Bristol-Myers Squibb Co. (NYSE:BMY) delivered a third-quarter 2026 beat on both earnings and revenue Thursday, and the story is familiar: newer medicines are doing the heavy lifting.

The pharmaceutical giant posted adjusted earnings of $1.35 per share, comfortably ahead of the $1.17 analysts were expecting. Revenue climbed 7% year over year to $13.07 billion, also topping Wall Street's $12.74 billion estimate.

Growth Portfolio Drives Revenue

The Growth Portfolio brought in $7.7 billion, up 12%, fueled by strong performances from Opdivo Qvantig, Breyanzi, Reblozyl, Camzyos and Opdualag. Meanwhile, the Legacy Portfolio rose 1% to $5.4 billion, with Eliquis sales helping to offset the ongoing pressure from generic competition across other established products.

Profit Margins Narrow

Margins took a hit. GAAP gross margin contracted to 68.3% from 71.9% a year earlier, and adjusted gross margin fell to 68.4% from 72.9%. The company attributed the declines primarily to changes in product mix and a one-time charge related to a contract termination.

"We are entering the final quarter of the year with real momentum. Our growth portfolio is performing well. We're advancing our pipeline with meaningful wins and remain highly disciplined in ensuring our cost structure is aligned with our revenue base," said Chris Boerner, chair and CEO.

During Thursday's earnings call, Bristol-Myers Squibb said artificial intelligence is already accelerating its drug research and development efforts, with measurable results beginning to emerge.

"Through AI we are accelerating actually our research and development projects. This is now a concrete factor that we can start to measure," said Cristian Massacesi, chief medical officer and head of global drug development.

Boerner said the company is targeting a 20% to 30% reduction in drug testing timelines and aims to cut in half the time between drug target selection and identification of a lead molecule.

Bristol-Myers Raises Sales Outlook, Cuts Profit Forecast

Bristol-Myers lowered its fiscal 2026 adjusted earnings forecast to $6.35-$6.55 per share from $6.75-$7, compared with analysts' estimate of $6.54.

However, the company raised its full-year revenue forecast to $49.75 billion-$50.25 billion from $49 billion-$50 billion, compared with Wall Street's estimate of $49.89 billion.

David Elkins, executive vice president and chief financial officer, said business development remains a priority as the company evaluates opportunities in its core therapeutic areas while maintaining its dividend commitment.

BMY Price Action: Bristol-Myers Squibb shares were down 0.18% at $60.46 at the time of publication on Thursday, according to market data.