AmgenAMGN

The company reported adjusted earnings of $6.29 per share, well above the $5.62 analysts expected. Revenue rose 10 percent to about $10.1 billion, fueled by 22 different products that saw double-digit sales growth. Management also raised its full-year revenue outlook to a range of $38.2 billion to $39.4 billion, signaling that the business is performing better than they originally thought.

While the company is stopping development on one early-stage obesity drug, it is moving ahead with its main weight-loss candidate, MariTide. This quarter shows the business is successfully using its older medicines to fund a new wave of growth. If the company can keep this pace while launching new treatments, it remains on a clear path to offset the eventual loss of patent protection on its older drugs.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Rare disease portfolio expansion: Revenue from the rare disease unit reached $1.46 billion this quarter, a significant move above the $1.2 billion target. Growth was led by Uplizna, which saw sales jump 90% to $335 million as the company expands its use into new conditions.
• Mixed results in core drugs: Total product sales volume grew 9%, which was balanced by sharp declines in older blockbuster drugs facing new competition. Prolia sales fell 32% to $759 million and Xgeva dropped 34% to $352 million as cheaper copies of these medicines, known as biosimilars, entered the market.
• Profitability remains stable: The non-GAAP operating margin, which measures the profit kept from every dollar of sales after running the business, stayed healthy at 48.4%. While this is slightly lower than the 48.9% mark from a year ago, it remains above the company's long-term 45% goal.
• Obesity pipeline spending increases: Spending on research and development rose 10% to $1.85 billion, primarily to fund the massive testing program for MariTide, a potential weight-loss drug. Amgen currently has 11 different late-stage studies underway for this one medicine to see if it can compete in the growing obesity market.
• Updated full year outlook: Management expects total revenue for 2026 to be between $38.2 billion and $39.4 billion. They also forecasted adjusted earnings per share between $22.30 and $23.50, suggesting the company will continue its steady growth despite pricing pressure on older brands.

Our take: A very solid quarter that shows the company is successfully replacing its aging blockbusters with new growth. The 9% volume growth is exactly what we want to see, especially with the rare disease unit now contributing $1.46 billion in sales. This performance keeps the long-term case on track while the market waits for the critical weight-loss drug data.