Amgen Inc.
Analytical review · Report for the quarter ended June 30, 2026 (Q2 2026)
Bakshi Finance — Family Office | Research Depth: Comprehensive
What this review is based on. Amgen's quarterly report on Form 10-Q for the quarter ended June 30, 2026, filed August 5, 2026; the earnings releases for the last four quarters (November 2025 through August 2026); the annual report on Form 10-K for 2025; and a Form 8-K from July 2026 on an information-security incident. Market data: closing price on October 9, 2026, and the Bank of Israel representative dollar rate published October 9, 2026.
Company Profile
Amgen Inc. is one of the oldest and largest biotechnology companies in the world. It develops, manufactures and markets medicines, most of them biologics (proteins and antibodies produced in living cells), in four areas: general medicine (cholesterol and osteoporosis), rare diseases, inflammatory diseases, and oncology. The company is headquartered in Thousand Oaks, California, and at the end of 2025 had about 31,500 staff in more than 50 countries.
Its known medicines include Repatha for lowering cholesterol, Prolia and EVENITY for osteoporosis, ENBREL and Otezla for inflammatory diseases, TEZSPIRE for severe asthma, and TEPEZZA and KRYSTEXXA, which came with the acquisition of Horizon in 2023. It also sells biosimilars — equivalent versions of other companies' biologic medicines.
According to the earnings release, 17 of the company's medicines are selling at an annual rate of more than one billion dollars each. The pipeline includes MariTide, an obesity treatment dosed monthly or less often, now in Phase 3 clinical trials. The chairman and CEO is Robert Bradway, in the role since 2012. The company has no controlling shareholder and one class of shares.
Financial Performance
Reading Amgen's reports requires separating two profit figures. GAAP profit includes amortization of assets acquired in company acquisitions — mainly Horizon, bought in 2023 for about $27 billion in cash. Non-GAAP profit, which the company publishes alongside it, excludes that amortization, changes in the value of equity holdings and other items. The gap between the two is large and changes from quarter to quarter.
The quarter: revenue +9.5%, non-GAAP profit +4%
In the April–June 2026 quarter revenue rose to $10,054 million. GAAP earnings per share rose 65% to $4.37, mainly because acquisition-related amortization in cost of sales fell from $1,460 million to $937 million, and because the loss from revaluing the stake in BeOne was smaller. Non-GAAP earnings per share rose only 4%, to $6.29: non-GAAP cost of sales rose 21% (profit sharing with partners, manufacturing costs and mix), and non-GAAP research and development rose 10%, mainly because of the MariTide trials.
Part of each quarter's revenue change comes from revised estimates of the rebates and discounts the company gives payers. In Q2 the revisions were positive for ENBREL (+16%), TEPEZZA and BLINCYTO; in Q1 2026 and Q4 2025 they were negative for ENBREL (−18% and −17%). The half-year therefore reflects the trend better than a single quarter: product sales in the first half of 2026 rose 6.7%.
According to company management, 2026 revenue will total $38.2 to $39.4 billion, and non-GAAP earnings per share will be $22.30 to $23.50. This is the second raise this year: in February the range stood at $37.0–38.4 billion and $21.60–23.00. Non-GAAP earnings per share in 2025 were $21.84.
| $ millions | Q1-25 | Q2-25 | Q3-25 | Q4-25 | Q1-26 | Q2-26 |
|---|---|---|---|---|---|---|
| Revenue | 8,149 | 9,179 | 9,557 | 9,866 | 8,618 | 10,054 |
| Net income (GAAP) | 1,730 | 1,432 | 3,216 | 1,333 | 1,819 | 2,375 |
| EPS (GAAP), $ | 3.20 | 2.65 | 5.93 | 2.45 | 3.34 | 4.37 |
| Non-GAAP EPS, $ | 4.90 | 6.02 | 5.64 | 5.29 | 5.15 | 6.29 |
| Free cash flow | 980 | 1,911 | 4,248 | 961 | 1,477 | 3,489 |
Balance Sheet & Capital
On June 30, 2026 Amgen's debt stood at $57.3 billion (principal $58.8 billion), against cash and cash equivalents of $14.0 billion. Net debt: $43.3 billion. Most of the debt is fixed-rate bonds, with maturities spread out to 2063. About $3.7 billion matures in 2026, including a $1.8 billion term loan in October.
In the first quarter of 2026 the company raised $4.0 billion in new bonds (maturing 2031 to 2056) and repaid a €750 million note. As a result cash rose by $4.9 billion in the half-year, about $4.0 billion of it from the issuance. The company has an undrawn $4.0 billion credit facility, through March 2029.
Stockholders' equity was $11.7 billion, against goodwill of $18.7 billion and intangible assets of $20.5 billion — most from acquisitions. Tangible equity is therefore negative, a result of past acquisitions and share buybacks. The company also holds about 17% of BeOne Medicines, with a market value of $5.4 billion.
Capital return: a quarterly dividend of $2.52 per share, up 6% from 2025. No shares were repurchased in the first half of 2026; according to company management, 2026 buybacks will not exceed $3.0 billion. Capital expenditures in 2026 will total about $2.6 billion according to management ($1.86 billion in 2025), mainly to expand U.S. manufacturing.
Segments
Amgen reports a single operating segment. The available breakdown is by product and by region: in Q2, U.S. product sales were $6,990 million (+11%) and rest-of-world sales $2,547 million (+4%). According to the report, volume grew 9% in the U.S. and 8% in the rest of the world.
| Product, $ millions | Q2-25 | Q2-26 | Change | Company explanation |
|---|---|---|---|---|
| Repatha (cholesterol) | 696 | 953 | +37% | Volume |
| Prolia (osteoporosis) | 1,122 | 759 | −32% | Biosimilars: volume −20%, price −12% |
| EVENITY (osteoporosis) | 518 | 714 | +38% | Volume |
| ENBREL (arthritis) | 604 | 580 | −4% | Price −22% (Medicare price from 2026), deduction revisions +16% |
| TEPEZZA (thyroid eye disease) | 505 | 576 | +14% | Price and volume |
| Otezla (psoriasis) | 618 | 491 | −21% | Price and volume; generics in Europe |
| TEZSPIRE (asthma) | 342 | 486 | +42% | Volume |
| BLINCYTO (leukemia) | 384 | 472 | +23% | Volume +16% |
| XGEVA (bone metastases) | 532 | 352 | −34% | Biosimilars |
| UPLIZNA (autoimmune diseases) | 176 | 335 | +90% | Volume |
| IMDELLTRA (lung cancer) | 134 | 288 | +115% | Volume |
| PAVBLU (ophthalmic biosimilar) | 130 | 287 | +121% | Only such biosimilar available in the U.S. in the period |
| Total product sales | 8,771 | 9,537 | +9% | Volume |
Two groups move in opposite directions. The six growing medicines — Repatha, EVENITY, TEZSPIRE, UPLIZNA, IMDELLTRA and PAVBLU — together added $1,067 million in the quarter versus the prior year. Prolia and XGEVA, whose U.S. patent expired in February 2025, together lost $543 million. ENBREL and Otezla fall under the Medicare price-setting mechanism (ENBREL from 2026, Otezla from 2027).
Competitive Position
The advantage the company presents rests on three elements: diversification — 17 medicines at an annual rate above one billion dollars, with the largest (Repatha) about 10% of product sales in the quarter; large-scale biologics manufacturing, an area where new entry is slow and expensive; and biosimilar know-how on both sides — the company faces biosimilars to its own medicines and also sells biosimilars of others' medicines.
What the reports show on the other side: patent protection for some of the large medicines has expired or is approaching expiry. According to the patent table in the annual report, Repatha's U.S. antibody patent expires in August 2029, ENBREL's protein patents in 2028–2029, and Otezla's compound patent in February 2028. In addition, Medicare price setting under the Inflation Reduction Act (IRA) is already lowering ENBREL's price. Regeneron is pursuing patent litigation against PAVBLU. The company does not publish market-share data against competitors, and this review does not include such data from a primary source.
How to Think About This Company
At Amgen, every quarter is a race between medicines that are growing and medicines that are losing protection. In Q2 2026 six growing medicines added more than a billion dollars of revenue, while Prolia and XGEVA lost more than half a billion. Total revenue rose 9.5%. The central question is not which group is larger today, but how the balance between them shifts over time.
Two profit figures, two stories. GAAP profit rose 65% and non-GAAP profit 4%. The difference comes mainly from lower amortization of acquired assets and from revaluation of an equity stake. On one hand, non-GAAP profit better shows the ongoing business. On the other, amortization is the recovery of real money paid in acquisitions, and the amortization schedule in the report falls from $3.6 billion in 2027 to $2.1 billion in 2031. Because the gap keeps moving, free cash flow is a third anchor.
A single quarter can mislead. Revisions to the estimated rebates the company gives payers move individual medicines' revenue by tens of percent: for ENBREL, minus 17% in Q4 2025, minus 18% in Q1 2026, and plus 16% in Q2. It is therefore better to read Amgen by half-years or trailing twelve months: in the first half of 2026 product sales rose 6.7%, and the non-GAAP operating margin was 46.9% of product sales, versus 47.4% in the prior-year half.
The price the government pays is becoming a central variable. Medicare price setting cut ENBREL's price by 22% in the quarter, and Otezla enters it in 2027. In December 2025 the company announced steps that meet the Administration's most-favored-nation (MFN) pricing requests, and joined a Medicaid rebate model. The effect of these on net price was not quantified in the report, and the company describes it as uncertain. At the same time, thanks to U.S. manufacturing investment, the company received relief from pharmaceutical tariffs for about three years from December 2025.
The tax dispute is the largest financial exposure. The U.S. Internal Revenue Service (IRS) argues that Amgen attributed too much profit to its operations in Puerto Rico. For 2010–2015 it is seeking about $8.7 billion in tax and about $2.0 billion in penalties, plus interest, with part of the amount offset by tax already paid (up to about $3.1 billion). The company disputes the claims; the trial ended in January 2025, and according to the company a decision will come no earlier than late 2026 or early 2027. A similar claim was received for 2016–2018, and an audit of 2019–2022 has begun. The annual report shows a total reserve for all uncertain tax positions of $4.4 billion, plus $1.9 billion of accrued interest and penalties.
Leverage built through an acquisition. The $57.3 billion of debt is mainly a result of the Horizon acquisition. Non-GAAP operating profit over the last 12 months ($16.6 billion) is 6.2 times net interest expense. In 2025 the company retired $6.0 billion of debt; in 2026 it issued $4.0 billion of new bonds and did not buy back shares. Gross debt therefore rose in the first half, even with positive cash flow.
A large pipeline, partly binary. MariTide is being tested in 9 active Phase 3 trials, with 3 more in diabetes to start in 2026 according to the company. There are no Phase 3 results yet. Meanwhile another obesity candidate (AMG 513) was discontinued, and two subcutaneous BLINCYTO trials paused enrollment after a partial clinical hold by the U.S. Food and Drug Administration (FDA). Non-GAAP research and development rose 10% in the quarter, mainly because of MariTide.
Three open issues in the report. (1) The FDA proposed withdrawing approval of TAVNEOS, acquired in 2022; the company requested a hearing, and its intangible asset ($2.4 billion) was not written down as of June 30, 2026. (2) In July 2026 the company reported an information-security incident in which data was exfiltrated, including patient health information; the company determined the incident to be material, and wrote that in its assessment it does not have a material effect on its financial results. (3) In 2025 impairments of $1.2 billion were recorded on Otezla after it was selected for Medicare price setting.
The price moved more than the business. On October 9, 2026 the stock traded at $414.87, near its 52-week high ($447.03) and far from its low ($288.00). Over that period the company raised its 2026 non-GAAP EPS guidance from $21.60–23.00 to $22.30–23.50. In the filings reviewed for this report, no single event was found that explains the full price move.
This framework is intended to structure analysis, not to produce an investment conclusion. The site does not take part in the decision — the decision is the reader's.
Risks & Monitoring
Risks arising from the reports
- Erosion of older medicines: Prolia and XGEVA against biosimilars; according to company management, erosion will accelerate over the rest of 2026. Otezla — generics in Europe and a Medicare price from 2027.
- U.S. pricing policy: the Inflation Reduction Act (IRA), wider use of the 340B discount program, MFN requests and Medicaid cuts. The effect was not quantified in the report.
- Tax: a dispute with the IRS over 2010–2015 (about $10.7 billion of tax and penalties before interest and offsets), a similar claim for 2016–2018, and an audit of 2019–2022. An adverse outcome could also affect the company's future tax rate.
- Product-specific regulation: the FDA proposal to withdraw TAVNEOS approval; an intangible asset of $2.4 billion.
- Information security: a material incident from July 2026; the investigation is ongoing and the company is reviewing patient notification obligations.
- Leverage: $57.3 billion of debt; maturities of about $3.7 billion in 2026 and about $2.7 billion in 2027.
- Patents: Repatha (2029), ENBREL (2028–2029), Otezla (2028); Regeneron litigation against PAVBLU.
Items to monitor in the Q3 report (early November 2026)
| # | Item | Latest reading |
|---|---|---|
| 1 | Non-GAAP operating margin (of product sales) | 48.4% in Q2; 46.9% for the half-year |
| 2 | Prolia and XGEVA | $1,111 million in Q2 (−33%) |
| 3 | The six growing medicines | +$1,067 million versus the prior year |
| 4 | Rebate-estimate revisions in product explanations | Alternating positive and negative |
| 5 | Tax dispute — decision and new claims | Decision no earlier than late 2026, per the company |
| 6 | TAVNEOS — FDA decision and impairment | Asset of $2.4 billion |
| 7 | Buybacks and free cash flow | No buybacks in the half; $3.5 billion free cash flow in Q2 |
| 8 | 2026 guidance | Revenue $38.2–39.4 billion; non-GAAP EPS $22.30–23.50 |
Scenario Framework
The scenarios below are descriptive, not predictive. They include no prices, no probabilities and no ranking of outcomes. Their only purpose is to organize the conditions that would need to hold for each state to materialize, so that they can be checked against future filings.
- If the growing medicines keep adding more revenue than Prolia, XGEVA and ENBREL lose, also on a half-year basis
- If the tax decision ends at an amount no higher than the existing reserve
- If the MariTide Phase 3 trials meet their clinical endpoints
- If the non-GAAP operating margin stabilizes and gross debt resumes declining
- If product sales growth moves around the first-half pace, with continued erosion in older medicines
- If non-GAAP profit grows at a low single-digit rate, within the guidance range
- If the tax dispute and TAVNEOS remain open without resolution
- If cash flow funds the dividend and debt maturities, without significant buybacks
- If the court decision requires a payment above the reserve, or raises the company's future tax rate
- If TAVNEOS approval is withdrawn and the asset is written off
- If U.S. pricing policy lowers prices beyond what is already reflected in guidance
- If the MariTide trials do not meet their endpoints, after years of high development spending
Analytical Lens
The following six questions are identical in every company review we publish. They are deliberately open and do not lead to a single conclusion. Their role is to let the reader examine the company along the same six dimensions as any other company.
Key Observations
1. In the April–June 2026 quarter Amgen reported revenue of $10,054 million (+9.5%), GAAP EPS of $4.37 (+65%) and non-GAAP EPS of $6.29 (+4%). In the first half, product sales rose 6.7%.
2. The six growing medicines added $1,067 million in the quarter versus the prior year, while Prolia and XGEVA lost $543 million. According to company management, 2026 revenue will total $38.2 to $39.4 billion.
3. On June 30, 2026 debt stood at $57.3 billion and cash at $14.0 billion. Free cash flow over the last 12 months totaled $10.2 billion, and the quarterly dividend is $2.52 per share.
4. Three open issues appear in the report: a tax dispute with the IRS over profit allocation to Puerto Rico, the FDA proposal to withdraw TAVNEOS approval, and an information-security incident from July 2026 that the company determined to be material.
Bakshi Finance operates as a Family Office for qualified clients only. Mr. Yaron Bakshi held a licensed investment adviser qualification in Israel during 2008–2023. As of the publication date of this document, the firm does not hold an investment advice, investment marketing or portfolio management licence.
This document is intended for research and professional study purposes only. Nothing herein constitutes a recommendation to buy, sell, hold or carry out any transaction in securities. Nothing herein substitutes for advice that takes into account the data and needs of each person. Every decision is the sole responsibility of the investor.
Past performance is not indicative of future results. Data were drawn from official sources: the quarterly report on Form 10-Q for the quarter ended June 30, 2026 (August 5, 2026), the earnings releases for Q3 and Q4 2025 and Q1 and Q2 2026, the annual report on Form 10-K for 2025 (February 13, 2026), and a Form 8-K dated July 31, 2026. Filings published after this date are not included.
Review for qualified clients โ Family Office
The full analytical review of Amgen (AMGN) for the quarter ended June 2026 is available to Bakshi Finance premium clients.
The review includes a 10-section analysis, "How to Think About This Company" paragraphs, a structured scenario framework, and a six-dimension Analytical Lens.
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