AMGN · Amgen Inc.

Amgen’s Q1 2026 results reflect resilient top-line growth amid intensifying competitive pressures, with total revenue rising 6% to $8.6 billion—driven by broad-based volume gains (9% overall) across 16 double-digit-growth products, including TEPEZZA (+29%), UPLIZNA (+188%), and IMDELLTRA (+219%). GAAP operating margin surged 17.4 percentage points to 32.4%, largely attributable to a $1.2 billion year-over-year reduction in amortization expense from acquisition-related intangibles, underscoring the benefit of prior M&A rationalization. In contrast, non-GAAP operating margin dipped slightly to 45.3%, as higher R&D spend (up 16%, notably for MariTide Phase 3 programs) and commercial expenses outweighed revenue gains. Free cash flow grew 50% to $1.5 billion, reflecting strong operating performance and favorable working capital timing, though capex rose to $700 million. Management reaffirmed confidence in long-term growth, citing a robust late-stage pipeline—including six ongoing Phase 3 studies for MariTide—and reiterated full-year guidance of $37.1–$38.5 billion revenue and non-GAAP EPS of $21.70–$23.10. Notably, established brands like Prolia and XGEVA posted steep declines (−34% and −27%, respectively), confirming accelerated biosimilar erosion, while biosimilars themselves grew 8% to $185 million. The Company declared a 6% higher dividend ($2.52/share) but executed no share repurchases during the quarter, preserving liquidity ahead of anticipated pipeline milestones.