Amgen Inc Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Amgen's Q3 2025 earnings call highlighted strong financial performance driven by volume growth, key product performance, and pipeline advancements, with increased revenue guidance for 2025. Discussions covered strategic investments in R&D, capital allocation priorities, and expectations for long-term growth, while also addressing industry trends, competition, and macroeconomic factors.
Key Financial Results
Revenues increased 12% year-over-year to $9.6 billion.
Volume grew by 14%.
16 products grew at double-digit rates.
14 products are now annualizing at over $1 billion in sales.
Non-GAAP operating margin was 47%.
Generated $4.2 billion in free cash flow.
Returned capital to shareholders through a dividend payment of $2.38 per share, a 6% increase compared to Q3 2024.
Raising 2025 guidance ranges for both revenue and non-GAAP earnings per share.
Expect 2025 total revenues in the range of $35.8 billion to $36.6 billion and non-GAAP earnings per share between $20.60 and $21.40.
Business Segment Results
General Medicine: Expanding impact across underserved disease areas.
Rare Disease portfolio grew 13% year-over-year to $1.4 billion, now annualizing at over $5 billion.
Inflammation: Encouraged by what they are seeing with TEZSPIRE.
Oncology: Continuing to establish new standards of care.
Biosimilar portfolio sales increased 52% year-over-year to $775 million, now annualizing at $3 billion.
Capital Allocation
Continue to strengthen the balance sheet with $4.5 billion of debt retired in 2024 and $6.0 billion of debt retired in 2025.
Returned to pre-Horizon capital structure ahead of plan.
Capital expenditures of roughly $2.2 billion to $2.3 billion expected for 2025 to expand network capacity.
Expect to achieve greater than $500 million in pre-tax cost synergies in 2025 in connection with the Horizon acquisition.
Continue to invest in innovation.
Industry Trends and Dynamics
Volume growth is pacing progress in an environment where selling prices are declining across the industry.
Cardiovascular disease remains the world's leading public health challenge.
Treatment rates are still low among women with high fracture risk.
PCSK9 inhibitor class remains underutilized.
Competitive Landscape
Three biosimilars have launched for Prolia in the US, and competitive dynamics are evolving in line with expectations.
Expect increased competition to negatively impact Prolia sales in future quarters.
IMDELLTRA is widely recognized as the standard of care for patients with extensive stage small cell lung cancer who are progressing on or after chemotherapy.
BLINCYTO is now firmly established as the standard of care in frontline consolidation for B-cell acute lymphoblastic leukemia.
Macroeconomic Environment
Guidance includes the estimated impact of implemented tariffs.
Guidance does not account for tariffs or pricing actions announced or described, but not yet implemented.
Growth Opportunities and Strategies
Expanding access to medicines with AmgenNow, a new direct-to-patient platform for Repatha.
EVENITY is expected to remain a growth driver throughout its life cycle.
MariTide and olpasiran offer additional pathways for growth in obesity and cardiovascular disease.
New indications such as IgG4 related disease and generalized myasthenia gravis on the horizon for UPLIZNA.
Biosimilar strategy continues to deliver results.
Continue to engage with policymakers to support policies that improve access, protect innovation, and strengthen the bio-manufacturing ecosystem.
Advancing and accelerating technology and AI across the value chain.
Financial Guidance and Outlook
Expect 2025 total revenues in the range of $35.8 billion to $36.6 billion and non-GAAP earnings per share between $20.60 and $21.40.
Expect other revenue to be approximately $1.5 billion for the full year.
Non-GAAP R&D expenses are now expected to grow at a mid-20s percentage rate year-over-year in 2025.
Anticipate non-GAAP OI&E to be in the range of $2.1 billion to $2.2 billion in 2025.
Expect a non-GAAP tax rate in the range of 15.0% to 16.5%.
Continue to expect the full year non-GAAP operating margin as a percentage of product sales to be roughly 45%.
For WEZLANA in the United States, they do not expect any sales in the fourth quarter.
