AMGEN REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS
THOUSAND OAKS, Calif., Feb. 3, 2026 /PRNewswire/ -- Amgen (NASDAQ: AMGN) today announced financial results for the fourth quarter and full year of 2025 versus the comparable periods in 2024.
"Amgen delivered strong performance in 2025, with double-digit growth in revenues and earnings per share. We enter 2026 with momentum across a broad portfolio of medicines and a clear path towards advancing innovative therapies to deliver sustained long-term growth," said Robert A. Bradway, chairman and chief executive officer.
Key results include:
References in this release to "non-GAAP" measures, measures presented "on a non-GAAP basis," "free cash flow" (computed by subtracting capital expenditures from operating cash flow), "EBITDA, or earnings before interest, taxes, depreciation and amortization" (computed by adding interest expense, provision for income taxes, and depreciation and amortization expense to GAAP net income) and "debt leverage ratio" (calculated as the ratio of GAAP total debt to EBITDA) refer to non-GAAP financial measures. Adjustments to the most directly comparable GAAP financial measures and other items are presented on the attached reconciliations. Refer to Non-GAAP Financial Measures below for further discussion.
Product Sales Performance
General Medicine
Rare Disease
Inflammation
Oncology
Established Products
Product Sales Detail by Product and Geographic Region
$Millions, except percentages
Q4 '25
Q4 '24
YOY Δ
U.S
ROW
TOTAL
TOTAL
TOTAL
Repatha ®
$ 517
$ 353
$ 870
$ 606
44 %
EVENITY ®
468
131
599
431
39 %
Prolia ®
707
347
1,054
1,165
(10 %)
TEPEZZA ®
409
48
457
460
(1 %)
KRYSTEXXA ®
435
—
435
346
26 %
UPLIZNA ®
168
65
233
101
*
TAVNEOS ®
142
10
152
81
88 %
Ultra-Rare products (1)
144
13
157
214
(27 %)
TEZSPIRE ®
474
—
474
296
60 %
Otezla ®
511
114
625
624
0 %
Enbrel ®
524
8
532
1,015
(48 %)
AMJEVITA ®/AMGEVITA ™
28
146
174
294
(41 %)
PAVBLU ®
254
4
258
31
*
WEZLANA ®/WEZENLA ™
—
44
44
21
*
BLINCYTO ®
270
143
413
381
8 %
Vectibix ®
163
156
319
246
30 %
KYPROLIS ®
240
111
351
372
(6 %)
LUMAKRAS ®/LUMYKRAS ™
47
45
92
85
8 %
XGEVA ®
291
156
447
561
(20 %)
Nplate ®
265
120
385
337
14 %
IMDELLTRA ®/IMDYLLTRA ™
183
51
234
67
*
MVASI ®
137
51
188
173
9 %
Aranesp ®
115
218
333
308
8 %
Parsabiv ®
49
40
89
75
19 %
Neulasta ®
115
17
132
98
35 %
Other products (2)
263
57
320
328
(2 %)
Total product sales
$ 6,919
$ 2,448
$ 9,367
$ 8,716
7 %
* Change in excess of 100%
(1) Ultra-Rare products consist of PROCYSBI ®, RAVICTI ®, ACTIMMUNE ®, QUINSAIR ®, and BUPHENYL ®
(2) Other products consist of Aimovig ®, AVSOLA ®, KANJINTI ®, BKEMV ®/BEKEMV ™, EPOGEN ®, RIABNI ®,
IMLYGIC ®, NEUPOGEN ®, Corlanor ®, RAYOS ®, DUEXIS ®, Sensipar ®/Mimpara ™, VIMOVO ®, and PENNSAID ®,
where Biosimilars total $189 million in Q4 '25 and $166 million in Q4 '24
$Millions, except percentages
FY '25
FY '24
YOY Δ
U.S
ROW
TOTAL
TOTAL
TOTAL
Repatha ®
$ 1,663
$ 1,353
$ 3,016
$ 2,222
36 %
EVENITY ®
1,600
500
2,100
1,563
34 %
Prolia ®
2,978
1,436
4,414
4,374
1 %
TEPEZZA ®
1,758
145
1,903
1,851
3 %
KRYSTEXXA ®
1,340
—
1,340
1,185
13 %
UPLIZNA ®
528
127
655
379
73 %
TAVNEOS ®
423
36
459
283
62 %
Ultra-Rare products (1)
685
34
719
758
(5 %)
TEZSPIRE ®
1,478
—
1,478
972
52 %
Otezla ®
1,839
426
2,265
2,126
7 %
Enbrel ®
2,199
27
2,226
3,316
(33 %)
AMJEVITA ®/AMGEVITA ™
48
549
597
761
(22 %)
PAVBLU ®
691
9
700
31
*
WEZLANA ®/WEZENLA ™
123
150
273
27
*
BLINCYTO ®
1,049
510
1,559
1,216
28 %
Vectibix ®
604
571
1,175
1,045
12 %
KYPROLIS ®
913
499
1,412
1,503
(6 %)
LUMAKRAS ®/LUMYKRAS ™
211
152
363
350
4 %
XGEVA ®
1,355
729
2,084
2,225
(6 %)
Nplate ®
1,027
497
1,524
1,456
5 %
IMDELLTRA ®/IMDYLLTRA ™
513
114
627
115
*
MVASI ®
573
198
771
727
6 %
Aranesp ®
416
973
1,389
1,342
4 %
Parsabiv ®
192
161
353
356
(1 %)
Neulasta ®
359
76
435
431
1 %
Other products (2)
1,091
220
1,311
1,412
(7 %)
Total product sales
$ 25,656
$ 9,492
$ 35,148
$ 32,026
10 %
* Change in excess of 100%
(1) Ultra-Rare products consist of RAVICTI ®, PROCYSBI ®, ACTIMMUNE ®, BUPHENYL ®, and QUINSAIR ®
(2) Other products consist of Aimovig ®, AVSOLA ®, KANJINTI ®, EPOGEN ®, RIABNI ®, BKEMV ®/BEKEMV ™,
IMLYGIC ®, NEUPOGEN ®, Corlanor ®, RAYOS ®, DUEXIS ®, VIMOVO ®, Sensipar ®/Mimpara ™, and PENNSAID ®,
where Biosimilars total $683 million in FY '25 and $667 million in FY '24
Operating Expense, Operating Margin and Tax Rate Analysis
On a GAAP basis:
On a non-GAAP basis:
$Millions, except percentages
GAAP
Non-GAAP
Q4 '25
Q4 '24
YOY Δ
Q4 '25
Q4 '24
YOY Δ
Cost of Sales
$ 2,976
$ 3,112
(4 %)
$ 1,790
$ 1,536
17 %
% of product sales
31.8 %
35.7 %
(3.9) pts
19.1 %
17.6 %
1.5 pts
Research & Development
$ 2,142
$ 1,724
24 %
$ 2,133
$ 1,698
26 %
% of product sales
22.9 %
19.8 %
3.1 pts
22.8 %
19.5 %
3.3 pts
Selling, General & Administrative
$ 1,952
$ 1,878
4 %
$ 1,937
$ 1,819
6 %
% of product sales
20.8 %
21.5 %
(0.7) pts
20.7 %
20.9 %
(0.2) pts
Other
$ 76
$ 61
25 %
$ —
$ —
N/A
Total Operating Expenses
$ 7,146
$ 6,775
5 %
$ 5,860
$ 5,053
16 %
Operating Margin
Operating income as % of product sales
29.0 %
26.5 %
2.5 pts
42.8 %
46.3 %
(3.5) pts
Tax Rate
12.0 %
19.8 %
(7.8) pts
16.4 %
14.8 %
1.6 pts
pts: percentage points
N/A = not applicable
$Millions, except percentages
GAAP
Non-GAAP
FY '25
FY '24
YOY Δ
FY '25
FY '24
YOY Δ
Cost of Sales
$ 12,037
$ 12,858
(6 %)
$ 6,423
$ 5,736
12 %
% of product sales
34.2 %
40.1 %
(5.9) pts
18.3 %
17.9 %
0.4 pts
Research & Development
$ 7,272
$ 5,964
22 %
$ 7,183
$ 5,878
22 %
% of product sales
20.7 %
18.6 %
2.1 pts
20.4 %
18.4 %
2.0 pts
Selling, General & Administrative
$ 7,050
$ 7,096
(1 %)
$ 6,942
$ 6,782
2 %
% of product sales
20.1 %
22.2 %
(2.1) pts
19.8 %
21.2 %
(1.4) pts
Other
$ 1,312
$ 248
*
$ —
$ —
N/A
Total Operating Expenses
$ 27,671
$ 26,166
6 %
$ 20,548
$ 18,396
12 %
Operating Margin
Operating income as % of product sales
25.8 %
22.7 %
3.1 pts
46.1 %
46.9 %
(0.8) pts
Tax Rate
14.1 %
11.3 %
2.8 pts
15.9 %
14.5 %
1.4 pts
pts: percentage points
* = Change in excess of 100%
N/A = not applicable
Cash Flow and Balance Sheet
$Billions, except shares
Q4 '25
Q4 '24
YOY Δ
FY '25
FY '24
YOY Δ
Operating Cash Flow
$ 1.6
$ 4.8
$ (3.2)
$ 10.0
$ 11.5
$ (1.5)
Capital Expenditures
$ 0.6
$ 0.4
$ 0.3
$ 1.9
$ 1.1
$ 0.8
Free Cash Flow
$ 1.0
$ 4.4
$ (3.4)
$ 8.1
$ 10.4
$ (2.3)
Dividends Paid
$ 1.3
$ 1.2
$ 0.1
$ 5.1
$ 4.8
$ 0.3
Share Repurchases
$ 0.0
$ 0.2
$ (0.2)
$ 0.0
$ 0.2
$ (0.2)
Average Diluted Shares (millions)
543
542
1
542
541
1
Note: Numbers may not add due to rounding
$Billions
12/31/25
12/31/24
YTD Δ
Cash and Cash Equivalents
$ 9.1
$ 12.0
$ (2.8)
Debt Outstanding
$ 54.6
$ 60.1
$ (5.5)
Note: Numbers may not add due to rounding
2026 Guidance
For the full year 2026, the Company expects:
Fourth Quarter Product and Pipeline Update
The Company provided the following updates on selected product and pipeline programs:
General Medicine
MariTide (maridebart cafraglutide, AMG 133)
AMG 513
Repatha
Olpasiran (AMG 890)
Rare Disease
UPLIZNA
TEPEZZA
TAVNEOS
Dazodalibep
Daxdilimab
AMG 329
AMG 732
Inflammation
TEZSPIRE
Rocatinlimab (AMG 451/KHK4083)
Blinatumomab
Inebilizumab
AMG 104 (AZD8630)
Oncology
BLINCYTO / blinatumomab
IMDELLTRA / tarlatamab
Xaluritamig (AMG 509)
Bemarituzumab
AMG 193
LUMAKRAS/LUMYKRAS
Nplate
Biosimilars
TEZSPIRE is being developed in collaboration with AstraZeneca.
AMG 104 is being developed in collaboration with AstraZeneca.
Xaluritamig, formerly AMG 509, is being developed pursuant to a research collaboration with Xencor, Inc.
YL201 is an investigational B7-H3 targeting antibody-drug conjugate being developed by MediLink.
Etakafusp alfa (AB248) is a novel CD8+ T cell selective interleukin-2 (IL-2) being developed by Asher Biotherapeutics.
OPDIVO is a registered trademark of Bristol-Myers Squibb Company.
KEYTRUDA is a registered trademark of Merck & Co., Inc.
OCREVUS is a registered trademark of Genentech, Inc.
Non-GAAP Financial Measures
In this news release, management has presented its operating results for the fourth quarters and full years of 2025 and 2024, in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and on a non-GAAP basis. In addition, management has presented its full year 2026 EPS and tax guidance in accordance with GAAP and on a non-GAAP basis. These non-GAAP financial measures are computed by excluding certain items related to acquisitions, divestitures, restructuring and certain other items from the related GAAP financial measures. Management has presented Free Cash Flow (FCF), which is a non-GAAP financial measure, for the fourth quarters and full years of 2025 and 2024. FCF is computed by subtracting capital expenditures from operating cash flow, each as determined in accordance with GAAP. Management has also presented Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and debt leverage ratio for 2025, both of which are non-GAAP financial measures. EBITDA is computed by adding interest expense, provision for income taxes, and depreciation and amortization expense to GAAP net income. Debt leverage ratio is calculated as the ratio of GAAP total debt to EBITDA.
The Company believes that its presentation of non-GAAP financial measures provides useful supplementary information to and facilitates additional analysis by investors. The Company uses certain non-GAAP financial measures to enhance an investor's overall understanding of the financial performance and prospects for the future of the Company's normal and recurring business activities by facilitating comparisons of results of normal and recurring business operations among current, past and future periods. The Company believes that FCF provides a further measure of the Company's liquidity. The Company believes its debt leverage ratio provides a supplemental operating metric for the full year period as it compares the amount of cash generated by our operations for the year.
The Company uses the non-GAAP financial measures set forth in the news release in connection with its own budgeting and financial planning internally to evaluate the performance of the business, including to allocate resources and to evaluate results relative to incentive compensation targets. The non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
About Amgen
Amgen discovers, develops, manufactures and delivers innovative medicines to fight some of the world's toughest diseases. Harnessing the best of biology and technology, Amgen reaches millions of patients with its medicines.
More than 45 years ago, Amgen helped establish the biotechnology industry at its U.S. headquarters in Thousand Oaks, California, and it remains at the cutting edge of innovation, using technology and human genetic data to push beyond what is known today. Amgen is advancing a broad and deep pipeline and portfolio of medicines to treat cancer, heart disease, inflammatory conditions, rare diseases and obesity and obesity-related conditions.
Amgen has been consistently recognized for innovation and workplace culture, including honors from Fast Company and Forbes. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average ®, and it is also part of the Nasdaq-100 Index ®, which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
For more information, visit Amgen.com and follow Amgen on X, LinkedIn, Instagram, YouTube, Facebook, TikTok and Threads.
Forward-Looking Statements
This news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeOne Medicines Ltd. or Kyowa Kirin Co., Ltd.), the performance of Otezla ® (apremilast), our acquisitions of ChemoCentryx, Inc., Dark Blue Therapeutics, Ltd. or Horizon Therapeutics plc (including the prospective performance and outlook of Horizon's business, performance and opportunities, and any potential strategic benefits, synergies or opportunities expected as a result of such acquisition), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems on our business, outcomes, progress, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.
No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions, including those resulting from geopolitical relations and government actions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. We or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product will be successful and become a commercial product. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful, and may result in unanticipated costs, delays or failures to realize the benefits of the transactions. A breakdown, cyberattack or information security breach of our information technology systems could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our sustainability objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.
CONTACT: Amgen, Thousand Oaks
Elissa Snook, 609-251-1407 (media)
Casey Capparelli, 805-447-1746 (investors)
Amgen Inc
Consolidated Statements of Income - GAAP
(In millions, except per-share data)
(Unaudited)
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Revenues:
Product sales
$ 9,367
$ 8,716
$ 35,148
$ 32,026
Other revenues
499
370
1,603
1,398
Total revenues
9,866
9,086
36,751
33,424
Operating expenses:
Cost of sales
2,976
3,112
12,037
12,858
Research and development
2,142
1,724
7,272
5,964
Selling, general and administrative
1,952
1,878
7,050
7,096
Other
76
61
1,312
248
Total operating expenses
7,146
6,775
27,671
26,166
Operating income
2,720
2,311
9,080
7,258
Other income (expense):
Interest expense, net
(653)
(747)
(2,755)
(3,155)
Other (expense) income, net
(553)
(782)
2,651
506
Income before income taxes
1,514
782
8,976
4,609
Provision for income taxes
181
155
1,265
519
Net income
$ 1,333
$ 627
$ 7,711
$ 4,090
Earnings per share:
Basic
$ 2.47
$ 1.17
$ 14.33
$ 7.62
Diluted
$ 2.45
$ 1.16
$ 14.23
$ 7.56
Weighted-average shares used in calculation of earnings per share:
Basic
539
537
538
537
Diluted
543
542
542
541
Amgen Inc
Consolidated Balance Sheets - GAAP
(In millions)
December 31,
December 31,
2025
2024
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$ 9,129
$ 11,973
Trade receivables, net
9,570
6,782
Inventories
6,225
6,998
Other current assets
4,133
3,277
Total current assets
29,057
29,030
Property, plant and equipment, net
7,913
6,543
Intangible assets, net
22,276
27,699
Goodwill
18,680
18,637
Other noncurrent assets
12,660
9,930
Total assets
$ 90,586
$ 91,839
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued liabilities
$ 20,890
$ 19,549
Current portion of long-term debt
4,599
3,550
Total current liabilities
25,489
23,099
Long-term debt
50,005
56,549
Long-term deferred tax liabilities
1,366
1,616
Long-term tax liabilities
2,690
2,349
Other noncurrent liabilities
2,378
2,349
Total stockholders' equity
8,658
5,877
Total liabilities and stockholders' equity
$ 90,586
$ 91,839
Shares outstanding
539
537
Amgen Inc
GAAP to Non-GAAP Reconciliations
(Dollars in millions)
(Unaudited)
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
GAAP cost of sales
$ 2,976
$ 3,112
$ 12,037
$ 12,858
Adjustments to cost of sales:
Acquisition-related expenses (a)
(1,186)
(1,576)
(5,614)
(7,122)
Non-GAAP cost of sales
$ 1,790
$ 1,536
$ 6,423
$ 5,736
GAAP cost of sales as a percentage of product sales
31.8 %
35.7 %
34.2 %
40.1 %
Acquisition-related expenses (a)
(12.7)
(18.1)
(15.9)
(22.2)
Non-GAAP cost of sales as a percentage of product sales
19.1 %
17.6 %
18.3 %
17.9 %
GAAP research and development expenses
$ 2,142
$ 1,724
$ 7,272
$ 5,964
Adjustments to research and development expenses:
Acquisition-related expenses (b)
(9)
(26)
(89)
(86)
Non-GAAP research and development expenses
$ 2,133
$ 1,698
$ 7,183
$ 5,878
GAAP research and development expenses as a percentage of product sales
22.9 %
19.8 %
20.7 %
18.6 %
Acquisition-related expenses (b)
(0.1)
(0.3)
(0.3)
(0.2)
Non-GAAP research and development expenses as a percentage of product sales
22.8 %
19.5 %
20.4 %
18.4 %
GAAP selling, general and administrative expenses
$ 1,952
$ 1,878
$ 7,050
$ 7,096
Adjustments to selling, general and administrative expenses:
Acquisition-related expenses (c)
(9)
(59)
(86)
(314)
Certain net charges pursuant to our restructuring and cost-savings initiatives
(6)
—
(22)
—
Total adjustments to selling, general and administrative expenses
(15)
(59)
(108)
(314)
Non-GAAP selling, general and administrative expenses
$ 1,937
$ 1,819
$ 6,942
$ 6,782
GAAP selling, general and administrative expenses as a percentage of product sales
20.8 %
21.5 %
20.1 %
22.2 %
Acquisition-related expenses (c)
(0.1)
(0.6)
(0.2)
(1.0)
Certain net charges pursuant to our restructuring and cost-savings initiatives
0.0
0.0
(0.1)
0.0
Non-GAAP selling, general and administrative expenses as a percentage of product sales
20.7 %
20.9 %
19.8 %
21.2 %
GAAP operating expenses
$ 7,146
$ 6,775
$ 27,671
$ 26,166
Adjustments to operating expenses:
Adjustments to cost of sales
(1,186)
(1,576)
(5,614)
(7,122)
Adjustments to research and development expenses
(9)
(26)
(89)
(86)
Adjustments to selling, general and administrative expenses
(15)
(59)
(108)
(314)
Impairment of intangible assets (d)
—
(30)
(1,200)
(159)
Certain net charges pursuant to our restructuring and cost-savings initiatives
(40)
(40)
(120)
(36)
Certain other expenses
(36)
9
8
(53)
Total adjustments to operating expenses
(1,286)
(1,722)
(7,123)
(7,770)
Non-GAAP operating expenses
$ 5,860
$ 5,053
$ 20,548
$ 18,396
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
GAAP operating income
$ 2,720
$ 2,311
$ 9,080
$ 7,258
Adjustments to operating expenses
1,286
1,722
7,123
7,770
Non-GAAP operating income
$ 4,006
$ 4,033
$ 16,203
$ 15,028
GAAP operating income as a percentage of product sales
29.0 %
26.5 %
25.8 %
22.7 %
Adjustments to cost of sales
12.7
18.1
15.9
22.2
Adjustments to research and development expenses
0.1
0.3
0.3
0.2
Adjustments to selling, general and administrative expenses
0.1
0.6
0.3
1.0
Impairment of intangible assets (d)
0.0
0.3
3.4
0.5
Certain net charges pursuant to our restructuring and cost-savings initiatives
0.5
0.5
0.4
0.1
Certain other expenses
0.4
0.0
0.0
0.2
Non-GAAP operating income as a percentage of product sales
42.8 %
46.3 %
46.1 %
46.9 %
GAAP other (expense) income, net
$ (553)
$ (782)
$ 2,651
$ 506
Adjustments to other (expense) income, net
Net losses (gains) from equity investments (e)
640
875
(2,023)
182
Non-GAAP other income, net
$ 87
$ 93
$ 628
$ 688
GAAP income before income taxes
$ 1,514
$ 782
$ 8,976
$ 4,609
Adjustments to income before income taxes:
Adjustments to operating expenses
1,286
1,722
7,123
7,770
Adjustments to other (expense) income, net
640
875
(2,023)
182
Total adjustments to income before income taxes
1,926
2,597
5,100
7,952
Non-GAAP income before income taxes
$ 3,440
$ 3,379
$ 14,076
$ 12,561
GAAP provision for income taxes
$ 181
$ 155
$ 1,265
$ 519
Adjustments to provision for income taxes:
Income tax effect of the above adjustments (f)
382
537
919
1,544
Other income tax adjustments (g)
2
(192)
55
(236)
Total adjustments to provision for income taxes
384
345
974
1,308
Non-GAAP provision for income taxes
$ 565
$ 500
$ 2,239
$ 1,827
GAAP tax as a percentage of income before taxes
12.0 %
19.8 %
14.1 %
11.3 %
Adjustments to provision for income taxes:
Income tax effect of the above adjustments (f)
4.3
0.7
1.4
5.1
Other income tax adjustments (g)
0.1
(5.7)
0.4
(1.9)
Total adjustments to provision for income taxes
4.4
(5.0)
1.8
3.2
Non-GAAP tax as a percentage of income before taxes
16.4 %
14.8 %
15.9 %
14.5 %
GAAP net income
$ 1,333
$ 627
$ 7,711
$ 4,090
Adjustments to net income:
Adjustments to income before income taxes, net of the income tax effect
1,544
2,060
4,181
6,408
Other income tax adjustments (g)
(2)
192
(55)
236
Total adjustments to net income
1,542
2,252
4,126
6,644
Non-GAAP net income
$ 2,875
$ 2,879
$ 11,837
$ 10,734
Note: Numbers may not add due to rounding
Amgen Inc
GAAP to Non-GAAP Reconciliations
(In millions, except per-share data)
(Unaudited)
The following table presents the computations for GAAP and non-GAAP diluted earnings per share:
Three months ended
December 31, 2025
Three months ended
December 31, 2024
GAAP
Non-GAAP
GAAP
Non-GAAP
Net income
$ 1,333
$ 2,875
$ 627
$ 2,879
Weighted-average shares for diluted EPS
543
543
542
542
Diluted EPS
$ 2.45
$ 5.29
$ 1.16
$ 5.31
Twelve months ended
December 31, 2025
Twelve months ended
December 31, 2024
GAAP
Non-GAAP
GAAP
Non-GAAP
Net income
$ 7,711
$ 11,837
$ 4,090
$ 10,734
Weighted-average shares for diluted EPS
542
542
541
541
Diluted EPS
$ 14.23
$ 21.84
$ 7.56
$ 19.84
(a)
The adjustments related primarily to noncash amortization of intangible assets and fair value step-up of inventory acquired from business combinations.
(b)
For the three months ended December 31, 2025, the adjustment related primarily to noncash amortization of intangible assets acquired from business combinations. For the three months ended December 31, 2024, and for the twelve months ended December 31, 2025 and 2024, the adjustments related primarily to acquisition-related expenses related to our Horizon acquisition.
(c)
For the three months ended December 31, 2025, the adjustment related primarily to business development transaction costs. For the three months ended December 31, 2024, and for twelve months ended December 31, 2025 and 2024, the adjustments related primarily to acquisition-related costs related to our Horizon acquisition.
(d)
For the twelve months ended December 31, 2025, the adjustment included intangible asset impairment charges for Otezla ®. For the twelve months ended December 31, 2024, the adjustment included impairment charges for in-process R&D assets related to our Teneobio, Inc. acquisition from 2021.
(e)
For the three and twelve months ended December 31, 2025 and 2024, the adjustments related primarily to our BeOne Medicines Ltd. equity fair value adjustment.
(f)
The tax effect of the adjustments between our GAAP and non-GAAP results takes into account the tax treatment and related tax rate(s) that apply to each adjustment in the applicable tax jurisdiction(s). Generally, the tax impact of adjustments, including the amortization of intangible assets and acquired inventory, gains and losses on our investments in equity securities and expenses related to restructuring and cost-savings initiatives, depends on whether the amounts are deductible in the respective tax jurisdictions and the applicable tax rate(s) in those jurisdictions. Due to these factors, the effective tax rate for the adjustments to our GAAP income before income taxes for the three and twelve months ended December 31, 2025, was 19.8% and 18.0%, respectively, compared to 20.7% and 19.4%, respectively, for the corresponding periods of the prior year.
(g)
The adjustments related to certain acquisition-related, prior-period and other items excluded from GAAP earnings.
Amgen Inc
Reconciliations of Cash Flows
(In millions)
(Unaudited)
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Net cash provided by operating activities
$ 1,603
$ 4,771
$ 9,958
$ 11,490
Net cash used in investing activities
(693)
(402)
(1,943)
(1,046)
Net cash used in financing activities
(1,226)
(1,407)
(10,859)
(9,415)
(Decrease) increase in cash and cash equivalents
(316)
2,962
(2,844)
1,029
Cash and cash equivalents at beginning of period
9,445
9,011
11,973
10,944
Cash and cash equivalents at end of period
$ 9,129
$ 11,973
$ 9,129
$ 11,973
Three months ended
December 31,
Twelve months ended
December 31,
2025
2024
2025
2024
Net cash provided by operating activities
$ 1,603
$ 4,771
$ 9,958
$ 11,490
Capital expenditures
(642)
(371)
(1,858)
(1,096)
Free cash flow
$ 961
$ 4,400
$ 8,100
$ 10,394
Amgen Inc
Reconciliation of GAAP Net Income to EBITDA and Debt Leverage Ratio Calculation
(Dollars in millions)
(Unaudited)
Twelve months ended
December 31, 2025
GAAP Net Income
$ 7,711
Depreciation and amortization
5,167
Interest expense, net
2,755
Provision for income taxes
1,265
EBITDA (a)
$ 16,898
As of December 31, 2025
Current portion of long-term debt
$ 4,599
Long-term debt
50,005
Total GAAP Debt
$ 54,604
As of December 31, 2025
Total GAAP Debt
$ 54,604
EBITDA
$ 16,898
Debt leverage ratio
3.2
(a)
2025 EBITDA includes (i) amortization of inventory step-up of $1.3 billion; (ii) intangible asset impairment charges of $1.2 billion; and (iii) net gains from equity investments of $2.0 billion.
Amgen Inc
Reconciliation of GAAP EPS Guidance to Non-GAAP
EPS Guidance for the Year Ending December 31, 2026
(Unaudited)
GAAP diluted EPS guidance
$ 15.45
—
$ 16.94
Known adjustments to arrive at non-GAAP*:
Acquisition-related expenses (a)
6.06
—
6.15
Non-GAAP diluted EPS guidance
$ 21.60
—
$ 23.00
* The known adjustments are presented net of their related tax impact, which amount to approximately $1.01 per share.
(a) The adjustments include noncash amortization of intangible assets and fair value step-up of inventory acquired in business combinations.
Our GAAP diluted EPS guidance does not include the effect of GAAP adjustments triggered by events that may occur subsequent to this press release such as acquisitions, asset impairments, litigation, changes in fair value of our contingent consideration obligations and changes in fair value of our equity investments.
Reconciliation of GAAP Tax Rate Guidance to Non-GAAP
Tax Rate Guidance for the Year Ending December 31, 2026
(Unaudited)
GAAP tax rate guidance
15.5 %
—
17.0 %
Tax rate of known adjustments discussed above
0.5 %
Non-GAAP tax rate guidance
16.0 %
—
17.5 %
SOURCE Amgen