Amgen Reported Solid Q1’26 Earnings Beating Estimates with Volume Growth Across Key Drugs

May 4
4 min read

Amgen (AMGN) Q1’26 financial performance was solid, supported by revenue growth, strong free cash flow generation, stable leverage and robust liquidity. However, we remain watchful on the Company’s ability to drive through upcoming patent expirations in 2026-2029 and commercial success from obesity asset Maritide as well as Olpasiran for cardiovascular disease

Financial Snapshot

Key Highlights

Total Revenue increased by 5.8% YoY to $8.6B
Product sales grew 4.0% YoY to $8.2B, driven by volume growth
Based on Q1’26 sales, 17 products are annualizing at more than $1.0B
Declining sales of key products such as Prolia and Xgeva and expectation of aggressive sales erosion
Star performing products were; Repatha, Evenity, Tepezza, Blincyto, Imdelltra and Nplate
AMGN raised its previously issued FY’26 guidance
Maritide ongoing phase 3 trials for chronic weight management
Expansion in Credosh Adj. EBITDA margins and solid FCF generation
Net Leverage below 3.0x and liquidity of more than $18.0B

Q1’26 – Earnings Summary

Revenue

Total revenue increased by 5.8% YoY to $8.6B, driven by increase in product sales (+4.4% YoY) and other revenues (+44.9%)
- Product sales increased by 5.8% YoY, driven by increase in volume growth (+9.0% YoY) partially offset by 2.0% lower net selling price and 2.0% lower inventory levels

Product Revenue (95.4% of total revenue)

General Medicine

Repatha (10.2% of total revenue): Sales came in at $876M, +33.5% YoY, driven by +35.0% YoY volume & +8.0% YoY favourable changes to estimated sales deductions, partially offset by -7.0% YoY net selling price
Evenity (6.5% of total revenue): Sales came in at $562M, +27.1% YoY, driven by volume growth
Prolia (8.4% of total revenue): Sales came in at $727M, -33.8% YoY, driven by -17.0% YoY volume, -10.0% YoY net selling price and -4.0% YoY inventory levels
- For FY’26, AMGN expects accelerated decline in Prolia sales driven by increased competition, as multiple biosimilars have launched globally

Rare Disease

Tepezza (5.7% of total revenue): Sales came in at $490M, +28.6% YoY, driven by +22.0% YoY inventory levels and higher net selling price
Krystexxa (3.0% of total revenue): Sales came in at $255M, +8.1% YoY, driven by +20.0% YoY net selling price, partially offset by -8.0% inventory levels and unfavourable changes to estimated sales deductions
Uplizna (3.0% of total revenue): Sales came in at $262M, +187.5% YoY, driven by volume growth

Inflammation

TEZSPIRE (4.0% of total revenue): Sales came in at $343M, +20.4% YoY, driven by +32.0% YoY volume growth, partially offset by -8.0% YoY inventory levels
Otezla (5.0% of total revenue): Sales came in at $431M, -1.4% YoY, due to -8.0% YoY net selling price and -2.0% YoY lower volume, offset by favourable changes to estimated sales deductions
Enbrel (3.7% of total revenue): Sales came in at $320M, -37.3% YoY, due to unfavourable estimated sales deductions of 18.0% and -15.0% YoY net selling price
- The decline in net selling price was due to the impact of US Medicare Part D price setting under Inflation Reduction Act as well as an increased 340B program mix

Oncology

Blincyto (4.8% of total revenue): Sales came in at $415M, +12.2% YoY, driven by +19.0% YoY volume growth, partially offset by unfavourable changes to estimated sales deductions
Nplate (4.8% of total revenue): Sales came in at $412M, +31.6% YoY, excluding US govt. order sales of $60M, net sales increased 12.0% YoY driven by +8.0% volume and higher net selling price
Xgeva (4.8% of total revenue): Sales came in at $411M, -27.4% YoY, driven by -19.0% YoY volume and lower net selling price. AMGN expects accelerated decline in Xgeva sales driven by increased competition, as multiple biosimilars have launched globally
Imdelltra (3.0% of total revenue): Sales came in at $258M, +218.5% YoY, driven by volume growth
Vectibix (3.3% of total revenue): Sales came in at $287M, +7.5% YoY, driven by +11.0% YoY volume growth, partially offset by lower inventory levels
Kyprolis (3.8% of total revenue): Sales came in at $330M, +1.9% YoY, driven by higher net selling price

Credosh Adj. EBITDA

Credosh Adj. EBITDA came in at ~$3.8B (+11.8% YoY), with EBITDA margin of 44.8% vs 42.3% in Q1’25.
The increase in Adj. EBITDA margin was driven by lower acquisition related cost and SG&A partially offset by higher profit share, royalty expenses and increased spend in later stage clinical programs

FCF

AMGN generated ~$1.5B of FCF post capex of $712M, cash interest of $657M, cash taxes of $441M and a working capital use of $792M
- Capex was driven by ongoing capacity expansion of manufacturing sites at Ohio, North Carolina and Puerto Rico
- Working capital was a drag on FCF, driven by accrued liabilities and accrued sales incentives and allowance

Leverage and Liquidity

Net Leverage of 2.9x based on LTM Q1’26 Credosh Adj. EBITDA of $16.3B and liquidity of $18.5B, including commercial paper of $2.5B, undrawn RCF of $4.0B and cash & cash equivalents of $12.0B

Other Information