Overview
Since the Report + 10.6%
Revenue grew 10.0% year over year, EPS beat the estimate by 12.0%; the stock rose 4.6% in its first reaction.
- RevenueQ2
- $10.05B
- ▲ 10% YoY
- EPSAdjusted
- $6.29
- 12% Above Expectation
Verdict
BUYAmgen 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.
Close on Report DayAug 4
$404.85▲ 4.6%Report-Day Move
- Market Cap(Today)
- ≈ $242 B
- 1Y Return(At Report)
- + 35%
- P/E(At Today's Price · $22.37 · Trailing 12M)
- 20.0
- PEG(Company Guidance 2026)
- 4.08
- Net Margin(Trailing 12M)
- 23.0%
Earnings Summary
In 30 Seconds- Revenue rose 10% year over year to $10.05B, and adjusted EPS of $6.29 beat expectations by about 12%.
- Full-year revenue guidance was raised to $38.2-39.4B, but Prolia and Xgeva shrank 33% under biosimilar pressure.
- The stock rose 4.57% to $407.83 the next session as the guidance raise answered worries about patent losses.
The Numbers
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
Q2 2025 · $9.18 B
9.56
Q3 2025 · $9.56 B · QoQ + 4.1%
9.87
Q4 2025 · $9.87 B · QoQ + 3.2%
8.62
Q1 2026 · $8.62 B · QoQ − 12.6%
10.05
Q2 2026 · $10.1 B · QoQ + 16.7% · YoY + 9.5%
- Q2 2025
- Q3 2025
- Q4 2025
- Q1 2026
- Q2 2026
Q3 2026 Company Guidance
- Full-Year Revenue38.2 – 39.4 billion38.2 billion39.4 billion
Midpoint $38.8 · Market Expectation $37.8Midpoint 2.6% Above Estimate ▲
- Full-Year Adjusted EPS22.3 – 23.5 $22.3 $23.5 $
Midpoint $22.90 · Market Expectation $22.39Midpoint 2.3% Above Estimate ▲
- Full-Year GAAP EPS15.80 – 17.08 $15.80 $17.08 $
Q2 Actual $4.37▲ 65% YoY
- Adjusted Tax Rate15.0% – 16.5%15.0%16.5%
15.6% in Q2 · 14.2% a Year AgoTax Burden Rising ▼
- Capital Expenditures2.6 billion
Manufacturing Capacity ExpansionFlat Trend
How to Read the Chart
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. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±5.5% around the midpoint.
Company-Specific Metrics
Free Cash Flow
$3.49 B
▲ 82.6% YoYPress Release
Total Product Sales
$9.54 B
▲ 8.7% YoYPress Release
EVENITY Sales
$714 M
▲ 38.0% YoYPress Release
TEZSPIRE Sales
$486 M
▲ 42.0% YoYPress Release
UPLIZNA Sales
$335 M
▲ 90.0% YoYPress Release
IMDELLTRA Sales
$288 M
▲ 115.0% YoYPress Release
GAAP Operating Margin
36.8%
Press Release
Metrics come only from the company's own filings; each one names the document it was taken from.
“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 and Review
Summary
Amgen reported second-quarter 2026 results after the close on August 4. Revenue came in at $10.05 billion, up 10%, the first quarter ever above $10 billion. Adjusted earnings per share were $6.29; the Market Expectation was $5.62, so the beat was roughly 12%. GAAP earnings per share rose 65% to $4.37 from $2.65. Free cash flow nearly doubled, from $1.9 billion to $3.5 billion. Full-year guidance rose to $38.2-$39.4 billion of revenue and $22.30-$23.50 of adjusted earnings per share.
The stock closed August 4 at $390.02 and barely moved after hours, up about 0.5%. The real move came on August 5: the shares gained 4.57% to $407.83, near their 52-week high. On August 6 they eased 0.7% to $404.85. Three things drove the reaction. A beat on both lines; guidance that was raised, not merely reaffirmed; and MariTide's Phase 3 program moving ahead without interruption. The average 12-month analyst target is $374.69, roughly 7% below the current price.
The quarter was strong but not uniform. The six key growth drivers grew 26% and generated roughly 70% of product sales. Yet adjusted earnings per share rose only 4% on 10% revenue growth. Prolia and Xgeva shrank 33% under biosimilar competition; Otezla fell 21%. We rate the quarter well: a beat, a raise, a working new product generation. The score stays below 80 because profit is not tracking revenue and the next decade rests on one molecule without late-stage data.
Full Review
Six products now drive the growth.
Amgen's quarter rests not on one drug but on a narrow, fast-growing group. Product sales grew 9% to $9.54 billion. The six products management identifies as its key growth drivers grew 26% year over year. They produced roughly 70% of product sales. 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 faster. 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. The company counts 22 products growing at double-digit rates and 17 running above $1 billion annualized. 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. 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, can be dosed monthly or less often, unlike the weekly injections of Eli Lilly and Novo Nordisk. The company is running nine Phase 3 studies. MARITIME-1 and MARITIME-2 cover obesity and type 2 diabetes, MARITIME-CV cardiovascular outcomes, and MARITIME-HF heart failure. MARITIME-OSA-1 and OSA-2 cover sleep apnea, MARITIME-SWITCH patients switching from competing drugs. Three more type 2 diabetes studies are set to start during 2026. Management said on the call it remains "very confident" in MariTide's profile and called 2026 a year of disciplined data generation. Amgen is also expanding manufacturing in North Carolina, Ohio and Puerto Rico — preparing for a launch. It also discontinued AMG 513, an early-stage obesity candidate, concentrating the portfolio further on MariTide. For investors the implication is blunt: strong Phase 3 data re-rates the multiple; weak data takes back the growth premium in today's price.
The debt load is still on the table.
The Horizon Therapeutics deal that brought in Tepezza and Krystexxa delivered growth but left heavy debt. 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. Despite $3.5 billion of quarterly free cash flow, total debt rose rather than fell this quarter. Amgen also paid a $2.52 per-share dividend, up 6% year over year. For the year it plans roughly $2.6 billion of capex and up to $3.0 billion of buybacks. Cash is being routed to growth and shareholders rather than deleveraging. While rates stay high, that cost shows up in financing expense; our guide to reading financial statements covers these lines. Next quarter's line to watch: does total debt turn down from $57.3 billion, and is revenue tracking toward the $39.4 billion top of the range?
Looking Ahead
Strengths and Risks
6 Strengths · 6 RisksStrengths
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 improved22 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 competitionOtezla 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 dataEli 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 continue; the first full Phase 3 package is the year's biggest event for the stock.
- 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