---|---|---|---|
| Revenue | $11.2B | -6% | $45.8B–$46.8B |
| Non-GAAP EPS | $1.80 | – | $6.70–$7.00 |
| Dividend Yield | $2.48 annualized | – | ~5.3% |
Why the Upgrade? Cost Cuts, Pipeline, and Big Partnerships
Cost discipline: BMY’s improved outlook is driven by aggressive cost-cutting and efficiency gains, helping offset revenue declines.
Growth portfolio: Revenues from newer drugs grew 16% in Q1, showing momentum in areas like oncology and immunology.
Strategic deals: The recent $1.5 billion upfront partnership with BioNTech (potentially worth over $11 billion) gives BMY access to innovative cancer therapies and strengthens its late-stage pipeline.
Dividend appeal: With a 5%+ yield, BMY remains attractive to income investors, even as the payout ratio nears 93%.
What Do Analysts Think?
Price targets: The average 12-month analyst target is $58.71, with some as high as $65—well above the current ~$48 share price.
Consensus: Most analysts rate BMY as a “Hold,” but recent upgrades and positive outlooks suggest growing confidence in a rebound.
Risks: Some caution remains due to competition, high payout ratios, and the need for continued drug innovation.
Expert Opinion: Is It Time to Buy More BMY?
“Bristol-Myers Squibb is showing real signs of a turnaround. Strong cost controls, a deepening pipeline, and major strategic partnerships are offsetting revenue headwinds. The stock’s valuation is compelling, the dividend is generous, and analyst upgrades signal renewed optimism. For long-term investors seeking value and income, BMY looks increasingly attractive—especially if the company delivers on its growth promises.”
Would you add to your BMY position at these levels, or are you waiting for more proof of sustained growth? Share your view in the comments below!
