● AI Equity Research · Healthcare

Bristol-Myers Squibb Company (BMY)

AI stock analysis · Drug Manufacturers - General · Last analyzed Aug 17, 2026

Compass Score

3.0/5

Call

Hold

Price

$63.83

AI Target

$66.21 +3.7%

AI Analyst Summary

Bristol-Myers Squibb presents a compelling value case in large-cap pharma, trading at just 9.7x forward earnings — a steep discount to sector peers — while delivering 153% YoY EPS growth driven by cost optimization and portfolio restructuring post key acquisitions. The company has beaten EPS estimates in each of the last four quarters, underscoring management's execution credibility. The primary risk is patent cliff exposure on flagship drugs like Eliquis and Opdivo, which could pressure revenues as generics enter in the late 2020s.

Catalysts

FDA approval decisions for pipeline assets including Cobenfy (schizophrenia) and milvexian (stroke prevention) could meaningfully expand BMY's addressable market in H2 2024–2025.
Continued margin expansion driven by the $1.5B+ cost-saving program could accelerate forward EPS estimates, narrowing the gap between the 14.1x trailing and 9.7x forward P/E.
Upcoming quarterly earnings report providing updated guidance on late-stage pipeline commercialization timelines and revenue contribution from recently acquired assets (Karuna, RayzeBio).

Fundamentals

Pe Trailing P/E 14.1x / Forward P/E 9.7x · 5.0/5

Trailing P/E of 14.1x is materially below the drug manufacturer sector median, and the forward P/E compressing to 9.7x signals strong earnings visibility. Valuation appears deeply discounted relative to growth prospects.

Peg PEG 2.26 · 2.0/5

PEG of 2.26 is elevated, suggesting the market is pricing in a meaningful premium relative to normalized growth. While the spike in earnings growth flatters the ratio, the underlying PEG points to limited margin of safety on a growth-adjusted basis.

Analyst Rating Hold/Buy consensus (2.5) · 3.0/5

Consensus sits at the boundary of Buy and Hold (2.5) with 10 Buys, 17 Holds, and 1 Sell across 24 analysts. Broad analyst coverage is constructive but the heavy Hold weighting tempers conviction.

Earnings Trend EPS Growth +153.1% YoY · 4.0/5

Earnings growth of 153.1% YoY is exceptional, though likely elevated due to prior-year comparisons or one-time items. Revenue growth of 5.7% YoY is modest, suggesting the earnings surge is margin/cost-driven rather than purely top-line. Growth trajectory is strong but sustainability warrants monitoring.

Price Target Beat 4 of 4 quarters beat (last 4Q) · 4.0/5

A perfect 4-for-4 EPS beat rate over the last four quarters reflects consistent execution. Only four quarters of data limits the score from reaching the top tier, but the trend is clearly positive.

Management Consistent Execution · 4.0/5

A 100% EPS beat rate over the available four quarters, combined with significant margin expansion driving triple-digit earnings growth, signals strong operational discipline. Analyst coverage depth (24 analysts) adds credibility to management's guidance reliability.

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