BMY
Bristol-Myers Squibb Company
Healthcare · Drug Manufacturers - General · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The composite score of 64/100 reflects a balance between strong momentum and dividend factors offset by weak revenue growth, elevated leverage, and the absence of any macro theme assignment.
- The dramatic net income recovery and peak 2026Q1 earnings contributed positively, while stagnant top-line revenue and a debt-to-equity ratio of 2.43 weighed on the overall assessment.
- The lack of any macro theme assignment meant the company received no theme-related score credit, capping the total score despite solid profitability metrics.
Why Not Higher
- Revenue growth is effectively zero (-0.2% year-over-year), and the elevated debt-to-equity ratio of 2.43 signals a leveraged balance sheet that constrains the financial health score.
- The absence of a macro theme assignment resulted in zero theme-related score credit, and the 71.5% dividend payout ratio limits the dividend score's upside.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue was essentially flat, declining from FY2024's $48,300,000,000 to FY2025's $48,194,000,000 (-0.2%). However, net income swung dramatically from a FY2024 loss of -$8,948,000,000 to a FY2025 profit of $7,054,000,000 (+178.8%), with diluted EPS similarly recovering from -$4.41 in FY2024 to $3.46 in FY2025 (+178.5%).
The model awarded a moderate score reflecting the tension between stagnant top-line revenue growth and a massive bottom-line recovery; the near-flat revenue tempered what would otherwise have been a higher score driven by the dramatic earnings turnaround.
In FY2025, Bristol-Myers Squibb posted a net margin of 14.6%, an operating margin of 19.4%, and a return on assets of 7.8%.
These metrics indicate solid profitability at both the operating and net levels, and the model rewarded the company's ability to convert revenues into meaningful earnings and generate returns on its asset base.
In FY2025, Bristol-Myers Squibb carried a debt-to-equity ratio of 2.43 against total assets of $90,038,000,000.
A debt-to-equity ratio of 2.43 in FY2025 signals a meaningfully leveraged balance sheet, which the model likely penalized; the large total asset base provides some scale context but does not offset the elevated leverage signal.
Over the last four reported quarters, operating income alternated between lower and higher readings — $1,773,000,000 in 2025Q2, $3,114,000,000 in 2025Q3, $1,470,000,000 in 2025Q4, and $3,240,000,000 in 2026Q1 — with net income following a similar pattern: $1,310,000,000, $2,201,000,000, $1,087,000,000, and $2,677,000,000 respectively. Notably, 2026Q1 operating income of $3,240,000,000 and net income of $2,677,000,000 represent the highest readings in the four-quarter window.
The model appears to have rewarded the strong absolute profitability levels and the fact that the most recent quarter (2026Q1) reached peak earnings within the observed window, even though the quarter-to-quarter pattern shows alternating highs and lows rather than a smooth upward trend.
Bristol-Myers Squibb has grown its dividends per share each year from $2.19 in FY2022 to $2.31 in FY2023, $2.42 in FY2024, and $2.49 in FY2025, while the dividend payout ratio stood at 71.5% of net income in FY2025.
The model rewarded the consistent multi-year dividend growth streak, reflecting a reliable and rising income stream for shareholders; the elevated payout ratio of 71.5% in FY2025 may have modestly constrained the score by signaling limited room for further dividend expansion relative to earnings.
Bristol-Myers Squibb is not currently assigned to any of the 24 tracked macro themes.
Because the security carries no macro theme assignment at this time, it did not receive theme-related score credit under the model's current methodology; this reflects the model's classification state and is not an indicator of the company's business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Bristol-Myers Squibb posted essentially flat revenue of $48.2 billion in FY2025 (-0.2% year-over-year), but achieved a dramatic earnings recovery, swinging from a net loss of $8.9 billion in FY2024 to a net profit of $7.1 billion in FY2025, with a net margin of 14.6% and operating margin of 19.4%. The company maintains a consistent dividend growth track record, raising dividends per share each year from $2.19 in FY2022 to $2.49 in FY2025, though its balance sheet carries meaningful leverage with a debt-to-equity ratio of 2.43. Quarterly momentum shows strong absolute profitability levels, with 2026Q1 representing the peak operating income and net income in the trailing four-quarter window, albeit in an alternating high-low pattern rather than a smooth upward trend.
Plain English
BMY basically stopped growing its sales but turned a massive loss into a solid profit over the past year, pays a steadily rising dividend, and its most recent quarter was its most profitable in the last four — but it carries a lot of debt, which adds risk.
Bull Case vs. Bear Case
Bull Case
- Dramatic earnings turnaround: net income swung from a loss of $8.9 billion in FY2024 to a profit of $7.1 billion in FY2025, with diluted EPS recovering from -$4.41 to $3.46, demonstrating a significant improvement in bottom-line performance.
- Consistent and growing dividend: dividends per share have risen every year from $2.19 in FY2022 to $2.49 in FY2025, providing shareholders with a reliable and rising income stream.
- Strong recent quarterly profitability: 2026Q1 operating income of $3.24 billion and net income of $2.68 billion represent the highest readings in the trailing four-quarter window, suggesting the business is generating meaningful earnings power.
Bear Case
- Revenue growth is essentially nonexistent, with FY2025 revenue of $48.2 billion representing a -0.2% decline from FY2024's $48.3 billion, raising questions about top-line momentum.
- The balance sheet is meaningfully leveraged, with a debt-to-equity ratio of 2.43 in FY2025, which introduces financial risk and limits strategic flexibility.
- The dividend payout ratio stood at 71.5% of net income in FY2025, leaving limited room for further dividend growth relative to earnings and constraining financial flexibility.
What Could Change the Picture
Bullish Triggers
- A sustained acceleration in revenue growth beyond the current near-flat trajectory would signal that the earnings recovery is being matched by genuine top-line expansion.
- A meaningful reduction in the debt-to-equity ratio from its current level of 2.43 would indicate improving balance sheet health and reduce the financial risk profile.
Bearish Triggers
- If the alternating quarterly earnings pattern breaks down and operating income or net income falls below recent lows, it would suggest the profitability recovery is not durable.
- A cut or freeze in the dividend — currently at $2.49 per share after four consecutive years of growth — would signal deteriorating financial confidence from management.
Risk Profile
High RiskBristol-Myers Squibb carries a meaningfully leveraged balance sheet with a debt-to-equity ratio of 2.43 in FY2025, which elevates financial risk. Additionally, quarterly earnings follow an alternating high-low pattern rather than a consistent upward trend, with operating income ranging from $1.47 billion to $3.24 billion across the last four quarters, introducing uncertainty about the stability of near-term profitability.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.