Amgen (AMGN) reported its fourth-quarter and full-year 2025 financial results on February 3, 2026. Below is the summary of the income statement, balance sheet, and pipeline highlights based on the report.
Income Statement Summary
Unit: USD millions (except per share data)
| Item | 2025 Q4 | YoY % | 2025 FY | YoY % |
| Total Revenues | 9,900 | +9% | 36,751 | +10% |
| Product Sales | 9,410 | +7% | 35,148 | +10% |
| GAAP Operating Income | 2,700 | +17.4% | 9,100 | +24.7% |
| GAAP EPS | 2.45 | +111% | 14.23 | +88% |
| Non-GAAP EPS | 5.29 | -0.4% | 21.84 | +10% |
Segment Revenue & Analysis:
- Revenue growth was driven by 13% volume growth, partially offset by a 3% decline in average selling price.
- 18 products achieved record sales for the year, with 14 products exceeding $1 billion in annual sales.
- R&D expenses increased significantly in Q4, up 22% year-over-year.
- 2025 GAAP results include a $1.2 billion impairment charge for Otezla due to Medicare price negotiations.
Pipeline & Product Highlights
Core Product Performance:
- Repatha (Lipid-lowering): 2025 sales grew 29% to $2.1 billion, primarily driven by 40% volume growth.
- Tepezza (Thyroid Eye Disease): Full-year volume grew 13%, with active expansion into international markets.
- Evenity (Osteoporosis): 2025 sales grew 33% to $1.5 billion, showing strong volume momentum.
- Tavneos (Vasculitis): Full-year sales grew 87% to $319 million.
R&D and Clinical Progress:
- MariTide (Obesity): Phase 2 clinical trials are ongoing, with top-line data expected late 2024 or early 2025. A broad Phase 3 program is being initiated.
- Uplizna: Achieved positive results in Phase 3 studies for Myasthenia Gravis (MG) and has submitted a supplemental New Drug Application to the FDA.
- Xevalmitig (Prostate Cancer): Phase 1 data showed potential in metastatic castration-resistant prostate cancer.
- ROC-3 (Immunomodulation): Asset acquired via the Roche acquisition, currently in early-stage development.
Balance Sheet Summary
Unit: USD millions
| Item | 2025/12/31 | % of Total Asset | YoY % |
| Cash & Equivalents | 9,100 | 9.4% | -19.5% |
| Total Assets | 96,400 | 100% | -5.2% |
| Total Liabilities | 87,300 | 90.5% | -6.8% |
| Total Equity | 9,100 | 9.5% | +13.7% |
Financial Condition Analysis:
- $6 billion of debt was repaid during 2025.
- Net Debt-to-EBITDA ratio was maintained at 3.2x as of year-end 2025.
Cash Flow Statement Summary
Unit: USD millions
| Item | 2025 FY | 2024 FY | YoY % |
| Operating Cash Flow | 9,100 | 11,300 | -19.5% |
| CapEx | 1,000 | 900 | +11.1% |
| Free Cash Flow | 8,100 | 10,400 | -22.1% |
FCF Analysis & YoY Table:
The decline in Free Cash Flow was primarily due to the timing of tax payments (including tax impacts related to the Horizon acquisition) and integration-related expenditures.
2026 Guidance
- Total Revenues: $37.0 billion to $38.4 billion.
- Non-GAAP EPS: $21.60 to $23.00.
Below is the five-year financial ratio analysis for Amgen (AMGN) from 2021 to 2025.
Profitability Ratios
Unit: %
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
| Gross Margin | 75.2 | 75.8 | 72.3 | 68.7 | 67.2 |
| GAAP Operating Margin | 34.0 | 36.8 | 26.8 | 22.7 | 25.8 |
| Net Margin | 22.5 | 25.1 | 23.4 | 12.2 | 18.0 |
| ROE (Return on Equity) | 88.0 | 179.0 | 107.8 | 69.6 | 89.1 |
| ROA (Return on Assets) | 9.8 | 10.1 | 8.8 | 4.5 | 7.5 |
Trend Analysis:
- Margin Compression: Gross margin declined from the 75% level to approximately 67%, primarily due to inventory fair value adjustments following the Horizon Therapeutics acquisition and ongoing drug pricing pressures.
- ROE Volatility: The exceptionally high ROE is a result of Amgen’s aggressive share buyback programs and debt-heavy capital structure, which keeps the book value of equity relatively low.
Liquidity & Solvency Ratios
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
| Current Ratio | 1.59 | 1.41 | 1.65 | 1.26 | 1.14 |
| Debt-to-Equity (D/E) | 4.96 | 10.20 | 10.14 | 9.62 | 5.78 |
Trend Analysis:
- Deleveraging Focus: After a spike in leverage between 2022 and 2023 to fund the Horizon acquisition, Amgen successfully prioritized debt repayment in 2025, reducing approximately $6 billion in debt and significantly improving the D/E ratio.
- Liquidity Position: The Current Ratio reached a five-year low of 1.14 in 2025, indicating a tighter but still managed approach to working capital.
Dividend & Valuation Ratios
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
| Dividend Payout Ratio | 70.9% | 60.8% | 59.3% | 113.4% | 72.6% |
| Dividend Per Share (USD) | 7.04 | 7.76 | 8.52 | 9.00 | 9.52 |
| P/E Ratio (Year-end) | 21.8 | 21.1 | 20.5 | 33.4 | 22.8 |
Trend Analysis:
- Consistent Returns: Amgen has maintained its streak of dividend increases despite large-scale M&A activities. The payout ratio exceeded 100% in 2024 only because GAAP net income was temporarily suppressed by acquisition-related expenses.
- Valuation Normalization: The P/E ratio returned to a historical average of roughly 23x in 2025 as earnings normalized post-integration.
Below is the P/E analysis of Amgen (AMGN) versus its key competitors as of February 2026.
Competitor P/E Comparison Table (February 2026 Data)
| Company Name | Ticker | P/E (GAAP TTM) | P/E (Non-GAAP Fwd) | Dividend Yield | Notes |
| Amgen | AMGN | 26.18 | 16.99 | 2.65% | Benchmark |
| Gilead Sciences | GILD | 22.29 | 17.54 | 2.15% | Relatively lower valuation |
| AbbVie | ABBV | 94.78 | 15.72 | 3.03% | GAAP skewed by M&A costs |
| Regeneron | REGN | 18.39 | 17.73 | 0.45% | High growth, low yield |
| Eli Lilly | LLY | 44.58 | 45.18 | 2.42% | Premium due to obesity drugs |
| Biotech Industry Avg | — | ~26.00 | ~19.00 | — | Sector standard |
Key P/E Analysis Highlights
1. Valuation Positioning:
Amgen’s Non-GAAP Forward P/E of approximately 17x is slightly below the biotech industry average. This suggests that the market has priced in Amgen’s stable cash flows and strong existing portfolio (like Repatha) but has not yet fully factored in the potential explosive growth from MariTide (obesity pipeline).
2. Peer Comparison:
- Vs. Eli Lilly (LLY): Amgen appears significantly discounted. Eli Lilly’s P/E of ~45x reflects massive market optimism for the GLP-1 sector, whereas Amgen is valued more like a mature, steady-growth pharmaceutical giant.
- Vs. Gilead (GILD) & Regeneron (REGN): The Non-GAAP valuations for these three are very similar (around 17x), indicating that investors share a consistent risk appetite for large-cap, diversified biotech firms.
3. The GAAP vs. Non-GAAP Gap:
Companies like AbbVie show an extreme GAAP P/E (94x) due to one-time asset impairments and integration charges from large acquisitions. When analyzing this sector, Non-GAAP (Adjusted) P/E is the preferred metric for assessing ongoing operational profitability.
4. Defensive Value & Yield:
Amgen offers a competitive dividend yield of 2.65%, providing a floor for its valuation. For investment managers seeking value, Amgen’s current P/E coupled with its late-stage pipeline potential makes it a defensive play with significant upside optionality.
Sources:
- https://investors.amgen.com/news-releases/news-release-details/amgen-reports-fourth-quarter-and-full-year-2025-financial
- https://investors.amgen.com/financials/quarterly-earnings
Back to Amgen page