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AMGEN INC (AMGN)·Q1 2025 Earnings Summary

Executive Summary

  • Amgen delivered solid Q1 2025 results: total revenue $8.15B (+9% YoY) and non-GAAP EPS $4.90 (+24% YoY), both above S&P Global consensus; GAAP EPS was $3.20 boosted by an unrealized BeiGene equity gain, partially offset by an $800M Otezla impairment . Estimates context below (S&P Global).
  • Product sales grew 11% on 14% volume growth, led by Repatha ($656M, +27% YoY), BLINCYTO ($370M, +52%), TEZSPIRE ($285M, +65%), EVENITY ($442M, +29%), and strong biosimilar momentum (PAVBLU $99M; WEZLANA $150M) .
  • FY25 guidance reaffirmed: revenue $34.3–$35.7B; non-GAAP EPS $20.00–$21.20; non-GAAP tax rate 14.5–16.0; capex ~$2.3B; buybacks ≤$500M; non-GAAP R&D raised to ~20% growth (from mid-teens), and OI&E lowered to ~$2.3B .
  • Pipeline/catalysts: IMDELLTRA Phase 3 (DeLLphi-304) showed overall survival benefit in 2L SCLC (details at ASCO); UPLIZNA approved for IgG4-RD; TEZSPIRE CRSwNP PDUFA 10/19/25; MariTide Phase II full data to be presented at ADA and Phase III program underway—key stock catalysts .
  • Manufacturing and U.S. policy positioning: significant U.S. manufacturing expansions in Ohio (+$900M) and North Carolina; management emphasized ability to adapt to tariffs/tax changes, a support to supply reliability and policy resilience .

What Went Well and What Went Wrong

What Went Well

  • Broad-based volume-driven growth: “Volume grew 14%, reflecting growing patient demand…14 medicines delivered double-digit sales growth” (Bradway) .
  • Oncology BiTE platform momentum: IMDELLTRA delivered OS benefit vs chemo in 2L SCLC; BLINCYTO granted Breakthrough Therapy Designation for subcutaneous administration in r/r B-ALL .
  • Rare disease expansion: UPLIZNA won first and only FDA approval for IgG4-RD, with MITIGATE trial showing 87% flare risk reduction and corticosteroid sparing .

What Went Wrong

  • Otezla impairment: $800M intangible asset impairment weighed on GAAP results; GAAP Other OpEx up sharply .
  • Price/mix headwinds: net selling price decreased 6% overall; Enbrel down 10% YoY on 47% lower net price (340B mix, discounts), and continued biosimilar pressure expected on Prolia/XGEVA in 2H25 .
  • TEPEZZA/KRYSTEXXA inventory effects: U.S. wholesaler inventory reductions impacted reported sales; management does not expect similar reductions for remainder of year—still a near-term headwind .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Total Revenues ($USD Billions)$7.447 $9.086*$8.149
GAAP Diluted EPS$(0.21) —$3.20
Non-GAAP Diluted EPS$3.96 $5.31*$4.90
GAAP Operating Income Margin (% of Product Sales)13.9% —15.0%
Non-GAAP Operating Income Margin (% of Product Sales)43.2% 49.6% 45.7%
GAAP Tax Rate(66.2)% —12.3%
Non-GAAP Tax Rate15.4% —14.6%

Values with * retrieved from S&P Global.

Selected Product Sales and YoY Growth (Q1 2025)

ProductQ1 2024 Sales ($MM)Q1 2025 Sales ($MM)YoY Growth
Repatha$517 $656 +27%
EVENITY$342 $442 +29%
Prolia$999 $1,099 +10%
TEZSPIRE$173 $285 +65%
Otezla$394 $437 +11%
Enbrel$567 $510 (10%)
BLINCYTO$244 $370 +52%
Vectibix$247 $267 +8%
KYPROLIS$376 $324 (14%)
IMDELLTRA—$81 N/A
WEZLANA/WEZENLA$1 $150 >100%
PAVBLU—$99 N/A
Total Product Sales$7,118 $7,873 +11%

KPIs and Cash Flow

KPIQ1 2024Q1 2025
Product Sales Growth YoY—+11%
Volume Growth YoY—+14%
Net Selling Price Impact—(6%)
U.S. Sales Growth YoY—+14%
Operating Cash Flow ($B)$0.7 $1.4
Free Cash Flow ($B)$0.5 $1.0
Capex ($B)$0.2 $0.4
Cash & Equivalents ($B)$9.7 $8.8
Debt Outstanding ($B)—$57.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenuesFY 2025$34.3–$35.7B $34.3–$35.7B Maintained
GAAP EPSFY 2025$12.21–$13.46 $12.21–$13.46 Maintained
Non-GAAP EPSFY 2025$20.00–$21.20 $20.00–$21.20 Maintained
Non-GAAP Tax RateFY 202515–16% 14.5–16% Lowered (range floor)
Non-GAAP Operating Margin (% of product sales)FY 2025~46% ~46% Maintained
CapexFY 2025~$2.3B ~$2.3B Maintained
Share RepurchasesFY 2025≤$500M ≤$500M Maintained
Non-GAAP R&D Expense GrowthFY 2025Mid-teens ~20% Raised
Non-GAAP OI&EFY 2025~$2.4B ~$2.3B Lowered
WEZLANA U.S. Sales Cadence2025—Expect no Q2 sales after large Q1 order Update

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Obesity/MariTide programPhase II progressing; T2D Phase II initiated Broad Phase III plans; ADA H1 2025 data Phase III chronic weight mgmt studies initiated; ADA full Phase II data; dose escalation improves tolerability Accelerating
Biosimilars (PAVBLU, WEZLANA, BEKEMV)PAVBLU launch prep; first-wave strategy Pavblu launched; WEZLANA/BEKEMV timing PAVBLU $99M; WEZLANA $150M; strong reception; Q code for PAVBLU Strong momentum
Oncology BiTE platformIMDELLTRA advancing; Xaluritamig Phase III IMDELLTRA Phase III readout expected; BLINCYTO subQ plan IMDELLTRA Phase 3 OS benefit; BLINCYTO subQ BTD; multiple SCLC studies Positive clinical validation
Rare disease (UPLIZNA, TEPEZZA)UPLIZNA strong data; TEPEZZA Japan approval UPLIZNA PDUFA for IgG4-RD; TEPEZZA international expansion UPLIZNA FDA approval IgG4-RD; TEPEZZA EU/Japan expansion and CRSwNP data Expanding indications/geography
AI/Technology—AI deployed across value chain (design, trials, filings) Continued AI deployment across R&D and commercial ops Ongoing adoption
Tariffs/Tax & U.S. manufacturing—Capex, U.S. manufacturing investments Explicit tariff/tax commentary; Ohio +$900M expansion; NC plant Reinforcing U.S. footprint
Denosumab LOEAnticipated erosionBack-half erosion cadence discussed Expect Prolia/XGEVA biosimilar pressure esp. 2H25 Risk approaching

Management Commentary

  • “We’re off to a strong start in 2025…strong volume growth…important new product launches and positive Phase III data.” – Robert Bradway, CEO .
  • “Our U.S. launch of IMDELLTRA…continues its strong momentum, generating $81 million in sales…recently announced…superior overall survival vs chemotherapy.” – Murdo Gordon, Commercial .
  • “UPLIZNA…first and only treatment for IgG4-RD…delivering durable and sustained efficacy…with every 6-month dosing.” – James Bradner, R&D .
  • “We are reaffirming our 2025 total revenue guidance…also reaffirming our non-GAAP EPS…we now expect non-GAAP R&D expense to grow ~20%…and non-GAAP OI&E to be ~$2.3 billion.” – Peter Griffith, CFO .

Q&A Highlights

  • MariTide Phase II at ADA: management emphasized sustained efficacy without plateau through 52 weeks and the importance of dose escalation for tolerability; detailed mechanistic data to be presented; Phase III design informed by Phase II learnings .
  • UPLIZNA commercialization: rheumatology-led strategy in IgG4-RD given new diagnostic code; expectation of broad access and steroid-sparing benefits; positioning for gMG with every-6-month dosing convenience .
  • Biosimilars retina: PAVBLU adoption helped by permanent Q code and prefilled syringe; contracting with larger retina groups underway .
  • Repatha competitive landscape: continued class underpenetration and improved access; primary prevention outcomes study (VESALIUS-CV) a key differentiator .
  • TEPEZZA adoption: broadening prescriber base (ophthalmology/endocrinology), inventory normalization expected; subcutaneous route anticipated to ease site-of-care challenges .

Estimates Context

MetricQ1 2024Q4 2024Q1 2025
Revenue Consensus Mean ($USD Billions)$7.453*$8.869*$8.035*
Revenue Actual ($USD Billions)$7.447 $9.086*$8.149
Primary EPS Consensus Mean$3.889*$5.075*$4.261*
Primary EPS Actual (Non-GAAP)$3.96 $5.31*$4.90

Values with * retrieved from S&P Global.

  • Q1 2025: Revenue beat by ~$0.11B; non-GAAP EPS beat by ~$0.64; broad-based product strength and operating margin expansion supported the beat .
  • Q4 2024: Revenue and EPS both ahead of consensus; momentum into 2025 maintained (S&P Global and company disclosures).
  • Q1 2024: EPS beat and revenue essentially in line/slight miss vs consensus (S&P Global and company disclosures).

Key Takeaways for Investors

  • Near-term trading: Strong Q1 beat on both revenue and EPS with reaffirmed FY guidance and raised R&D investment should be supportive; watch ASCO (IMDELLTRA), ADA (MariTide) as catalysts .
  • Pipeline validations: IMDELLTRA OS benefit and UPLIZNA approval broaden high-conviction growth drivers in oncology and rare inflammatory diseases .
  • Margin trajectory: Non-GAAP operating margin 45.7% (vs 43.2% LY, 49.6% Q4), indicating resilient profitability amid price/mix headwinds .
  • Biosimilars execution: Early U.S. wins (WEZLANA, PAVBLU) demonstrate first-wave strategy; note cadence updates (WEZLANA Q2 pause after Q1 bolus) .
  • Risk management: Anticipate denosumab (Prolia/XGEVA) biosimilar erosion in 2H25; inventory normalization for TEPEZZA/KRYSTEXXA; continued price pressure (e.g., Enbrel) .
  • Policy/operations: Expanding U.S. manufacturing footprint strengthens supply reliability and mitigates policy risks (tariffs/taxes), supporting long-term execution .
  • Estimates recalibration: Street likely to lift EPS/revenue estimates for FY25 post beat and catalysts; monitor updated OI&E (~$2.3B) and higher non-GAAP R&D growth (~20%) in models .

S&P Global disclaimer: All consensus estimate values marked with * were retrieved from S&P Global.