Amgen's Q2 Earnings & Sales Beat Estimates, 2025 View Raised Slightly

Amgen AMGN reported second-quarter 2025 adjusted earnings of $6.02 per share, which beat the Zacks Consensus Estimate of $5.26 per share. Earnings rose 21% year over year as higher revenues were partially offset by higher operating costs.

Total revenues of $9.2 billion also beat the Zacks Consensus Estimate of $8.9 billion. Total revenues rose 9% year over year.

Total product revenues increased 9% from the year-ago quarter to $8.77 billion as volume growth was partially offset by continued price declines. Volumes rose 13% in the quarter, backed by strong demand trends for Amgen’s drugs globally.

Other revenues were $408 million in the quarter, up 17.6% year over year.

Performance of AMGN’s Key Drugs

Evenity recorded sales of $518 million in the quarter, up 32% year over year, driven by solid volume growth in the United States. Evenity sales beat the Zacks Consensus Estimate of $478.0 million as well as our model estimate of $461.8 million.

Repatha generated revenues of $696.0 million, up 31% year over year, driven by higher volume growth, which was partially offset by lower prices and unfavorable changes to estimated sales deductions. Repatha sales beat the Zacks Consensus Estimate of $672.0 million and our model estimate of $663.8 million.

Prolia revenues came in at $1.12 billion, down 4% from the year-ago quarter due to lower pricing. Prolia sales were in line with the Zacks Consensus Estimate but slightly beat our model estimate of $1.01 billion.

Xgeva delivered revenues of $532 million, down 5% year over year due to unfavorable changes to estimated sales deductions and volume decline. Xgeva sales beat the Zacks Consensus Estimate of $508.0 million as well as our model estimate of $506.4 million.

Patents for RANKL antibodies (including sequences) for Prolia and Xgeva expired in February 2025 in the United States, while the same will expire in some European countries in November 2025. Sales of these best-selling drugs are expected to erode significantly from the second half of 2025 as three biosimilars have been launched in the U.S. market.

Sales of Otezla were $618.0 million in the quarter, up 14% year over year driven by volume growth and favorable changes to estimated sales deductions. Otezla sales beat the Zacks Consensus Estimate of $535.0 million as well as our estimate of $504.1 million.

Asthma drug Tezspire (tezepelumab) recorded sales of $342.0 million in the quarter, up 46% year over year, driven by volume growth. Tezspire sales beat the Zacks Consensus Estimate of $326.0 million as well as our estimate of $250.7 million.

Amgen has a partnership with AstraZeneca AZN for Tezspire. Amgen and AstraZeneca share costs and profits equally after AstraZeneca pays a mid-single-digit inventor royalty to Amgen. While AstraZeneca leads development, Amgen leads manufacturing.

Tepezza sales rose 5% year over year to $505 million due to higher inventory levels.

New cancer drug Imdelltra (tarlatamab) recorded sales of $134 million in the second quarter compared with $81 million in the previous quarter. The drug’s 65% sequential growth was driven by volume growth.

In the second quarter, biosimilar portfolio sales grew 40% year over year to $661 million.

AMGN’s Cost and Margin Discussion

Adjusted operating margin rose 0.7 percentage points to 48.9% in the quarter. 

Adjusted operating expenses increased 8% to $4.89 billion. R&D expenses rose 18% year over year to $1.42 billion, reflecting continued investment in the late-stage pipeline. SG&A declined 2% to $1.65 billion.

AMGN Tweaks 2025 Guidance

Amgen slightly raised its revenue and earnings outlook for 2025. Total revenues are expected in the range of $35.0 billion to $36.0 billion, slightly more than the prior expectation of $34.3 billion to $35.7 billion.

Adjusted earnings per share are expected in the range of $20.20 to $21.30 versus the prior expectation of $20.00 to $21.20 per share. The guidance includes the impact from tariffs implemented to date but does not reflect any impact from potential tariffs on pharmaceutical imports.

Adjusted operating margin is expected to be roughly 45%, down from the prior expectation of approximately 46%. The operating margin range was lowered to account for incremental R&D costs and launch and commercial investments. Adjusted R&D expense is expected to grow more than 20% compared to the prior expectation of approximately 20% in 2025.

The adjusted tax rate was maintained in the range of 14.5% to 16.0%. Capital expenditures are expected to be approximately $2.3 billion. Amgen expects to buy back shares worth not more than $500 million in 2025.

Update on AMGN’s Diabetes/Obesity Pipeline

Amgen is developing MariTide, a GIPR/GLP-1 receptor, as a single dose in a convenient autoinjector device with a monthly and maybe less frequent dosing. This key feature differentiates it from Eli Lilly LLY and Novo Nordisk’s NVO popular GLP-1-based obesity drugs, Zepbound and Wegovy. LLY’s Zepbound and NVO’s Wegovy are weekly injections. In clinical studies, MariTide has shown strong efficacy with up to approximately 20% weight loss at 52 weeks without a plateau and with a clinically meaningful improvement in cardiometabolic parameters, including hemoglobin A1c.

In March, Amgen initiated two phase III studies on MariTide in obesity as part of its comprehensive MARITIME phase III program. Separate phase III studies on MariTide in obesity, with or without type II diabetes, are currently enrolling patients.

Since June, Amgen has initiated two more phase III studies. The first, MARITIME-CV, will evaluate cardiovascular outcomes in obese adults living with atherosclerotic cardiovascular disease, while the second, MARITIME-HF, will evaluate the reduction of heart failure events and cardiovascular risk in adults living with heart failure with a preserved or mildly reduced ejection fraction and obesity. Amgen is also planning to initiate another phase III study for obstructive sleep apnea in the second half.

Separate phase II studies on obesity and type II diabetes are also ongoing, with data readouts expected in the fourth quarter.

Our Take on AMGN’s Q2 Results

Amgen’s second-quarter results were strong as it beat estimates for both earnings and sales. Sales of most of its key products, Repatha, Blincyto, Xgeva, Evenity and Otezla beat estimates. Fifteen products, including Repatha, Blincyto, Tezspire, Uplizna, Tavneos and Evenity, achieved double-digit volume growth in the quarter. New biosimilar products are also contributing to sales growth. Amgen slightly raised its financial outlook for 2025. However, despite the strong quarterly performance, Amgen’s shares declined slightly in after-hours trading on Tuesday.

Year to date, Amgen’s stock has risen 17.1% compared with the industry‘s 3.2% increase.

Amgen’s key medicines like Evenity, Repatha and Blincyto, as well as newer medicines like Tavneos and Tezspire, are driving sales, more than offsetting declining revenues from oncology biosimilars and legacy established products like Enbrel. New biosimilar launches are also contributing to top-line growth. However, increased pricing headwinds and competitive pressure are hurting sales of many products. Weakness in some key brands like Enbrel and Lumakras create potential revenue headwinds. Sales of best-selling drugs, Prolia and Xgeva, are expected to decline from the second half of 2025 due to biosimilar competition. Investors are keeping an eye on Amgen’s progress with its obesity candidate, MariTide.

AMGN’s Zacks Rank

Amgen currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Amgen Inc. Price and Consensus

Amgen Inc. price-consensus-chart | Amgen Inc. Quote

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