Stock Analysis on Net
Stock Analysis on Net

Bristol-Myers Squibb Co. (NYSE:BMY)

Common-Size Income Statement 

Bristol-Myers Squibb Co., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Net product sales 97.02 96.85 97.27 96.78 97.13
Alliance and other revenues 2.98 3.15 2.73 3.22 2.87
Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of products sold, excludes amortization of acquired intangible assets -28.92 -28.92 -23.76 -21.96 -21.43
Gross margin 71.08% 71.08% 76.24% 78.04% 78.57%
Marketing, selling and administrative -15.08 -17.42 -17.27 -16.93 -16.58
Research and development -20.65 -23.10 -20.66 -20.60 -21.98
Acquired IPRD -7.72 -27.69 -2.03 -1.77 -2.50
Amortization of acquired intangible assets -6.88 -18.37 -20.10 -20.79 -21.61
Operating income (loss) 20.75% -15.50% 16.18% 17.96% 15.91%
Interest expense -3.92 -4.03 -2.59 -2.67 -2.88
Royalty income, divestitures 2.34 2.29 1.92 1.80 1.44
Royalty and licensing income 2.27 1.52 3.31 2.78 2.30
Investment income 1.22 0.99 1.00 0.37 0.08
Provision for restructuring -1.17 -1.31 -0.81 -0.16 -0.36
Litigation and other settlements -0.90 -0.17 0.87 -0.39 -0.18
Loss on debt redemption -0.74 0.00 0.00 -0.58 -0.61
Contingent consideration -0.73 0.00 0.00 0.00 0.00
Equity investment gains (losses), net 0.58 0.03 -0.36 -1.74 1.61
Integration expenses -0.31 -0.59 -0.54 -0.95 -1.22
Acquisition expense -0.02 -0.10 -0.07 0.00 0.00
Other -0.02 -0.47 -0.15 0.28 1.36
Other income (expense), net -1.40% -1.85% 2.57% -1.25% 1.55%
Earnings (loss) before income taxes 19.36% -17.35% 18.75% 16.71% 17.46%
Income tax provision -4.72 -1.15 -0.89 -2.96 -2.34
Net earnings (loss) 14.64% -18.49% 17.86% 13.75% 15.12%
Noncontrolling interest 0.00 -0.03 -0.03 -0.04 -0.04
Net earnings (loss) attributable to BMS 14.64% -18.53% 17.83% 13.71% 15.08%

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The common-size income statement reveals significant fluctuations in profitability and expense management over the five-year period. While net product sales consistently represent the vast majority of revenues, remaining between 96.78% and 97.27%, shifts in cost structure and other income/expense items drive substantial changes in overall financial performance.

Gross Profitability
Gross margin demonstrates a declining trend from 78.57% in 2021 to 71.08% in both 2024 and 2025. This decrease is primarily attributable to a substantial increase in the cost of products sold, which moved from -21.43% of revenues in 2021 to -28.92% in 2024 and remained at that level in 2025. This suggests increasing production costs or pricing pressures.
Operating Performance
Operating income exhibits considerable volatility. It increased from 15.91% in 2021 to 17.96% in 2022, then decreased to -15.50% in 2024 before recovering to 20.75% in 2025. This fluctuation is heavily influenced by the 'Acquired IPRD' and 'Amortization of acquired intangible assets' lines, particularly in 2024, where 'Acquired IPRD' reached -27.69% of revenues. Marketing, selling, and administrative expenses remained relatively stable as a percentage of revenue until 2025, when they decreased significantly to 15.08%.
Non-Operating Items
Several non-operating items contribute to the overall earnings picture. Interest expense gradually increased from -2.88% to -4.03% before decreasing slightly to -3.92% in 2025. Royalty income and licensing income show some variability, while investment income generally increased over the period. Notably, 'Litigation and other settlements' and 'Integration expenses' fluctuate, impacting earnings in different years. 'Other income (expense), net' also demonstrates volatility, moving from positive to negative values.
Net Earnings
Net earnings attributable to the company follow a similar pattern to operating income, declining to a loss of -18.53% in 2024 before recovering to 14.64% in 2025. The income tax provision as a percentage of revenues also varied, being most impactful in 2025 at -4.72%. The noncontrolling interest remains consistently small.

Overall, the financial performance of the company is sensitive to changes in the cost of products sold, acquired intangible asset related expenses, and various non-operating items. The significant swing to a loss in 2024, followed by a recovery in 2025, warrants further investigation into the underlying drivers of these fluctuations.

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