Snapshot

Amgen reported revenue of $36.8 billion, operating income of $9.1 billion and net income of $7.7 billion in FY2025. Market capitalisation was $225.7 billion as of September 28, 2026.

In Q2 FY2026, revenue was $10.1 billion, gross profit was $7.2 billion, operating income was $3.5 billion and net income was $2.4 billion. Diluted EPS was $4.37 in Q2 FY2026, while free cash flow was $3.5 billion in Q2 FY2026. The latest quarter ended June 30, 2026.

Growth

Revenue grew 9.95% in FY2025 against FY2024, reaching $36.8 billion in FY2025. Revenue compound annual growth was 11.8% over FY2022–FY2025 and 7.65% over FY2020–FY2025. Diluted EPS grew 88.2% in FY2025 against FY2024 to $14.23 in FY2025; its compound annual growth was 5.52% over FY2022–FY2025 and 2.94% over FY2020–FY2025.

Free cash flow was $8.1 billion in FY2025 and declined 22.1% in FY2025 against FY2024. Free cash flow compound annual growth was −2.67% over FY2022–FY2025 and −3.91% over FY2020–FY2025. Revenue was $10.1 billion in Q2 FY2026, up 16.7% against Q1 FY2026 and 9.53% against Q2 FY2025. Diluted EPS was $4.37 in Q2 FY2026, up 30.8% against Q1 FY2026 and 64.9% against Q2 FY2025.

Profitability

Gross margin was 67.2%, operating margin was 24.7%, pre-tax margin was 24.4% and net margin was 21.0% in FY2025. From FY2020 to FY2025, gross margin changed by −8.5 percentage points, operating margin changed by −11.2 percentage points, and both pre-tax margin and net margin changed by −7.6 percentage points. Each margin increased from FY2024 to FY2025: gross margin by 5.7 percentage points, operating margin by 3.0 percentage points, pre-tax margin by 10.6 percentage points and net margin by 8.7 percentage points.

Return on equity was 106.1%, return on assets was 8.45%, and return on invested capital was 10.5% in FY2025. In Q2 FY2026, gross margin was 72.0% and operating margin was 35.0%.

Balance sheet

Total debt was $54.6 billion, net debt was $45.5 billion, and cash and short-term investments were $9.1 billion in FY2025. Total debt was lower than $64.6 billion in FY2023, while net debt was lower than $53.7 billion in FY2023. Shareholders’ equity was $8.7 billion and working capital was $3.6 billion in FY2025.

Net debt was $43.3 billion in Q2 FY2026, a change of −$2.0 billion in Q2 FY2026 against Q1 FY2026 and −$4.9 billion in Q2 FY2026 against Q2 FY2025. The current ratio was 1.4× and debt to equity was 4.9× in Q2 FY2026. Book value per share was $16.09 in FY2025.

Cash flow & capital return

Operating cash flow was $10.0 billion in FY2025, down 13.3% in FY2025 against FY2024. Capital expenditure was $1.9 billion in FY2025, compared with $1.1 billion in FY2024. Free cash flow was $8.1 billion in FY2025, down 22.1% in FY2025 against FY2024, and represented 105.0% of net income in FY2025.

Dividends paid were $5.1 billion in FY2025, compared with $4.8 billion in FY2024. Net share repurchases are not reported for FY2025. Weighted average shares were 538.0 million shares in FY2025, while the share count changed by −8.19% over FY2020–FY2025. Free cash flow was $3.5 billion in Q2 FY2026, up 136.2% against Q1 FY2026 and 82.6% against Q2 FY2025.

Valuation

As of September 28, 2026, P/E was 25.8×, higher than the five-year median of 22.8× over the five fiscal years to FY2025 and the ten-year median of 21.6× over the ten fiscal years to FY2025; it was also higher than the industry median of 24.7× as of September 28, 2026.

As of September 28, 2026, P/S was 5.9×, above its five-year median of 4.9× and ten-year median of 5.3×, and above the industry median of 3.4×. As of September 28, 2026, P/B was 19.3×, below its five-year median of 23.8× but above its ten-year median of 17.1× and the industry median of 5.0×. As of September 28, 2026, EV/Sales was 7.1×, above both its five-year and ten-year medians of 6.0× and above the industry median of 4.0×. EV/Cash flow was 27.6× as of September 28, 2026, above its five-year median of 20.4× and ten-year median of 19.1×; an industry median is not reported.

What changed since last quarter

Revenue was $10.1 billion in Q2 FY2026, increasing 16.7% against Q1 FY2026 and 9.53% against Q2 FY2025. Management attributes the increase in total product sales for the three months ended June 30, 2026 to volume growth. Management also cites higher corporate partner revenue and royalty income for the increase in other revenues for the three months ended June 30, 2026.

Diluted EPS was $4.37 in Q2 FY2026, up 30.8% against Q1 FY2026 and 64.9% against Q2 FY2025. Gross margin was 72.0% and operating margin was 35.0% in Q2 FY2026, increasing 3.9 percentage points and 4.0 percentage points, respectively, against Q1 FY2026; they increased 4.8 percentage points and 6.0 percentage points, respectively, against Q2 FY2025. Management attributes lower cost of sales for the three months ended June 30, 2026 primarily to lower amortization expense from acquisition-related assets, partly offset by higher profit share expense, manufacturing costs and changes in sales mix. Net debt was $43.3 billion in Q2 FY2026, down −$2.0 billion against Q1 FY2026.

Open questions

• How much of future product-sales growth can be sustained if net selling prices continue to decline?
• How will increased competition and biosimilar launches affect sales erosion in the affected products?
• What will be the financial effect of potential drug-pricing reforms, tariffs, and changes to healthcare reimbursement?
• How will higher spending in later-stage clinical programs and marketed product support affect operating expenses?
• What will be the outcome of the ongoing tax disputes with the IRS?

Sources

• Form 10-Q filed August 5, 2026 — management’s discussion and analysis