“We're increasing our full year reported revenue guidance by $700 million at the midpoint to a range of $46.5 billion to $47.5 billion, reflecting continued strong performance of our growth portfolio, better-than-expected legacy sales in the second quarter and a favorable impact of approximately $200 million related to foreign exchange rates.”

In context

“R&D. Turning to the balance sheet and capital allocation highlights on Slide 15. Our financial position remained strong with roughly $13.9 billion in cash, cash equivalents and marketable securities as of June 30. We generated cash flow from operations of about $3.9 billion in the second quarter. Our capital allocation priorities remain unchanged as we continue to take a strategic and balanced approach, investing in our growth portfolio of brands, along with business development, are our top priorities. We are on track with our plan to further delever our balance sheet and pay down $10 billion of debt by the first half of 2026 relative to our March 31, 2024, balance and we remain committed to returning capital to shareholders through our dividend. Now turning to our guidance on Slide 16. We're increasing our full year reported revenue guidance by $700 million at the midpoint to a range of $46.5 billion to $47.5 billion, reflecting continued strong performance of our growth portfolio, better-than-expected legacy sales in the second quarter and a favorable impact of approximately $200 million related to foreign exchange rates. Additionally, we now expect the legacy portfolio to decline approximately 15% to 17% for the year, a more moderate rate than previously anticipated due primarily to Revlimid's strong year-to-date performance. We now project full year Revlimid sales of approximately $3 billion. We maintain our gross margin guidance at approximately 72% as some of our high-margin legacy brands are expected to continue to decline through the second half of the year. and Eliquis revenues to be more evenly phased throughout the year. We are adjusting our operating expense guidance to increase slightly to approximately $16.5 billion, reflecting investment behind recent business development deals, and additional investment opportunities within our growth portfolio. As previously guided, our operating expenses ar”