Amgen (AMGN)
NASDAQ:AMGN
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Amgen
(NASDAQ:AMGN)
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Rating:71Outperform
Price Target:
$405.00
▲(15.38% Upside)
Action:ReiteratedDate:02/05/26
AMGN scores positively overall, led by strong technical strength and supportive earnings-call outlook with defined 2026 guidance and broad product momentum. The main constraint is financial risk from high leverage and a recent decline in free cash flow, while valuation is reasonable but not cheap given the ~23.8 P/E, partially offset by a ~2.6% dividend yield.
Positive Factors
Strong cash generation & margins
Sustained high gross and net margins plus ~$10B operating cash flow and ~$8.1B FCF provide durable funding for R&D, manufacturing scale, dividends and buybacks. These cash flows support reinvestment and optionality across cycles, underpinning long‑term competitiveness.
Negative Factors
High leverage
Material leverage reduces financial flexibility for M&A, large capex or sustained buybacks, and raises vulnerability to interest rate or credit stresses. Elevated debt magnifies downside risk from any revenue or cash‑flow shocks and can constrain strategic optionality over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & margins
Sustained high gross and net margins plus ~$10B operating cash flow and ~$8.1B FCF provide durable funding for R&D, manufacturing scale, dividends and buybacks. These cash flows support reinvestment and optionality across cycles, underpinning long‑term competitiveness.
Read all positive factors
Amgen (AMGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$189.22B
Dividend Yield3%
Average Volume (3M)2.61M
Price to Earnings (P/E)22.8
Beta (1Y)0.39
Revenue Growth10.56%
EPS Growth88.13%
CountryUS
Employees28,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)5.29
Shares Outstanding539,067,700
10 Day Avg. Volume2,385,633
30 Day Avg. Volume2,606,284
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 Cap1.24
Enterprise Value/Revenue6.38
Enterprise Value/Gross Profit9.06
Enterprise Value/Ebitda12.56
Forecast
1Y Price Target
$368.50Price Target Upside4.98% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering24
EPS Forecast (FY)22.41
Revenue Forecast (FY)$37.85B
Amgen Business Overview & Revenue Model
Company Description
Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. The company's products include Enbre...
How the Company Makes Money
Amgen generates revenue primarily through the sale of its biologic drugs, which are often administered for chronic and life-threatening conditions. The company's revenue model is largely driven by product sales, which encompass both domestic and i...
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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized broad, multi-product commercial momentum, strong financial performance, substantial R&D investment, and encouraging late-stage pipeline progress (notably Repatha, Meritide, biosimilars, rare disease approvals, and Imdeltra). Key challenges include a significant regulatory action on Tavneos, slower-than-expected event accrual for the olpasiran outcome study, several program deprioritizations, and anticipated near-term sales pressure from biosimilars/generics and seasonal/inventory headwinds. On balance, the positives — sustained growth across multiple franchises, clear 2026 guidance range, and a deep late-stage pipeline — outweigh the notable but addressable setbacks.Positive Updates
Broad Commercial Momentum and Product Breadth
14 products achieved blockbuster status ($1B+), 13 products delivered double-digit sales growth, and 18 products posted record results in 2025, underpinning double-digit revenue and EPS growth for the year.
Negative Updates
Regulatory Setback — Tavneos (Tabnios) Voluntary Withdrawal Request
The FDA requested a voluntary withdrawal of TABNIO/Tavneos (ANCA-associated vasculitis medicine) over concerns related to readjudication of endpoints for nine patients; Amgen is engaged in discussions with FDA and the situation is unresolved.
Read all updates
Q4-2025 Updates
Positive
Negative
Broad Commercial Momentum and Product Breadth
14 products achieved blockbuster status ($1B+), 13 products delivered double-digit sales growth, and 18 products posted record results in 2025, underpinning double-digit revenue and EPS growth for the year.
Read all positive updates
Company Guidance
Amgen guided 2026 total revenues of $37.0–$38.4 billion and non‑GAAP EPS of $21.60–$23.00, with full‑year non‑GAAP operating margin targeted at roughly 45%–46% of product sales; other revenue of $1.6–$1.8 billion; non‑GAAP other income/(expense) of about $2.3–$2.4 billion; a non‑GAAP tax rate of 16%–17.5%; capex around $2.6 billion; share repurchases not to exceed $3 billion; and non‑GAAP R&D expense expected to grow low single digits (excluding roughly $300 million of 2025 BD‑related spend). Management expects a lower mid‑single‑digit year‑over‑year revenue decline in Q1 (citing seasonal insurance/reverification headwinds and a ~ $250 million inventory build) with Q1 operating margin the lowest of the year (roughly in line with 2025), and said growth from six priority drivers (Repatha, Evenity, Tespire, rare disease, innovative oncology and biosimilars) should more than offset anticipated declines from biosimilar competition, pricing pressure and higher 340B utilization.Amgen Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
44
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.74B | 33.42B | 28.19B | 26.32B | 25.98B |
| Gross Profit | 26.01B | 20.57B | 19.77B | 19.92B | 19.52B |
| EBITDA | 15.84B | 13.36B | 14.80B | 12.17B | 11.30B |
| Net Income | 7.71B | 4.09B | 6.72B | 6.55B | 5.89B |
Balance Sheet | |||||
| Total Assets | 90.59B | 91.84B | 97.15B | 65.12B | 61.16B |
| Cash, Cash Equivalents and Short-Term Investments | 9.13B | 11.97B | 10.94B | 9.30B | 8.04B |
| Total Debt | 54.60B | 60.10B | 64.61B | 38.95B | 33.31B |
| Total Liabilities | 81.93B | 85.96B | 90.92B | 61.46B | 54.47B |
| Stockholders Equity | 8.66B | 5.88B | 6.23B | 3.66B | 6.70B |
Cash Flow | |||||
| Free Cash Flow | 8.10B | 10.39B | 7.36B | 8.79B | 8.38B |
| Operating Cash Flow | 9.96B | 11.49B | 8.47B | 9.72B | 9.26B |
| Investing Cash Flow | -1.94B | -1.05B | -26.20B | -6.04B | 733.00M |
| Financing Cash Flow | -10.86B | -9.41B | 21.05B | -4.04B | -8.27B |
Amgen Technical Analysis
Positive
351.02
Price Trends
362.68
Negative
346.59
Positive
317.53
Positive
Market Momentum
-3.99
Negative
46.53
Neutral
72.30
Neutral
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 351.02 is below the 20-day moving average (MA) of 351.90, below the 50-day MA of 362.68, and above the 200-day MA of 317.53, indicating a neutral trend. The MACD of -3.99 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 72.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AMGN.
Amgen Risk Analysis
Amgen disclosed 29 risk factors in its most recent earnings report. Amgen reported the most risks in the "Legal & Regulatory" 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 | $176.37B | 17.94 | 41.01% | 2.52% | 2.51% | 1682.88% | |
71 Outperform | $189.22B | 22.84 | 96.65% | 3.00% | 10.56% | 88.13% | |
71 Outperform | $119.69B | 15.61 | 39.27% | 4.11% | -0.22% | ― | |
69 Neutral | $113.22B | -31.42 | 14.71% | 4.58% | -9.32% | 120.62% | |
68 Neutral | $300.20B | 14.46 | 36.19% | 3.12% | 1.49% | 7.89% | |
64 Neutral | $153.13B | 18.21 | 8.67% | 6.65% | -1.65% | -3.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AMGN
Amgen
351.02
66.04
23.17%
BMY
Bristol-Myers Squibb
58.62
9.72
19.89%
GILD
Gilead Sciences
138.99
35.25
33.98%
MRK
Merck & Company
121.42
45.03
58.94%
PFE
Pfizer
26.92
6.30
30.53%
SNY
Sanofi
46.76
-3.48
-6.92%
Amgen Corporate Events
Business Operations and Strategy
Amgen Ends Kyowa Kirin Collaboration in Strategic Shift
Neutral
Jan 30, 2026
On January 30, 2026, Amgen Inc. and Kyowa Kirin Co., Ltd. agreed to terminate their June 1, 2021 License and Collaboration Agreement under a newly executed Termination Agreement, with the termination to take effect upon receipt of regulatory appro...
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.