AbbVie vs. Bristol Myers Squibb: Which Healthcare Stock Is a Better Buy in 2026?
AbbVie boasts stronger revenue growth and free cash flow, while Bristol Myers Squibb trades at half the valuation with nearly double the profit margin.
Overview
Healthcare investors often face a dilemma when choosing between established giants, but AbbVie (NYSE:ABBV) and Bristol Myers Squibb (NYSE:BMY) present two very different financial profiles for your consideration in 2026.
Both companies are global biopharmaceutical leaders that must constantly replace aging drugs with new innovations. AbbVie is currently focused on expanding its dominance in immunology and aesthetics, while Bristol Myers Squibb leverages a massive oncology and hematology portfolio to generate steady cash flow for its shareholders.
Details
According to its latest annual report for FY 2025, AbbVie centers its growth on immunology, neuroscience, and oncology. Key treatments Skyrizi and Rinvoq now drive nearly 42% of total net revenues. The company primarily sells these therapies to large wholesale distributors including McKesson Corp (NYSE:MCK), Cardinal Health Inc (NYSE:CAH), and Cencora Corp (NYSE:COR). Customer concentration like this adds a layer of risk to the business because these three companies facilitate nearly all of its U.S. pharmaceutical sales. In 2026, AbbVie also expanded its reach by completing the acquisition of Apogee Therapeutics.
Source
Originally published at www.fool.com.