Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Bristol-Myers Squibb Co., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net product sales	46,756)	46,778)	43,778)	44,671)	45,055)
Alliance and other revenues	1,438)	1,522)	1,228)	1,488)	1,330)
Revenues	48,194)	48,300)	45,006)	46,159)	46,385)
Cost of products sold, excludes amortization of acquired intangible assets	(13,936)	(13,968)	(10,693)	(10,137)	(9,940)
Gross margin	34,258)	34,332)	34,313)	36,022)	36,445)
Marketing, selling and administrative	(7,267)	(8,414)	(7,772)	(7,814)	(7,690)
Research and development	(9,951)	(11,159)	(9,299)	(9,509)	(10,195)
Acquired IPRD	(3,721)	(13,373)	(913)	(815)	(1,159)
Amortization of acquired intangible assets	(3,317)	(8,872)	(9,047)	(9,595)	(10,023)
Operating income (loss)	10,002)	(7,486)	7,282)	8,289)	7,378)
Interest expense	(1,891)	(1,947)	(1,166)	(1,232)	(1,334)
Royalty income, divestitures	1,129)	1,104)	862)	832)	666)
Royalty and licensing income	1,093)	736)	1,488)	1,283)	1,067)
Investment income	586)	478)	449)	171)	39)
Provision for restructuring	(563)	(635)	(365)	(75)	(169)
Litigation and other settlements	(434)	(84)	390)	(178)	(82)
Loss on debt redemption	(356)	—)	—)	(266)	(281)
Contingent consideration	(351)	—)	—)	—)	—)
Equity investment gains (losses), net	280)	16)	(160)	(801)	745)
Integration expenses	(147)	(284)	(242)	(440)	(564)
Acquisition expense	(9)	(50)	(32)	—)	—)
Other	(11)	(227)	(66)	130)	633)
Other income (expense), net	(674)	(893)	1,158)	(576)	720)
Earnings (loss) before income taxes	9,328)	(8,379)	8,440)	7,713)	8,098)
Income tax provision	(2,273)	(554)	(400)	(1,368)	(1,084)
Net earnings (loss)	7,055)	(8,933)	8,040)	6,345)	7,014)
Noncontrolling interest	(1)	(15)	(15)	(18)	(20)
Net earnings (loss) attributable to BMS	7,054)	(8,948)	8,025)	6,327)	6,994)

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 financial performance presented demonstrates considerable fluctuation over the five-year period. Revenues initially declined from 2021 to 2023, before exhibiting growth in 2024 and 2025. However, profitability experienced more pronounced volatility, with a significant loss reported in 2024.

Revenue Analysis: Revenues decreased from US$46,385 million in 2021 to US$45,006 million in 2023, representing a cumulative decline. A subsequent increase to US$48,300 million in 2024 and a slight decrease to US$48,194 million in 2025 indicates a recovery, though not to the levels seen in 2021. Net product sales generally mirrored this trend, with a modest increase in 2024 and 2025. Alliance and other revenues remained relatively stable, with a slight decrease in 2025.
Cost of Goods Sold and Gross Margin: Cost of products sold consistently increased from 2021 to 2024, rising substantially to US$-13,968 million. While decreasing slightly in 2025 to US$-13,936 million, it remained significantly higher than in prior years. Consequently, gross margin decreased from US$36,445 million in 2021 to US$34,313 million in 2023, before stabilizing around US$34.3 billion in 2024 and 2025. The increasing cost of products sold appears to be a key factor impacting profitability.
Operating Income: Operating income exhibited significant volatility. It increased from US$7,378 million in 2021 to US$8,289 million in 2022, then decreased to US$7,282 million in 2023. A substantial loss of US$-7,486 million was recorded in 2024, followed by a recovery to US$10,002 million in 2025. The large operating loss in 2024 is primarily attributable to a significant increase in Acquired IPRD expense, which reached US$-13,373 million. This expense decreased substantially in 2025, contributing to the return to profitability.
Below Operating Income Items: Interest expense increased steadily over the period, from US$-1,334 million in 2021 to US$-1,947 million in 2024, and then slightly decreased to US$-1,891 million in 2025. Royalty income and investment income generally increased over the period, providing some offset to the increasing interest expense. However, restructuring provisions, litigation settlements, and losses on debt redemption contributed to volatility in earnings before income taxes. Other income (expense), net, fluctuated significantly, with a large expense recorded in 2024.
Net Earnings: Net earnings mirrored the volatility observed in operating income. A loss of US$-8,933 million was recorded in 2024, a substantial decline from the US$7,014 million earned in 2021. Net earnings attributable to the company followed a similar pattern, with a return to profitability in 2025, reaching US$7,054 million. The income tax provision also fluctuated, with a significant increase in 2025.

In summary, the period was characterized by revenue fluctuations, increasing costs, and significant volatility in profitability, culminating in a substantial loss in 2024 before a recovery in 2025. The large expense related to Acquired IPRD in 2024 was a primary driver of the loss, and its subsequent decrease contributed to the improved performance in 2025.

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Bristol-Myers Squibb Co. (NYSE:BMY)

Income Statement