Why Is Amgen (AMGN) Up 8% Since Last Earnings Report?

It has been about a month since the last earnings report for Amgen (AMGN). Shares have added about 8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Amgen due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Amgen Inc. before we dive into how investors and analysts have reacted as of late.

Q3 Earnings & Sales Beat, 2025 Outlook Raised

Amgen reported third-quarter 2025 adjusted earnings of $5.64 per share, which beat the Zacks Consensus Estimate of $5.00. Earnings rose 1% year over year as higher revenues were partially offset by higher operating costs and taxes.

Total revenues of $9.6 billion beat the Zacks Consensus Estimate of $8.9 billion. Total revenues rose 12% year over year.

Total product revenues increased 12% from the year-ago quarter to $9.17 billion as volume growth was partially offset by continued price declines. Volumes rose 14% in the quarter, backed by strong demand trends for Amgen’s drugs globally. The volume growth was partially offset by a 4% negative impact of pricing.

Other revenues were $420 million in the quarter, up 19.3% year over year, driven by higher royalty income.

Sixteen products, including Repatha, Blincyto, Tezspire, Uplizna, Tavneos and Evenity, achieved double-digit sales growth in the quarter, more than offsetting declining revenues from oncology biosimilars and mature products such as Enbrel. New biosimilar products are also contributing to sales growth. Revenues in the quarter benefited from some on-time items, like $250 million from favorable changes to U.S. estimated sales deductions and a government order for Nplate of $90 million.

Biosimilar portfolio sales grew 52% year over year to $775 million.

Performance of Key Drugs

General Medicine

Prolia revenues came in at $1.14 billion, up 9% from the year-ago quarter due to favorable changes to estimated sales deductions, partially offset by lower pricing. Prolia sales comprehensively beat the Zacks Consensus Estimate of $911 million as well as our model estimate of $812.8 million. 

Evenity recorded sales of $541 million in the quarter, up 36% year over year, driven by solid volume growth from both established and newly activated prescribers in the United States. Evenity sales beat the Zacks Consensus Estimate of $519.0 million as well as our model estimate of $463.9 million.

Repatha generated revenues of $794.0 million, up 40% year over year, driven by higher volume growth.  Repatha sales beat the Zacks Consensus Estimate of $720.0 million and our model estimate of $672.2 million. 

Hematology-Oncology

Amgen’s innovative oncology portfolio, including Blincyto, Imdelltra, Lumakras, Vectibix, Kyprolis, Nplate and Xgeva, grew 9% year over year, generating $2.3 billion in sales in the quarter.

In oncology, the key revenue driver was Blincyto, which generated $392 million in sales, rising 20% from the year-ago period, driven by broad prescribing across both academic and community segments, partially offset by lower inventory levels. Blincyto sales missed the Zacks Consensus Estimate of $413.0 million and our model estimate of $395.5 million. 

Xgeva delivered revenues of $539.0 million, flat year over year, as favorable changes to estimated sales deductions were partially offset by volume decline and lower inventory levels. Xgeva sales beat the Zacks Consensus Estimate of $428.0 million as well as our model estimate of $408.6 million.

Though Xgeva and Prolia sales were steady in the third quarter, their sales are expected to be eroded in the fourth quarter due to the launch of biosimilars in the United States.

Kyprolis recorded sales of $359 million, down 5% year over year, as competitive pressure hurt volume growth.  

Vectibix revenues came in at $284.0 million, up 1% year over year, driven by volume growth. Nplate sales were flat at $457.0 million. Lumakras/Lumykras recorded sales of $96 million in the quarter, down 2% from the year-ago period. 

New cancer drug Imdelltra (tarlatamab) recorded sales of $178 million in the third quarter compared with $134 million in the previous quarter. The drug’s 33% sequential growth was driven by volume growth.

In oncology biosimilars, sales of Mvasi were $213.0 million in the quarter, up 9% year over year, driven by favorable changes to estimated sales deductions.

Inflammation

In its inflammation portfolio, sales of Otezla were $585.0 million in the quarter, up 4% year over year, driven by volume growth and favorable changes to estimated sales deductions, partially offset by lower pricing. Otezla sales beat the Zacks Consensus Estimate of $582.0 million but missed our estimate of $648.2 million.

Enbrel revenues of $580.0 million declined 30% year over year due to lower selling prices (including the impact from increased 340B program mix and Medicare Part D redesign), partially offset by favorable changes to estimated sales deductions and volume growth. Enbrel sales missed the Zacks Consensus Estimate of $645.0 million but beat our estimate of $530.4 million.

Asthma drug Tezspire (tezepelumab) recorded sales of $377.0 million in the quarter, up 40% year over year, driven by volume growth partially offset by lower net selling price. Tezspire sales beat the Zacks Consensus Estimate of $364.0 million as well as our estimate of $270.6 million.

Amgen launched a biosimilar version of J&J’s Stelara, called Wezlana, in 2025 and Regeneron’s Eylea, called Pavblu, in 2024

As expected, Amgen did not record any sales from Wezlana in the United States in the third quarter following a large first-quarter order. Total Wezlana sales were $44 million compared with $35 million in the second quarter, entirely from ex-U.S. markets. 

Pavblu generated sales of $213 million in the third quarter versus $130 million in the previous quarter. 

Amjevita/Amgevita sales were $154 million in the quarter, down 7% year over year.

Amgen expects quarterly sales of Wezlana to fluctuate and does not expect any sales of Wezlana in the United States in the fourth quarter. 

Rare Disease

Sales of rare disease drugs rose 13% year over year to $1.4 billion in the quarter. Amgen’s rare disease drug sales are now annualizing at more than $5 billion.

Tepezza sales rose 15% year over year to $560 million, driven by increases in inventory and price. Amgen launched Tepezza in Japan in December 2024. On the call, the company mentioned that the launch progress in Japan was encouraging. 

Krystexxa sales rose 3% year over year to $320.0 million, driven by volume growth and higher pricing, partially offset by lower inventory levels. Uplizna sales increased 46% year over year to $155 million, backed by volume growth. Uplizna launch in IgG4-related disease is progressing well while launch preparations are underway for the anticipated approval of Uplizna in generalized myasthenia gravis or gMG.

Ultra-rare products generated revenues of $200.0 million in the quarter, up 6% year over year.

Another rare disease drug, Tavneos, generated $107 million in sales in the quarter, up 34% year over year, driven by new patient volume growth, partially offset by lower inventory levels and lower net selling price.

Established Products

Total sales of established products, which include Aranesp, Parsabiv and Neulasta, rose 3% year over year in the quarter to $533 million.

Operating Margin Declines

Adjusted operating margin declined 2.5 percentage points to 47.1% in the quarter. 

Adjusted operating expenses increased 18% to $5.25 billion. R&D expenses rose 31% year over year to $1.89 billion, reflecting continued investment in the late-stage pipeline, most notably MariTide and costs related to business development transactions. SG&A rose 9% to $1.7 billion due to higher general and administrative expenses.

The adjusted tax rate was 18.2% in the quarter, a 4.8-point increase from the year-ago quarter.

Slightly Ups 2025 Guidance

Amgen raised its revenue and earnings outlook for 2025. Total revenues are expected in the range of $35.8 billion to $36.6 billion, higher than the prior expectation of $35.0 billion to $36.0 billion. 

Adjusted earnings per share are expected in the range of $20.60 to $21.40 versus the prior expectation of $20.20 to $21.30. 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%. Adjusted R&D expense is expected to grow at a mid-20s percentage rate year over year, versus the prior expectation of more than 20%, due to costs related to business development transactions incurred in third quarter and increased investment in late-stage programs.

The adjusted tax rate was upped from a range of 14.5% to 16.0% to 15.0% to 16.5%. Capital expenditures are expected to be in the range of $2.2 billion to $2.3 billion (previously approximately $2.3 billion). Amgen expects to buy back shares worth not more than $500 million in 2025.

Pipeline Updates

Enrollment has been completed in two phase III studies, MARITIME-1 and MARITIME-2, evaluating MariTide in patients with obesity, with or without type II diabetes, respectively. Amgen has enrolled approximately 5,000 adults in roughly six months in these studies.

Enrollment is ongoing in two other phase III studies, MARITIME-CV and MARITIME-HF, for the study of atherosclerotic cardiovascular disease and heart failure, respectively. Amgen also recently initiated two other phase III studies in obstructive sleep apnea. 

Amgen announced that the FORTITUDE-102 phase Ib/III study evaluating bemarituzumab plus Opdivo (nivolumab) and chemotherapy in first-line gastric cancer was stopped due to inadequate efficacy in an ad hoc analysis.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -7.7% due to these changes.

VGM Scores

At this time, Amgen has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Amgen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Amgen belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Insmed (INSM), has gained 10.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Insmed reported revenues of $142.34 million in the last reported quarter, representing a year-over-year change of +52.3%. EPS of -$1.75 for the same period compares with -$1.27 a year ago.

Insmed is expected to post a loss of $1.39 per share for the current quarter, representing a year-over-year change of -5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.

Insmed has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research