Biotech company Amgen (NASDAQ:AMGN) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 9.5% year on year to $10.05 billion. The company’s full-year revenue guidance of $38.8 billion at the midpoint came in 2.8% above analysts’ estimates. Its non-GAAP profit of $6.29 per share was 12% above analysts’ consensus estimates.
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Amgen (AMGN) Q2 CY2026 Highlights:
- Revenue: $10.05 billion vs analyst estimates of $9.40 billion (9.5% year-on-year growth, 6.9% beat)
- Adjusted EPS: $6.29 vs analyst estimates of $5.62 (12% beat)
- Adjusted Operating Income: $4.61 billion vs analyst estimates of $4.15 billion (45.9% margin, 11.1% beat)
- The company lifted its revenue guidance for the full year to $38.8 billion at the midpoint from $37.8 billion, a 2.6% increase
- Management raised its full-year Adjusted EPS guidance to $22.90 at the midpoint, a 2.2% increase
- Operating Margin: 35%, up from 28.9% in the same quarter last year
- Free Cash Flow Margin: 34.7%, up from 20.8% in the same quarter last year
- Market Capitalization: $204.5 billion
"Our results demonstrate strong performance across our business. Our six key growth drivers grew 26% year over year, generating nearly 70% of second-quarter product sales. As we expand the potential of our existing medicines through new indications and advance the next wave of pipeline molecules through Phase 3, we remain confident in our ability to deliver growth well into the next decade," said Robert A. Bradway, chairman and chief executive officer.
Company Overview
Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ:AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Amgen’s 8.4% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Amgen’s annualized revenue growth of 11% over the last two years is above its five-year trend, suggesting some bright spots. 
We can dig further into the company’s revenue dynamics by analyzing its most important segment, Product & Pipeline. Over the last two years, Amgen’s Product & Pipeline revenue averaged 9.1% year-on-year growth. 
This quarter, Amgen reported year-on-year revenue growth of 9.5%, and its $10.05 billion of revenue exceeded Wall Street’s estimates by 6.9%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.
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Adjusted Operating Margin
Adjusted operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies because it excludes non-recurring expenses, interest on debt, and taxes.
Amgen has been a well-oiled machine over the last five years. It demonstrated elite profitability for a healthcare business, boasting an average adjusted operating margin of 46%.
Analyzing the trend in its profitability, Amgen’s adjusted operating margin decreased by 5.3 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 1.6 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.
This quarter, Amgen generated an adjusted operating margin profit margin of 45.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Amgen’s decent 6.6% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
In Q2, Amgen reported adjusted EPS of $6.29, up from $6.02 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Amgen’s full-year EPS to grow 1.9% from $22.37 to $22.80.
Key Takeaways from Amgen’s Q2 Results
We were impressed by how significantly Amgen blew past analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. Zooming out, we think this quarter featured some important positives. The stock remained flat at $389.20 immediately after reporting.
Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).