Bristol-Myers Squibb (BMY) has moved back into the spotlight after reporting fourth quarter and full year 2025 results, combining higher profitability, flat annual revenue and fresh guidance that exceeded Wall Street expectations.

The earnings release and 2026 guidance have fed into a sharp rebound in sentiment, with a 90 day share price return of 31.17% and a 1 year total shareholder return of 14.55%, indicating that momentum has recently picked up from a weaker multi year picture.

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With earnings, guidance and the share price all moving, the key question now is whether Bristol-Myers Squibb’s current valuation still reflects caution around its legacy drugs or if the recent rally already captures the potential of its growth portfolio.

Most Popular Narrative: 4.6% Undervalued

With Bristol-Myers Squibb closing at $61.99 against a narrative fair value of $65.00, the current price sits just below where one detailed valuation, according to Evangelos, places it.

2025 Guidance:

• Projected Revenues: Approximately $45.5 billion.

• Non-GAAP EPS: Estimated between $6.55 and $6.85

Curious how a lower revenue outlook can still support a higher fair value per share? The narrative leans heavily on margins, cash flows and a richer future earnings multiple. Want to see how those assumptions fit together in the full model.

Result: Fair Value of $65 (UNDERVALUED)

However, you still have to weigh risks such as execution on the cost saving plan and any setbacks in newer products that underpin the higher assumed P/E.

Build Your Own Bristol-Myers Squibb Narrative

If you look at the numbers and come to a different conclusion, or just prefer to test your own view, you can build a custom Bristol-Myers Squibb story in a few minutes using our tools, starting with Do it your way.

A great starting point for your Bristol-Myers Squibb research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.