Amgen (NASDAQ:AMGN) Posts Q2 2026 Beat, Raises Full-Year Revenue Outlook by $1B

Amgen (NASDAQ: AMGN) posted second-quarter 2026 total revenues of $10.1 billion, a 10% year-over-year increase, and raised its full-year revenue guidance midpoint to $38.8 billion, approximately $1 billion above its prior outlook. Adjusted EPS of $6.29 rose 4.5% from $6.02 in Q2 2025, while GAAP EPS of $4.37 jumped 64.9% from $2.65 in the year-prior quarter. Shares gained 2.94% on Tuesday, August 4, while the S&P 500 rose 1.80%.

Q2 2026 Results

• Total revenues: $10.1 billion, up 10% year over year from approximately $9.2 billion in Q2 2025
• Product sales: $9.537 billion, up 9% year over year, driven by volume growth
• GAAP operating income: $3.5 billion, up from $2.7 billion in Q2 2025; GAAP operating margin expanded 6.5 percentage points to 36.8%
• Non-GAAP operating income: $4.6 billion, up from $4.3 billion; non-GAAP operating margin of 48.4%, down 0.5 percentage points
• Free cash flow: $3.5 billion, up from $1.9 billion in Q2 2025

What Drove the Results

Adjusted EPS of $6.29 came in 12% above analysts' consensus estimates, and the company's full-year revenue guidance of $38.8 billion at the midpoint was 2.8% above prior analyst expectations. Twenty-two products delivered at least double-digit sales growth in the quarter, with six key growth drivers collectively growing 26% year over year and accounting for nearly 70% of total product sales.

The GAAP operating margin expansion of 6.5 percentage points to 36.8% was driven by lower cost of sales as a percentage of product sales. Non-GAAP operating margin declined a modest 0.5 percentage points to 48.4%, as higher operating expenses and income tax expense partially offset volume-driven revenue growth. The large gap between GAAP EPS growth of 64.9% and non-GAAP EPS growth of 4.5% reflects the impact of a one-time repatriation tax payment recorded in Q2 2025 that suppressed the prior-year GAAP base.

Among individual products, UPLIZNA led on a percentage basis with 90% year-over-year sales growth to $335 million, while IMDELLTRA/IMDYLLTRA more than doubled to $288 million and PAVBLU grew 121% to $287 million. Repatha reached $953 million in sales, up 37%, and EVENITY grew 38% to $714 million. Prolia and XGEVA both faced biosimilar competition, declining 32% and 34% respectively as multiple biosimilars have launched globally.

Free cash flow of $3.5 billion in the quarter compared with $1.9 billion in Q2 2025, with the company noting the prior-year period included a final repatriation tax payment that weighed on that comparison.

Wall Street View

The upgraded full-year revenue guidance of $38.8 billion at the midpoint, 2.8% above prior consensus, provides a concrete upward revision for analysts to incorporate into models. Seventeen products are now annualizing at more than $1 billion based on second-quarter sales, a figure that illustrates the breadth of Amgen's commercial portfolio beyond any single asset.

Investor Takeaway

The combination of a broad-based product beat, a $1 billion guidance raise, and $3.5 billion in quarterly free cash flow points to a business generating durable cash returns across a diversified portfolio. The divergence between GAAP and non-GAAP margins warrants monitoring as operating expenses and income tax rates rise, compressing the non-GAAP margin even as absolute profits grow. With 22 products posting double-digit growth and biosimilar headwinds concentrated in Prolia and XGEVA, the degree to which volume-led growth drivers can offset pricing pressure on older franchises will be the central question for the remainder of 2026.