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Amgen
(NASDAQ:AMGN)
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Rating:70Outperform
Price Target:
$432.00
▼(-2.32% Downside)
Action:Reiterated
Date:09/09/26
AMGN scores well on underlying business quality, led by strong profitability and free-cash-flow generation, and supported by a constructive earnings update with raised full-year guidance. The overall score is held back by high leverage on the balance sheet and mixed near-term technical momentum (weak RSI and trading below the 20-day average), while valuation is reasonable but not especially cheap.
Positive Factors
Diversified commercial growth
Growth is spread across several important products rather than concentrated in a single therapy, reducing dependence on one asset. Broad expansion across cardiovascular, rare disease, oncology, inflammation and biosimilars supports a more resilient revenue base over the next several quarters.
Negative Factors
High balance-sheet leverage
Amgen’s sizable debt relative to equity reduces financial flexibility and increases sensitivity to refinancing costs or weaker earnings. Although leverage has improved from prior years, the capital structure remains more burdened than typical and may constrain allocation choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified commercial growth
Growth is spread across several important products rather than concentrated in a single therapy, reducing dependence on one asset. Broad expansion across cardiovascular, rare disease, oncology, inflammation and biosimilars supports a more resilient revenue base over the next several quarters.
Read all positive factors
Amgen Key Performance Indicators (KPIs)
Any
Revenue by Type
Distinguishes between different revenue streams, such as product sales and royalties, providing insights into Amgen's business model and diversification.
Distinguishes between different revenue streams, such as product sales and royalties, providing insights into Amgen's business model and diversification.
Data provided by:
The Fly
The FlyAmgen (AMGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$225.75B
Dividend Yield2.41%
Average Volume (3M)2.92M
Price to Earnings (P/E)25.5
Beta (1Y)0.36
Revenue Growth9.89%
EPS Growth31.69%
CountryUS
Employees31,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)16.22
Shares Outstanding540,632,000
10 Day Avg. Volume2,809,710
30 Day Avg. Volume2,922,095
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)20.34
Price to Sales (P/S)4.79
P/FCF Ratio21.74
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue6.30
Enterprise Value/Gross Profit8.68
Enterprise Value/Ebitda13.64
Forecast
1Y Price Target
$403.33Price Target Upside-8.80% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering27
EPS Forecast (FY)23.04
Revenue Forecast (FY)$39.00B
Amgen Business Overview & Revenue Model
Company Description
Amgen Inc., established in 1980 and headquartered in Thousand Oaks, California, is a global biotechnology leader focused on discovering, developing, manufacturing, and delivering groundbreaking human medicines. The company's scientific endeavors s...
How the Company Makes Money
Amgen makes money primarily by selling prescription medicines and earning related revenue from product sales to wholesalers, distributors, pharmacies, hospitals, and other healthcare providers across the U.S. and international markets. Its core re...
Amgen Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call reported broad-based commercial strength (10% revenue growth, multiple products with double-digit increases, raised full-year guidance), robust margins (48% non-GAAP operating margin) and strong cash generation, while also flagging expected near-term expense increases, higher cost-of-sales pressure from mix and profit-share, a material decline in the Prolia/XGEVA franchise (–33%), and some pipeline uncertainty/readouts pending. On balance the positive commercial execution, raised guidance and pipeline momentum outweigh the noted headwinds.Positive Updates
Strong Revenue Growth
Total revenues exceeded $10.0 billion in Q2, representing a 10% year-over-year increase; 17 products annualized at more than $1 billion based on Q2 sales and 22 products delivered double-digit sales growth.
Negative Updates
Decline in Prolia and XGEVA Sales
Prolia and XGEVA combined sales decreased 33% year-over-year to $1.1 billion, consistent with expectations following the launch of several biosimilar competitors.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenues exceeded $10.0 billion in Q2, representing a 10% year-over-year increase; 17 products annualized at more than $1 billion based on Q2 sales and 22 products delivered double-digit sales growth.
Read all positive updates
Company Guidance
Amgen raised its 2026 guidance, now expecting total revenues of $38.2–$39.4 billion and non‑GAAP EPS of $22.30–$23.50, with other revenue ~ $1.9 billion and non‑GAAP other income/expense of $2.1–$2.2 billion of expense; full‑year non‑GAAP R&D is expected to grow high‑single digits (Q2 R&D was +10% YoY) and a $100 million upfront BD payment will boost Q3 R&D, while capital expenditures are forecast at ≈$2.6 billion for 2026 (Q2 capex was $500 million) to scale manufacturing for volume growth; management expects a full‑year non‑GAAP operating margin of roughly 45–46% of product sales (Q2 non‑GAAP operating margin was 48%, with Q2 cost of sales 19.6% of product sales), generated $3.5 billion of free cash flow in Q2, raised the quarterly dividend to $2.52/share (+6% YoY), expects a non‑GAAP tax rate of 15.0–16.5%, anticipates a meaningful sequential increase in operating expenses in Q3, and plans share repurchases not to exceed $3 billion.Amgen Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
56
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.13B | 36.74B | 33.42B | 28.19B | 26.32B | 25.98B |
| Gross Profit | 27.70B | 26.01B | 20.57B | 19.77B | 19.92B | 19.52B |
| EBITDA | 17.62B | 16.90B | 13.36B | 14.80B | 12.17B | 11.30B |
| Net Income | 8.74B | 7.71B | 4.09B | 6.72B | 6.55B | 5.89B |
Balance Sheet | ||||||
| Total Assets | 95.64B | 90.59B | 91.84B | 97.15B | 65.12B | 61.16B |
| Cash, Cash Equivalents and Short-Term Investments | 13.99B | 9.13B | 11.97B | 10.94B | 9.30B | 8.04B |
| Total Debt | 57.30B | 54.60B | 60.10B | 64.61B | 38.95B | 33.31B |
| Total Liabilities | 83.95B | 81.93B | 85.96B | 90.92B | 61.46B | 54.47B |
| Stockholders Equity | 11.69B | 8.66B | 5.88B | 6.23B | 3.66B | 6.70B |
Cash Flow | ||||||
| Free Cash Flow | 10.18B | 8.10B | 10.39B | 7.36B | 8.79B | 8.38B |
| Operating Cash Flow | 12.48B | 9.96B | 11.49B | 8.47B | 9.72B | 9.26B |
| Investing Cash Flow | -2.39B | -1.94B | -1.05B | -26.20B | -6.04B | 733.00M |
| Financing Cash Flow | -4.13B | -10.86B | -9.41B | 21.05B | -4.04B | -8.27B |
Amgen Technical Analysis
Positive
442.24
Price Trends
412.59
Positive
383.60
Positive
364.06
Positive
Market Momentum
1.97
Negative
53.03
Neutral
65.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMGN, the sentiment is Positive. The current price of 442.24 is above the 20-day moving average (MA) of 405.84, above the 50-day MA of 412.59, and above the 200-day MA of 364.06, indicating a bullish trend. The MACD of 1.97 indicates Negative momentum. The RSI at 53.03 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMGN.
Amgen Risk Analysis
Amgen disclosed 28 risk factors in its most recent earnings report. Amgen reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amgen Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $117.62B | 12.48 | 46.75% | 4.45% | 3.13% | 83.17% | |
74 Outperform | $635.56B | 37.69 | 19.69% | 2.12% | 7.81% | ― | |
70 Outperform | $225.75B | 25.45 | 89.32% | 2.41% | 9.89% | 31.69% | |
67 Neutral | $263.88B | 21.74 | 29.64% | 3.33% | 2.33% | -4.08% | |
65 Neutral | $496.77B | 77.28 | -136.50% | 2.49% | 10.39% | 68.16% | |
60 Neutral | $358.85B | 112.68 | 6.60% | 2.39% | 4.51% | -80.62% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AMGN
Amgen
412.84
126.92
44.39%
BMY
Bristol-Myers Squibb
56.67
14.74
35.14%
JNJ
Johnson & Johnson
248.61
61.97
33.20%
MRK
Merck & Company
141.98
59.70
72.55%
NVS
Novartis
142.41
14.65
11.47%
ABBV
AbbVie
274.36
52.13
23.45%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.