Bristol-Myers Squibb Stock Falls 4.2% Amid Q2 Earnings Beat and Lowered Full-Year Guidance

Bristol-Myers Squibb (BMY) shares fell 4.2% after the company lowered its full-year earnings forecast due to a $0.57 per share charge from a partnership with BioNTech. The drugmaker's results revealed underlying weakness, with sales from older drugs declining 14% due to generic competition, and revenue from cancer drug Revlimid plunging 38% YoY. Despite raising its annual sales forecast, the reduced profit outlook soured investor sentiment.

Bristol-Myers Squibb (BMY) shares experienced a significant drop of 4.2% in the afternoon session on July 2, 2025, following the company's announcement of a lowered full-year earnings forecast. The drugmaker attributed the cut to a $0.57 per share charge from its partnership with BioNTech, which also impacted its second-quarter net income. This charge, combined with a 14% decline in sales from older drugs due to generic competition, particularly a 38% year-over-year (YoY) plunge in revenue from its cancer drug Revlimid, contributed to the reduced profit outlook and soured investor sentiment [1].

Despite the company raising its annual sales forecast, the market reacted negatively to the news. Bristol-Myers Squibb's shares are not typically volatile, with only four significant price movements greater than 5% in the past year. However, today's drop indicates that the market considers this news meaningful and potentially impactful on the company's long-term prospects [1].

The broader market context also played a role in the stock's decline. A sharp escalation in trade tensions, with the U.S. administration threatening new tariffs on Canada, contributed to a broad market downturn. The healthcare sector, particularly pharmaceutical companies with integrated supply chains with Canada, was significantly impacted. Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges further compounded the sector's decline [1].

Investors who bought $1,000 worth of Bristol-Myers Squibb's shares five years ago would now be looking at an investment worth $743.69, reflecting a 23.2% decline since the beginning of the year. At $43.64 per share, the stock is trading 30.9% below its 52-week high of $63.11 [1].

References:
[1] https://stockstory.org/us/stocks/nyse/bmy/news/why-up-down/why-bristol-myers-squibb-bmy-stock-is-trading-lower-today