BRISTOL MYERS SQUIBB CO

Previous wording

In 2026, we made meaningful progress advancing our pipeline, highlighted by: (i) FDA acceptance of our NDA for iberdomide in RRMM with a PDUFA date of August 17, 2026; (ii) FDA acceptance of our NDA for mezigdomide in RRMM with a PDUFA date of May 13, 2027; (iii) positive interim Phase II results from the ROSETTA Lung-02 study of pumitamig in patients with previously untreated advanced NSCLC; (iv) positive interim results from two Phase III studies conducted in China for iza-bren in heavily pretreated, unresectable locally advanced or metastatic TNBC and recurrent or metastatic ESCC; and (v) FDA acceptance of our sNDA for Camzyos in adolescents with symptomatic oHCM with a PDUFA date of September 30, 2026. Additionally, Sotyktu was approved in the U.S. and EU for the treatment of adults with active PsA and Opdivo was approved in the U.S. and EU for cHL.

Current wording

In 2026, we have achieved multiple regulatory approvals across our portfolio, including: (i) approval of our first CELMoD, Zenbexus (iberdomide), in combination with daratumumab and hyaluronidase-fihj and dexamethasone for the treatment of adult patients with MM who have received at least one prior line of therapy including a proteasome inhibitor and an immunomodulatory agent in the U.S.; (ii) approval of Camzyos for pediatric patients with symptomatic oHCM in the U.S.; (iii) approval of Sotyktu for the treatment of adults with active PsA in the U.S. and EU; and (iv) approval of Opdivo for cHL in the U.S. and EU. We have also made meaningful progress advancing our pipeline, highlighted by: (i) topline Phase III results from the ALOFT-IPF study of admilparant in adults with IPF, which met its primary endpoint at the 60 mg dose; (ii) positive topline interim Phase III results from the ACTION-1 study of RYZ101 in patients with SSTR+ GEP-NETs who have progressed following Lu177-based therapy; (iii) FDA acceptance of our NDA for mezigdomide in RRMM with a PDUFA date of May 13, 2027; (iv) positive interim Phase II results from the ROSETTA Lung-02 study of pumitamig in patients with previously untreated advanced NSCLC; (v) positive topline Phase II results from the registrational QUINTESSENTIAL study of arlo-cel in adult patients with quadruple-class exposed RRMM; and (vi) positive interim results from two Phase III studies conducted in China for iza-bren in heavily pretreated, unresectable locally advanced or metastatic TNBC and recurrent or metastatic ESCC.

Previous wording

We continue to view business development as an important component of our strategy, focusing on opportunities where we can add strategic value and deliver returns. In May 2026, we entered into global strategic collaboration and license agreements with Hengrui to develop and commercialize 13 early stage assets in oncology, hematology and immunology. For additional information relating to this arrangement, refer to "Item 1. Financial Statements — Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements".

Current wording

We continue to view business development as an important component of our strategy, focusing on opportunities where we can add strategic value and deliver returns. In May 2026, we entered into global license agreements with Hengrui to develop and commercialize 13 early stage assets in oncology, hematology and immunology. For additional information relating to this arrangement, refer to "Item 1. Financial Statements — Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements". Additionally, in August 2026, we announced plans to build a new, state-of-the-art multi-modal manufacturing campus in Houston, Texas, and a new, radiopharmaceutical manufacturing facility in Whitestown, Indiana, reflecting our continuing efforts to invest in research and development, technology and domestic production within the U.S.

Previous wording

Revenues increased 6% during the second quarter of 2026 and 4% year-to-date, primarily reflecting higher demand and higher average net selling prices across the Growth Portfolio and for Eliquis, which was partially offset by the impact of generics across the remainder of the Legacy Portfolio.

Current wording

Revenues increased 7% during the third quarter of 2026 and 5% year-to-date, primarily reflecting higher demand and higher average net selling prices across the Growth Portfolio and for Eliquis, which was partially offset by the impact of generics across the remainder of the Legacy Portfolio.

Previous wording

The increase in GAAP EPS of $0.98 and $1.08 for the second quarter of 2026 and year-to-date, respectively, was primarily due to a one-time Acquired IPRD charge in 2025 and the impact of certain specified items, including lower amortization of acquired intangible assets, and higher revenues in 2026, partially offset by the expiry of royalty income on diabetes products at the end of 2025. After adjusting for specified items, the increase in non-GAAP EPS of $0.58 and $0.36 for the second quarter of 2026 and year-to-date, respectively, was primarily due to the aforementioned Acquired IPRD charge and higher revenues, partially offset by the expiry of royalty income on diabetes products.

Current wording

The $0.03 decrease in GAAP EPS for the third quarter of 2026 was primarily due to higher one-time Acquired IPRD charges in 2026 and the expiry of royalty income on diabetes products at the end of 2025, partially offset by lower amortization of acquired intangible assets and higher revenues in 2026. After adjusting for specified items, the $0.28 decrease in non-GAAP EPS was primarily due to the aforementioned higher Acquired IPRD charges and the expiry of royalty income on diabetes products, partially offset by higher revenues.

Previous wording

Refer to "—Product and Pipeline Developments" for a listing of other developments in our marketed products and late-stage pipeline since the start of the second quarter of 2026.

Current wording

Refer to "—Product and Pipeline Developments" for a listing of other developments in our marketed products and late-stage pipeline since the start of the third quarter of 2026.

Previous wording

•U.S. revenues increased 6% during the second quarter of 2026 and 2% year-to-date, reflecting higher demand and higher average net selling prices across the Growth Portfolio and for Eliquis, partially offset by the impact of generic erosion within the remainder of the Legacy Portfolio. Average U.S. net selling prices increased 4% year-to-date compared to the corresponding period a year ago.

Current wording

•U.S. revenues increased 9% during the third quarter of 2026 and 5% year-to-date, reflecting higher demand and higher average net selling prices across the Growth Portfolio and for Eliquis, partially offset by the impact of generic erosion within the remainder of the Legacy Portfolio. Average U.S. net selling prices increased 7% year-to-date compared to the corresponding period a year ago, primarily driven by lower rebates as a result of the Eliquis list price reduction in 2026.

Previous wording

•International revenues increased 5% during the second quarter of 2026 and 8% year-to-date, primarily due to higher demand across the Growth Portfolio and for Eliquis, partially offset by generic erosion within the remainder of the Legacy Portfolio. Excluding the impacts of foreign exchange, international revenues increased 4% during the second quarter of 2026 and 3% year-to-date.

Current wording

•International revenues were relatively flat during the third quarter of 2026 and increased 5% year-to-date, primarily due to higher demand across the Growth Portfolio, offset by generic erosion within the Legacy Portfolio. Excluding the impacts of foreign exchange, international revenues increased 1% during the third quarter of 2026 and 3% year-to-date.

Previous wording

No single country outside the U.S. contributed more than 10% of total revenues during the six months ended June 30, 2026 and 2025. Our business is typically not seasonal; however, in the first quarter we typically see an unwinding of sales channel inventory build-up from the fourth quarter of the prior year.

Current wording

No single country outside the U.S. contributed more than 10% of total revenues during the nine months ended September 30, 2026 and 2025. Our business is typically not seasonal; however, in the first quarter we typically see an unwinding of sales channel inventory build-up from the fourth quarter of the prior year.

Previous wording

Reductions/(increases) to provisions for product sales made in prior periods resulting from changes in estimates were $88 million and $67 million for the three and six months ended June 30, 2026 and $42 million and $331 million for the three and six months ended June 30, 2025, respectively. The reduction to provision recognized for the six months ended June 30, 2025 primarily related to lower than expected Medicaid utilization. The changes in gross product sales and GTN adjustments were primarily due to a list price reduction for Eliquisin the U.S. in 2026.

Current wording

Reductions/(increases) to provisions for product sales made in prior periods resulting from changes in estimates were $125 million and $192 million for the three and nine months ended September 30, 2026 and $87 million and $418 million for the three and nine months ended September 30, 2025, respectively. The changes in gross product sales and GTN adjustments were primarily due to a list price reduction for Eliquisin the U.S. in 2026.

Previous wording

(a) Includes Abecma, Augtyro, Onureg, Inrebic, Nulojix, Empliciti and royalty revenues, including royalties received from Merck on Winrevair*.

Current wording

(a) Includes Abecma, Augtyro, Empliciti, Inrebic, Nulojix, Onureg, Zenbexusand royalty revenues, including royalties received from Merck on Winrevair*.

Previous wording

•Opdivo revenues decreased 3% during the second quarter of 2026 and 4% year-to-date, primarily due to lower demand in the U.S., reflecting greater utilization of Opdivo Qvantig, partially offset by foreign exchange impacts of 1% and 2%, respectively. Additionally, year-to-date reflects changes in sales channel inventory and timing of customer orders in the U.S. Excluding foreign exchange impacts, revenues decreased 4% and 6%, respectively.

Current wording

•Opdivo revenues decreased 6% during the third quarter of 2026 and 5% year-to-date, primarily due to lower demand in the U.S., reflecting greater utilization of Opdivo Qvantig. Additionally, the year-to-date decrease reflects changes in sales channel inventory and timing of customer orders in the U.S., partially offset by foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues decreased 6% in both periods.

Previous wording

•Opdivo Qvantig revenues increased more than 200% during the second quarter of 2026 and year-to-date, primarily due to higher demand as a result of the product's launch in 2025.

Current wording

•Opdivo Qvantig revenues increased more than 200% during the third quarter of 2026 and year-to-date, primarily due to higher demand as a result of the product's launch in 2025.

Previous wording

•Orencia revenues increased 7% during the second quarter of 2026 and year-to-date, primarily due to higher demand in the U.S. and higher average net selling prices. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 7% and 6%, respectively. Formulation and additional patents expire in 2026 and beyond. In April 2026, BMS entered into agreements with Dr. Reddy's Laboratories that allow for (i) an Orencia biosimilar for intravenous administration to be marketed in the U.S. upon approval and (ii) an Orencia biosimilar for subcutaneous administration to be marketed in the U.S. as early as February 2028. BMS is not aware of an Orencia biosimilar currently on the market in the U.S., EU or Japan.

Current wording

•Orencia revenues increased 2% during the third quarter of 2026 and 5% year-to-date, primarily due to higher demand in the United States. Formulation and additional patents expire in 2026 and beyond. In April 2026, BMS entered into agreements with Dr. Reddy's Laboratories that allow for (i) an Orencia biosimilar for intravenous administration to be marketed in the U.S. upon approval and (ii) an Orencia biosimilar for subcutaneous administration to be marketed in the U.S. as early as February 2028. BMS is not aware of an Orencia biosimilar currently on the market in the U.S., EU or Japan.

Previous wording

•Yervoy revenues increased 6% during the second quarter of 2026 and 5% year-to-date, primarily due to higher demand across international markets and foreign exchange impacts of 1% and 2%, respectively. Excluding foreign exchange impacts, revenues increased 5% and 3%, respectively. BMS is not aware of a Yervoy biosimilar on the market in the U.S., EU or Japan.

Current wording

•Yervoy revenues increased 7% during the third quarter of 2026 and 6% year-to-date, primarily due to higher demand. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 8% and 5%, respectively. BMS is not aware of a Yervoy biosimilar on the market in the U.S., EU or Japan.

Previous wording

•Reblozyl revenues increased 29% during the second quarter of 2026 and 23% year-to-date, primarily due to higher demand. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 29% and 23%, respectively.

Current wording

•Reblozyl revenues increased 22% during the third quarter of 2026 and 23% year-to-date, primarily due to higher demand.

Previous wording

•Opdualag revenues increased 23% during the second quarter of 2026 and 20% year-to-date, primarily due to higher demand and foreign exchange impacts of 1% in both periods. Excluding foreign exchange impacts, revenues increased 22% and 19%, respectively.

Current wording

•Opdualag revenues increased 23% during the third quarter of 2026 and 21% year-to-date, primarily due to higher demand. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 23% and 20%, respectively.

Previous wording

•Krazati revenues increased 14% during the second quarter of 2026 and 9% year-to-date, primarily due to higher demand and higher average net selling prices. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 14% and 8%, respectively.

Current wording

•Sotyktu revenues increased 26% during the third quarter of 2026 and 24% year-to-date, primarily due to higher average net selling prices. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 25% and 23%, respectively.

Previous wording

•Eliquis revenues increased 22% during the second quarter of 2026 and 19% year-to-date, primarily due to higher demand, foreign exchange impacts of 1% and 2%, respectively, and higher average net selling prices in the U.S. In 2026, the Company reduced the list price for Eliquis in the U.S., which resulted in higher realized average net selling prices due to lower rebates. Excluding foreign exchange impacts, revenues increased 21% and 17%, respectively. Following the May 2021 expiration of regulatory exclusivity for Eliquis in Europe, generic manufacturers have sought to challenge our Eliquis patents and related SPCs and have begun marketing generic versions of Eliquis in certain countries prior to the expiry of our patents and related SPCs, which has led to the filing of infringement and invalidity actions involving our Eliquis patents and related SPCs in various countries in Europe. In the EU, the apixaban composition of matter patents and related SPCs expire in November 2026. Additionally, in November 2025, BMS and Pfizer initiated a patent infringement action against an applicant seeking approval to market apixaban products in the U.S. We believe in the innovative science behind Eliquis and the strength of our intellectual property, which we will defend against infringement. Refer to "Item 1. Financial Statements—Note 18. Legal Proceedings and Contingencies—Intellectual Property" for further information.

Current wording

•Eliquis revenues increased 25% during the third quarter of 2026 and 21% year-to-date, primarily due to higher average net selling prices in the U.S. and higher demand. In 2026, the Company reduced the list price for Eliquis in the U.S., which resulted in higher realized average net selling prices due to lower rebates. The year-to-date increase also reflects foreign exchange impacts of 1%. Excluding foreign exchange impacts, revenues increased 26% and 20%, respectively. Following the May 2021 expiration of regulatory exclusivity for Eliquis in Europe, generic manufacturers have sought to challenge our Eliquis patents and related SPCs and have begun marketing generic versions of Eliquis in certain countries prior to the expiry of our patents and related SPCs, which has led to the filing of infringement and invalidity actions involving our Eliquis patents and related SPCs in various countries in Europe. In the EU, the apixaban composition of matter patents and related SPCs expire in November 2026. Additionally, in October 2026, BMS and Pfizer initiated a patent infringement action against an applicant seeking approval to market apixaban products in the U.S. We believe in the innovative science behind Eliquis and the strength of our intellectual property, which we will defend against infringement. Refer to "Item 1. Financial Statements—Note 18. Legal Proceedings and Contingencies—Intellectual Property" for further information.

Previous wording

•Revlimid revenues decreased 49% during the second quarter of 2026 and 56% year-to-date, primarily due to lower demand in the U.S. as a result of generic erosion, partially offset by higher average net selling prices. In the U.S., certain third parties have been granted volume-limited licenses to sell generic lenalidomide. Pursuant to these licenses, several generics have entered or are expected to enter the U.S. market with volume-limited quantities of generic lenalidomide. As of January 31, 2026, these licenses are no longer volume-limited. In the EU and Japan, generic lenalidomide products have entered the market.

Current wording

•Revlimid revenues decreased 47% during the third quarter of 2026 and 54% year-to-date, primarily due to lower demand in the U.S. as a result of generic erosion. In the U.S., certain third parties have been granted volume-limited licenses to sell generic lenalidomide. Pursuant to these licenses, several generics have entered or are expected to enter the U.S. market with volume-limited quantities of generic lenalidomide. As of January 31, 2026, these licenses are no longer volume-limited. In the EU and Japan, generic lenalidomide products have entered the market.

Previous wording

•Pomalyst/Imnovid revenues decreased 71% during the second quarter of 2026 and 48% year-to-date, primarily due to lower demand in the U.S. as a result of generic erosion. The second quarter decrease also reflects foreign exchange impacts of (1)%. Excluding foreign exchange impacts, revenues decreased 71% and 47%, respectively. In the U.S. (March 2026) and EU, generics have entered the market.

Current wording

•Pomalyst/Imnovid revenues decreased 81% during the third quarter of 2026 and 59% year-to-date, primarily due to lower demand in the U.S. as a result of generic erosion. Excluding foreign exchange impacts, revenues decreased 80% and 58%, respectively. In the U.S. (March 2026) and EU, generics have entered the market.

Previous wording

•Sprycel revenues decreased 27% during the second quarter of 2026 and 46% year-to-date, primarily due to lower demand as a result of generic erosion. The second quarter decrease also reflects foreign exchange impacts of (1)%. Excluding foreign exchange impacts, revenues decreased 26% and 45%, respectively. In the U.S., EU and Japan, generics have entered the market.

Current wording

•Sprycel revenues decreased 38% during the third quarter of 2026 and 44% year-to-date, primarily due to lower demand as a result of generic erosion. The third quarter decrease also reflects foreign exchange impacts of (1)%. Excluding foreign exchange impacts, revenues decreased 38% and 43%, respectively.

Previous wording

•Abraxane revenues decreased 47% during the second quarter of 2026 and 50% year-to-date, primarily due to lower demand as a result of generic erosion.

Current wording

•Abraxane revenues decreased 13% during the third quarter of 2026 and 40% year-to-date, primarily due to lower demand as a result of generic erosion. Excluding foreign exchange impacts, revenues decreased 12% and 40%, respectively.

Previous wording

In the U.S., we generally determine our months on hand estimates using inventory levels of product on hand and the amount of out-movement provided by our three largest wholesalers, which accounted for approximately 90% of total gross sales of U.S. products during the six months ended June 30, 2026. Factors that may influence our estimates include generic erosion, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.

Current wording

In the U.S., we generally determine our months on hand estimates using inventory levels of product on hand and the amount of out-movement provided by our three largest wholesalers, which accounted for approximately 90% of total gross sales of U.S. products during the nine months ended September 30, 2026. Factors that may influence our estimates include generic erosion, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers. In addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.

Previous wording

Our non-U.S. businesses have significantly more direct customers. Information on available direct customer product level inventory and corresponding out-movement information and the reliability of third-party demand information varies widely. We limit our direct customer sales channel inventory reporting to where we can influence demand. When this information does not exist or is otherwise not available, we have developed a variety of methodologies to estimate such data, including using historical sales made to direct customers and third-party market research data related to prescription trends and end-user demand. Given the difficulties inherent in estimating third-party demand information, we evaluate our methodologies to estimate direct customer product level inventory and to calculate months on hand on an ongoing basis and make changes as necessary. Factors that may affect our estimates include generic competition, seasonality of products, price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations. As such, all of the information required to estimate months on hand in the direct customer distribution channel for non-U.S. business during the six months ended June 30, 2026 is not available prior to the filing of this Quarterly Report on Form 10-Q. We will disclose any product with levels of inventory in excess of one month on hand or expected demand for the current quarter, subject to certain limited exceptions, in our next quarterly report on Form 10-Q.

Current wording

Our non-U.S. businesses have significantly more direct customers. Information on available direct customer product level inventory and corresponding out-movement information and the reliability of third-party demand information varies widely. We limit our direct customer sales channel inventory reporting to where we can influence demand. When this information does not exist or is otherwise not available, we have developed a variety of methodologies to estimate such data, including using historical sales made to direct customers and third-party market research data related to prescription trends and end-user demand. Given the difficulties inherent in estimating third-party demand information, we evaluate our methodologies to estimate direct customer product level inventory and to calculate months on hand on an ongoing basis and make changes as necessary. Factors that may affect our estimates include generic competition, seasonality of products, price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations. As such, all of the information required to estimate months on hand in the direct customer distribution channel for non-U.S. business during the nine months ended September 30, 2026 is not available prior to the filing of this Quarterly Report on Form 10-Q. We will disclose any product with levels of inventory in excess of one month on hand or expected demand for the current quarter, subject to certain limited exceptions, in our next annual report on Form 10-K.

Previous wording

Cost of products sold increased by $354 million in the second quarter of 2026 and $742 million year-to-date, primarily due to higher alliance profit sharing.

Current wording

Cost of products sold increased by $711 million in the third quarter of 2026 and $1.5 billion year-to-date, primarily due to alliance profit sharing for Eliquis and, to a lesser extent, a one-time $140 million charge related to a contract termination in 2026.

Previous wording

Research and development expense increased by $379 million in the second quarter of 2026 and $771 million year-to-date, primarily due to higher IPRD impairment charges and the purchase of a priority review voucher, partially offset by cost savings from the Company's ongoing strategic productivity initiative in 2026.

Current wording

Research and development expense decreased by $163 million in the third quarter of 2026 and increased by $608 million year-to-date. The year-to-date increase was primarily due to higher IPRD impairment charges and the purchase of a priority review voucher, partially offset by cost savings from the Company's ongoing strategic productivity initiative in 2026.

Previous wording

Amortization of acquired intangible assets decreased by $393 million in the second quarter of 2026 and $786 million year-to-date, primarily due to the lower amortization expense related to Pomalyst. The Pomalyst acquired marketed product right was fully amortized in the fourth quarter of 2025.

Current wording

Amortization of acquired intangible assets decreased by $373 million in the third quarter of 2026 and $1.2 billion year-to-date, primarily due to the lower amortization expense related to Pomalyst. The Pomalyst acquired marketed product right was fully amortized in the fourth quarter of 2025.

Previous wording

Other (income)/expense, net changed by $555 million in the second quarter of 2026 and $861 million year-to-date as discussed below.

Current wording

Other (income)/expense, net changed by $415 million in the third quarter of 2026 and $446 million year-to-date as discussed below.

Previous wording

•Litigation and other settlements includes amounts related to pricing, sales and promotional practices disputes in 2025.

Current wording

•Litigation and other settlements includes amounts related to a securities litigation matter during the third quarter of 2025. Year-to-date 2025 also includes amounts related to a pricing, sales and promotional practices dispute.

Previous wording

•Contingent consideration reflects the change in fair value of the contingent value rights associated with the Mirati acquisition during 2025. Refer to "Item 1. Financial Statements—Note 5. Other (Income)/Expense, Net" for more information.

Current wording

•Contingent consideration year-to-date 2025 reflects the change in fair value of the contingent value rights associated with the Mirati acquisition. Refer to "Item 1. Financial Statements—Note 5. Other (Income)/Expense, Net" for more information.

Previous wording

•Gains on equity investments in the second quarter of 2026 and year-to-date were primarily driven by equity in net income of affiliates and upward adjustments in equity investments without RDFV, respectively. Refer to “Item 1. Financial Statements—Note 9. Financial Instruments and Fair Value Measurements” for more information.

Current wording

•Refer to “Item 1. Financial Statements—Note 9. Financial Instruments and Fair Value Measurements” for more information on equity investment (gains)/losses, net.

Previous wording

•Divestiture (gains)/losses in 2026 include a $109 million gain related to the sale of BMS's 60% ownership stake in Sino-American Shanghai Squibb Pharmaceuticals. Refer to “Item 1. Financial Statements—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements” for more information.

Current wording

•Divestiture (gains)/losses, net year-to-date 2026 includes a $109 million gain related to the sale of BMS's 60% ownership stake in Sino-American Shanghai Squibb Pharmaceuticals. Refer to “Item 1. Financial Statements—Note 4. Acquisitions, Divestitures, Licensing and Other Arrangements” for more information.

Previous wording

Provision for income taxes in interim periods is determined based on the estimated annual effective tax rates and the tax impact of discrete items that are reflected immediately. The decreases in the effective tax rates for the second quarter of 2026 and year-to-date were primarily driven by jurisdictional earnings mix, including the impact of amortization of acquired intangible assets, partially offset by the income tax impact of the BioNTech collaboration in 2025. Excluding the impact of specified items, the increases in the effective tax rates for the second quarter of 2026 and year-to-date were primarily driven by jurisdictional earnings mix, including the income tax impact of the BioNTech collaboration in 2025.

Current wording

Provision for income taxes in interim periods is determined based on the estimated annual effective tax rates and the tax impact of discrete items that are reflected immediately. The decreases in the effective tax rates for the third quarter of 2026 and year-to-date were primarily driven by jurisdictional earnings mix and the addition of $160 million of reserves recorded during the three months ended September 30, 2025. Excluding the impact of specified items, the decreases in the effective tax rates for the third quarter of 2026 and year-to-date were primarily driven by jurisdictional earnings mix.

Previous wording

We believe that our existing cash, cash equivalents and marketable debt securities together with our ability to generate cash from operations and our access to short-term and long-term borrowings are sufficient to satisfy our existing and anticipated cash needs for at least the next few years, including dividends, capital expenditures, milestone payments, working capital, income taxes, restructuring initiatives, business development, business combinations, asset acquisitions, repurchase of common stock, debt maturities, as well as any debt repurchases through redemptions or tender offers. During the six months ended June 30, 2026, our net debt position decreased by $2.4 billion primarily driven by cash provided by operations of $4.5 billion, partially offset by dividend payments of $2.6 billion.

Current wording

We believe that our existing cash, cash equivalents and marketable debt securities together with our ability to generate cash from operations and our access to short-term and long-term borrowings are sufficient to satisfy our existing and anticipated cash needs for at least the next few years, including dividends, capital expenditures, milestone payments, working capital, income taxes, restructuring initiatives, business development, business combinations, asset acquisitions, repurchase of common stock, debt maturities, as well as any debt repurchases through redemptions or tender offers. During the nine months ended September 30, 2026, our net debt position decreased by $4.1 billion primarily driven by cash provided by operations of $8.7 billion, partially offset by dividend payments of $3.9 billion.

Previous wording

During the six months ended June 30, 2026, $1.7 billion of debt matured and was repaid, including the $1.2 billion 3.20% Notes and $500 million of floating rate notes.

Current wording

During the nine months ended September 30, 2026, $1.7 billion of debt matured and was repaid, including the $1.2 billion 3.20% Notes and $500 million of floating rate notes.

Previous wording

During the six months ended June 30, 2025, the €575 million 1.000% Euro Notes matured and were repaid.

Current wording

During the nine months ended September 30, 2025, the $229 million 3.875% Notes and €575 million 1.000% Euro Notes matured and were repaid.

Previous wording

Dividend payments were $2.6 billion during the six months ended June 30, 2026. The decision to authorize dividends is made on a quarterly basis by our Board of Directors.

Current wording

Dividend payments were $3.9 billion during the nine months ended September 30, 2026. The decision to authorize dividends is made on a quarterly basis by our Board of Directors.

Previous wording

The $1.4 billion decrease in cash provided by operating activities compared to 2025 was driven by lower net customer receipts, primarily due to a list price reduction for Eliquis, partially offset by lower expenses due to the ongoing strategic productivity initiative.

Current wording

The $3.5 billion decrease in cash provided by operating activities compared to 2025 was primarily driven by lower net customer receipts, partially offset by lower interest payments and lower payments made in the ordinary course of business. The decrease in net customer receipts primarily reflected lower cash collections due to generic erosion across much of the Legacy Portfolio and the Eliquis list price reduction, partially offset by the corresponding reduction in GTN payments.

Previous wording

Cash used in investing activities during 2026 was primarily driven by net purchases of marketable debt securities of $1.9 billion.

Current wording

Cash used in investing activities during 2026 was primarily driven by net purchases of marketable debt securities of $2.5 billion, a $600 million upfront payment made pursuant to the Hengrui license agreements and a $500 million anniversary payment made pursuant to the BioNTech collaboration.

Previous wording

Cash used in financing activities during 2026 was primarily driven by dividend payments of $2.6 billion and the repayment of $1.7 billion of long-term debt.

Current wording

Cash used in financing activities during 2026 was primarily driven by dividend payments of $3.9 billion and the repayment of $1.7 billion of long-term debt.