AMGEN REPORTS FOURTH QUARTER AND FULL YEAR 2025 FINANCIAL RESULTS

Core Insights - Amgen reported strong financial performance in 2025, with double-digit growth in revenues and earnings per share, entering 2026 with momentum across its portfolio of medicines [2][5]. Financial Performance - For Q4 2025, total revenues increased by 9% to $9.9 billion compared to Q4 2024, with product sales growing by 7% driven by 10% volume growth, partially offset by a 4% decrease in net selling price [5]. - For the full year 2025, total revenues rose by 10% to $36.8 billion compared to 2024, with product sales increasing by 10% due to 13% volume growth, offset by a 3% decline in net selling price [5]. - GAAP earnings per share (EPS) for Q4 increased by 111% from $1.16 to $2.45, and for the full year, GAAP EPS rose by 88% from $7.56 to $14.23 [5]. - Non-GAAP EPS for Q4 remained relatively unchanged at $5.29, while for the full year, it increased by 10% from $19.84 to $21.84 [5]. Product Sales Performance - Eighteen products achieved record sales for the full year, with fourteen products exceeding $1 billion in annual sales and thirteen products delivering at least double-digit sales growth [5]. - Repatha sales increased by 44% year-over-year to $870 million in Q4, driven by 31% volume growth [6]. - EVENITY sales rose by 39% year-over-year to $599 million in Q4, primarily due to volume growth [6]. - Prolia sales decreased by 10% year-over-year to $1.1 billion in Q4, impacted by lower net selling price and decreased volume [6]. Operating Expenses and Margins - Total operating expenses increased by 5% year-over-year for Q4 and by 6% for the full year [18]. - GAAP operating income for Q4 increased from $2.3 billion to $2.7 billion, with GAAP operating margin rising by 2.5 percentage points to 29.0% [5]. - Non-GAAP operating income for the full year increased from $15.0 billion to $16.2 billion, with non-GAAP operating margin decreasing by 0.8 percentage points to 46.1% [5]. Cash Flow and Balance Sheet - The company generated $8.1 billion of free cash flow for the full year 2025, down from $10.4 billion in 2024, primarily due to timing of working capital and higher capital expenditures [23]. - As of December 31, 2025, cash and cash equivalents totaled $9.1 billion, and debt outstanding was $54.6 billion, with a debt leverage ratio of approximately 3.2 times EBITDA [23]. 2026 Guidance - For 2026, the company expects total revenues in the range of $37.0 billion to $38.4 billion, with GAAP EPS projected between $15.45 and $16.94 [27].