AMGEN INC (AMGN)

Price—Loading quote

AI: Overvalued

Price checkThe shares look expensive because today's price assumes years of strong growth.

At the August 14 close of $415.21, Amgen's equity was worth about $224.5 billion. The price is 25.8 times trailing earnings of $16.10 a share and roughly 22 times trailing free cash flow, meaning cash left after running and investing in the business. It is also 18.1 times management's midpoint for 2026 adjusted earnings, which excludes major acquisition-related costs. That valuation requires durable high-single-digit growth and pipeline success despite product erosion; the limited cash yield and heavy debt support an Overvalued verdict.

Big pictureSales and cash are growing, but aging medicines are already losing ground.

Revenue rose 10% to $36.75 billion in 2025, then 10% again to $10.05 billion in the June 2026 quarter. Trailing free cash flow is about $10.2 billion; second-quarter free cash flow jumped to $3.5 billion from $1.9 billion, partly because the earlier period included a final repatriation-tax payment. Durability is not uniform: Prolia and Xgeva sales fell 32% and 34%, while Otezla fell 21%. Amgen's cycle is mainly patent and biosimilar competition, not the economy, so replacement medicines must keep growing.

Business strengthA broad portfolio supports payouts, but heavy debt limits financial flexibility.

Twenty-two medicines posted double-digit second-quarter growth, spreading strength across the portfolio. At June 30, Amgen held $14.0 billion of cash against $57.3 billion of debt, leaving $43.3 billion of net debt, about 2.7 times trailing earnings before interest, taxes, depreciation and amortization. Current assets exceeded current liabilities by $9.5 billion. The annualized $10.08 dividend costs roughly $5.4 billion and is covered by cash flow. However, no shares were repurchased in the second quarter, and outstanding shares rose 0.7% from year-end 2024, creating modest dilution.

What could change the storyPipeline wins could justify the price, while faster drug erosion would expose it.

The bull case is concrete: second-quarter Repatha, Evenity, Uplizna and Tezspire sales grew 37%, 38%, 90% and 42%, while MariTide remains in late-stage obesity studies. Those gains could offset older-drug declines and make today's valuation reasonable. The bear case is that Prolia and Xgeva biosimilars, Otezla pricing or a Tavneos withdrawal outpace new launches while debt stays elevated. Sustained high-single-digit sales growth, free cash flow above $10 billion and falling net debt would strengthen the case; low-single-digit growth before pipeline launches would weaken it.

$415.21 price considered

AI: News

Quarter beat and raiseThe latest quarter beat expectations and raised guidance, confirming newer medicines are offsetting older-drug declines.

On August 4, 2026, Amgen reported second-quarter revenue of $10.1 billion, up 10%, and reported earnings of $4.37 a share, up 65%. It raised full-year revenue guidance to $38.2-$39.4 billion from $37.0-$38.4 billion and adjusted earnings guidance to $22.30-$23.50 a share. The stock closed 4.57% higher on August 5. That timing is consistent with a positive earnings response, though it does not prove the report alone caused the move.

Repatha prevention expansionNew Repatha evidence supports wider preventive use, expanding a fast-growing medicine's possible market.

On July 29, 2026, a European Medicines Agency committee issued a positive opinion supporting Repatha use before a first heart attack or stroke, based on a study of more than 12,000 patients. June data from 6,002 high-risk diabetes patients showed a 29% relative reduction in major cardiovascular events. Repatha's second-quarter sales grew 37% to $953 million, so wider eligibility could materially lift revenue. The opinion still requires a European Commission decision, and no isolated stock reaction was reliably established.

Tavneos withdrawal fightAmgen is fighting a proposed United States withdrawal of Tavneos, putting sales and acquired value at risk.

On July 23, 2026, Amgen submitted evidence and requested a hearing after the Food and Drug Administration proposed withdrawing Tavneos on April 27. The agency said pivotal-study results were manipulated, effectiveness was not demonstrated and serious liver injuries raised additional concern. Amgen disputes those conclusions and says an independent review supports the medicine. Tavneos produced $150 million of second-quarter sales, while its acquired technology carried a $2.4 billion value in March. Withdrawal could eliminate United States sales and trigger an accounting loss; no isolated market reaction is established.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$36.75B	$33.42B	$28.19B	$26.32B	$25.98B	$25.42B	$23.36B	$23.75B	$22.85B	$22.99B	$21.66B	$20.06B	$18.68B	$17.27B	$15.58B	$15.05B	$14.64B	$15.00B	$14.77B
Research & development	$7.27B	$5.96B	$4.78B	$4.43B	$4.82B	$4.21B	$4.12B	$3.74B	$3.56B	$3.84B	$4.07B	$4.30B	$4.08B	$3.38B	$3.17B	$2.89B	$2.86B	$3.03B	$3.27B
Operating income	$9.08B	$7.26B	$7.90B	$9.57B	$7.64B	$9.14B	$9.67B	$10.26B	$9.97B	$9.79B	$8.47B	$6.19B	$5.87B	$5.58B	$4.31B	$5.54B	$5.51B	$5.21B	$3.98B
EBITDAderived	$14.25B	$12.85B	$11.97B	$12.98B	$11.04B	$12.74B	$11.88B	$12.21B	$11.93B	$11.90B	$10.58B	$8.28B	$7.15B	$6.67B	$5.37B	$6.56B	$6.55B	$6.29B	$5.18B
Net income	$7.71B	$4.09B	$6.72B	$6.55B	$5.89B	$7.26B	$7.84B	$8.39B	$1.98B	$7.72B	$6.94B	$5.16B	$5.08B	$4.34B	$3.68B	$4.63B	$4.61B	$4.05B	$3.08B
Basic EPSper diluted share	$14.33	$7.62	$12.56	$12.18	$10.34	$12.40	$12.96	$12.70	$2.71	$10.32	$9.15	$6.80	$6.75	$5.61	$4.07	$4.82	$4.53	$3.79	$2.76
Diluted EPSper diluted share	$14.23	$7.56	$12.49	$12.11	$10.28	$12.31	$12.88	$12.62	$2.69	$10.24	$9.06	$6.70	$6.64	$5.52	$4.04	$4.79	$4.51	$3.77	$2.74

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)19$50.10M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 4, 2026Form 4	Grygiel Nancy A.SVP & CCO	SellCommon Stock	1.2K	$323.73	$400.5K	7.0K
Feb 26, 2026Form 4	Santos EstebanEVP, Operations	SellCommon Stock	24.3K	$379.12	$9.21M	76.6K
Feb 26, 2026Form 4	Santos EstebanEVP, Operations	SellCommon Stock	30.5K	$379.12	$11.56M	76.6K
Feb 19, 2026Form 4	Busch Matthew C.VP, Finance & CAO	SellCommon Stock	1.0K	$375.79	$375.8K	3.4K
Nov 20, 2025Form 4	Grygiel Nancy A.SVP & CCO	SellCommon Stock	1.6K	$337.26	$552.8K	7.2K

Review ownership filings at SEC.gov ↗

AMGEN INC (AMGN)

Financial charts

Financial statements

Insider buys & sells