Amgen (NASDAQ:AMGN) delivered a robust second-quarter performance, surpassing Wall Street expectations and prompting the biotechnology giant to lift its full-year 2026 financial targets. The company reported quarterly revenue of $10.054 billion, a 9.5% increase year-over-year and 6.7% above the consensus estimate compiled by LSEG. Adjusted earnings per share came in at $6.29, exceeding forecasts by 11.9% and marking a 4.5% gain from the prior-year period.
The earnings beat was driven by a powerful combination of growth across several key products. Five of Amgen's leading brands—Repatha, Evenity, Uplizna, Pavblu, and Imdelltra—collectively generated an additional $923 million in year-over-year quarterly sales, accounting for 120% of the company's total $766 million increase in product sales. These five products saw their combined sales surge 56% to $2.577 billion, representing 27% of total product revenue.
However, the quarter was not without challenges. Five other products—Prolia, Xgeva, Otezla, Kyprolis, and Mvasi—posted a combined loss of $772 million, erasing 84% of the gains from the top performers. Prolia alone saw sales drop by $363 million to $759 million, while Xgeva fell by $180 million to $352 million. Despite this drag, overall product sales still rose 8.7% to $9.537 billion.
Chief Executive Robert Bradway highlighted the strength of the company's portfolio, noting that six primary growth drivers increased by 26% and now account for nearly 70% of product sales. "We remain confident in our ability to deliver growth well into the next decade," he said. Murdo Gordon, head of global markets and policy, emphasized the company's pricing strategy: "Amgen is growing because we are serving more patients at lower unit prices."
Looking ahead, Amgen raised its 2026 revenue midpoint by $1 billion to $38.8 billion, a 2.6% increase from the previous guidance. The adjusted EPS midpoint was lifted by $0.50 to $22.90, up 2.2%. The company maintained its capital spending projection of approximately $2.6 billion and its share-buyback ceiling of $3.0 billion. The revised outlook suggests management expects the sales momentum to translate into sustained profitability.
The company's obesity drug candidate, MariTide, remains a key catalyst. Phase 3 trials are evaluating dosing intervals of one month, eight weeks, and three months, with the first comprehensive data expected in 2027. Amgen has discontinued further development of AMG 513, focusing its obesity pipeline efforts on MariTide.
Financially, Amgen generated $3.5 billion in free cash flow during the quarter, up from $1.9 billion a year earlier, which was impacted by a final repatriation-tax payment. The company's debt remained flat at $57.3 billion, with cash holdings of $14.0 billion. Adjusted operating margin slipped by 0.5 percentage points to 48.4%, reflecting an 11% increase in operating costs and a 10% rise in research expenditures.
Investors responded positively, with the stock climbing 2.94% to close at $390.02 on Tuesday, and edging up another 0.25% in after-hours trading to $390.99. At that valuation, Amgen trades at approximately 27 times trailing GAAP earnings, a premium compared to peers Gilead Sciences (18.4x) and Regeneron Pharmaceuticals (18.8x), but below Biogen's 37x multiple.
Market watchers will look to Wednesday's full trading session for the initial reaction, as well as earnings reports from Eli Lilly and Novo Nordisk, which could influence expectations for MariTide. Risks remain, including the sharp quarterly declines in Prolia and Xgeva, which together dropped by $543 million, and the continued pressure on margins. With debt standing at $57.3 billion, execution will be key to sustaining the premium valuation.
