Amgen reported fourth-quarter results that outperformed Wall Street expectations, powered by volume-driven sales gains and a notable reduction in the company tax rate.
The California-based biotech posted overall quarterly revenue of $9.9 billion, a 9% increase from the prior year and above the average analyst estimate of $9.5 billion, according to LSEG data. Adjusted earnings per share were $5.29, roughly flat with the year-ago quarter but ahead of the $4.73 figure analysts had projected.
Full-year outlook
For 2026, Amgen set its adjusted earnings-per-share guidance at $21.60 to $23.00. That range brackets the Wall Street consensus, which is estimating $22.09 per share. The company also issued a revenue forecast for the year of $37 billion to $38.4 billion, with the midpoint of that range sitting above the analysts' forecast of $37.1 billion.
Drivers of quarterly performance
Product sales increased 10% by volume in the quarter, while net prices declined 4%, together producing 7% quarter-over-quarter growth. Several individual products diverged from the overall trend.
- Repatha, Amgen's cholesterol therapy, posted a 44% increase in sales to $870 million, topping the average analyst estimate of $793 million. The company attributed the gain to higher volumes and price.
- Sales of the ophthalmology treatment Tepezza slipped 1% to $457 million, falling short of analyst expectations of $554 million.
- Enbrel sales declined 48% to $532 million, largely reflecting lower prices that Amgen pays under the U.S. Medicare program. Analysts had expected Enbrel revenue of $679 million.
Tax and other items
Amgen said its tax rate in the quarter was 7.8 percentage points lower than in the year-earlier quarter, driven by adjustments in U.S. tax on foreign subsidiaries. The lower tax rate was cited as a contributor to the company's bottom-line performance for the period.
Clinical development
On the drug development front, Amgen continues to advance its obesity-related pipeline. The company is running six Phase 3 trials of experimental candidate MariTide across obesity and related conditions, including heart disease and sleep apnea. It also said it plans to initiate Phase 3 studies of MariTide in patients with diabetes later this year. Separately, Amgen is enrolling obese adults into a Phase 1 trial of a second investigational weight-loss candidate, AMG513.
Valuation note
Investors evaluating Amgen's stock often look to valuation tools that aggregate multiple models. One such tool uses a mix of 17 industry valuation models to estimate fair value across many stocks, including AMGN.
The company’s quarterly beat on revenue and adjusted EPS, combined with guidance that places revenue midpoint ahead of analysts' consensus, presents a mixed picture alongside pressure on certain legacy products.