Amgen's Q3: volume-led growth offsets Prolia and Xgeva biosimilar erosion

The quarter in numbers

Amgen reported third-quarter 2026 total revenues up 8% to $10.4 billion against the third quarter of 2025. Product sales also grew 8%, to $9,883 million from $9,137 million, which the company said was driven by volume growth. It added that seventeen products delivered at least double-digit sales growth and seventeen are annualizing at more than $1 billion based on third-quarter sales.

GAAP EPS rose 19%, from $5.93 to $7.08, which the company attributed to higher revenues. GAAP operating income climbed from $2.5 billion to $3.7 billion, and GAAP operating margin widened 9.9 percentage points to 37.5%. Non-GAAP EPS rose 14%, from $5.64 to $6.45, which the company said was driven by higher revenues and partly offset by higher operating expenses. Non-GAAP operating income increased from $4.3 billion to $4.7 billion.

Growth engines versus biosimilar erosion

The growth list is long. Repatha sales rose 37% to $1,085 million and Evenity 39% to $751 million, both primarily volume-driven. Tezspire gained 43% to $538 million. Uplizna rose 191% to $451 million, and Imdelltra rose 128% to $406 million, both on volume. Blincyto grew 27% to $496 million, Vectibix 18% to $335 million, and Pavblu 41% to $300 million on 71% volume growth, partly offset by 18% lower net selling price.

The drag is concentrated in denosumab. Prolia fell 45% to $632 million as multiple biosimilars launched globally. The company said volume was 23% lower, with the remainder split equally between lower net selling price and changes to estimated sales deductions. Xgeva fell 47% to $288 million, primarily on 32% lower volume and 11% lower net selling price. Together the two brands were $920 million this quarter, against $1,678 million a year earlier by the release's table. Mvasi also declined 21% to $168 million, and Kyprolis fell 8% to $330 million on lower volume.

Pricing, inventory and deductions muddy the read

Several lines moved on factors other than demand. Enbrel rose 5% to $611 million, but the company said that reflected 15% favorable changes to estimated sales deductions and 8% higher inventory, offset by 14% lower net selling price and lower volume. It tied the price decline to U.S. Medicare Part D price setting under the Inflation Reduction Act, effective in 2026. Krystexxa rose 31% to $419 million, primarily on higher net selling price. Established products (Aranesp, Neulasta, Parsabiv) grew 14% to $606 million on 19% higher net selling price, partly offset by 3% lower volume.

Elsewhere, Tepezza fell 6% to $526 million on lower inventory levels. Otezla fell 18% to $481 million on 13% lower volume, 9% unfavorable deductions and 4% lower price, partly offset by higher inventory. Nplate rose 3% to $472 million, or 11% excluding U.S. government orders of $65 million versus $90 million a year ago. Tavneos slipped 2% to $105 million; the company said it continues to engage with the FDA and believes the drug shows clinical effectiveness and a favorable benefit-risk profile.

By geography, the U.S. contributed $7,259 million of product sales and the rest of the world $2,624 million.

Costs and margins: GAAP flatters, non-GAAP is flatter

On a GAAP basis, total operating expenses fell 5%. Cost of sales dropped to 28.2% of product sales from 33.7%, which the company attributed to lower amortization of acquisition-related assets and lower manufacturing costs, partly offset by higher profit share expense and sales mix. Other operating expenses were $76 million versus $329 million a year earlier. R&D rose 11% to $2,111 million on higher research and early-pipeline spend, including business development activity, while SG&A fell 2% to $1,680 million.

The non-GAAP view is less dramatic. Non-GAAP operating expenses rose 8% to $5,689 million, and cost of sales rose 1.1 points to 19.3% of product sales on profit share expense and mix. Non-GAAP operating margin edged up just 0.2 points to 47.3%. The non-GAAP tax rate fell 2.3 points to 15.9%, which the company linked to earnings mix.

Cash, capital and 2026 guidance

Free cash flow was $3.7 billion versus $4.2 billion. The company said this was driven by working-capital changes, with the prior-year quarter benefiting from the timing of rebates and collections. Capital expenditures were $0.6 billion versus $0.4 billion. Amgen made no share repurchases in the quarter and paid a $2.52 per share dividend, up 6% year over year. Cash stood at $13.2 billion versus $9.1 billion at year-end 2025, and debt at $54.0 billion versus $54.6 billion.

For full-year 2026 the company expects total revenues of $38.9 billion to $39.7 billion, GAAP EPS of $18.34 to $19.28, and non-GAAP EPS of $22.90 to $23.70. Tax rate ranges are 14.5% to 16.0% on a GAAP basis and 15.0% to 16.5% non-GAAP. It expects capital expenditures of about $2.6 billion and share repurchases not exceeding $3.0 billion.

Pipeline catalysts and what to watch

The pipeline update in the excerpt centers on MariTide, which the company describes as an antibody-peptide conjugate that activates GLP-1 and antagonizes GIPR. MARITIME-CV and both obstructive sleep apnea Phase 3 studies have completed enrollment. MARITIME-1 and -2 are ongoing, and MARITIME-HF, MARITIME-SWITCH and the extension studies are enrolling. MARITIME-T2D-3 against semaglutide has started, and two more Phase 3 type 2 diabetes studies are due to begin in Q4 2026. The release text provided cuts off mid-update, so other programs are not covered here.

Watch next: the pace of denosumab biosimilar erosion, the net-price impact of Medicare Part D price setting on Enbrel, any FDA developments for Tavneos, and whether buybacks resume under the $3.0 billion ceiling. Rising R&D, including business development, is also worth tracking against the roughly flat non-GAAP margin.