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Amgen
(NASDAQ:AMGN)
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Rating:66Neutral
Price Target:
$404.00
â–²(13.71% Upside)
Action:Reiterated
Date:05/21/26
AMGN’s score is driven primarily by strong profitability and free-cash-flow generation, but is materially constrained by high leverage. Recent earnings-call updates were supportive (raised guidance and strong growth-driver performance), while technicals remain soft and valuation looks only moderately supported by the dividend.
Positive Factors
Strong cash generation & margins
Amgen's substantial recurring operating cash flow (~$10.8B TTM) and ~$8.6B free cash flow, coupled with high gross and EBIT margins, provide durable internal funding for R&D, capex and manufacturing scale. This cash generation supports multi-year investment and shareholder returns without relying heavily on external financing.
Negative Factors
High leverage and balance-sheet sensitivity
Elevated TTM debt-to-equity (~6.2x) increases exposure to refinancing and interest-rate risk and reduces strategic optionality. High leverage limits flexibility for large M&A or sustained buybacks and implies deleveraging will take multiple years of strong free cash flow or asset dispositions, constraining capital-allocation choices.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & margins
Amgen's substantial recurring operating cash flow (~$10.8B TTM) and ~$8.6B free cash flow, coupled with high gross and EBIT margins, provide durable internal funding for R&D, capex and manufacturing scale. This cash generation supports multi-year investment and shareholder returns without relying heavily on external financing.
Read all positive factors
Amgen Key Performance Indicators (KPIs)
Any
Revenue by Type
Distinguishes between different revenue streams, such as product sales and royalties, providing insights into Amgen's business model and diversification.
Distinguishes between different revenue streams, such as product sales and royalties, providing insights into Amgen's business model and diversification.
Data provided by:
The Fly
The FlyAmgen (AMGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$201.93B
Dividend Yield3%
Average Volume (3M)2.94M
Price to Earnings (P/E)25.8
Beta (1Y)0.34
Revenue Growth9.94%
EPS Growth31.14%
CountryUS
Employees28,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)14.48
Shares Outstanding539,708,250
10 Day Avg. Volume3,913,496
30 Day Avg. Volume2,935,486
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)20.34
Price to Sales (P/S)4.79
P/FCF Ratio21.74
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue6.17
Enterprise Value/Gross Profit8.63
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$355.57Price Target Upside0.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering23
EPS Forecast (FY)22.38
Revenue Forecast (FY)$37.77B
Amgen Business Overview & Revenue Model
Company Description
Amgen Inc., established in 1980 and headquartered in Thousand Oaks, California, is a global biotechnology leader focused on discovering, developing, manufacturing, and delivering groundbreaking human medicines. The company's scientific endeavors s...
How the Company Makes Money
Amgen makes money primarily by selling prescription medicines and earning related revenue from product sales to wholesalers, distributors, pharmacies, hospitals, and other healthcare providers across the U.S. and international markets. Its core re...
Amgen Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: Amgen reported modest overall product sales growth (4%) while its six key growth drivers delivered strong momentum (24% aggregate growth and ~70% of sales), the company raised full-year revenue and EPS guidance, generated substantial free cash flow, and highlighted significant pipeline progress (notably Meritide, olpasiran, Imdeltra, TEPEZZA) and AI-driven R&D productivity gains. Material challenges were acknowledged, including steep declines in legacy osteoporosis brands (Prolia/XGEVA), rising cost-of-sales pressure, regulatory and trial uncertainties (Tabneos/paused blinatumomab enrollment), and a potentially material IRS audit adjustment for tax years 2016–2018. Overall, the positive commercial momentum, strengthened guidance, robust cash generation, and advancing late-stage pipeline outweigh the notable headwinds and risks discussed during the call.Positive Updates
Strong Contribution from Growth Drivers
Six key growth drivers generated ~70% of product sales in Q1 and grew 24% year-over-year in aggregate, providing momentum to offset losses of exclusivity.
Negative Updates
Loss of Exclusivity Pressure on Legacy Brands
Prolia and XGEVA combined sales declined 32% YoY to $1.1 billion in Q1; company expects accelerated sales erosion through the remainder of 2026 due to multiple biosimilar competitors.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Contribution from Growth Drivers
Six key growth drivers generated ~70% of product sales in Q1 and grew 24% year-over-year in aggregate, providing momentum to offset losses of exclusivity.
Read all positive updates
Company Guidance
Amgen raised its 2026 guidance, now targeting total revenues of $37.1–$38.5 billion and non‑GAAP EPS of $21.70–$23.10; it also expects other revenue of $1.7–$1.8 billion, non‑GAAP OI&E expense of $2.2–$2.3 billion, a non‑GAAP tax rate of 15.0–16.5%, and a full‑year non‑GAAP operating margin of roughly 45–46% of product sales (Q1 non‑GAAP operating margin was 45% and Q2 is expected to be in line with Q1). The company reiterated capex of about $2.6 billion for 2026 (Q1 capex was $700 million), said share repurchases will not exceed $3 billion, and noted Q1 metrics including $1.5 billion free cash flow, non‑GAAP R&D up 16% YoY, non‑GAAP cost of sales at 19.5% of product sales, and $480 million of non‑GAAP OI&E expense in the quarter (including an approximately $90 million gain); the guidance excludes any potential business‑development transactions.Amgen Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
48
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.24B | 36.74B | 33.42B | 28.19B | 26.32B | 25.98B |
| Gross Profit | 26.61B | 26.01B | 20.57B | 19.77B | 19.92B | 19.52B |
| EBITDA | 16.69B | 16.90B | 13.36B | 14.80B | 12.17B | 11.30B |
| Net Income | 7.80B | 7.71B | 4.09B | 6.72B | 6.55B | 5.89B |
Balance Sheet | ||||||
| Total Assets | 92.50B | 90.59B | 91.84B | 97.15B | 65.12B | 61.16B |
| Cash, Cash Equivalents and Short-Term Investments | 12.04B | 9.13B | 11.97B | 10.94B | 9.30B | 8.04B |
| Total Debt | 57.32B | 54.60B | 60.10B | 64.61B | 38.95B | 33.31B |
| Total Liabilities | 83.31B | 81.93B | 85.96B | 90.92B | 61.46B | 54.47B |
| Stockholders Equity | 9.19B | 8.66B | 5.88B | 6.23B | 3.66B | 6.70B |
Cash Flow | ||||||
| Free Cash Flow | 8.60B | 8.10B | 10.39B | 7.36B | 8.79B | 8.38B |
| Operating Cash Flow | 10.76B | 9.96B | 11.49B | 8.47B | 9.72B | 9.26B |
| Investing Cash Flow | -2.21B | -1.94B | -1.05B | -26.20B | -6.04B | 733.00M |
| Financing Cash Flow | -5.32B | -10.86B | -9.41B | 21.05B | -4.04B | -8.27B |
Amgen Technical Analysis
Positive
355.30
Price Trends
340.54
Positive
350.05
Positive
331.61
Positive
Market Momentum
6.75
Negative
71.13
Negative
95.01
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMGN, the sentiment is Positive. The current price of 355.3 is above the 20-day moving average (MA) of 351.13, above the 50-day MA of 340.54, and above the 200-day MA of 331.61, indicating a bullish trend. The MACD of 6.75 indicates Negative momentum. The RSI at 71.13 is Negative, neither overbought nor oversold. The STOCH value of 95.01 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMGN.
Amgen Risk Analysis
Amgen disclosed 28 risk factors in its most recent earnings report. Amgen reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Amgen Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $162.98B | 17.69 | 42.16% | 2.52% | 3.83% | 55.01% | |
72 Outperform | $319.99B | 36.38 | 17.93% | 3.12% | 2.70% | -48.28% | |
71 Outperform | $118.71B | 16.33 | 39.05% | 4.11% | 1.78% | 33.76% | |
69 Neutral | $104.61B | 11.93 | 14.41% | 4.58% | 11.19% | -0.23% | |
66 Neutral | $201.93B | 25.84 | 89.41% | 3.00% | 9.94% | 31.14% | |
64 Neutral | $138.61B | 18.56 | 8.37% | 6.65% | 1.36% | -5.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AMGN
Amgen
374.15
89.75
31.56%
BMY
Bristol-Myers Squibb
58.13
13.77
31.04%
GILD
Gilead Sciences
131.27
22.33
20.50%
MRK
Merck & Company
129.56
51.28
65.50%
PFE
Pfizer
24.32
0.73
3.09%
SNY
Sanofi
43.16
-3.31
-7.12%
Amgen Corporate Events
Executive/Board ChangesShareholder Meetings
Amgen Shareholders Reaffirm Board, Pay and Auditors
Positive
May 20, 2026
At its annual meeting held on May 19, 2026, Amgen stockholders re-elected all 12 director nominees to one-year terms, maintaining continuity in board leadership and governance. Shareholders also approved on an advisory basis the company’s ex...
Business Operations and StrategyExecutive/Board Changes
Amgen Announces CFO Transition and Leadership Succession Plan
Positive
May 19, 2026
Amgen announced on May 19, 2026 that Executive Vice President and Chief Financial Officer Peter Griffith, who has held the CFO role since 2020, will retire effective Aug. 31, 2026 and remain as an executive vice president in a non-officer capacity...
Business Operations and StrategyExecutive/Board Changes
Amgen Announces CTO Retirement and Strategic Leadership Realignment
Positive
Apr 22, 2026
On April 22, 2026, Amgen announced that David M. Reese, M.D., executive vice president and chief technology officer, will retire effective June 30, 2026, after a tenure that included leading research and development from 2018 to 2023 and championi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.