What Happened?
Shares of biotech company Amgen (NASDAQ:AMGN) jumped 3.1% in the afternoon session after the company reported strong second-quarter 2026 financial results that beat expectations and prompted it to raise its full-year guidance.
Total revenue for the quarter increased 9.5% year-over-year to $10.05 billion, surpassing Wall Street's estimates by 6.9%. The company's profitability also showed strength, with adjusted earnings per share of $6.29 beating consensus forecasts by 12%. Amgen's free cash flow margin improved significantly to 34.7% from 20.8% in the same quarter last year.
Following the strong performance, Amgen lifted its full-year revenue guidance to a midpoint of $38.8 billion and its adjusted earnings per share outlook to a midpoint of $22.90.
The shares were trading at $403.48, up 3.5% from the previous close.
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What Is The Market Telling Us
Amgen’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 10 months ago when the stock gained 6.4% on the news that the company announced a $650 million investment to expand its US manufacturing network. The investment is aimed at increasing drug production at its biologics facility in Juncos and is expected to create nearly 750 new jobs, including highly skilled manufacturing roles. According to CEO Robert A. Bradway, the expansion highlights Amgen's commitment to US biomanufacturing and strengthening its global supply chain. In other news, the company reached a settlement with Biocon Biologics. The agreement resolves pending patent litigation and allows Biocon to launch biosimilar versions of Amgen's drug, denosumab, in the U.S. starting October 1, 2025.
Amgen is up 23.1% since the beginning of the year, and at $403.48 per share, it has set a new 52-week high. Investors who bought $1,000 worth of Amgen’s shares 5 years ago would now be looking at an investment worth $1,724.
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