Amgen beats, raises guidance as growth drivers offset Prolia/Xgeva erosion

 

• Amgen beat Q1 2026 estimates with non-GAAP EPS $5.15, up 5% YoY, on revenue $8.6B, up 6% YoY.
• Key growth drivers grew 24% YoY to $5.6B and now represent ~70% of sales.
• Overall product sales rose 4% YoY despite a 32% decline in Prolia/Xgeva from biosimilar erosion.
• Repatha, EVENITY and TEZSPIRE all posted strong double-digit growth, with Repatha sales up 34% YoY.
• Non-GAAP operating margin was 45%, while cost of sales increased to 19.5% on mix and royalties.
• 2026 revenue guidance was raised to $37.1–$38.5B and non-GAAP EPS to $21.70–$23.10.
• Management reiterates 2026 as a "springboard year," ramping R&D 16% to fund MariTide, IMDELLTRA, Olpasiran.
• MariTide Phase III program expanded with switch and maintenance studies targeting less-frequent dosing and better GI tolerability.
• TAVNEOS faces an FDA proposal to withdraw approval; Amgen defends its benefit‑risk and plans further engagement.
• IRS draft tax adjustments for 2016–2018 could be material if upheld, but Amgen strongly contests the methodology.
• Free cash flow was $1.5B; capex of $700M supports expanded manufacturing, including for an eventual MariTide launch.
• Main concern: Regulatory and tax overhangs (TAVNEOS withdrawal proposal, IRS disputes) amid accelerating Prolia/Xgeva erosion.
• Strong quarter, driven by diversified growth assets that more than offset loss-of-exclusivity headwinds.

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