Amgen Inc Earnings - Q1 2026 Analysis & Highlights
Amgen reported strong Q1 2026 results driven by six key growth drivers that collectively grew 24% year-over-year, offsetting patent expirations and positioning the company as a "springboard year" for future growth with confidence in late-stage pipeline assets including MariTide, Olpasiran, and IMDELLTRA.
Key Financial Results
Total product sales grew 4% year-over-year in Q1 2026, driven by a diversified portfolio of fast-growing products that outpaced losses of exclusivity.
Non-GAAP operating margin was 45% for the quarter.
Free cash flow of $1.5 billion was generated in Q1 2026, reflecting continued momentum across the business.
Non-GAAP cost of sales as a percentage of product sales was 19.5%, driven by higher profit share and royalty expenses and changes in sales mix.
Non-GAAP R&D spending increased 16% year-over-year in Q1 2026, reflecting increased spending on late-stage pipeline including MariTide, IMDELLTRA, and Olpasiran.
16 products achieved double-digit or better sales growth and 17 products are now annualizing at sales of $1 billion or more in Q1 2026.
Business Segment Results
Six key growth drivers generated $5.6 billion in sales in Q1 2026, representing almost 70% of total product sales and delivering 24% year-over-year sales growth collectively.
Repatha delivered $876 million of Q1 2026 sales, up 34% year-over-year, driven by increased urgency to treat patients in both secondary prevention and high-risk primary prevention.
EVENITY sales increased 27% in Q1 2026 to $562 million, with US sales growing 35% year-on-year and maintaining 65% market share in the US bone builder market.
TEZSPIRE sales grew 20% year-over-year to $343 million in Q1 2026, driven by robust patient demand and solid execution across pulmonology and allergy specialties.
Prolia and XGEVA combined delivered $1.1 billion in Q1 2026 sales, a decrease of 32% year-over-year, with erosion since loss of exclusivity in line with expectations.
Rare Disease portfolio grew 25% year-over-year to $1.2 billion in Q1 2026.
UPLIZNA sales increased 188% year-over-year to $262 million in Q1 2026, reflecting growing demand across all three approved indications.
TEPEZZA sales grew 29% in Q1 2026 to $490 million, with more than 25,000 US patients treated since launch.
TAVNEOS sales were $119 million in Q1 2026, up 32% year-over-year, driven by strong volume growth.
Innovative Oncology portfolio grew 25% year-over-year, generating $1.8 billion of sales in Q1 2026.
IMDELLTRA delivered $258 million in Q1 2026 sales, with more than 1,800 US sites now administering the drug and a majority of doses delivered in the community setting.
BLINCYTO sales were $415 million in Q1 2026, increasing 12% year-over-year, driven by broad prescribing across academic and community settings.
Biosimilar portfolio delivered 14% year-over-year growth, generating $835 million in sales in Q1 2026.
PAVBLU delivered $280 million in Q1 2026 sales, with adoption continuing to expand among retina specialists.
Capital Allocation
Capital expenditures of $700 million were spent in Q1 2026, driven by investments across US manufacturing sites including Ohio, North Carolina, and Puerto Rico.
Capital expenditures of approximately $2.6 billion are expected for full year 2026, reflecting significant investment to scale manufacturing capacity for volume growth including for MariTide's launch.
Competitive dividend payments of $2.52 per share were made, representing a 6% increase compared to Q1 2025.
Share repurchases are expected not to exceed $3 billion for full year 2026.
Debt retirement of approximately $90 million was achieved in Q1 2026 through open market repurchases.
Industry Trends and Dynamics
Approximately 320,000 US patients have been treated with EVENITY to date, supported by increased investment and an expanded field force.
More than 900,000 patients in Japan have been prescribed EVENITY since launch, with the product leading the bone builder category with over 55% market share.
More than 25,000 US patients have been treated with TEPEZZA since launch, with growing interest from both new and returning prescribers and increased prescribing from endocrinologists.
More than 8,000 patients have been treated with TAVNEOS since its launch in 2021.
More than 1,800 US sites now administer IMDELLTRA, with a majority of doses delivered in the community setting.
Biosimilars have generated more than $14 billion in cumulative sales since first product approvals in 2018, contributing meaningful growth while expanding patient access to high-quality, lower-cost biologics.
The unmet need for EVENITY remains significant with more than 90% of the 2 million women at very high fracture risk remaining untreated, presenting a clear opportunity to expand the market.
TEZSPIRE's new indication for chronic rhinosinusitis with nasal polyps is gaining traction and helping expand the product's reach across a broader patient population.
Competitive Landscape
Repatha is now the only PCSK9 inhibitor with positive outcomes data in both high-risk primary and secondary prevention patients.
EVENITY maintains leadership of the US bone builder market with a 65% market share.
IMDELLTRA has become the standard-of-care in second-line small cell lung cancer, an aggressive disease with poor survival outcomes and few effective options to extend life.
BLINCYTO is widely recognized as the standard-of-care in combination with multi-agent chemotherapy for patients with Philadelphia chromosome negative B-cell ALL.
UPLIZNA continues to maintain its leadership as the most prescribed FDA-approved therapy in the US for NMOSD.
MariTide is emerging as a new paradigm for patients with obesity, diabetes, and related conditions as a well-tolerated, first monthly or less frequently administered medicine.
Management expects MariTide to be the best monthly or less frequently prescribed agent in the obesity market.
Macroeconomic Environment
No specific macroeconomic environment discussion was included in the earnings call transcript.
Growth Opportunities and Strategies
MariTide's unique antibody peptide conjugate design delivers the potential for strong efficacy with monthly or less frequent dosing and favorable tolerability to improve long-term treatment.
Two new Phase 3 studies of MariTide were announced to focus on longer-term maintenance therapy, with participants who completed 72 weeks of treatment entering a 48-week extension period to receive monthly, every eight-week, or quarterly doses.
A new Phase 3 study was initiated to evaluate switching from weekly injectable GLP-1 therapies to MariTide following dose escalation to a convenient every eight-week or quarterly dosing schedule.
Three-step dose escalation for MariTide further decreased the rates of nausea and vomiting as compared to prior experience with two-step dose escalation.
Olpasiran, a potentially best-in-class small interfering RNA medicine, delivers greater than 95% reduction in Lp(a) with a quarterly dosing schedule and continues to progress in Phase 3 clinical investigation.
The OCEAN(a)-CCTA study was recently initiated to evaluate the effect of Olpasiran on the burden of non-calcified plaque in coronary arteries.
UPLIZNA recently received European Commission approval for generalized myasthenia gravis.
Two pivotal Phase 3 studies of UPLIZNA are expected to be initiated by the second half of 2026 in autoimmune hepatitis and chronic inflammatory demyelinating polyneuropathy.
Positive Phase 3 top-line data for subcutaneous TEPEZZA administration via an on-body injector was recently reported, demonstrating robust efficacy consistent with intravenous administration.
Dazodalibep, a first-in-class CD40 ligand targeting fusion protein, continues to progress with two Phase 3 studies in Sjögren's disease now fully enrolled, expected to complete later in 2026.
IMDELLTRA is advancing into earlier lines of therapy, with apparent improvement in median overall survival to 25.3 months observed in the Phase 1b DeLLphi-303 study in the first-line maintenance setting.
Frontline maintenance with IMDELLTRA is being evaluated in the ongoing Phase 3 DeLLphi-305 study.
Xaluritamig, a first-in-class STEAP1-targeting bispecific T-cell engager, is advancing rapidly with two ongoing Phase 3 studies in metastatic castration-resistant prostate cancer.
Multiple ongoing Phase 1b studies of xaluritamig are underway in biochemical recurrence and metastatic hormone-sensitive prostate cancer.
Development of AMG 193, a PRMT5 inhibitor, was discontinued following a comprehensive review.
Artificial intelligence and data science initiatives are delivering measurable impact across R&D, including 50% acceleration in antibody lead optimization and up to threefold improvement in clinical trial enrollment rates.
AI-enabled automation has reduced production line clearance time at one manufacturing site from approximately 30 minutes to about 2 minutes per batch run.
Amgen is offering a simplified cash-free option to patients for Repatha, now also including Enbrel, Otezla, Aimovig, and AMJEVITA.
New treatment guidelines from the ACC/AHA now recommend broader Lp(a) testing and reinforce earlier risk identification and lower LDL-C level targets.
Financial Guidance and Outlook
2026 total revenues are expected in the range of $37.1 billion to $38.5 billion, with non-GAAP earnings per share expected to be between $21.70 and $23.10.
2026 guidance ranges for both revenue and non-GAAP earnings per share were raised based on strong Q1 2026 performance.
Full year non-GAAP operating margin as a percentage of product sales is expected to be roughly 45% to 46%, reflecting commitment to investing in innovation.
Other revenue for full year 2026 is expected in the range of $1.7 billion to $1.8 billion.
Non-GAAP OI&E is anticipated to be in the range of $2.2 billion to $2.3 billion of expense in 2026.
Non-GAAP tax rate is expected in the range of 15.0% to 16.5% for 2026.
Second quarter operating margin is expected to be in line with Q1 2026 operating margin.
Accelerated sales erosion is anticipated over the remainder of 2026 for Prolia and XGEVA, driven by increased competition from multiple biosimilars.
Additional global launches of TEPEZZA are expected in 2026 and beyond following the launch in Japan in 2025.
Guidance does not include any potential business development transactions that may occur throughout the remainder of 2026.
Pipeline and Research & Development
2026 is described as a springboard year for Amgen, with rapidly growing products expected to offset the financial impact of patent expirations while next-generation molecules progress through the R&D pipeline.
Focus in 2026 is on disciplined data generation and execution across a number of important Phase 3 programs expected to drive attractive long-term growth.
The company has a robust pipeline with meaningful breadth and depth across four therapeutic areas, positioning it well to deliver continued innovation.
Tax Matters
Tax Court litigation covering tax years 2010 through 2015 remains ongoing, with a decision expected no earlier than the second half of 2026.
A draft Notice of Proposed Adjustment (NOPA) was received from the IRS in April 2026 for 2016 to 2018 tax years, asserting significant adjustments primarily related to the allocation of profits between the United States and Puerto Rico.
If sustained in full, the adjustments in the draft NOPA could have a material impact on Amgen's financial statements.
Amgen disagrees with the draft NOPA and believes that the IRS positions are without merit and that its tax reserves are appropriate.
