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Amgen
(NASDAQ:AMGN)
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Rating:75Outperform
Price Target:
$439.00
â–²(16.74% Upside)
Action:Reiterated
Date:08/05/26
AMGN scores well on trend/momentum and operating fundamentals (strong margins and rising free cash flow), reinforced by raised full-year guidance. The overall score is held back mainly by elevated leverage and only moderate valuation support (P/E ~26.6), with near-term headwinds noted on legacy brand erosion and higher operating expenses.
Positive Factors
Free Cash Flow Generation
Consistently strong free cash flow (TTM ~$10.2B and robust Q2 generation) provides durable internal funding for R&D, capex, dividends and targeted buybacks. This cash conversion supports strategic flexibility to invest in pipeline and manufacturing without excessive dilution.
Negative Factors
High Leverage
Material leverage constrains financial flexibility and increases sensitivity to rising rates or earnings volatility. With operating cash flow covering less than half of total debt, sizable interest and refinancing considerations could limit pace of buybacks, M&A or cushion for adverse outcomes over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistently strong free cash flow (TTM ~$10.2B and robust Q2 generation) provides durable internal funding for R&D, capex, dividends and targeted buybacks. This cash conversion supports strategic flexibility to invest in pipeline and manufacturing without excessive dilution.
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
$207.87B
Dividend Yield2.54%
Average Volume (3M)2.58M
Price to Earnings (P/E)26.6
Beta (1Y)0.33
Revenue Growth9.94%
EPS Growth31.14%
CountryUS
Employees31,500
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)14.48
Shares Outstanding539,708,250
10 Day Avg. Volume2,273,194
30 Day Avg. Volume2,578,679
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$376.81Price Target Upside0.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)22.36
Revenue Forecast (FY)$37.74B
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:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call reported broad-based commercial strength (10% revenue growth, multiple products with double-digit increases, raised full-year guidance), robust margins (48% non-GAAP operating margin) and strong cash generation, while also flagging expected near-term expense increases, higher cost-of-sales pressure from mix and profit-share, a material decline in the Prolia/XGEVA franchise (–33%), and some pipeline uncertainty/readouts pending. On balance the positive commercial execution, raised guidance and pipeline momentum outweigh the noted headwinds.Positive Updates
Strong Revenue Growth
Total revenues exceeded $10.0 billion in Q2, representing a 10% year-over-year increase; 17 products annualized at more than $1 billion based on Q2 sales and 22 products delivered double-digit sales growth.
Negative Updates
Decline in Prolia and XGEVA Sales
Prolia and XGEVA combined sales decreased 33% year-over-year to $1.1 billion, consistent with expectations following the launch of several biosimilar competitors.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenues exceeded $10.0 billion in Q2, representing a 10% year-over-year increase; 17 products annualized at more than $1 billion based on Q2 sales and 22 products delivered double-digit sales growth.
Read all positive updates
Company Guidance
Amgen raised its 2026 guidance, now expecting total revenues of $38.2–$39.4 billion and non‑GAAP EPS of $22.30–$23.50, with other revenue ~ $1.9 billion and non‑GAAP other income/expense of $2.1–$2.2 billion of expense; full‑year non‑GAAP R&D is expected to grow high‑single digits (Q2 R&D was +10% YoY) and a $100 million upfront BD payment will boost Q3 R&D, while capital expenditures are forecast at ≈$2.6 billion for 2026 (Q2 capex was $500 million) to scale manufacturing for volume growth; management expects a full‑year non‑GAAP operating margin of roughly 45–46% of product sales (Q2 non‑GAAP operating margin was 48%, with Q2 cost of sales 19.6% of product sales), generated $3.5 billion of free cash flow in Q2, raised the quarterly dividend to $2.52/share (+6% YoY), expects a non‑GAAP tax rate of 15.0–16.5%, anticipates a meaningful sequential increase in operating expenses in Q3, and plans share repurchases not to exceed $3 billion.Amgen Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
56
Neutral
Cash Flow
78
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
376.04
Price Trends
357.74
Positive
349.92
Positive
341.66
Positive
Market Momentum
8.41
Negative
64.90
Neutral
65.67
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 376.04 is above the 20-day moving average (MA) of 372.48, above the 50-day MA of 357.74, and above the 200-day MA of 341.66, indicating a bullish trend. The MACD of 8.41 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 65.67 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 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $207.87B | 26.60 | 89.41% | 2.61% | 9.94% | 31.14% | |
74 Outperform | $133.41B | 14.39 | 46.75% | 4.33% | 3.13% | 83.17% | |
70 Outperform | $161.66B | 17.55 | 42.16% | 2.49% | 3.83% | 55.01% | |
69 Neutral | $321.57B | 36.58 | 17.93% | 2.56% | 2.70% | -48.28% | |
69 Neutral | $103.78B | 22.77 | 5.52% | 5.58% | 23.68% | -30.90% | |
66 Neutral | $142.54B | 19.09 | 8.37% | 7.01% | 1.36% | -5.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
AMGN
Amgen
390.02
98.70
33.88%
BMY
Bristol-Myers Squibb
65.89
22.14
50.61%
GILD
Gilead Sciences
135.25
25.65
23.40%
MRK
Merck & Company
128.00
49.82
63.73%
PFE
Pfizer
25.41
2.28
9.87%
SNY
Sanofi
42.68
-3.33
-7.23%
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...
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.