AMGN AI Stock Analysis – Buy, Hold, or Avoid?
Amgen Inc. (AMGN)
Fundamentals
Amgen showcases a solid fundamental profile with consistent revenue growth and improving earnings supported by strong operating margins and robust cash flows. The company's business model benefits from its diversified biotech portfolio and significant R&D investments, positioning it well in the competitive biopharma space. Recent quarters demonstrate stable profitability and earnings beats, underscoring resilient execution despite sector challenges.
Financial Highlights
- Revenue
- Net Income
- Net Margin (%)
Revenue
5.76% YoY
Q1 2026
Net Income
5.14% YoY
Q1 2026
Net Margin
Q1 2026
Growth Metrics
Revenue Growth YoY
Latest Quarter: Q1 2026
Net Income Growth YoY
Latest Quarter: Q1 2026
Revenue Per Share Growth YoY
Latest Quarter: Q1 2026
EPS Growth YoY
Latest Quarter: Q1 2026
Book Value Per Share Growth YoY
Latest Quarter: Q1 2026
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 8.6B | 9.9B | 9.6B | 9.2B | 8.1B | 9.1B | 8.5B | 8.4B |
| Revenue Growth YoY | +5.76% | +8.91% | +12.40% | +9.29% | +9.43% | +10.86% | +23.18% | +20.07% |
| Net Income | 1.8B | 1.3B | 3.2B | 1.4B | 1.7B | 627.0M | 2.8B | 746.0M |
| Net Income Growth YoY | +5.14% | +112.60% | +13.64% | +91.96% | +1630.97% | -18.25% | +63.58% | -45.90% |
| EPS | $3.37 | $2.47 | $5.98 | $2.66 | $3.22 | $1.17 | $5.27 | $1.39 |
| EPS Growth YoY | +4.66% | +111.11% | +13.47% | +91.37% | +1633.33% | -18.18% | +63.16% | -46.12% |
Profitability Metrics
Technical Analysis
AMGN is currently in a strong bullish uptrend, trading close to its 52-week high with positive momentum indicators and a golden cross in place. The technical signals and stage analysis indicate institutional accumulation and a favorable environment for continued price appreciation. Momentum is stable with no signs of overbought conditions, supporting potential further gains.
No extreme reading
Price in uptrend
Strong trend active
50 above 200 - bullish
Key Technical Values
Price with Moving Averages
50-day, 150-day and 200-day simple moving averages
Relative Strength Index
Momentum oscillator measuring speed and magnitude of price changes
RSI (14)
Earnings
Amgen showcases a solid fundamental profile with consistent revenue growth and improving earnings supported by strong operating margins and robust cash flows. The company's business model benefits from its diversified biotech portfolio and significant R&D investments, positioning it well in the competitive biopharma space. Recent quarters demonstrate stable profitability and earnings beats, underscoring resilient execution despite sector challenges.
Latest Earnings
Q1 2026 Earnings (Mar 31, 2026)
Earnings Per Share (EPS)
Actual
$5.15
Estimated
$4.77
Surprise
+$0.38
Surprise %
+7.97%
Revenue
Actual
$8.62B
Estimated
$8.58B
Surprise
+$42.92M
Surprise %
+0.50%
Historical Earnings
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Earnings Per Share | ||||||||
| EPS (Actual) | $5.15 | $5.29 | $5.64 | $6.02 | $4.90 | $5.31 | $5.58 | $4.97 |
| EPS (Estimated) | $4.77 | $4.73 | $5.02 | $5.28 | $4.27 | $5.04 | $5.11 | $4.98 |
| EPS Surprise | +$0.38 | +$0.56 | +$0.62 | +$0.74 | +$0.63 | +$0.27 | +$0.47 | -$0.01 |
| % Diff | +8.0% | +11.8% | +12.4% | +14.0% | +14.8% | +5.4% | +9.2% | -0.2% |
| Revenue | ||||||||
| Revenue (Actual) | $8.62B | $9.87B | $9.56B | $9.17B | $8.15B | $9.09B | $8.5B | $8.39B |
| Revenue (Estimated) | $8.58B | $9.47B | $8.97B | $8.94B | $8.06B | $8.88B | $8.5B | $8.35B |
| Revenue Surprise | +$42.92M | +$391.98M | +$590.55M | +$231.48M | +$91.47M | +$204.76M | +$4.69M | +$36.15M |
| % Diff | +0.5% | +4.1% | +6.6% | +2.6% | +1.1% | +2.3% | +0.1% | +0.4% |
Valuation
Amgen (AMGN) currently exhibits a valuation slightly elevated relative to biotechnology industry averages but appears reasonably priced against its specific peer group. The company maintains solid profitability metrics and moderate growth, supported by a strong product pipeline and dividend history, although some valuation multiples suggest a premium reflective of these fundamentals and sector positioning. Recent analyst consensus leans toward a cautious hold with moderate upside potential, factoring in both growth catalysts and notable risks.
Valuation Metrics
Price to Earnings
TTM
Price to Sales
TTM
Price to Book
TTM
Enterprise Value to EBITDA
TTM
Enterprise Value to Revenue
TTM
| Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
|---|---|---|---|---|---|---|---|---|
| Price to Earnings | 26.10 | 33.13 | 11.80 | 26.24 | 24.19 | 55.69 | 15.29 | 55.94 |
| Price to Sales | 22.05 | 17.83 | 15.89 | 16.39 | 20.57 | 15.51 | 20.35 | 19.91 |
| Price to Book | 20.67 | 20.38 | 15.78 | 20.22 | 27.00 | 23.97 | 22.99 | 28.19 |
| Enterprise Value to EBITDA | 61.00 | 67.26 | 33.31 | 54.85 | 52.95 | 64.60 | 42.56 | 73.40 |
| Enterprise Value to Revenue | 27.30 | 22.42 | 20.61 | 21.64 | 26.53 | 20.80 | 26.39 | 26.27 |
Sentiment & Analyst Ratings
Amgen's market sentiment is currently mixed but leaning cautiously positive, driven by strong recent earnings, promising drug developments, and a recent stock surge on new regulatory data submissions. However, analyst consensus remains neutral with some downside risk suggested by price targets slightly below current levels and concerns arising from a recent cybersecurity breach. Retail and institutional investor interest is stabilizing with improving short interest and positive options activity.
Analyst Recommendations
Risk Assessment
Amgen Inc. demonstrates moderate financial resilience with stable liquidity but elevated leverage due to significant debt taken on during recent acquisitions. The company faces tangible risks from patent expirations, biosimilar competition, regulatory scrutiny on key drugs, and cybersecurity incidents, which could pressure revenue and margins despite ongoing revenue growth and a solid R&D pipeline.
Liquidity & Solvency
Frequently Asked Questions about AMGN
AI Answers: Common Questions About AMGN
Get AI-powered answers to the questions investors ask most about Amgen Inc.
Yes, Amgen is a good buy given its strong fundamentals with a P/E of 17.43, steady revenue growth to $36.74B in 2025, improving margins near 29%, and a robust pipeline supporting future earnings.
No, current data does not support selling. The stock is in a strong uptrend with positive earnings beats and fair valuation. Risks exist but are manageable with ongoing growth catalysts.
Key risks include patent expirations, biosimilar competition especially for denosumab, regulatory hurdles like the FDA's proposed Tavneos withdrawal, pricing pressures from government policies, and elevated debt levels with a debt-to-equity ratio over 6.
Technical analysis suggests an upside target near the 52-week high of $398, with potential extension to $405 if a breakout confirms. Support levels are around $355 and $344.
Amgen is fairly valued with a P/E above biotech averages but justified by stable earnings growth, strong cash flow, and dividend history. EV/EBITDA and price-to-book ratios are elevated but reflect investor confidence in its asset base and operational efficiency.
Amgen's fundamentals are strong with revenue growth CAGR near 14%, net income doubling to $7.71B in 2025, gross margins near 68-70%, and operating margins improving to ~29%. Consistent earnings beats and high-quality cash flows underscore financial strength.
The stock is in a bullish uptrend with a golden cross, RSI near 65 indicating healthy momentum, and price above key moving averages. No overbought signals suggest room for further gains.
Upcoming Q2 earnings, regulatory data submissions for drugs like Tavneos and MariTide, and potential pipeline approvals are key catalysts that could drive stock performance.
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