Amgen, a global leader in the biotechnology industry, recently released its financial performance report for the fourth quarter and full year of 2025. The report shows that the company has maintained robust financial results despite the challenging economic environment, with a 10% year-over-year increase in total revenue, reaching $36.75 billion. Revenue for the fourth quarter was $9.87 billion, marking a 9% year-over-year growth. This growth was primarily driven by strong sales of core products and the continued progress of its innovative pipeline. Amgen has strengthened its foundation for long-term growth by optimizing its cost structure, improving cash flow management, and maintaining ongoing investments in research and development. This article will provide an in-depth analysis of Amgen's annual performance, covering revenue and profit, cash flow and balance sheet, product pipeline developments, and 2026 outlook.
In 2025, Amgen achieved significant revenue growth. Total revenue for the year reached $36.75 billion, a 10% increase from $33.42 billion in 2024. Revenue for the fourth quarter was $9.87 billion, representing a 9% year-over-year increase and stable sequential performance. Product sales were the primary driver of revenue, totaling $35.15 billion for the year, up 10% from the previous year. Fourth-quarter product sales amounted to $9.37 billion, a 7% year-over-year increase. Other revenue (including partnership and licensing revenue) totaled $1.60 billion for the year, with $499 million in the fourth quarter, reflecting the company’s diversified strategy in partnerships.
Amgen's profitability also improved through cost management. Full-year GAAP operating income was $9.08 billion, with an operating margin of 22.7% (based on product sales). Non-GAAP adjusted operating income was $16.20 billion, with a margin of 46.1%, slightly down from 46.9% in 2024 but still at a high level. In the fourth quarter, GAAP operating income was $2.72 billion, while non-GAAP operating income was $4.01 billion. Profit growth was primarily driven by reduced acquisition-related expenses and improved operational efficiency. For example, the full-year GAAP gross margin was 65.8%, and the non-GAAP gross margin was 81.7%, reflecting significant production optimization.
By business segment, key products such as Repatha (a cardiovascular drug) and TEZSPIRE (an asthma treatment) continued to see strong sales growth. Additionally, new products like MariTide (an obesity treatment) showed positive results in clinical trials, suggesting strong future revenue potential. However, cost pressures remain, with GAAP R&D expenses for the year amounting to $7.27 billion, and sales and administrative expenses reaching $7.05 billion, both of which grew due to increased R&D investments and market expansion.
Amgen demonstrated strong cash flow management in 2025. Full-year operating cash flow was $9.96 billion, with free cash flow at $8.10 billion. Although this was lower than the $10.39 billion in 2024, it still remained at a healthy level. Free cash flow for the fourth quarter was $1.00 billion, down year-over-year primarily due to changes in working capital (e.g., accounts receivable recovery timing) and increased capital expenditures. Capital expenditures for the year totaled $1.86 billion, focused on upgrading production facilities and expanding R&D infrastructure.
On the balance sheet, as of December 31, 2025, Amgen held $9.13 billion in cash and cash equivalents, with total debt of $54.60 billion, resulting in a debt-to-EBITDA ratio of approximately 3.2x. The company enhanced its financial stability through proactive debt reduction, paying down $6.00 billion in debt and distributing $5.10 billion in dividends during the year. However, no share buybacks occurred in 2025, reflecting a focus on debt optimization. The fourth-quarter dividend was $2.38 per share, up 6% from the previous year, emphasizing the company’s commitment to shareholder returns.
Cash flow fluctuations also reflected the business cycle: fourth-quarter operating cash flow was $1.60 billion, significantly lower than $4.77 billion in the same period last year, due to tax payment timing and working capital fluctuations. Nevertheless, the full-year free cash flow covered dividend payments, signaling ample liquidity. The Chief Financial Officer highlighted that Amgen would continue prioritizing high-return investments while maintaining an investment-grade credit rating.
Amgen's product pipeline made significant strides in 2025, particularly in the fields of obesity, cardiovascular disease, and oncology. MariTide (maridebart cafraglutide), a key product, is a GLP-1 receptor agonist and GIPR antagonist for chronic weight management. Phase 2 studies showed that patients achieved ≥15% weight loss after 52 weeks of treatment, with the results sustained in the second year and a low incidence of nausea and vomiting. Phase 3 studies, MARITIME-1 and MARITIME-2, have started for patients with obesity (with or without type 2 diabetes) and are expected to expand to type 2 diabetes indications by 2026. This positioning is expected to help Amgen capture a share of the rapidly growing obesity drug market.
In the cardiovascular field, Repatha's VESALIUS-CV Phase 3 trial showed positive results, reducing cardiovascular event risk by 25% in over 12,000 patients with atherosclerosis or diabetes. These data were presented at the American Heart Association meeting in November 2025, reinforcing its secondary prevention benefits. Additionally, olpasiran (an siRNA drug for lowering lipoprotein(a)) is undergoing a Phase 3 outcome study, OCEAN(a)-Outcomes, targeting high-risk cardiovascular patients.
Amgen's oncology pipeline also saw exciting developments: IMDELLTRA (tarlatamab), the first BiTE molecule targeting DLL3, received full FDA approval in 2025 for small-cell lung cancer, with multiple Phase 3 studies currently underway. xaluritamig (a STEAP1-targeted bispecific antibody) has also entered Phase 3 trials for prostate cancer. These advancements highlight Amgen's strategy of expanding its oncology presence through precision medicine.
In the rare disease and inflammation areas, UPLIZNA was approved by the EU in 2025 for IgG4-related disease and by the U.S. for myasthenia gravis; daxdilimab met its primary endpoint in Phase 2 studies for lupus. However, TAVNEOS (avacopan) faces uncertainty due to a voluntary market withdrawal required by the FDA, and the company is evaluating its next steps, which could pose short-term risks.
Based on current pipeline progress, Amgen has issued positive guidance for 2026. Full-year revenue is expected to range between $37.0 billion and $38.4 billion, representing a 3-6% year-over-year growth. GAAP earnings per share (EPS) guidance is $15.45-$16.94, with non-GAAP EPS in the range of $21.60-$23.00, reflecting continued core profitability improvement. The tax rate is projected to be between 15.5% and 17.0% for GAAP and 16.0% to 17.5% for non-GAAP. Capital expenditures are expected to be around $2.6 billion, supporting production and R&D, while share repurchases will be capped at $3.0 billion, reflecting confidence in cash flow generation.
This guidance takes into account potential challenges, such as increased competition and regulatory uncertainty (e.g., the TAVNEOS situation), but the company mitigates these risks through cost control and pipeline diversification. For example, if MariTide’s Phase 3 results are positive, it could serve as a growth catalyst for 2026. Management emphasized that key priorities include further debt optimization, dividend growth, and selective investments in high-return projects.
