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AMGN Q3 Earnings Call Highlights Pipeline and Raised Outlook
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Key Takeaways
Amgen's Q3 adjusted EPS of $6.45 beat the $5.74 estimate, while revenues of $10.37B topped $9.95B.
Amgen raises 2026 revenue guidance to $38.9B-$39.7B and EPS outlook to $22.90-$23.70 despite rising costs.
IMDELLTRA's survival benefit and MariTide's dosing potential support growth, but biosimilars remain a woe.
Amgen Inc. (AMGN - Free Report) raised its 2026 outlook after a strong third quarter, while executives emphasized late-stage clinical progress as a foundation for growth beyond its established medicines.
The earnings call centered on IMDELLTRA's expansion opportunity, MariTide's obesity development program and commercial momentum across key products, alongside questions about regulatory timing and execution.
AMGN Raises Outlook While Flagging Fourth-Quarter Costs
Executive vice president and chief financial officer Thomas Dittrich raised 2026 revenue guidance to $38.9 billion-$39.7 billion and non-GAAP earnings guidance to $22.90-$23.70 per share.
He maintained the anticipated full-year non-GAAP operating margin at 45-46% of product sales, but cautioned that fourth-quarter operating expenses should increase sequentially.
Dittrich cited higher product-mix and profit-sharing costs, alongside increased selling expenses. Third-quarter non-GAAP operating margin reached 47%, while adjusted earnings of $6.45 beat the Zacks Consensus Estimate of $5.74 and revenue of $10.37 billion exceeded $9.95 billion estimate.
Executive vice president of Global Markets and Policy Murdo Gordon said six key growth drivers grew 27% year over year, accounting for more than 70% of product sales.
Repatha sales climbed 37% to $1.1 billion, supported by accelerating prescriptions and cardiovascular outcomes evidence. EVENITY rose 39% to $751 million, while TEZSPIRE advanced 43% to $538 million.
Rare-disease treatment UPLIZNA surged 191% to $451 million. However, Prolia and XGEVA faced biosimilar competition, with sales declining 45% and 47%, respectively, underscoring the importance of newer products.
AMGN Sees a Broader Role for IMDELLTRA
Executive vice president of Research and Development, Artificial Intelligence and Data, James Bradner highlighted Phase III DeLLphi-305 results in first-line maintenance small cell lung cancer.
IMDELLTRA combined with IMFINZI delivered median overall survival of 21.1 months, compared with 12.7 months for IMFINZI alone. Management is preparing regulatory submissions to expand use beyond later-line treatment.
When a JPMorgan analyst asked about uptake barriers, Gordon pointed to shorter monitoring requirements in the approved setting and monitoring of one to two hours in DeLLphi-305. He expects these developments to facilitate community-clinic adoption, subject to regulatory progress.
Amgen Advances Multiple Inflammation Programs
Bradner reported positive Phase III results for TEZSPIRE in eosinophilic esophagitis, with improvements in tissue remission and swallowing symptoms sustained through 52 weeks.
He also described positive results for dazodalibep in systemic Sjogren's disease, including improvement in disease activity and patient-reported dryness. Another Phase III study focused on symptomatic patients is expected to report later in 2026.
Responding to Goldman Sachs, Bradner cautioned against extrapolating results between the two distinct patient populations. Separately, positive Phase II data supported plans to advance daxdilimab into Phase III development for discoid lupus.
AMGN Defends MariTide's Dosing Proposition
Bradner said the Phase III MARITIME program had completed enrollment in two sleep-apnea studies and its cardiovascular outcomes study, while initiating a diabetes trial.
Management emphasized MariTide's potential monthly dosing, with maintenance schedules as infrequent as four or six administrations annually. Bradner said earlier studies indicated that side effects generally did not persist throughout the drug's extended activity.
In response to BMO Capital Markets, Gordon framed dosing convenience as a differentiator in an increasingly competitive obesity market. He also told a Citi analyst that reimbursement outside the United States could remain challenging.
Amgen Balances Investment With Financial Discipline
Dittrich reported $3.7 billion of quarterly free cash flow and $600 million in capital spending. The company continues to project approximately $2.6 billion of capital expenditures for 2026, including manufacturing investments ahead of a potential MariTide launch.
When Morgan Stanley asked whether biosimilar production might be reduced to create capacity, chairman and chief executive officer Robert Bradway said the company remains confident in supplying both businesses.
Asked by UBS about acquisitions, Bradway reiterated a disciplined approach focused on assets aligned with Amgen's therapeutic priorities and returns for shareholders.
AMGN Maintains Its Long-Term Development Focus
Bradway emphasized broad commercial execution and multiple clinical opportunities rather than dependence on any single medicine.
Management's near-term priorities remain regulatory advancement, clinical trial execution, manufacturing readiness and expense discipline as the company enters 2027.
Its combined VGM Score of C also falls below the A or B grades preferred alongside stronger Zacks Ranks. The current Zacks Rank could change as analysts revise earnings estimates following the reported results.
View the Zacks #1 Rank List
Image: Bigstock
AMGN Q3 Earnings Call Highlights Pipeline and Raised Outlook
Key Takeaways
Amgen Inc. (AMGN - Free Report) raised its 2026 outlook after a strong third quarter, while executives emphasized late-stage clinical progress as a foundation for growth beyond its established medicines.
The earnings call centered on IMDELLTRA's expansion opportunity, MariTide's obesity development program and commercial momentum across key products, alongside questions about regulatory timing and execution.
AMGN Raises Outlook While Flagging Fourth-Quarter Costs
Executive vice president and chief financial officer Thomas Dittrich raised 2026 revenue guidance to $38.9 billion-$39.7 billion and non-GAAP earnings guidance to $22.90-$23.70 per share.
He maintained the anticipated full-year non-GAAP operating margin at 45-46% of product sales, but cautioned that fourth-quarter operating expenses should increase sequentially.
Dittrich cited higher product-mix and profit-sharing costs, alongside increased selling expenses. Third-quarter non-GAAP operating margin reached 47%, while adjusted earnings of $6.45 beat the Zacks Consensus Estimate of $5.74 and revenue of $10.37 billion exceeded $9.95 billion estimate.
Amgen Inc. Price, Consensus and EPS Surprise
Amgen Inc. price-consensus-eps-surprise-chart | Amgen Inc. Quote
Amgen's Growth Medicines Offset Mature-Brand Pressure
Executive vice president of Global Markets and Policy Murdo Gordon said six key growth drivers grew 27% year over year, accounting for more than 70% of product sales.
Repatha sales climbed 37% to $1.1 billion, supported by accelerating prescriptions and cardiovascular outcomes evidence. EVENITY rose 39% to $751 million, while TEZSPIRE advanced 43% to $538 million.
Rare-disease treatment UPLIZNA surged 191% to $451 million. However, Prolia and XGEVA faced biosimilar competition, with sales declining 45% and 47%, respectively, underscoring the importance of newer products.
AMGN Sees a Broader Role for IMDELLTRA
Executive vice president of Research and Development, Artificial Intelligence and Data, James Bradner highlighted Phase III DeLLphi-305 results in first-line maintenance small cell lung cancer.
IMDELLTRA combined with IMFINZI delivered median overall survival of 21.1 months, compared with 12.7 months for IMFINZI alone. Management is preparing regulatory submissions to expand use beyond later-line treatment.
When a JPMorgan analyst asked about uptake barriers, Gordon pointed to shorter monitoring requirements in the approved setting and monitoring of one to two hours in DeLLphi-305. He expects these developments to facilitate community-clinic adoption, subject to regulatory progress.
Amgen Advances Multiple Inflammation Programs
Bradner reported positive Phase III results for TEZSPIRE in eosinophilic esophagitis, with improvements in tissue remission and swallowing symptoms sustained through 52 weeks.
He also described positive results for dazodalibep in systemic Sjogren's disease, including improvement in disease activity and patient-reported dryness. Another Phase III study focused on symptomatic patients is expected to report later in 2026.
Responding to Goldman Sachs, Bradner cautioned against extrapolating results between the two distinct patient populations. Separately, positive Phase II data supported plans to advance daxdilimab into Phase III development for discoid lupus.
AMGN Defends MariTide's Dosing Proposition
Bradner said the Phase III MARITIME program had completed enrollment in two sleep-apnea studies and its cardiovascular outcomes study, while initiating a diabetes trial.
Management emphasized MariTide's potential monthly dosing, with maintenance schedules as infrequent as four or six administrations annually. Bradner said earlier studies indicated that side effects generally did not persist throughout the drug's extended activity.
In response to BMO Capital Markets, Gordon framed dosing convenience as a differentiator in an increasingly competitive obesity market. He also told a Citi analyst that reimbursement outside the United States could remain challenging.
Amgen Balances Investment With Financial Discipline
Dittrich reported $3.7 billion of quarterly free cash flow and $600 million in capital spending. The company continues to project approximately $2.6 billion of capital expenditures for 2026, including manufacturing investments ahead of a potential MariTide launch.
When Morgan Stanley asked whether biosimilar production might be reduced to create capacity, chairman and chief executive officer Robert Bradway said the company remains confident in supplying both businesses.
Asked by UBS about acquisitions, Bradway reiterated a disciplined approach focused on assets aligned with Amgen's therapeutic priorities and returns for shareholders.
AMGN Maintains Its Long-Term Development Focus
Bradway emphasized broad commercial execution and multiple clinical opportunities rather than dependence on any single medicine.
Management's near-term priorities remain regulatory advancement, clinical trial execution, manufacturing readiness and expense discipline as the company enters 2027.
What AMGN's Zacks Rank and Style Scores Indicate
Amgen carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-revision signal. Its Growth Score of B is more favorable than its Value and Momentum Scores of C. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its combined VGM Score of C also falls below the A or B grades preferred alongside stronger Zacks Ranks. The current Zacks Rank could change as analysts revise earnings estimates following the reported results.