Amgen Inc. (AMGN) Earnings & Analysis

Latest quarter

Amgen reported Q2 FY2026 revenue of $10.1 billion, compared with the consensus of $9.4 billion, while adjusted EPS of $6.29 compared with the consensus of $5.60. The filing reported revenue of $10.1 billion, up 9.53% from $9.2 billion in Q2 FY2025, and diluted EPS of $4.37, up 64.9% from $2.65.

Amgen said total product sales increased 9% in the quarter, driven by volume growth. The company reported U.S. volume growth of 9% and rest-of-world volume growth of 8%, citing Repatha, EVENITY, UPLIZNA, TEZSPIRE, IMDELLTRA/IMDYLLTRA and PAVBLU among the brands driving those gains. Amgen said Prolia, Otezla, ENBREL, XGEVA and KYPROLIS sales declined, with pricing and volume factors varying by product.

The filing showed gross margin of 72.0%, versus 67.2% a year earlier, and operating margin of 35.0%, versus 28.9%. Amgen reported free cash flow of $3.5 billion, compared with $1.9 billion in the prior-year quarter.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Robert Bradway said total revenue exceeded $10 billion and increased 10% year over year, and he attributed the quarter to the breadth and depth of Amgen’s portfolio. Bradway said the company’s six key growth drivers grew at an aggregate rate of 26% and represented nearly 70% of second-quarter product sales. He said Amgen expects product-volume demand to continue growing in the second half and is expanding indications, geographic reach, dosage administration and payer access for its medicines.

Bradway said MariTide, Olpasiran and Xaluritamig were advancing through Phase III development. James Bradner said trial enrollment for MariTide was strong and that 2026 was focused on data generation; he said Amgen expects to learn more about dazodalibep in the second half of the year. In response to analyst questions about Olpasiran, Bradner said Amgen expected pelacarsen data could offer directional insight but not a decisive comparison because of differences in the molecules and trial designs.

Peter Griffith said second-quarter non-GAAP operating margin was 48%, while non-GAAP R&D spending rose 10% year over year as Amgen invested in MariTide, Xaluritamig, Olpasiran, UPLIZNA, TEZSPIRE and IMDELLTRA. Griffith said non-GAAP cost of sales was 19.6% of product sales, with the year-over-year increase reflecting higher profit-sharing and royalty expense and changes in sales mix. He said Amgen generated $3.5 billion of second-quarter free cash flow and spent $500 million on capital expenditures, including at U.S. manufacturing sites.

On pricing and competition, Murdo Gordon said Otezla faced price pressure associated with 340B exposure, although volume was holding up. Gordon said the filing’s expected erosion in Prolia and XGEVA sales reflected biosimilar launches, while Amgen continued to expect growth in other brands to be partly offset by net selling-price declines for the remainder of 2026. Griffith said the company planned a meaningful sequential increase in third-quarter operating expenses, including investments in its pipeline and commercial brands, but did not quantify those incremental investments.

Guidance

Peter Griffith said Amgen raised its FY2026 revenue guidance to $38.2 billion to $39.4 billion and its non-GAAP EPS guidance to $22.30 to $23.50. He said the outlook includes approximately $1.9 billion of other revenue and a $100.0 million upfront payment from a business-development transaction that will increase third-quarter non-GAAP R&D expense. Griffith also said Amgen now anticipates non-GAAP other income and expense of $2.1 billion to $2.2 billion of expense for FY2026.