Biotech company Amgen (NASDAQ: AMGN) announced better-than-expected revenue in Q1 CY2026, with sales up 5.8% year on year to $8.62 billion. The company expects the full year’s revenue to be around $37.8 billion, close to analysts’ estimates. Its non-GAAP profit of $5.15 per share was 8% above analysts’ consensus estimates.
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Amgen (AMGN) Q1 CY2026 Highlights:
- Revenue: $8.62 billion vs analyst estimates of $8.50 billion (5.8% year-on-year growth, 1.4% beat)
- Adjusted EPS: $5.15 vs analyst estimates of $4.77 (8% beat)
- Adjusted EBITDA: $5.13 billion vs analyst estimates of $5.07 billion (59.5% margin, 1.2% beat)
- The company slightly lifted its revenue guidance for the full year to $37.8 billion at the midpoint from $37.7 billion
- Management slightly raised its full-year Adjusted EPS guidance to $22.40 at the midpoint
- Operating Margin: 30.9%, up from 14.5% in the same quarter last year
- Market Capitalization: $186.9 billion
StockStory’s Take
Amgen’s first quarter results reflected the company’s ability to outpace the impact of ongoing patent expirations and increased competition. Management credited strong sales growth in key products—particularly Repatha, Evenity—as well as momentum in rare disease and biosimilars, for offsetting declines in legacy brands. CEO Robert Bradway highlighted, “Our six key growth drivers generated 70% of our sales in the quarter and grew in aggregate by 24%.” Despite this performance, the market responded negatively to the results, likely reflecting concerns about ongoing exclusivity losses and future sales erosion in mature products.
Looking forward, Amgen’s updated guidance is underpinned by confidence in the growth potential of its newer therapies and an advancing pipeline. Management emphasized the importance of Meritide, a late-stage candidate for obesity and diabetes, and highlighted progress in Phase III studies designed to evaluate less frequent dosing and switching from competitor treatments. CFO Peter Griffith stated that investments in manufacturing and artificial intelligence are expected to support upcoming product launches and operational efficiency, while cautioning that increased R&D spending and ongoing tax matters may affect future margins.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to the rapid growth of its diversified product portfolio, continued strong execution in commercial operations, and progress in pipeline advancement despite ongoing headwinds from patent expirations.
- Sales momentum in growth drivers: The six key product categories—including Repatha (cardiovascular), Evenity (osteoporosis), Test Buyer (inflammation), rare disease therapies, innovative oncology, and biosimilars—collectively delivered 24% year-over-year sales growth, now contributing nearly 70% of total product sales.
- Repatha adoption accelerates: Repatha’s growth was driven by updated treatment guidelines, encouraging earlier and broader use in cardiovascular risk management. New data from the VESALIUS-CV trial reinforced its benefits in primary prevention, and Amgen introduced a simplified cash-pay option to improve patient access.
- Evenity’s market leadership: Evenity continued to expand its U.S. and Japanese market share, supported by updated osteoporosis guidelines and expanded field force, but management noted the significant untreated population remains a sizeable opportunity.
- Pipeline advances with Meritide: Meritide, Amgen's antibody-peptide conjugate for obesity and diabetes, advanced into multiple Phase III studies focused on less frequent dosing and switching from weekly injectables, aiming to address treatment burdens and improve long-term adherence.
- AI and operational efficiency: Amgen reported early tangible benefits from deploying artificial intelligence across R&D and manufacturing. These include faster drug discovery, improved clinical trial enrollment, and production automation, supporting both cost efficiency and innovation.
Drivers of Future Performance
Amgen’s outlook is driven by the ramp of new therapies, continued pipeline execution, and efficiency improvements, although legacy product declines and potential regulatory risks remain headwinds.
- Pipeline and launch execution: Management expects Meritide’s progress in late-stage obesity and diabetes trials, along with the expansion of innovative oncology and rare disease programs, to drive revenue growth as legacy brands decline. Upcoming data from key studies, such as Meritide’s less frequent dosing regimens, are anticipated to shape future adoption and competitive positioning.
- Operational scalability with technology: The company is investing in artificial intelligence and automation to enhance R&D productivity and manufacturing throughput. Early results include reduced production line clearance times and accelerated clinical trial enrollment, which management believes will support cost structure and enable rapid scaling for new product launches.
- Regulatory and market risks: Amgen acknowledged ongoing risks, including increased competition from biosimilars, regulatory scrutiny (including unresolved tax disputes), and the need for continued investment in commercial infrastructure to support both U.S. and global launches. These factors could pressure margins and impact the pace of future earnings expansion.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the enrollment and readout of Meritide’s pivotal Phase III trials, especially for less frequent dosing and switch studies, (2) the pace of adoption and access expansion for key growth drivers like Repatha and Evenity in new and existing markets, and (3) further integration of artificial intelligence into R&D and manufacturing workflows. The outcome of ongoing tax disputes and regulatory reviews will also be important markers for business stability.
Amgen currently trades at $341.45, down from $347.91 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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