Amgen (AMGN.US) released its third-quarter 2026 results after the U.S. market close on Tuesday, November 3. The financial report showed third-quarter revenue of $10.365 billion, up 8% year-over-year, beating market expectations of roughly $10.05 billion to $10.07 billion. On the earnings side, non-GAAP earnings per share came in at $6.45, up 14% year-over-year and above expectations of $5.77 to $5.79; the non-GAAP operating margin was 47.3%, up 0.2 percentage points year-over-year; and free cash flow was $3.7 billion, compared with $4.2 billion in the same period last year. Product sales for the quarter were $9.883 billion, up 8% year-over-year. The six key growth products together rose 27% year-over-year and accounted for more than 70% of product sales, with Repatha, EVENITY, TEZSPIRE, UPLIZNA, BLINCYTO and IMDELLTRA all achieving double-digit growth, while a total of 17 products reached an annualized third-quarter sales scale of more than $1 billion.
In a research note published after Amgen's results, Citi pointed out that Repatha (revenue of $1.1 billion, $46 million above expectations, up 37% year-over-year) remains the clearest growth highlight, supported by its continued penetration in cardiology and primary care. At the same time, Evenity (revenue of $751 million, $24 million above expectations), Uplizna (revenue of $451 million, $71 million above expectations) and Imdelltra (revenue of $406 million, $79 million above expectations) also provided additional growth momentum for the company. Tepezza (revenue of $526 million, $66 million below expectations, down 6% year-over-year) was adversely affected by inventory destocking. Prolia (revenue of $632 million, $48 million below expectations) and Xgeva (revenue of $288 million, $39 million below expectations) continued to see revenue decline after the launch of biosimilars, pressured by lower volumes and net selling prices, falling 45% and 47% year-over-year respectively. Nevertheless, the company's product portfolio remains sufficiently diversified to absorb short-term pressure.
Amgen also raised its full-year 2026 guidance, lifting total revenue expectations to $38.9 billion to $39.7 billion from $38.2 billion to $39.4 billion, and raising non-GAAP earnings per share guidance to $22.90 to $23.70 from $22.30 to $23.50. Citi believes that Amgen's upward revision of its full-year guidance further strengthened market confidence in its commercialization execution capabilities, but its forward valuation multiple increasingly depends on whether the R&D pipeline can deliver on expectations. In fact, despite good momentum in Repatha, the oncology business and the rare disease business, uncertainties related to Lp(a), as well as the gap period before the release of Phase III clinical data for MariTide, still keep the bank cautious. Citi maintained its Neutral rating on Amgen with a target price of $405.
Citi said: 1) The diversification of the product portfolio continues to digest the impact of the revenue decline in denosumab products, with Repatha and the rare disease business as the main growth drivers. 2) The core growth engines remain solid, with Repatha, Evenity, Tezspire, Uplizna, Blincyto and Imdelltra all delivering strong sales performance. 3) Compared with quarterly execution, dazodalibep, olpasiran and MariTide have a more important impact on the company's forward valuation multiple.
It is reported that Amgen reported three positive Phase III results in the third quarter. Dazodalibep met the primary endpoint in the Phase III OASIS-301 study in systemic Sjogren's syndrome, with the monthly dosing group improving by 5.6 points from baseline and the quarterly dosing group improving by 5.2 points, corresponding to placebo-adjusted improvements of 1.8 points and 1.4 points respectively, and also met key secondary endpoints such as patient-reported dry mouth; a second Phase III study in symptomatic patients is expected to read out within the year, and management emphasized that the two populations were enrolled separately and that it is difficult to directly extrapolate from the 301 study to the 303 study. TEZSPIRE met both primary endpoints of histological remission and swallowing symptoms in a Phase III study in eosinophilic esophagitis, with efficacy maintained through 52 weeks. Daxdilimab met the primary endpoint in both dose groups in a Phase II study in discoid lupus erythematosus and will advance to Phase III. In the weight-loss field, the MARITIDE Phase III program for MariTide completed enrollment in two sleep apnea studies and in a cardiovascular outcomes study during the quarter, and launched the first of three Phase III studies in type 2 diabetes; the company said MariTide has the potential to become the first monthly-dosed weight-loss therapy requiring only 4 to 6 injections per year, and is conducting research on a home-use autoinjector pen.
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