Amgen Inc
AMGN · NASDAQHealthcare · Biotechnology
Since the Report + 8.3%
Close on Report DayAug 4
$404.85▲ 4.6%Report-Day Move
- Market Cap(Today)
- ≈ $237 B
- 1Y Return(At Report)
- + 35%
- P/E($22.37 · Trailing 12M)
- 19.6
- PEG(company guidance 2026)
- 4.00
- Net Margin(Trailing 12M)
- 23.0%
Amgen cleared $10 billion of quarterly revenue for the first time at $10.05 billion and delivered $6.29 in adjusted earnings per share, about 12% above expectation, while raising full-year guidance. The stock jumped 4.57% the next session to $407.83, because a raise from a drugmaker facing patent expirations and biosimilar erosion was exactly the answer investors were waiting for. The open end: adjusted profit grew just 4% against 10% revenue growth, and obesity candidate MariTide still has no late-stage data.
Revenue (Q2)
$10.05B
▲ 10% YoY
Adjusted EPS
$6.29
12% Above Expectation
FY Revenue Guidance
$38.2-$39.4B
Raised
Six Growth Drivers
▲ 26%
~70% of Product Sales
Prolia + Xgeva
▼ 33%
Biosimilar Pressure
Total Debt
$57.3B
End of 2025: $54.6B
Quarterly Revenue ($ Billion)
9.18
9.56
9.87
8.62
10.05
- Q2 2025
- Q3 2025
- Q4 2025
- Q1 2026
- Q2 2026
- Year-over-Year Revenue Growth
- ▲ 10%$10.05B
- Repatha (Strongest Product)
- $953M ▲ 37%~10% of Product Sales
- Otezla (Weakening Product)
- $491M ▼ 21%Competitive Pressure
Q3 2026 Company Guidance
- Full-Year Revenue38.2 – 39.4 billion
Midpoint $38.8 · Market Expectation $37.8Above Expectation ▲
- Full-Year Adjusted EPS22.3 – 23.5 $
Midpoint $22.90 · Market Expectation $22.39Midpoint Above Expectation ▲
- Full-Year GAAP EPS15.80 – 17.08 $
Q2 actual $4.37▲ 65% YoY
- Adjusted Tax Rate15.0% – 16.5%
15.6% in Q2 · 14.2% a year agoTax Burden Rising ▼
- Capital Expenditures2.6 billion
Manufacturing capacity expansionFlat Trend
The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±5.5% around the midpoint.
- R&D Expense (Q2)
- $1.87B▲ 7% · MariTide-Led
- Quarterly Dividend
- $2.52 / share▲ 6%
- Buyback Cap (2026)
- ≤ $3BNo Repurchases in Q2
“Our strong results were driven by the breadth and depth of our portfolio and once again demonstrate our ability to grow through patent expirations and increased competition.”
- Double-digit growth in 22 products
- MariTide Phase 3 program
- Manufacturing and technology investment
Summary
Amgen reported second-quarter 2026 results on the evening of August 4, after the U.S. market close. Revenue came in at $10.05 billion, up 10% from the same quarter last year and the first time the company has cleared $10 billion in a single quarter. Product sales grew 9% to $9.54 billion. Adjusted earnings per share landed at $6.29 against a Market Expectation of $5.62, roughly 12% above the bar. GAAP earnings per share rose 65% to $4.37 from $2.65 a year earlier. Free cash flow nearly doubled, from $1.9 billion to $3.5 billion. Management lifted full-year guidance to $38.2-$39.4 billion in revenue and $22.30-$23.50 in adjusted earnings per share; the prior revenue outlook had a midpoint near $37.8 billion.
The stock closed the reporting day, August 4, at $390.02 and barely moved after hours, up about 0.5%. The real move came the following session: on August 5 the shares gained 4.57% to $407.83, near their 52-week high. On August 6 they eased 0.7% to close at $404.85. No single number explains that reaction; three things reinforced each other. First, a beat on both the top and bottom lines. Second, guidance that was not merely reaffirmed but raised — coming from a drugmaker facing patent expirations and biosimilar competition, that is the answer investors most wanted. Third, the Phase 3 program for obesity candidate MariTide moving ahead without interruption. One detail stands out: the average 12-month analyst price target is $374.69, roughly 7% below where the stock now trades. After the print, Amgen has run past its own consensus target.
The quarter itself was strong but not uniformly so. The group of products management calls its six key growth drivers grew 26% year over year and generated roughly 70% of product sales — evidence that the portfolio's center of gravity really is shifting. Against that, adjusted earnings per share rose only 4% while revenue grew 10%. The gap comes from a 0.5-percentage-point decline in adjusted operating margin, a 7% increase in research and development spending, and an adjusted tax rate that moved from 14.2% to 15.6%. Prolia and Xgeva together shrank 33% under biosimilar competition, and Otezla fell 21%. Total debt rose to $57.3 billion from $54.6 billion at the end of 2025. On balance we rate the quarter well: a beat, a raise and a new generation of products that is genuinely working. What keeps the score below 80 is profit failing to track revenue, and the fact that the company's next-decade story rests heavily on a single molecule that has yet to produce late-stage data.
Full Review
ClaudeSix products now drive the growth.
Amgen's quarter rests not on one drug but on a narrow, fast-growing group. The six products management identifies as its key growth drivers grew 26% year over year and produced roughly 70% of product sales. Product by product the picture is clear: cholesterol drug Repatha reached $953 million, up 37%, with new prescriptions growing more than 50%; bone drug EVENITY hit $714 million, up 38%; asthma biologic Tezspire reached $486 million, up 42%; thyroid eye disease drug Tepezza came in at $576 million, up 14%. Blood cancer therapy Blincyto rose 23% to $472 million. The newer cohort is accelerating harder still: lung cancer therapy Imdelltra grew 115% to $288 million, rare disease drug Uplizna grew 90% to $335 million, and eye biosimilar Pavblu grew 121% to $287 million. In total, the company said 22 products grew at double-digit rates and 17 products are now running above $1 billion on an annualized basis. Single-product risk is being spread out.
Revenue grew 10%, profit only 4%.
This is the line item that deserves the most attention. Revenue rose 10% year over year while adjusted earnings per share rose just 4%. Three reasons. First, adjusted operating margin slipped to 48.4%, half a point below last year — still a high margin, but one that has turned down from its peak. Second, research and development spending rose 7% to $1.87 billion; nine separate Phase 3 studies for MariTide are not free. Third, the adjusted tax rate climbed from 14.2% to 15.6%; those 1.4 points look small in isolation but come straight out of earnings per share. The cash side looks considerably better: free cash flow jumped from $1.9 billion to $3.5 billion. In other words the company is generating cash faster than accounting profit — a positive signal on earnings quality. Our guide to cash flow explains why that distinction matters.
The mature portfolio keeps eroding.
As good as the growth side looks, the erosion in the older franchises is just as real. Bone drug Prolia fell 32% to $759 million and cancer support drug Xgeva fell 34% to $352 million; together they contracted 33%, directly because of biosimilar competition — once patent protection lapses, rivals making the same active ingredient pull prices down. Psoriasis drug Otezla dropped 21% to $491 million; here the problem is not patents but volume pressure from newer competing therapies. Rheumatology drug Enbrel slipped 4% to $580 million. Together these lines still generate roughly $2.2 billion in quarterly sales, and they shrink every quarter. That is precisely Amgen's structural test: can the new generation grow faster than the old one erodes? This quarter the answer was yes — but how profitable the replacement revenue turns out to be will show up in the margin line over the coming quarters.
MariTide is the real lock on this story.
Amgen's obesity candidate maridebart cafraglutide, known as MariTide, aims to differentiate from the weekly injections of Eli Lilly and Novo Nordisk through monthly or less frequent dosing. The company is currently running nine Phase 3 studies: MARITIME-1 and MARITIME-2 in obesity and type 2 diabetes, MARITIME-CV for cardiovascular outcomes, MARITIME-HF in heart failure, MARITIME-OSA-1 and OSA-2 in obstructive sleep apnea, and MARITIME-SWITCH for patients transitioning off competing drugs. Three more type 2 diabetes studies are set to start during 2026. On the call management said it remains "very confident" in MariTide's profile and described 2026 as a year of disciplined data generation. Amgen is also expanding manufacturing capacity in North Carolina, Ohio and Puerto Rico — preparing for a launch. In the same quarter it discontinued development of AMG 513, an early-stage obesity candidate, concentrating the portfolio further on MariTide. For investors the implication is blunt: strong Phase 3 data would re-rate the multiple, and weak data would take back the growth premium embedded in today's price.
The debt load is still on the table.
The Horizon Therapeutics acquisition that brought Tepezza and Krystexxa into the portfolio delivered growth but left a heavy debt burden on the balance sheet. Total debt stood at $57.3 billion at quarter end, up from $54.6 billion at the end of 2025. Cash and equivalents were $14.0 billion, putting net debt around $43 billion — and despite $3.5 billion of quarterly free cash flow, total debt rose rather than fell this quarter. Over the same period Amgen paid a dividend of $2.52 per share, up 6% year over year, and plans roughly $2.6 billion of capital expenditure and up to $3.0 billion of share repurchases for the year. That is a deliberate choice to route cash toward growth and shareholders rather than deleveraging. As long as rates stay high, the cost of that choice keeps showing up in financing expense; our guide to reading financial statements covers how to track these lines.
Strengths
6- Revenue cleared $10 billion in a quarter for the first time: $10.05 billion, up 10% year over year.
- Adjusted earnings per share of $6.29 came in roughly 12% above the $5.62 Market Expectation.
- Full-year guidance was raised on both revenue ($38.2-$39.4 billion) and adjusted earnings per share ($22.30-$23.50).
- The six key growth drivers grew 26% year over year and produced roughly 70% of product sales.
- Free cash flow nearly doubled, from $1.9 billion to $3.5 billion.
- Portfolio breadth improved: 22 products grew at double-digit rates and 17 now run above $1 billion annualized.
Risks
6- Revenue grew 10% but adjusted earnings per share rose only 4%; adjusted operating margin slipped half a point.
- Prolia and Xgeva contracted 33% together under biosimilar competition; Otezla fell 21% and Enbrel 4%.
- Total debt rose to $57.3 billion from $54.6 billion at the end of 2025, leaving net debt near $43 billion.
- The adjusted tax rate rose from 14.2% to 15.6%, a direct drag on earnings per share.
- MariTide has yet to deliver Phase 3 data; Eli Lilly and Novo Nordisk are far ahead in obesity and oral options are reaching the market.
- The shares trade roughly 7% above the average analyst price target of $374.69.
What to Watch
6- Q3 2026 results are due around early November 2026, the first read on whether the raised guidance is tracking toward its upper band.
- MariTide's Phase 3 MARITIME-1 and MARITIME-2 studies are ongoing; management calls 2026 a year of data generation, and the first full Phase 3 package is the single biggest item on the stock's calendar.
- Three additional Phase 3 type 2 diabetes studies for MariTide are set to begin during 2026.
- TAVNEOS regulatory process: the company requested an FDA hearing on June 1, 2026 and submitted supporting materials on July 23, 2026; a resolution is pending.
- Enrollment is complete in the XALute Phase 3 study of prostate cancer candidate xaluritamig; the readout is the next oncology event.
- The OCEAN(a)-Outcomes Phase 3 study of Lp(a)-lowering olpasiran continues; its cardiovascular outcome data is the second-largest medium-term pipeline event.
Upcoming Earnings
To Understand This