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 (Basic)
$3.37
++4.66% YoY
Operating Income
$2.67B
++126.32% YoY
Filed · Source: SEC EDGAR 10-Q 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: 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: 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: Source: 10-Q Cash Flow Statement
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Upgrade to unlockAmgen 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: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $5.15 versus the $4.85 analyst consensus — a +6.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $8.62B | $8.15B | +5.76% |
Cost of Revenue | $2.74B | $2.97B | -7.55% |
Operating Income | $2.67B | $1.18B | +126.32% |
Net Income | $1.82B | $1.73B | +5.14% |
EPS (Basic) | $3.37 | $3.22 | +4.66% |
EPS (Diluted) | $3.34 | $3.20 | +4.37% |
SG&A Expense | $1.6B | $1.69B | -5.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $92.5B | $89.37B | +3.51% |
Current Assets | $31.48B | $26.93B | +16.88% |
Current Liabilities | $24.95B | $23.01B | +8.46% |
Stockholders' Equity | $9.19B | $6.21B | +48.06% |
Cash & Equivalents | $12.04B | $8.81B | +36.64% |
Long-Term Debt | $57.32B | $57.38B | -0.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.19B | $1.39B | +57.37% |
Investing Cash Flow | $-716M | $-447M | -60.18% |
Financing Cash Flow | $1.44B | $-4.11B | +134.96% |
D&A | $1.12B | $1.39B | -19.54% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 30.9% | 14.5% | +16.48% |
Net Margin | 21.1% | — | — |
ROE | 19.8% | — | — |
ROA | 2.0% | — | — |
Current Ratio | $1.261 | — | — |
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Amgen reported Q1 2026 revenue of $8.62B, up 5.8% YoY, with operating income surging 126.3% to $2.67B due to lower costs. Net income grew a more modest 5.1% to $1.82B, with diluted EPS of $3.34 versus $3.20 in Q1 2025.
Amgen's operating income jumped 126.3% YoY to $2.67B primarily because cost of revenue fell 7.5% to $2.74B and SG&A expenses declined 5.0% to $1.60B, even as revenue grew 5.8%. This combination of top-line growth and cost reduction drove operating margin from 14.5% to 30.9%.
Amgen carries $57.32B in long-term debt as of Q1 2026, essentially unchanged from a year ago, largely reflecting borrowings from its Horizon Therapeutics acquisition. This heavy debt load is the primary reason net income growth (5.1%) significantly lags operating income growth (126.3%), as interest expense consumes a large portion of operating profits.
Key risks include Amgen's elevated $57B+ debt burden which constrains financial flexibility and depresses net returns, biosimilar competition threatening revenue from key biologic products, and uncertainty around whether recent cost reductions in SG&A and manufacturing are sustainable. The company's ROA of only ~2.0% on a $92.5B asset base also highlights the challenge of generating adequate returns on its acquisition-heavy balance sheet.
Amgen's liquidity improved notably in Q1 2026, with cash and equivalents rising 36.6% YoY to $12.04B and operating cash flow growing 57.4% to $2.19B. The current ratio stands at 1.26, and free cash flow was approximately $1.47B, providing reasonable capacity for debt service and shareholder returns.