01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Amgen Inc. reported solid financial results for the first quarter of 2026, demonstrating growth in total revenues and net income compared to the prior year.
Total revenues increased by 6% to $8.62 billiona, driven by a 4% rise in product sales and a significant 45% surge in other revenues. Net income grew by 5% to $1.82 billion, resulting in diluted earnings per share of $3.34, up from $3.20 in the first quarter of 2025. The company experienced strong volume growth in key products such as Repatha, EVENITY, and TEPEZZA, while also seeing substantial increases in newer products like UPLIZNA and IMDELLTRA/IMDYLLTRA.
Despite the positive top-line and bottom-line growth, investors should note the significant decline in sales for Prolia and XGEVA, which are facing increased biosimilar competition following patent expiries. Operating expenses decreased by 15%b, largely due to the absence of a significant intangible asset impairment charge recorded in the prior year, and lower amortization expenses, which helped bolster profitability.
However, ongoing litigation, particularly the significant U.S. tax dispute, remains a critical area to monitor, with a decision expected in the second half of 2026. The company also highlighted progress in its pipeline, including positive Phase 3 results for TEPEZZA administered subcutaneously.
02—Key points
Key Highlights
- Total revenues grew 6% year-over-year to $8.62 billion.
- Net income increased 5% to $1.82 billion, with diluted EPS rising to $3.34.
- Repatha sales surged 34% driven by strong volume growth.
- Prolia and XGEVA sales declined significantly (34% and 27% respectively) due to biosimilar competition.
- Operating expenses decreased 15%, largely due to the absence of a prior-year intangible asset impairment charge.
- Cash and cash equivalents increased substantially to $12.04 billion.
- Amgen is actively engaged in significant U.S. tax litigation with a decision anticipated in the latter half of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Amgen Inc kept $0.21.
- Revenue$8.62B100.0%
- Cost of revenue−$2.74B31.8%
- Gross profit$5.87B68.2%
- Operating costs−$3.21B37.2%
- Operating income$2.67B30.9%
- Interest, other & tax−$847.0M9.8%
- Net income$1.82B21.1%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $8.62B$8.15B | +5.8% |
| Cost of Revenue | $2.74B$2.97B | −7.5% |
| Gross Profit | $5.87B$5.18B | +13.4% |
| SG&A Expenses | $1.60B$1.69B | −5.0% |
| Operating Expenses | $5.95B$6.97B | −14.6% |
| Operating Income | $2.67B$1.18B | +126.3% |
| Interest Expense | $657.00M$723.00M | −9.1% |
| Net Income | $1.82B$1.73B | +5.1% |
| EPS (Basic) | $3.37$3.22 | +4.7% |
| EPS (Diluted) | $3.34$3.20 | +4.4% |
| Shares Outstanding (Basic) | 540.00M538.00M | +0.4% |
| Shares Outstanding (Diluted) | 544.00M541.00M | +0.6% |
05—Questions
Frequently Asked Questions
What are the main drivers of Amgen's revenue growth in Q1 2026?
Amgen's revenue growth was driven by a 4% increase in total product sales, largely due to volume growth in key products like Repatha, EVENITY, and TEPEZZA, as well as strong performance from newer products such as UPLIZNA and IMDELLTRA/IMDYLLTRA. Additionally, 'other revenues' saw a substantial 45% increase, primarily from higher corporate partner revenue and royalty income.
How is biosimilar competition impacting Amgen's key products?
Biosimilar competition is significantly impacting Amgen's Prolia and XGEVA franchises. Prolia sales decreased by 34% and XGEVA sales by 27% in the first quarter of 2026. This erosion is expected to continue as multiple biosimilars have launched in both the United States and international markets following patent expiries in late 2025.
What is the status and potential impact of the U.S. tax litigation?
Amgen is involved in a significant tax dispute with the IRS regarding the allocation of profits between its U.S. and Puerto Rico entities for the years 2010-2015. The IRS is seeking substantial additional federal tax, plus interest and penalties. The trial concluded in January 2025, and a decision from the U.S. Tax Court is expected no earlier than the second half of 2026. While Amgen believes its positions are without merit, an adverse outcome could have a material adverse impact on its financial statements, as the ultimate outcome could result in payments substantially greater than amounts accrued.
What is the company's outlook on capital allocation?
Amgen intends to continue investing in innovation and returning capital to stockholders through dividends and stock repurchases. The company paid a quarterly cash dividend of $2.52 per share in March 2026 and declared another for June 2026. As of March 31, 2026, $6.8 billion remained available under its stock repurchase program. The company also issued $4.0 billion in new debt during the quarter.
06—Continue