Bristol Myers and AbbVie Take Different Paths to Fund Growth

The Tip Desk · November 4, 2026 · 2 min read

Nine-month cash flows show one drugmaker reducing net debt as the other combines stronger operating cash generation with a major acquisition and borrowing.

Bristol Myers Squibb reduced net debt despite weaker operating cash flow in the first nine months of 2026, while AbbVie generated more cash from operations alongside major acquisition spending and new borrowing. The contrast in their third-quarter disclosures matters for investors weighing portfolio investment against shareholder returns, although the cash-flow figures cover the first nine months of the year rather than the third quarter alone.

Bristol Myers generated $8.7 billion in operating cash in the nine months through September 2026, down from $12.2 billion a year earlier. The change in rebates and discounts was a negative $3.9 billion in its operating cash-flow reconciliation, compared with a positive $2.0 billion in the comparable period; the figures do not establish why the movement occurred or how long it will last. Even so, the company said its net debt position decreased by $4.1 billion, primarily reflecting operating cash generation, partly offset by $3.9 billion in dividends.

That progress leaves room for investment in management’s assessment: Bristol Myers says existing liquidity, operating cash generation and access to borrowing are sufficient for anticipated needs for at least the next few years, and Chief Executive Christopher Boerner continues to identify business development as a capital allocation priority. The weaker cash-flow result therefore warrants attention without establishing an immediate funding shortfall.

AbbVie’s operating cash flow moved in the other direction, rising to $14.9 billion from $13.8 billion over the same nine-month periods. The company attributed the increase to stronger operating results from higher revenue and lower litigation payments, partly offset by working-capital timing and higher contingent-consideration payments. AbbVie paid $10.6 billion for business acquisitions, net of cash acquired, primarily related to Apogee, and issued $18 billion in unsecured senior notes; those figures alone do not establish that the borrowing was necessary or assign it entirely to Apogee.

The acquisition also brought a royalty-linked financing arrangement for Apogee’s zumilokibart, with a $523 million liability measured at fair value on the acquisition date; that valuation is not an immediate cash payment. AbbVie paid $9.2 billion in dividends during the nine months ended September 30, 2026 and announced a higher quarterly dividend beginning in February 2027.

The next cash-flow disclosures can test whether Bristol Myers’ rebate-related cash use persists and whether AbbVie sustains its operating cash improvement alongside contingent-consideration and dividend payments.