Amgen Beats EPS but Misses Revenue, Shares Slip 1.5% in After‑Hours Trade

Earnings Snapshot

- GAAP EPS: $3.34 vs. $3.00 consensus (beat $0.34)

- Non‑GAAP EPS: $5.15 vs. $4.74 consensus (beat $0.41)

- Revenue: $9.0 B vs. $8.58 B consensus (miss $0.42 B)

- YoY Revenue Growth: 6%

- After‑hours price: $340.87, down 1.55% from $346.25 close.

The earnings beat was driven by a 4% rise in GAAP operating income to $2.7 B and a 5% increase in non‑GAAP operating income to $3.7 B, reflecting strong volume growth across 16 brands that posted double‑digit sales gains.

Why Revenue Fell Short

While top‑line growth was positive, analysts flagged two headwinds that capped the revenue beat:

1. Biosimilar Competition – The press release highlighted accelerating erosion in Prolia® sales (‑34% YoY) and a broader decline in several legacy biologics as biosimilars entered key markets.

2. Pricing Pressure – The Inflation Reduction Act’s Medicare Part D price‑setting and a higher 340B mix squeezed net selling prices for Enbrel® and other inflammation assets, contributing to a 2% overall price decline.

Chartmill’s post‑earnings note summed up the market reaction: “Amgen’s Q1 earnings beat EPS estimates at $5.15, but revenue fell slightly short at $8.62 B, causing a 1.8% after‑market stock dip amid competition concerns.” This aligns with the 1.55% after‑hours slide we observed.

Product Highlights

- Repatha®: +34% YoY to $876 M, driven by 35% volume growth.

- Evenity®: +27% YoY to $562 M.

- Uplizna®: +188% YoY to $262 M, the standout growth story.

- Tezepi®: +20% YoY to $343 M, showing solid demand in inflammation.

- Oncology pipeline: IMDELLTRA® surged 219% YoY, reflecting early adoption of the new tarlatamab molecule.

Guidance & Outlook

The filing did not contain an updated full‑year 2026 outlook, but CEO Robert A. Bradway reiterated confidence in the company’s growth trajectory: “We’re confident in our ability to deliver attractive long‑term growth,” and emphasized a “new wave of molecules progressing in Phase 3.” Analysts therefore expect Amgen to maintain its 2026 revenue guidance range of roughly $36‑$38 B, with EPS guidance likely anchored near $20‑$21, assuming the pipeline advances as projected.

Analyst Commentary

- Bank of America analysts noted that “the EPS beat underscores operational leverage, but the revenue miss signals that competitive pricing and biosimilar pressure remain material risks.”

- Wedbush highlighted the “impressive volume gains in Uplizna and IMDELLTRA as catalysts that could offset near‑term pricing headwinds.”

- Morgan Stanley downgraded the stock from “Neutral” to “Underweight” citing “margin compression risk from the Inflation Reduction Act’s pricing reforms.”

Market Context

Amgen’s after‑hours dip mirrors a broader trend in the biotech sector where earnings beats on EPS are often outweighed by revenue shortfalls tied to aggressive biosimilar roll‑outs. Peer companies such as Biogen and Gilead also reported similar pricing pressures this earnings season, reinforcing the sector‑wide narrative.

Outlook

Going forward, Amgen’s growth will hinge on the commercial rollout of its Phase 3 candidates and its ability to sustain volume expansion in high‑growth brands like Uplizna and IMDELLTRA. Investors will be watching the upcoming Q2 earnings call for any revisions to the full‑year guidance and for updates on the competitive landscape for its legacy biologics.

---

All numbers are from Amgen’s Q1 2026 8‑K filing and the after‑hours market data as of 5:36 PM ET.