Underweight Rating Stays as Bristol-Myers Squibb Growth Hits 15%
Morgan Stanley kept an Underweight rating on Bristol-Myers Squibb despite a 15% growth in its fourth-quarter growth portfolio. The company's total Q4 revenue held at $12.5 billion as that increase nearly offset a $4 billion legacy portfolio decline.
1. Morgan Stanley Maintains Rating
Morgan Stanley maintained its Underweight rating on Bristol-Myers Squibb, citing robust execution in its growth portfolio but signaling concerns over loss-of-exclusivity pressures on legacy products. The firm advised investors to hold shares as the company focuses on pipeline catalysts and newer brands.
2. Fourth-Quarter Financial Results
In Q4 2025, Bristol-Myers Squibb’s growth portfolio expanded by 15% year-over-year, nearly balancing a $4 billion decline from its legacy portfolio. Total revenue remained stable at $12.5 billion, reflecting resilience in newer medicines amid broader industry challenges.
3. Strategic Outlook and Cost Discipline
Management emphasized strict cost management to counterbalance LOE headwinds and highlighted late-stage pipeline catalysts as key drivers for 2026 growth. The company plans to leverage its innovative medicines and disciplined spending to support future earnings.