01—Abstract
Summary
Summary of the 10-K filed February 13, 2026. Cited figures are marked; the original filing is the authoritative source.
Amgen's FY2025 10-K shows a company in transition: total revenues rose 10% to $36.8 billiona, product sales grew 10% to $35.1 billion on 13% volume growth (offset by a 3% net price decline), and diluted EPS more than doubled to $14.23 from $7.56.
Net income reached $7.7 billionb, helped by $2.1 billion of unrealized equity gains (primarily the BeOne stake), a $1.2 billion Otezla intangible impairment, and lower amortization from the Horizon acquisition. Operating cash flow was $10.0 billion, with $1.9 billion of capex and $6.0 billion of debt retired, though stockholders' equity remains modest at $8.7 billion with an accumulated deficit. Growth is concentrated in newer launches: Repatha (+36%), TEZSPIRE (+52%), EVENITY (+34%), BLINCYTO (+28%), and IMDELLTRA.
These offset steep erosion in ENBREL (-33%c), driven by 340B mix, Medicare Part D redesign, and discounting, and an expected accelerated decline in Prolia and XGEVA as denosumab biosimilars launch after patent expiry. Policy headwinds are significant: IRA Medicare price setting begins with ENBREL in 2026 and Otezla in 2027, and MFN-related pricing commitments, state PDAB upper payment limits, and 340B expansion all pressure net pricing.
Key risks include the IRS transfer-pricing dispute (about $3.6Bd and $5.1B in proposed federal tax plus penalties for 2010-2015, with a Tax Court decision not expected before H2 2026), the TAVNEOS FDA withdrawal request and Amgen's decision to contest it, the Regeneron antitrust verdict ($406.8M claimed), and the Otezla impairments. Management is investing heavily in R&D ($7.3 billion, up 22%), with six Phase 3 MariTide studies underway, and in U.S. manufacturing.
02—Key points
Key Highlights
- Revenue and EPS: Total revenues rose 10% to $36.75B; diluted EPS was $14.23 vs. $7.56, though this includes about $2.1B in equity-investment gains (BeOne).
- Growth engines: Repatha sales rose 36% to $3.0B after the broadened FDA label; TEZSPIRE (+52%), EVENITY (+34%), BLINCYTO (+28%), and UPLIZNA/IMDELLTRA ramped strongly.
- Legacy erosion: ENBREL fell 33% to $2.2B; Prolia and XGEVA face accelerating biosimilar erosion after RANKL patent expiry in Feb 2025 (U.S.).
- Pricing pressure: IRA Medicare price setting took effect for ENBREL in 2026 and Otezla in 2027; Amgen also agreed to MFN-related actions in December 2025, and net selling price declines are expected in 2026.
- Balance sheet: Debt fell to $54.6B carrying value after $6.0B of retirements; $9.1B cash; investment-grade ratings (BBB+/Baa1/BBB+); stockholders' equity recovered to $8.7B, with an accumulated deficit.
- Pipeline: MariTide Phase 2 Part 2 maintained weight loss for a second year; six global Phase 3 studies are underway. Bemarituzumab is not being pursued in first-line gastric cancer, and rocatinlimab was transitioned to Kyowa Kirin.
- Legal and tax: IRS Tax Court decision on the 2010-2015 notices is expected no earlier than H2 2026; TAVNEOS faces an FDA withdrawal request that Amgen has contested; a $406.8M Regeneron antitrust/tortious-interference verdict is under post-trial review, unaccrued.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Amgen Inc kept $0.21.
- Revenue$36.75B100.0%
- Cost of revenue−$12.04B32.8%
- Gross profit$24.71B67.2%
- Operating costs−$15.63B42.5%
- Operating income$9.08B24.7%
- Interest, other & tax−$1.37B3.7%
- Net income$7.71B21.0%
Where FY2025 revenue went
$36.75B- Cost of revenue: $12.04B, 33% of revenue
- Other operating costs: $8.58B, 23% of revenue
- Net income: $7.71B, 21% of revenue
- SG&A: $7.05B, 19% of revenue
- Interest, other & tax: $1.37B, 3.7% of revenue
Kept 21% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 13, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $36.75B$33.42B | +10.0% |
| Cost of Revenue | $12.04B$12.86B | −6.4% |
| Gross Profit | $24.71B$20.57B | +20.2% |
| SG&A Expenses | $7.05B$7.10B | −0.6% |
| Operating Expenses | $27.67B$26.17B | +5.8% |
| Operating Income | $9.08B$7.26B | +25.1% |
| Interest Expense | $2.75B$3.15B | −12.7% |
| Net Income | $7.71B$4.09B | +88.5% |
| EPS (Basic) | $14.33$7.62 | +88.1% |
| EPS (Diluted) | $14.23$7.56 | +88.2% |
| Shares Outstanding (Basic) | 538.00M537.00M | +0.2% |
| Shares Outstanding (Diluted) | 542.00M541.00M | +0.2% |
05—Questions
Frequently Asked Questions
Is Amgen's 2025 EPS growth driven by core operations?
Only partly. Net income of $7.7B included about $2.1B of unrealized gains on equity securities, mainly the BeOne stake, and a $264M debt-extinguishment gain. Operating income rose 25% to $9.1B, helped by lower Horizon-related amortization, but the $1.2B Otezla impairment weighed on results. Investors should look at operating income and product sales growth to gauge the underlying trend.
How significant is the loss of Prolia and XGEVA exclusivity?
It is material. Prolia ($4.4B) and XGEVA ($2.1B) together represent about 18% of product sales. RANKL patents expired in February 2025 in the U.S., and multiple biosimilars have launched in the U.S. and ROW. Management expects accelerated sales erosion in 2026, with XGEVA already down 6% and U.S. XGEVA down 10% in 2025.
What is the risk from the IRS tax dispute?
The exposure is large relative to earnings. The IRS notices for 2010-2012 and 2013-2015 seek roughly $3.6B and $5.1B of additional federal tax plus interest, with about $2.0B of penalties for 2013-2015, partly offset by repatriation tax credits of up to $3.1B combined. A Tax Court decision is not expected before H2 2026. Amgen says the positions lack merit and has accrued amounts it considers appropriate, but outcomes could be materially higher.
What are the near-term pricing headwinds for 2026?
ENBREL's Medicare Part D price set under the IRA took effect January 1, 2026, and Otezla's takes effect in 2027. Amgen expects net selling price declines in 2026 (Repatha about mid-single digits) and continued 340B expansion, while volume growth from newer brands partly offsets this. Q1 is seasonally the weakest quarter. State PDAB actions, including a Colorado upper payment limit on ENBREL effective no earlier than 2027, add further pressure.
06—Continue