Amgen delivers earnings beat in Q3
Thousand Oaks-based Amgen delivered a sound third-quarter earnings beat when it announced financial results on Nov. 4, highlighting big sales beats from blockbuster drugs Repatha and Prolia.
Amgen, one of the largest biotechnology companies in the world, announced that revenue for the quarter ended Sept. 30 reached $9.6 billion, a 12% year-over-year increase, driven by 16 products delivering at least double-digit sales growth in the third quarter. Analysts projected revenue just shy of $9 billion, according to FactSet.
Net income for the biotech giant was $3.2 billion, or an earnings per share of $5.93, for the third quarter, up from $2.8 billion, or an earnings per share of $5.22, in the same quarter a year ago.
When adjusted for one-time earnings, Amgen’s earnings per share increased 1% from $5.58 to $5.64, primarily driven by higher revenues, partially offset by higher operating expenses and a higher effective tax rate.
The company also generated $4.2 billion of free cash flow in the third quarter of 2025 versus $3.3 billion in the third quarter of 2024, driven by the timing of working capital items and lower interest payments, partially offset by higher capital expenditures.
As a result of a strong quarter, Amgen raised its financial outlook for the year. Amgen now expects $35.8 billion to $36.6 billion in revenue this year. Three months ago, Amgen projected $35 billion to $36 billion in sales. Amgen also expects to earn an adjusted $20.60 to $21.40 per share.
Shares of the biotech giant rose about 2% in after-hours trading, as Amgen did not report earnings until after the markets closed on Nov. 4. Amgen shares closed at $296.70 on Nov. 4, and have increased nearly 15% since the start of the year.
“We delivered strong volume growth this quarter, reflecting the demand for our medicines and the impact we’re having on patients worldwide. With disciplined investment and a pipeline of first-in-class medicines, we’re focused on expanding access, advancing innovation, and sustaining long-term growth,” said Robert A. Bradway, Amgen’s chairman and CEO.
Repatha, Amgen’s cholesterol treatment, and Prolia, an osteoporosis treatment, led the charge for Amgen as sales for Repatha surged 40% to $794 million, beating forecasts for $729 million, according to FactSet, while revenue for Prolia rose 9% to $1.1 billion, topping forecasts of just $944 million.
Xgeva, used to prevent and treat serious bone problems, was also one of the drugs that beat analysts’ estimates handily, generating $539 million in revenue, topping forecasts of $543 million.
“Our broad base of innovative medicines is generating powerful momentum and gives us confidence in our ability to sustain long-term growth,” Bradway said during the company’s earnings call.
“Beats were seen across all of Amgen’s product segments except inflammation,” Christopher Raymond, an analyst at Raymond James who covers Amgen, said in a note to investors.
Raymond retained his market-perform rating on the stock.
“In that our neutral thesis centers around concerns over MariTide’s competitive profile in an increasingly crowded obesity space, significant looming LOEs (some 40% of Amgen’s product revenue is facing biosimilar competition likely by the end of the decade), and a major wildcard in the ongoing IRS dispute over Amgen’s tax liability from its Puerto Rican manufacturing transfer pricing. While we are taking up our FY25 numbers marginally, we do remain on the sidelines,” he said in a note to investors.
During the third quarter, Amgen also announced Amgen Now, a direct-to-patient program that makes certain Amgen medicines available directly to patients at a discounted monthly price.
“This program may benefit patients who are uninsured, have a high-deductible health plan, or prefer to pay out of pocket,” the company said in a press release.
The program was the company’s response to President Donald Trump and his administration’s efforts to lower drug prices for Americans. Amgen’s Repatha is one of the drugs offered on the service.
“This is an important step forward in helping more people benefit from the kind of innovation that’s represented by Repatha,” Bradway said.
Amgen also announced during the quarter plans for a $600 million science center in Thousand Oaks. The company held a virtual groundbreaking on Oct. 30 for the planned innovation center on the biotech giant’s sprawling Thousand Oaks campus.
The virtual groundbreaking was held inside a tent on the campus, which has been the global biotech company’s headquarters since its 1980 founding.
“Today’s groundbreaking is a marker of what comes next in our mission to serve patients,” Bradway said during the event.
“Inside this new facility, scientists and manufacturing teams supported by all the other functions of Amgen will work side by side, helping to accelerate the journey from idea to impact,” he said.
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