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what it is
Amgen sells prescription medicines for serious diseases, and 96% of 2025 sales came from products.
how it gets paid
Last year Amgen made $36.8B in revenue. Oncology and blood disorders was the main engine at $12.2B, or 33% of sales.
why it's growing
Revenue grew 10.0% last year. The top line rose 9%; product sales gained 7%.
what just happened
Amgen posted $9.9B in quarterly revenue and beat the street on adjusted EPS.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
16.9x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
29.0% return on capital — every dollar works hard here
xvary composite: 73/100 — average
What they do
Amgen sells prescription medicines for serious diseases, and 96% of 2025 sales came from products.
If you own AMGN, you own 14 drugs with $1B+ sales each. That is breadth, not a one-drug gamble. R&D (lab spending) was 20.4% of product sales in 2025, so the pipeline keeps getting fed.
How they make money
$36.8B
annual revenue · their business grew +10.0% last year
Oncology and blood disorders
$12.2B
+8.0%
Inflammation and autoimmune
$10.1B
+7.0%
Bone health
$8.0B
+5.0%
Other products
$6.5B
+6.0%
The products that matter
bone health franchise
Prolia / Xgeva
$7B+ in annual sales
this is still the backbone. the franchise serves over 5 million patients, but denosumab biosimilars could start pressuring roughly $5B of revenue in 2026. that's not a side issue. that's the main one.
2026 pressure point
growth drugs and rare disease
Repatha · Enbrel · Tezspire · Horizon
Repatha + Tezspire growing 20%+ · Horizon added in a $28B deal
Repatha and Tezspire are the cleaner growth pieces. Enbrel is older cash flow. Horizon brought Tepezza, Krystexxa, and Uplizna — and it needs to, because mature biotech math gets ugly when the old blockbusters roll over.
growth handoff
obesity pipeline candidate
MariTide
obesity market framed at $100B by 2030
this is the optionality trade. Lilly and Novo are ahead, and the snapshot data here is thin on updated trial detail, so we are not going to pretend otherwise. What you can say is simple: if MariTide works, the story changes fast. If it does not, Amgen is back to replacing lost revenue the old-fashioned way.
pipeline optionality
Key numbers
16.9x
trailing p/e
You pay 16.9x earnings for a business with A-rated finances. That is cheaper than many drug stocks with less cash flow.
2.9%
dividend yield
You get 2.9% back while you wait. That is cash return, not a lottery ticket.
24.7%
operating margin
Amgen keeps 24.7 cents of each dollar after operating costs. That leaves room for drugs, dividends, and mistakes.
29.0%
return on capital
It turns capital into profit at 29.0%. A lower number would mean you are funding a lab; this says you are buying a factory.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $50.0B (20% of capital)
- net profit margin 32.6% — keeps 33 cents of every dollar in revenue
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in AMGN 3 years ago → it's now worth $16,790.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Amgen posted $9.9B in quarterly revenue and beat the street on adjusted EPS.
Revenue reached $9.9B in the quarter. Adjusted EPS was $5.29, above the $4.73 estimate in the earnings note.
$9.9B
revenue
$5.29
eps
24.7%
gross margin
the number that mattered
$5.29 was the point. It beat the $4.73 estimate, so the quarter was not just busy; it was profitable.
-
amgen shares reached a new high recently, on a stronger-than-expected finish last year.fourth-quarter revenues and adjusted share profit crushed estimates; we were looking for $9.42 billion and $4.64, respectively.
-
the top line rose 9%; product sales gained 7%, as 10% volume growth offset 4% lower prices.
-
higher costs, however, led to a flat bottom line.
-
still, for all of 2025, revenues and earnings per share each rose 10%.thirteen products delivered double-digit sales growth, with repatha (cholesterol), tezspire (inflammation), evenity (post-menopausal osteoporosis), and blincyto (cancer) among the top sellers, offset by weakness elsewhere, including key drugs enbrel (inflammation), xgeva (cancer-related bone disease), and prolia (osteoporosis).
-
gains will likely moderate in 2026, due to rising competition facing key drugs.
source: company earnings report, 2026
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What could go wrong
the #1 risk is 2026 biosimilar pressure on prolia and xgeva. this is not abstract drug-pricing handwringing. it is a specific franchise facing a specific clock.
med
denosumab biosimilars
Prolia and Xgeva face copycat competition starting in 2026. These are physician-trusted drugs today, but once comparable versions arrive, pricing power and volume usually do not survive untouched.
roughly $5B in annual revenue is the exposure called out in this snapshot.
med
horizon has to earn its keep
Amgen spent $28B on Horizon to buy growth and rare-disease exposure. If that portfolio does not offset legacy erosion fast enough, the acquisition looks less like strategy and more like expensive replacement revenue.
when you pay $28B for growth, investors do not give you many quiet quarters.
med
mariTide may stay optionality
The obesity market is framed here at $100B by 2030, but Lilly and Novo already own the lead. If MariTide does not show competitive enough data, Amgen loses the easiest version of the next-act bull case.
without obesity upside, you are left underwriting a $36.8B mature biotech against a visible 2026 revenue challenge.
a business with a 32.0% net margin and a 16.9x multiple can absorb some pressure. a fast hit to roughly $5B of revenue would test how much is already priced in.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
volume versus price
last quarter showed 10% volume growth against 4% lower prices. if that keeps repeating, headline growth stays alive but pricing power clearly does not.
risk
2026 denosumab launch timing
Prolia and Xgeva are the franchise to monitor. the closer biosimilar entry gets, the less forgiving investors will be with the multiple.
calendar
next earnings
watch whether revenue keeps tracking toward the $38B 2026 estimate. one quarter will not settle it, but a miss changes the mood fast.
metric
earnings predictability
100 / 100 predictability is rare. if that starts to slip while the biosimilar threat gets closer, the stock likely stops getting the benefit of the doubt.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal stock here, not a momentum stampede.
risk profile
below average
stability score 2 — safer than roughly 80% of stocks. this is defensive relative to most equities, even if the product cycle still matters.
chart momentum
average
technical score 3 — the chart is behaving like the market, not sending a special message.
earnings predictability
100 / 100
management has earned trust on guidance. you usually do not get wild surprises here, which makes any future break in the pattern more important.
source: institutional data
Institutional activity
1,233 buyers vs. 1,251 sellers in 3q2025. total institutional holdings: 0.4B shares.
source: institutional data
Price targets
3-5 year target range
$236
$445
$369
current price
$341
target midpoint · 8% from current · 3-5yr high: $465 (+25% · 8% ann'l return)
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