Amphastar (NASDAQ: AMPH) Q2 Adjusted EPS of $0.91 Beats $0.63 Estimate, But GAAP Net Income Slips

Q2 2026 Results

Amphastar Pharmaceuticals (NASDAQ: AMPH) posted adjusted EPS of $0.91 for the three months ended June 30, 2026, beating the $0.63 consensus estimate by 44.4%. Revenue of $183.9 million rose 5.4% year over year, though a broad increase in operating expenses pushed GAAP net income down 2.2% to $30.3 million, or $0.67 per share, from $31.0 million a year ago.

Key Metrics

• Revenue: $183.9 million in Q2 2026, up from $174.4 million in Q2 2025, a 5.4% year-over-year gain
• Adjusted EPS: $0.91, versus $0.85 in Q2 2025, a 7.1% year-over-year increase; beat the $0.63 consensus estimate
• GAAP EPS: $0.67, versus $0.64 in Q2 2025, a 4.7% year-over-year increase
• Gross profit: $93.5 million, a gross margin of 50.8%, up from 49.6% in Q2 2025, lifted by higher-margin newly launched products including iron sucrose, teriparatide, and ipratropium bromide
• Selling, distribution, and marketing expense: $13.3 million, up $3.1 million or 30% year over year
• General and administrative expense: $18.2 million, up $4.3 million or 30% year over year
• Research and development expense: $22.2 million, up $2.1 million or 10% year over year

What Drove the Results

The adjusted EPS beat reflected gross margin expansion to 50.8% from 49.6%, supported by meaningful product launches. Ipratropium bromide, launched in April 2026, contributed $8.4 million in net revenue. Teriparatide, launched in December 2025, added $4.5 million, and iron sucrose sales rose $3.5 million. Glucagon revenue fell 42% year over year to $11.9 million, with lower average selling prices reducing sales by $7.5 million and reduced unit volumes cutting an additional $1.2 million, reflecting competitive pressure and a patient shift toward ready-to-use products such as BAQSIMI.

Despite higher revenue and a wider gross margin, GAAP net income declined 2.2% year over year as total operating expenses increased materially. Selling, distribution, and marketing costs rose $3.1 million, driven by higher freight expense and intensified BAQSIMI marketing. General and administrative expenses increased $4.3 million due to higher legal costs, expenses associated with implementing a new enterprise resource planning system, and salary-related costs. Research and development spending rose $2.1 million, primarily for clinical trials supporting the company's insulin pipeline.

A BAQSIMI milestone also surfaces as a notable balance-sheet item: Amphastar achieved the first annual net sales milestone under its asset purchase agreement with Eli Lilly & Company, with BAQSIMI sales reaching $175.0 million for the contract year. The milestone triggers a $100.0 million payment to Lilly, which is due in Q3 2026.

Wall Street View

Analyst sentiment on AMPH remains cautious. The most recent consensus as of August 1, 2026 showed eight Hold ratings alongside two Sell and two Strong Sell recommendations, with no Buy or Strong Buy coverage on record. Shares closed at $19.81 on Thursday, August 6, 2026, a decline of -2.12%, while the S&P 500 shed 0.16% on the same session.

Investor Takeaway

The headline adjusted EPS beat masks a meaningful cost story: selling, general and administrative expenses combined are running 30% above year-ago levels, absorbing the gross margin gains that the new product launches are generating. The $100.0 million Lilly milestone payment due in Q3 2026 adds a one-time cash outflow that investors should factor into near-term liquidity assessments. Whether the clinical trial spending driving R&D higher, particularly for the insulin pipeline, translates into future revenue will be the central question for shareholders monitoring Amphastar's long-term growth trajectory.