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AMGEN INC (AMGN)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 was a clean beat: revenue $9.18B (+9% YoY) and non-GAAP EPS $6.02 (+21% YoY), both materially above S&P Global consensus; GAAP EPS rose to $2.65 (+92% YoY) on stronger operating performance . Versus consensus: revenue $8.92B* and EPS $5.28* were expected; actuals were $9.18B and $6.02, respectively, constituting broad beats*.
  • Guidance was raised on revenue and nudged up on non‑GAAP EPS, but management lowered GAAP EPS and cut full‑year non‑GAAP operating margin to “~45%” (from ~46%) to fund late‑stage R&D and BD transactions; OI&E trimmed to ~$2.2B .
  • Product breadth drove momentum: 15 products hit double‑digit growth; standouts included Repatha (+31% YoY), EVENITY (+32%), TEZSPIRE (+46%), BLINCYTO (+45%), and rare disease drivers UPLIZNA (+91%) and TAVNEOS (+55%). New oncology entrant IMDELLTRA grew 65% QoQ to $134M .
  • Key watch items: expected H2 biosimilar erosion for Prolia/XGEVA, Enbrel pressure from 340B mix and Medicare Part D redesign, and inventory timing impacts in parts of rare disease portfolio .
  • Near‑term catalysts: raised FY revenue guide, visible pipeline milestones (MariTide Phase 3 enrollment; TEZSPIRE CRSwNP PDUFA Oct 19, 2025; UPLIZNA gMG PDUFA Dec 14, 2025) that can sustain narrative momentum .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth: total revenue +9% to $9.18B; product sales +9% on +13% volume with only −3% price pressure .
  • Oncology and inflammation outperformed: BLINCYTO +45% YoY to $384M; TEZSPIRE +46% YoY to $342M; IMDELLTRA $134M with +65% QoQ adoption momentum .
  • Management confidence and investment posture: “We’re delivering strong performance…” (CEO Bradway) and stepped-up AI, late-stage R&D, and manufacturing capex to scale for growth .

What Went Wrong

  • Enbrel and denosumab headwinds: Enbrel −34% YoY (price and 340B/Part D mix), with continued pressure expected; XGEVA −5% YoY and Prolia −4% YoY, with H2 biosimilar erosion flagged .
  • Free cash flow down YoY to $1.9B on deferred 2024 tax payments and higher capex; non-GAAP cost of sales ticked up (17.7% of product sales, +0.2 pts) on profit share/sales mix .
  • Margin outlook eased: non‑GAAP operating margin guide lowered to ~45% as R&D and launch investments rise; GAAP EPS outlook reduced versus Q1 guide .

Financial Results

Consolidated Performance vs Prior Quarters

MetricQ4 2024Q1 2025Q2 2025
Total Revenues ($USD Billions)$9.09 $8.15 $9.18
Product Sales ($USD Billions)$8.72 $7.87 $8.77
Other Revenues ($USD Billions)$0.37 $0.28 $0.41
GAAP EPS ($)$1.16 $3.20 $2.65
Non‑GAAP EPS ($)$5.31 $4.90 $6.02
GAAP Operating Margin (% of product sales)26.5% 15.0% 30.3%
Non‑GAAP Operating Margin (% of product sales)46.3% 45.7% 48.9%
Free Cash Flow ($USD Billions)$4.40 $1.00 $1.91

Selected Product Sales Trends

Product ($USD Millions)Q1 2025Q2 2025
Repatha$656 $696
EVENITY$442 $518
Prolia$1,099 $1,122
TEZSPIRE$285 $342
Otezla$437 $618
Enbrel$510 $604
BLINCYTO$370 $384
IMDELLTRA$81 $134
UPLIZNA$91 $176
TAVNEOS$90 $110
MVASI$179 $191
Established Products (Aranesp/Parsabiv/Neulasta)$557 (total) $533 (total)
Total Product Sales$7,873 $8,771

KPIs and Operating Metrics

KPIQ1 2025Q2 2025
Volume Growth (YoY, product sales driver)+14% +13%
Net Selling Price Change (YoY impact)−6% −3%
GAAP Tax Rate (%)12.3% 8.7%
Non‑GAAP Tax Rate (%)14.6% 14.2%
Cash & Equivalents ($B)$8.81 (3/31) $8.03 (6/30)
Debt Outstanding ($B)$57.4 (3/31) $56.2 (6/30)
Capex ($B, quarter)$0.40 $0.37–0.40 (reported $0.37 in cash flow table)

Results vs S&P Global Consensus

MetricQ4 2024 ConsensusQ4 2024 ActualQ1 2025 ConsensusQ1 2025 ActualQ2 2025 ConsensusQ2 2025 Actual
Revenue ($USD Billions)$8.869*$9.086 $8.035*$8.149 $8.917*$9.179
Non‑GAAP EPS ($)$5.075*$5.31 $4.261*$4.90 $5.277*$6.02

Bolded beats/misses: Q2 2025 revenue and EPS were material beats vs consensus*.
Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious Guidance (Q1 call/8-K)Current Guidance (Q2 call/8-K)Change
Total Revenues ($B)FY 2025$34.3–$35.7 $35.0–$36.0 Raised
GAAP EPS ($)FY 2025$12.21–$13.46 $10.97–$12.11 Lowered
Non‑GAAP EPS ($)FY 2025$20.00–$21.20 $20.20–$21.30 Raised
GAAP Tax Rate (%)FY 202511.0–12.5 11.0–12.5 Maintained
Non‑GAAP Tax Rate (%)FY 202514.5–16.0 14.5–16.0 Maintained
Non‑GAAP Operating Margin (% of product sales)FY 2025~46% (Q4/Q1 commentary) ~45% (Q2 commentary) Lowered
OI&E ($B, non‑GAAP)FY 2025~$2.3–$2.4 ~$2.2 Lowered
Capex ($B)FY 2025~2.3 ~2.3 Maintained
Share Repurchases ($B)FY 2025≤0.5 ≤0.5 Maintained
Other Revenue ($B)FY 2025~1.4 (Q1 call) ~1.4 (reaffirmed) Maintained
Dividend per Share ($)Q2 2025$2.38 declared and paid Jun 6 N/AInformational

Note: Guidance includes estimated impact of implemented tariffs .

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
AI/technology investmentsEmphasized AI across discovery, development, and commercial; capital projects in U.S. Reinforced digitized workflows and AI applied across value chain “Accelerating innovation and productivity through AI… global access to advanced generative AI tools” Building; operationalization increasing
MariTide (obesity)Phase 2 data highlighted; Phase 3 program planning for H1 2025 Phase 3 studies initiated; ADA data preview; dose‑escalation improves tolerability Strong Phase 3 enrollment; broader indications planned; ADA/NEJM validation cited Momentum rising
TEZSPIRE expansion (CRSwNP, COPD)Positive top‑line CRSwNP; COPD Phase 3 initiations planned COPD Phase 3 initiated; CRSwNP PDUFA Oct 19, 2025 COPD studies enrolling; WAYFINDER data presented; regulatory timelines reiterated Advancing to labels
Rare disease growth (UPLIZNA, TEPEZZA, TAVNEOS)International TEPEZZA strategy; UPLIZNA IgG4 RD results UPLIZNA gMG submission (PDUFA Dec 14, 2025); IgG4 approval impact TEPEZZA EU approval; multiple Phase 3 programs; strong UPLIZNA Q2 growth Expanding geographies/indications
BiosimilarsPavblu launch; leadership highlighted Next wave launches; WEZLANA/PAVBLU traction Pavblu benefited from competitor shortages; expect erosion resumption; U.S. WEZLANA sales to fluctuate Tactical execution; category dynamics
Pricing/macro (Part D, tariffs)Flagged price declines and macro; guided with tariffs Part D redesign mixed impact by product; tariff outlook uncertainty Guidance includes implemented tariffs; Enbrel impacted by 340B/Part D mix Managed but persistent

Management Commentary

  • CEO tone: “We’re delivering strong performance and reaching more patients with innovative medicines and biosimilars…” .
  • Investment posture: “We are accelerating innovation and productivity through AI… and expect capital expenditures of $2.3B… now expect non‑GAAP operating margin ~45%… non‑GAAP R&D expense to grow over 20% in 2025” .
  • Strategic focus areas: Continued interest in rare disease BD and disciplined execution across late‑stage programs .
  • Policy perspective: Compounding less relevant for biologic MariTide; supportive of quality frameworks and IP protection .

Q&A Highlights

  • MariTide dosing/tolerability: Phase 3 uses multi‑step dose escalation for better GI tolerability while maintaining efficacy; monthly or less‑frequent dosing designed to improve persistence .
  • TEZSPIRE COPD confidence: Mechanism distinct from ST2; responder biomarker strategy (eosinophils) supports Phase 3 .
  • Biosimilars regulatory landscape: Potential softening of requirements could favor Amgen’s development capabilities, but execution remains technically demanding .
  • Obesity market format: Amgen is monitoring oral entrants, but expects MariTide’s dosing profile to be competitive; open to BD on orals and advancing internal approaches .
  • Guidance clarifications: Updated FY 2025 outlook with lower operating margin, higher R&D growth (>20%), OI&E trimmed to ~$2.2B; expects WEZLANA/AMGEVITA U.S. sales to fluctuate with no Q3 sales .

Estimates Context

  • Q2 2025 delivered broad beats vs S&P Global consensus: revenue $9.18B vs $8.92B*; non‑GAAP EPS $6.02 vs $5.28*. Q1 2025 and Q4 2024 were also above consensus*.
  • Implication: Street models likely need upward revisions for FY revenue and non‑GAAP EPS given raised revenue guide and beat magnitude; margin commentary offsets some EPS upside*.
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Beat-and-raise quarter: The combination of top-line and EPS beats plus a raised revenue guide should support positive estimate revisions and near-term sentiment .
  • Margin trade-off is deliberate: Lowered operating margin reflects accelerated investment in late-stage assets (MariTide, olpasiran) and BD; this may cap near-term EPS leverage but enhances medium-term growth optionality .
  • Product diversity mitigates LOE: Strength across cardio, inflammation, oncology, and rare disease helps offset anticipated H2 denosumab biosimilar erosion and Enbrel pricing/Part D pressures .
  • Pipeline catalysts through 2025: TEZSPIRE CRSwNP PDUFA (Oct 19), UPLIZNA gMG PDUFA (Dec 14), MariTide Phase 3 enrollment momentum and additional indications; these events can drive narrative and multiple .
  • Watch inventory and mix: Rare disease sales showed inventory timing impacts; MVASI benefited from competitor shortages temporarily; expect normalization and competitive erosion .
  • Capital discipline intact: Debt reduction ($1.4B in Q2; $4.3B YTD), FCF generation, capex targeted, and buybacks capped at ≤$500M maintain balance sheet flexibility .
  • Tactical positioning: Maintain exposure ahead of obesity and cardio outcomes milestones; monitor H2 biosimilar impacts and margin progression as investments ramp .