Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Amgen delivered a strong Q1 2026 with revenue up 5.8% YoY to $8.62B, while operating income more than doubled (+126.3%) to $2.67B driven by lower cost of revenue and reduced SG&A, though net income grew more modestly at 5.1% to $1.82B.
Revenue
$8.62B
+5.76% YoY
EPS (Diluted)
$3.34
+4.37% YoY
Operating Income
$2.67B
+126.32% YoY
Source: SEC XBRL
Amgen (AMGN) reported Q1 FY2026 revenue of $8.62B, up 5.8% year over year. Operating margin was 30.9%, up 16.4 points from 14.5% a year earlier. Operating cash flow was $2.19B, up 57.4% year over year. AMGN's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 6.29 | 5.73 | Beat +9.8% |
| Mar 2026This filing | 5.15 | 4.85 | Beat +6.1% |
| Dec 2025 | 5.29 | 4.83 | Beat +9.6% |
| Sep 2025 | 5.64 | 5.11 | Beat +10.3% |
Adjusted (non-GAAP) EPS of $5.15 versus the $4.85 analyst consensus — a +6.1% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $3.34.
Compiled by AI from this SEC filing
Total revenue increased 5.8% YoY from $8.15B to $8.62B in Q1 2026, reflecting continued demand across Amgen's product portfolio. This top-line growth was achieved despite a competitive biopharmaceutical landscape.
Source: 10-Q Income Statement
Operating income surged 126.3% YoY from $1.18B to $2.67B, pushing operating margin from approximately 14.5% to 30.9%. This was primarily driven by a 7.5% decline in cost of revenue (from $2.97B to $2.74B) and a 5.0% reduction in SG&A expenses (from $1.69B to $1.60B).
Source: 10-Q Income Statement
Operating cash flow grew 57.4% YoY to $2.19B from $1.39B, significantly outpacing net income growth and reflecting improved earnings quality and working capital management. Free cash flow (operating cash flow minus investing outflows) was approximately $1.47B.
Source: 10-Q Cash Flow Statement
Cash and equivalents rose 36.6% YoY to $12.04B from $8.81B, and current assets grew 16.9% to $31.48B, improving the current ratio to 1.26. Stockholders' equity expanded 48.1% YoY to $9.19B, reflecting retained earnings accumulation.
Source: 10-Q Balance Sheet
Long-term debt stood at $57.32B, essentially flat YoY (-0.1%), reflecting the significant leverage taken on following the Horizon Therapeutics acquisition. Total assets were $92.50B, with debt representing a substantial portion of the capital structure.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
Amgen carries $57.32B in long-term debt, a legacy of its large-scale acquisition strategy. This elevated debt burden constrains financial flexibility and increases sensitivity to interest rate movements. With ROA at only ~2.0%, the company must sustain strong cash generation to service this debt.
Source: 10-Q Balance Sheet
While operating income grew 126.3%, net income grew only 5.1%, suggesting significant below-the-line costs such as interest expense on the $57B+ debt load are substantially eroding profitability. This divergence highlights the ongoing cost of Amgen's leveraged balance sheet.
Source: 10-Q Income Statement
Amgen's revenue base is concentrated in biologic medicines that face increasing biosimilar competition as patents expire. Any acceleration in biosimilar market penetration for key products could materially impact revenue and margins going forward.
Source: 10-Q Income Statement
With total assets of $92.50B and ROA of approximately 2.0%, Amgen is generating relatively modest returns on its large asset base, much of which reflects goodwill and intangibles from acquisitions. Impairment risk on these intangible assets remains a potential concern.
Source: 10-Q Balance Sheet
The 5.0% YoY decline in SG&A to $1.60B contributed to margin expansion, but it is unclear whether these reductions are structural or temporary. If commercial investment needs to increase to support new product launches or defend market share, margins could compress.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 8.62 $B | 8.15 $B | +5.76% |
Cost of Revenue $B | 2.74 $B | 2.97 $B | -7.55% |
Operating Income $B | 2.67 $B | 1.18 $B | +126.32% |
Net Income $B | 1.82 $B | 1.73 $B | +5.14% |
EPS (Basic) $ | 3.37 $ | 3.22 $ | +4.66% |
EPS (Diluted) $ | 3.34 $ | 3.20 $ | +4.37% |
SG&A Expense $B | 1.60 $B | 1.69 $B | -5.04% |
Answers draw on this SEC filing and the data on this page
Amgen's Q2 FY2026 revenue grew 10% to $10.1B and net income surged 66% to $2.4B, driven by volume and lower amortization, while biosimilar and IRA headwinds intensified on mature brands.
Amgen delivered a strong FY2025 with revenue rising 10.0% to $36.8B and net income nearly doubling (+88.5%) to $7.7B, driven by improved cost efficiency and operating leverage, while long-term debt declined meaningfully to $54.6B.
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