third quarter of 2026
Filed Nov 3, 2026AMGEN REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS
Total revenues increased 8% to $10.4 billion, GAAP diluted EPS increased 19% to $7.08, and non-GAAP diluted EPS increased 14% to $6.45. Product sales growth was driven by volume growth, while GAAP operating margin expanded 9.9 percentage points to 37.5%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $10.37B | – | 8% |
| Product sales, three months ended September 30, 2026GAAP | $9.88B | – | 8% |
| Other revenues, three months ended September 30, 2026GAAP | $482M | – | – |
| Cost of sales, three months ended September 30, 2026GAAP | $2.79B | – | (10%) |
| Cost of sales as a percentage of product sales, three months ended September 30, 2026GAAP | 28.2 % | – | (5.5) pts. |
| Research and development expenses, three months ended September 30, 2026GAAP | $2.11B | – | 11% |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $1.68B | – | (2%) |
| Other operating expenses, three months ended September 30, 2026GAAP | $76M | – | (77%) |
| Total operating expenses, three months ended September 30, 2026GAAP | $6.66B | – | (5%) |
| Operating income, three months ended September 30, 2026GAAP | $3.71B | – | – |
| Operating income as a percentage of product sales, three months ended September 30, 2026GAAP | 37.5 % | – | 9.9 pts. |
| Provision for income taxes, three months ended September 30, 2026GAAP | $822M | – | – |
| Tax rate, three months ended September 30, 2026GAAP | 17.5 % | – | (0.5) pts. |
| Net income, three months ended September 30, 2026GAAP | $3.86B | – | – |
| Diluted EPS, three months ended September 30, 2026GAAP | $ 7.08 | – | 19% |
| Non-GAAP cost of sales, three months ended September 30, 2026non-GAAP | $1.91B | – | 15% |
| Non-GAAP research and development expenses, three months ended September 30, 2026non-GAAP | $2.10B | – | 11% |
| Non-GAAP selling, general and administrative expenses, three months ended September 30, 2026non-GAAP | $1.68B | – | (1%) |
| Non-GAAP total operating expenses, three months ended September 30, 2026non-GAAP | $5.69B | – | 8% |
| Non-GAAP operating income, three months ended September 30, 2026non-GAAP | $4.68B | – | – |
| Non-GAAP operating income as a percentage of product sales, three months ended September 30, 2026non-GAAP | 47.3 % | – | 0.2 pts. |
| Non-GAAP tax rate, three months ended September 30, 2026non-GAAP | 15.9 % | – | (2.3) pts. |
| Non-GAAP net income, three months ended September 30, 2026non-GAAP | $3.52B | – | – |
| Non-GAAP diluted EPS, three months ended September 30, 2026non-GAAP | $ 6.45 | – | 14% |
| Total revenues, nine months ended September 30, 2026GAAP | $29.04B | – | – |
| Product sales, nine months ended September 30, 2026GAAP | $27.64B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $9.89B | – | – |
| Net income, nine months ended September 30, 2026GAAP | $8.06B | – | – |
| Diluted EPS, nine months ended September 30, 2026GAAP | $ 14.79 | – | – |
| Non-GAAP operating income, nine months ended September 30, 2026non-GAAP | $13.01B | – | – |
| Non-GAAP net income, nine months ended September 30, 2026non-GAAP | $9.74B | – | – |
| Non-GAAP diluted EPS, nine months ended September 30, 2026non-GAAP | $ 17.88 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Repathaprimarily driven by volume growth | $1.08B | – | 37% |
| EVENITYdriven by volume growth | $751M | – | 39% |
| Proliamultiple biosimilars have launched globally. The decrease was driven by 23% lower volume with the remainder driven equally by lower net selling price and changes to estimated sales deductions. | $632M | – | (45%) |
| TEPEZZAdriven by lower inventory levels | $526M | – | (6%) |
| KRYSTEXXAprimarily driven by higher net selling price | $419M | – | 31% |
| UPLIZNAprimarily driven by volume growth | $451M | – | 191% |
| TAVNEOSdriven by 9% lower volume, 8% unfavorable changes to estimated sales deductions and 5% lower net selling price, partially offset by higher inventory levels | $105M | – | (2%) |
| Ultra-Rare products | $110M | – | (45%) |
| TEZSPIREdriven by volume growth | $538M | – | 43% |
| Otezladriven by 13% lower volume, 9% unfavorable changes to estimated sales deductions and 4% lower net selling price, partially offset by higher inventory levels | $481M | – | (18%) |
| Enbreldriven by 15% favorable changes to estimated sales deductions and 8% higher inventory levels, partially offset by 14% lower net selling price, reflecting the ongoing impact of U.S. Medicare Part D price setting effective in 2026 under the Inflation Reduction Act, and lower volume | $611M | – | 5% |
| AMJEVITA / AMGEVITAprimarily driven by 18% volume growth and higher net selling price | $191M | – | 24% |
| PAVBLUdriven by 71% volume growth, partially offset by 18% lower net selling price | $300M | – | 41% |
| WEZLANA / WEZENLA | $60M | – | 36% |
| BLINCYTOprimarily driven by volume growth | $496M | – | 27% |
| IMDELLTRA / IMDYLLTRAdriven by volume growth | $406M | – | 128% |
| Vectibixprimarily driven by volume growth | $335M | – | 18% |
| KYPROLISprimarily driven by lower volume | $330M | – | (8%) |
| LUMAKRAS / LUMYKRASdriven by 14% volume growth, partially offset by 5% unfavorable changes to estimated sales deductions and lower inventory levels | $102M | – | 6% |
| NplateU.S. government orders were $65 million in Q3’26 compared to $90 million in Q3’25. Excluding these U.S. government orders, Nplate sales increased 11% year-over-year, primarily driven by volume growth. | $472M | – | 3% |
| XGEVAmultiple biosimilars have launched globally. The decrease was primarily driven by 32% lower volume and 11% lower net selling price. | $288M | – | (47%) |
| MVASIprimarily driven by 11% lower net selling price and lower volume | $168M | – | (21%) |
| Aranesp | $329M | – | (8%) |
| Neulasta | $195M | – | Change in excess of 100% |
| Parsabiv | $82M | – | (2%) |
| Other products | $420M | – | 32% |
| Established productsdriven by 19% higher net selling price, partially offset by 3% lower volume | $606M | – | 14% |
full year 2026 outlook
- Revenue$38.9 billion to $39.7 billion
- Tax rateGAAP: 14.5% to 16.0%; non-GAAP: 15.0% to 16.5%
- NoteGAAP EPS: $18.34 to $19.28
- NoteNon-GAAP EPS: $22.90 to $23.70
- NoteCapital expenditures: approximately $2.6 billion
- NoteShare repurchases: not to exceed $3.0 billion
Capital returns
- The Company declared a third quarter 2026 dividend on July 30, 2026 of $2.52 per share that was paid on September 11, 2026 to all stockholders of record as of August 21, 2026, representing a 6% increase from the same period in 2025.
- Dividends paid were $ 1.4 billion in Q3 ’26 compared with $ 1.3 billion in Q3 ’25.
- During the third quarter of 2026, there were no repurchases of shares of common stock under our stock repurchase program.
- Share repurchases were $ 0.0 billion in Q3 ’26 and $ 0.0 billion in Q3 ’25.
What drove it
- Product sales grew 8%, driven by volume growth.
- Seventeen products delivered at least double-digit sales growth in the third quarter.
- Seventeen products are annualizing at more than $1 billion based on third quarter sales.
- GAAP cost of sales declined 10%, driven by lower amortization expense from acquisition-related assets and lower manufacturing costs, partially offset by higher profit share expense and changes in sales mix.
- GAAP R&D expenses increased 11%, driven by higher spend in Research and Early Pipeline, including business development activity.
- Non-GAAP operating margin increased 0.2 percentage points to 47.3%.
Concerns
- Prolia sales decreased 45% year-over-year and XGEVA sales decreased 47% year-over-year as multiple biosimilars have launched globally.
- Otezla sales decreased 18% year-over-year, driven by lower volume, unfavorable changes to estimated sales deductions and lower net selling price.
- The Company continues to engage the FDA regarding the Center for Drug Evaluation and Research’s request to voluntarily withdraw TAVNEOS from the U.S. market.
- Free cash flow declined to $3.7 billion from $4.2 billion, driven by changes in working capital, with the third quarter of 2025 benefiting from the timing of rebates and collections.
- A potentially registration-enabling Phase 2 study of subcutaneous blinatumomab remains on partial clinical hold by the FDA, as does a Phase 1b/2 pediatric study.
What to watch
- Execution of the full-year 2026 total-revenue guidance range of $38.9 billion to $39.7 billion.
- Sales trajectories for Repatha, EVENITY, UPLIZNA, TEZSPIRE, PAVBLU, BLINCYTO and IMDELLTRA.
- Further effects of biosimilar competition on Prolia and XGEVA.
- MARITIME Phase 3 development progress, including two additional Phase 3 MariTide studies in people living with T2D planned to be initiated in Q4 2026.
- OASIZ 303, which is expected to complete in Q4 2026.
- The expected FDA action on the ABP 206 BLA by the end of the year.
- FDA discussions on a path forward to reopen both subcutaneous blinatumomab studies.
Balance sheet and cash flow
- Operating cash flow was $ 4.2 billion in Q3 ’26 compared with $ 4.7 billion in Q3 ’25.
- Capital expenditures were $ 0.6 billion in Q3 ’26 compared with $ 0.4 billion in Q3 ’25.
- Free cash flow was $ 3.7 billion in Q3 ’26 compared with $ 4.2 billion in Q3 ’25.
- Net cash provided by operating activities was $ 10,432 million for the nine months ended September 30, 2026 compared with $ 8,355 million for the nine months ended September 30, 2025.
- Free cash flow was $ 8,620 million for the nine months ended September 30, 2026 compared with $ 7,139 million for the nine months ended September 30, 2025.
- Cash and cash equivalents totaled $13.2 billion as of September 30, 2026, compared with $9.1 billion as of December 31, 2025.
- Debt outstanding totaled $54.0 billion as of September 30, 2026, compared with $54.6 billion as of December 31, 2025.
Analysis
Amgen reported an 8% increase in third-quarter total revenues to $10.4 billion, led by product sales growth that the company attributed to volume. The commercial portfolio had broad support, with seventeen products delivering at least double-digit sales growth. Repatha, EVENITY, UPLIZNA, TEZSPIRE, PAVBLU, BLINCYTO and IMDELLTRA each posted strong reported growth, while seventeen products are annualizing at more than $1 billion based on third-quarter sales.
Profitability improved materially on a GAAP basis. GAAP operating income increased from $2.5 billion to $3.7 billion, and operating margin increased 9.9 percentage points to 37.5%. The improvement reflected lower GAAP cost of sales, including lower amortization expense from acquisition-related assets and lower manufacturing costs. Non-GAAP operating income rose from $4.3 billion to $4.7 billion, but non-GAAP operating margin improved only 0.2 percentage points to 47.3% because non-GAAP operating expenses increased 8%, including an 11% increase in R&D.
The quarter also shows divergent portfolio trends. Biosimilar competition continued to weigh heavily on Prolia and XGEVA, which declined 45% and 47%, respectively. Otezla declined 18%, while TEPEZZA declined 6% because of lower inventory levels. Enbrel increased 5%, but the company cited lower net selling price reflecting the ongoing impact of U.S. Medicare Part D price setting effective in 2026 under the Inflation Reduction Act, as well as lower volume.
Cash generation was lower in the quarter despite earnings growth. Free cash flow was $3.7 billion versus $4.2 billion, which the company attributed to changes in working capital and timing of rebates and collections in the prior-year quarter. Amgen paid a $2.52 per share dividend, representing a 6% increase from the same period in 2025, and made no stock repurchases in the quarter. Cash and cash equivalents totaled $13.2 billion and debt outstanding totaled $54.0 billion as of September 30, 2026.
The company guided for full-year 2026 revenue of $38.9 billion to $39.7 billion, GAAP EPS of $18.34 to $19.28 and non-GAAP EPS of $22.90 to $23.70. Pipeline attention centers on the MariTide Phase 3 program, IMDELLTRA development, dazodalibep Phase 3 results, and regulatory and clinical developments affecting TAVNEOS and subcutaneous blinatumomab.
Management, verbatim
Amgen delivered another strong quarter as our strategy for long-term growth continued to produce results across the enterprise. The strength of our commercial portfolio, combined with important clinical advances and a promising late-stage pipeline, reinforces our confidence in Amgen’s ability to deliver durable growth well into the next decade.
Robert A. Bradway, chairman and chief executive officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Sequential prior-quarter comparisons were not reported for the financial metrics or product sales.
- Prior guidance was not provided, so no comparison of actual results with prior guidance is available.
- No segment-level operating income or segment-level margins were reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.