By Josh Nathan-Kazis and Mackenzie Tatananni

First-quarter results from Bristol Myers Squibb beat expectations, but the stock finished roughly flat Thursday amid mounting worries about the company's growth prospects.

The new earnings report came a day after Bristol shares fell 2.6% on disappointing data on its schizophrenia medicine Cobenfy, which undermined hopes that the drug could grow into a mega-blockbuster.

Shares closed up 0.3% on Thursday. Bristol stock is down 13.9% this year.

Bristol said Thursday that its non-GAAP earnings were $1.80 per share in the first quarter, beating the FactSet consensus estimate of $1.49 per share. Revenues were $11.2 billion, 6% from the prior year, or 4% when adjusted for foreign exchange effects, but still above the $10.7 billion Wall Street had anticipated.

Cantor analyst Carter Gould warned, however, that the beats were "of lower quality," and came mostly from the older medicines the company calls its Legacy Portfolio.

Bristol is facing patent expirations of some of its best-selling drugs in the coming years, and is counting on its newer medicines, which it calls its Growth Portfolio, to fill the gap.

The company boosted its 2025 revenue guidance to a range of $45.8 billion to $46.8 billion, up from an earlier forecast of $45.5 billion. Management also raised its outlook for adjusted earnings by $0.15 per share to a new range of $6.70 to $7 a share.

The boost to the sales guidance, however, is largely attributable to a better outlook for the Legacy Portfolio. Bristol says the update reflects another $500 million in Legacy Portfolio sales, and $250 million in Growth Portfolio sales. Most of those increases are due to a favorable impact from foreign exchange.

The company said its updated guidance includes the estimated impact of tariffs on U.S. drugs shipped to China, but does not include any potential impact from the sector-specific drug tariffs President Donald Trump has promised.

Sales of Cobenfy were $27 million for the quarter. Analysts and investors will likely have significant questions about the drug's prospects, following the data released earlier this week.

Revenue in the company's Legacy Portfolio declined 20% on a reported basis to $5.6 billion, driven by competition from generics as well as the Medicare Part D redesign.

The year-over-year decline was partially offset by strength in the company's so-called Growth Portfolios, which include drugs like anti-cancer treatment Opdivo, anemia treatment Reblozyl, and Breyanzi, which is used in patients with non-Hodgkin lymphoma. The segment posted revenue of $5.6 billion, up 16% or 18% adjusted for currency.

"We are advancing our multiyear plan to become a more agile and efficient company, while strengthening the foundation for top-tier, long-term growth," CEO Christopher Boerner said in a statement. "Our strategy is clear, and our actions are accelerating the delivery of transformational medicines to patients."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 24, 2025 17:24 ET (21:24 GMT)

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