What changed in this filing

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Item 2. Management’s Discussion and Analysis

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The following MD&A is intended to assist the reader in understanding Amgen’s business.

MD&A is provided as a supplement to, and should be read in conjunction with, both the condensed consolidated financial statements and accompanying notes of this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2025.

MD&A is provided as a supplement to, and should be read in conjunction with, the consolidated financial statements and accompanying notes of our Annual Report on Form 10-K for the year ended December 31, 2025, and the condensed consolidated financial statements and accompanying notes of this Quarterly Report on Form 10-Q and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

Our results of operations discussed in MD&A are presented in conformity with GAAP.

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Risk Factors in Part II herein and in Part I, Item 1A.

Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025.

Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025, and in Part II, Item 1A.

Risk Factors of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

We have based our forward-looking statements on our management’s beliefs and assumptions based on information available to our management at the time the statements are made.

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Our robust pipeline includes potential first-in-class medicines at all stages of development.

Our principal products are Repatha, Prolia, EVENITY, TEPEZZA, Otezla, BLINCYTO, Nplate, XGEVA, TEZSPIRE, KYPROLIS, ENBREL, Aranesp, Vectibix, UPLIZNA, IMDELLTRA/IMDYLLTRA and KRYSTEXXA.

We also market a number of other products, including but not limited to PAVBLU, AMJEVITA/AMGEVITA, Neulasta, MVASI, TAVNEOS, LUMAKRAS/LUMYKRAS, Parsabiv, Aimovig, PROCYSBI and WEZLANA/WEZENLA.

Our principal products are Repatha, Prolia, EVENITY, TEPEZZA, Otezla, ENBREL, BLINCYTO, Nplate, TEZSPIRE, XGEVA, Aranesp, KRYSTEXXA, KYPROLIS, Vectibix, UPLIZNA and IMDELLTRA/IMDYLLTRA.

We also market a number of other products, including but not limited to PAVBLU, Neulasta, AMJEVITA/AMGEVITA, MVASI, TAVNEOS, LUMAKRAS/LUMYKRAS, Parsabiv, Aimovig, PROCYSBI and WEZLANA/WEZENLA.

Macroeconomic and other challenges

Uncertain macroeconomic conditions, including the risk of inflation, fluctuating interest rates and financial system instability, together with rising healthcare costs, evolving tariffs and trade protection measures, and expanding geopolitical conflict, including in the Middle East, continue to pose challenges to our business.

The expanding geopolitical conflict, particularly in the Middle East, has increased volatility in the energy and transportation markets and disrupted global supply chains.

Uncertain macroeconomic conditions, including the risk of inflation, fluctuating interest rates and financial system instability, together with rising healthcare costs, evolving tariffs and trade protection measures, and geopolitical conflict, including in the Middle East, continue to pose challenges to our business.

The geopolitical conflict, particularly in the Middle East, has increased volatility in the energy and transportation markets and disrupted global supply chains.

Additionally, with public and private healthcare-provider focus, the industry continues to be subject to cost containment measures and significant pricing pressures, resulting in net price declines.

Moreover, provisions of the IRA, as well as the expanded utilization of the 340B Program, have negatively affected, and are likely to continue to negatively affect, our business.

Moreover, provisions of the IRA, as well as the expanded utilization of the 340B Program from broadened application of 340B discounts, have negatively affected, and are likely to continue to negatively affect, our business.

For example, CMS has selected ENBREL and Otezla for Medicare price setting beginning in 2026 and 2027, respectively.

In addition to the IRA, other recent and proposed U.S.

policy actions focus on drug pricing, including the Most-Favored-Nations Prescription Drug Pricing Executive Order (MFN EO) and the July MFN Letter that was delivered to a number of pharmaceutical companies, including Amgen.

In December 2025, we announced that we are taking actions that satisfy the components outlined in the July MFN Letter, including the Administration’s MFN pricing requests.

policy actions focus on drug pricing, including the Most-Favored-Nation Prescription Drug Pricing Executive Order (MFN EO) and the July MFN Letter that was delivered to a number of pharmaceutical companies, including Amgen.

In December 2025, we announced that we are taking actions that satisfy the components outlined in the July MFN

Letter, including the Administration’s MFN pricing requests.

We also announced the expansion of our direct-to-patient program.

While this development reflects ongoing engagement on pricing policy, the ultimate effects on our pricing, reimbursement, net sales and profitability remain uncertain in

light of such evolving regulatory and policy expectations.

As part of the Administration’s MFN pricing initiative, CMS also announced the GENEROUS Model, under which we and other participating manufacturers will provide additional supplemental rebates for certain drugs to participating state Medicaid programs designed to align Medicaid net prices with prices paid in select other countries for drugs covered under the model.

While these developments reflect ongoing engagement on pricing policy, the ultimate effects on our pricing, reimbursement, net sales and profitability remain uncertain in light of such evolving regulatory and policy expectations.

See Part II, Item 1A.

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However, in December 2025, in recognition of our capital investments in U.S.

manufacturing, we received relief from Section 232 tariffs for approximately the next three years.

manufacturing, we received relief from Section 232 tariffs for approximately the next three years from that date.

Given the many uncertainties and variables, tariffs and trade protection measures may adversely affect our business and results of operations.

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Significant developments

The following is a summary of select significant developments affecting our business that occurred since the filing of our Annual Report on Form 10-K for the year ended December 31, 2025.

For additional developments, see our Annual Report on Form 10-K for the year ended December 31, 2025.

The following is a summary of select significant developments affecting our business that occurred since the filing of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

For additional developments, see our Annual Report on Form 10-K for the year ended December 31, 2025 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

Products/pipeline

In April 2026, we announced positive topline results from a Phase 3 trial of TEPEZZA administered by subcutaneous injection via an on-body injector (OBI) in participants with moderate-to-severe active thyroid eye disease (TED) that demonstrated that TEPEZZA OBI provides comparable efficacy to intravenous TEPEZZA (TEPEZZA IV).

The Phase 3 TEPEZZA OBI trial met its primary endpoint in moderate-to-severe active TED, showing a statistically significant and clinically meaningful 77% proptosis response rate during the 24-week placebo-controlled period.

The trial also met a key secondary endpoint, with a mean reduction in proptosis of -3.17 mm at week 24.

The overall safety results were generally consistent with the known safety profile of TEPEZZA IV.

Mild-to-moderate injection site reactions were observed with subcutaneous administration in some patients, which did not result in treatment interruption or discontinuation.

Full results from the TEPEZZA Phase 3 OBI trial will be presented at an upcoming medical congress.

Additionally, a separate Phase 3b/4 trial, conducted to fulfill an FDA postmarketing requirement for TEPEZZA IV, has been completed.

The primary objective of the study was to evaluate the safety and tolerability of three treatment durations (four, eight and 16 infusions) of TEPEZZA IV and assess the need for retreatment.

The study was descriptive in nature.

The observed risk profile was consistent with the known profile of TEPEZZA IV.

The postmarketing data will be submitted to regulatory authorities and presented at an upcoming medical congress.

On March 31, 2026, the FDA issued a DSC in which it alerted patients and health care professionals about serious liver injury cases, including fatal cases, of DILI associated with TAVNEOS.

The DSC is based on data available through October 9, 2024 and provides information about DILI and VBDS associated with TAVNEOS.

Since approval in 2021, cases of VBDS have been reported, largely from Japan and none from the United States.

Most patients who had VBDS were aged 65 years and older, and most cases occurred within 90 days of starting TAVNEOS.

VBDS has been fatal in some of these patients.

On April 29, 2026, the Company submitted a Changes Being Effected (CBE-30) supplement to the FDA.

The CBE-30 filing amends the hepatotoxicity warning language in the label to provide more information on cases of VBDS that have been observed in the postmarketing setting, including that cases with fatal outcomes have been reported, and modifies language regarding liver panel testing and treatment discontinuation rules.

On April 27, 2026, CDER issued a proposal to withdraw approval of TAVNEOS, alleging that there is new information indicating lack of substantial evidence of effectiveness for the drug and that ChemoCentryx’s application that resulted in FDA approval contained untrue statements of material facts.

ChemoCentryx, as the U.S.

marketing authorization holder, may request a hearing on this proposal, after which the FDA will determine whether there is a genuine and substantial issue of fact that requires a hearing.

If a hearing is not granted, the FDA may enter summary judgment and ultimately withdraw approval.

On April 30, 2026, the FDA posted a notice in the Federal Register that proposes to withdraw approval of TAVNEOS and announced an opportunity for ChemoCentryx to request a hearing on this proposal.

The Company intends to engage with the FDA, continues to believe that TAVNEOS demonstrates effectiveness and a favorable benefit-risk profile, and intends to follow the appropriate process to support its position.

As the FDA’s statement reporting its proposal indicates, TAVNEOS will remain on the market during the pendency of this process.

For additional information, see

Note 8, Goodwill and other intangible assets, to the condensed consolidated financial statements, and Part II, Item 1A.

Risk Factors— Our current products and products in development cannot be sold without regulatory approval, of this Quarterly Report on Form 10-Q.

IMDELLTRA/IMDYLLTRA

In June 2026, we announced that the European Commission has granted marketing authorization for IMDYLLTRA as a monotherapy to treat adults with extensive-stage small cell lung cancer (ES-SCLC) who require systemic therapy following disease progression on or after first-line treatment with platinum-based chemotherapy.

The approval was based on results from DeLLphi-304, the first global Phase 3 trial to demonstrate a significant survival benefit over chemotherapy in this setting.

Selected financial information

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Product sales

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Diluted shares 544 541 1 % 544 541 1 %

* Change in excess of 100%

In the following discussion of changes in product sales, any reference to volume growth or decline refers to changes in purchases of our products by healthcare providers (such as physicians or their clinics), dialysis centers, hospitals and pharmacies.

In addition, any reference to increases or decreases in inventory refers to changes in inventory held by wholesaler customers and, in certain circumstances, end users (such as pharmacies) as may be noted.

Total product sales increased 4% for the three months ended March 31, 2026, driven by volume growth of 9%, partially offset by declines in net selling price of 2% and 2% from lower wholesaler and end user inventory.

For the three months ended March 31, 2026, U.S.

volume grew 8% and ROW volume grew 13%, driven by certain brands, including Repatha, IMDELLTRA/IMDYLLTRA, PAVBLU, UPLIZNA and EVENITY.

Other revenues increased 45% for the three months ended March 31, 2026, driven by higher corporate partner revenue and royalty income.

Operating expenses decreased 15% for the three months ended March 31, 2026, reflecting the Otezla intangible asset impairment charge recorded in the first quarter of 2025 and lower amortization expense from acquisition-related assets, partially offset by higher spend in Later-Stage Clinical Programs.

Total product sales increased 9% for the three months ended June 30, 2026, driven by volume growth.

Total product sales increased 7% for the six months ended June 30, 2026, driven by volume growth of 9%, partially offset by lower net selling price.

For the three months ended June 30, 2026, U.S.

volume grew 9% and ROW volume grew 8%, driven by certain brands, including Repatha, EVENITY, UPLIZNA, TEZSPIRE, IMDELLTRA/IMDYLLTRA and PAVBLU.

For the six months ended June 30, 2026, U.S.

volume grew 9% and ROW volume grew 10%, driven by certain brands, including Repatha, EVENITY, IMDELLTRA/IMDYLLTRA, UPLIZNA, PAVBLU and TEZSPIRE.

Other revenues increased 27% and 34% for the three and six months ended June 30, 2026, respectively, driven by higher corporate partner revenue and royalty income.

Operating expenses remained relatively unchanged for the three months ended June 30, 2026, as lower amortization expense from acquisition-related assets was offset by higher profit share expense and changes in our sales mix, as well as higher R&D, SG&A and litigation expenses.

Operating expenses decreased 7% for the six months ended June 30, 2026, reflecting lower amortization expense from acquisition-related assets and the impact of the Otezla intangible asset impairment charge recorded in the first quarter of 2025, partially offset by higher spend in Later-Stage Clinical Programs and higher profit share expense.

See Note 8, Goodwill and other intangible assets, to the condensed consolidated financial statements, for additional information related to the Otezla intangible asset impairment charge.

Uncertain macroeconomic conditions, including ongoing geopolitical conflict and rising geopolitical tensions, changes in the healthcare ecosystem, and potential government policy actions, including MFN pricing or similar drug pricing reforms and tariffs or trade protection measures, have the potential to introduce variability into product sales.

Furthermore, product sales continue to be impacted by actions from governments and other entities to address macroeconomic challenges, provisions of the IRA, expanded utilization of the 340B Program and growth in numbers of Medicaid enrollees and uninsured individuals.

For the remainder of 2026, we expect volume growth from certain brands to be partially offset by net selling price declines.

Uncertain macroeconomic conditions, including geopolitical conflict and rising geopolitical tensions, changes in the healthcare ecosystem, and potential government policy actions, including MFN pricing or similar drug pricing reforms and tariffs or trade protection measures, have the potential to introduce variability into product sales.

Furthermore, product sales continue to be impacted by actions from governments and other entities to address macroeconomic challenges;

provisions of the IRA;

expanded utilization of the 340B Program from broadened application of 340B discounts;

reductions in federal Medicaid spending;

and an increase in the number of people without health insurance.

See Part I, Item 1.

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and Part II, Item 1A.

Risk Factors, of this Quarterly Report on Form 10-Q.

Risk Factors, of our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026.

Results of operations

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Repatha $ 953 $ 696 37 % $ 1,829 $ 1,352 35 %

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Otezla 491 618 (21) % 922 1,055 (13) %

ENBREL 580 604 (4) % 900 1,114 (19) %

BLINCYTO 472 384 23 % 887 754 18 %

Nplate 430 369 17 % 842 682 23 %

486 342 42 % 829 627 32 %

XGEVA 352 532 (34) % 763 1,098 (31) %

KYPROLIS 330 324 2 %

ENBREL 320 510 (37) %

Aranesp 352 359 (2) % 663 699 (5) %

KRYSTEXXA 400 349 15 % 655 585 12 %

KYPROLIS 314 378 (17) % 644 702 (8) %

Vectibix 338 305 11 % 625 572 9 %

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IMDELLTRA/IMDYLLTRA 288 134 * 546 215 *

KRYSTEXXA 255 236 8 %

Other products (2)

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and (iv) Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview, and Results of operations—Product sales.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview, and Results of operations—Product sales, as well as in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026:

(i) Part I, Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of operations—Product sales;

and (ii) Part II, Item 1A.

Risk Factors.

Total Repatha sales by geographic region were as follows (dollar amounts in millions):

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Repatha — U.S.

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Total Repatha $ 953 $ 696 37 % $ 1,829 $ 1,352 35 %

The increase in global Repatha sales for the three months ended March 31, 2026 was driven by volume growth of 35% and favorable changes to estimated sales deductions of 8%, partially offset by lower net selling price of 7%.

The increases in global Repatha sales for the three and six months ended June 30, 2026 were driven by volume growth.

For a discussion of litigation, including associated settlements, related to Repatha, see Part IV—Note 20, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025;

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Prolia — U.S.

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Total Prolia $ 759 $ 1,122 (32) % $ 1,486 $ 2,221 (33) %

The decrease in global Prolia sales for the three months ended March 31, 2026 was primarily driven by lower volume of 17%, lower net selling price of 10% and 4% from lower inventory.

For 2026, we continue to expect accelerated sales erosion driven by increased competition, as multiple biosimilars have launched in the United States and ROW.

The decreases in global Prolia sales for the three and six months ended June 30, 2026 were primarily driven by lower volume of 20% and 19%, respectively, and lower net selling price of 12% and 11%, respectively.

For the remainder of 2026, we continue to expect accelerated sales erosion driven by increased competition, as multiple biosimilars have launched in the United States and ROW.

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, Part I, Item 1.

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For a discussion of litigation, including associated settlements, related to Prolia, see Part IV—Note 20, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025;

and Note 13, Contingencies and commitments, to the condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

and Note 13, Contingencies and commitments, to the condensed consolidated financial statements in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026.

Total EVENITY sales by geographic region were as follows (dollar amounts in millions):

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EVENITY — U.S.

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Total EVENITY $ 714 $ 518 38 % $ 1,276 $ 960 33 %

The increase in global EVENITY sales for the three months ended March 31, 2026 was driven by volume growth.

The increases in global EVENITY sales for the three and six months ended June 30, 2026 were driven by volume growth.

Total TEPEZZA sales by geographic region were as follows (dollar amounts in millions):

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TEPEZZA — U.S.

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* Change in excess of 100%

The increase in global TEPEZZA sales for the three months ended March 31, 2026 was driven by a 22% impact from higher inventory, and higher net selling price.

The increase in global TEPEZZA sales for the three months ended June 30, 2026 was driven by higher net selling price of 6%, volume growth of 6% and favorable changes to estimated sales deductions of 4%, partially offset by 4% from lower inventory.

The increase in global TEPEZZA sales for the six months ended June 30, 2026 was primarily driven by a 7% impact from higher inventory, higher net selling price of 7% and volume growth of 3%.

Total Otezla sales by geographic region were as follows (dollar amounts in millions):

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Otezla — U.S.

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Total Otezla $ 491 $ 618 (21) % $ 922 $ 1,055 (13) %

Global Otezla sales decreased 1% for the three months ended March 31, 2026, as lower net selling price of 8% and lower volume of 2% were offset by favorable changes to estimated sales deductions.

The decrease in global Otezla sales for the three months ended June 30, 2026 was driven by lower net selling price of 9%, lower volume of 6% and unfavorable changes to estimated sales deductions.

The decrease in global Otezla sales for the six months ended June 30, 2026 was primarily driven by lower net selling price.

Otezla ROW sales were unfavorably impacted for the three and six months ended June 30, 2026 by generic competition following loss of exclusivity in certain European countries during the first quarter of 2026.

In January 2025, Otezla was selected by CMS for Medicare price setting that will be applicable beginning in 2027.

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See Note 8, Goodwill and other intangible assets, to the condensed consolidated financial statements, for additional information related to the Otezla intangible asset impairment charge recorded in 2025.

Total ENBREL sales by geographic region were as follows (dollar amounts in millions):

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ENBREL — U.S.

$ 574 $ 597 (4) % $ 888 $ 1,101 (19) %

ENBREL — Canada 6 7 (14) % 12 13 (8) %

Total ENBREL $ 580 $ 604 (4) % $ 900 $ 1,114 (19) %

The decrease in ENBREL sales for the three months ended June 30, 2026 was primarily driven by lower net selling price of 22% resulting from the impact of U.S.

Medicare Part D price setting under the IRA, effective January 1, 2026, as well as an increase in 340B Program mix, partially offset by favorable changes in estimated sales deductions of 16%.

The decrease in ENBREL sales for the six months ended June 30, 2026 was driven by lower net selling price of 25% resulting from the impact of U.S.

Medicare Part D price setting under the IRA, effective January 1, 2026, as well as an increase in 340B Program mix, partially offset by favorable changes in estimated sales deductions of 6%.

Total BLINCYTO sales by geographic region were as follows (dollar amounts in millions):

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BLINCYTO — U.S.

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Total BLINCYTO $ 472 $ 384 23 % $ 887 $ 754 18 %

The increase in global BLINCYTO sales for the three months ended March 31, 2026 was driven by volume growth of 19%, partially offset by unfavorable changes to estimated sales deductions.

The increase in global BLINCYTO sales for the three months ended June 30, 2026 was driven by volume growth of 16%, favorable changes to estimated sales deductions of 4% and higher net selling price.

The increase in global BLINCYTO sales for the six months ended June 30, 2026 was driven by volume growth.

Total Nplate sales by geographic region were as follows (dollar amounts in millions):

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Nplate — U.S.

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Total Nplate $ 430 $ 369 17 % $ 842 $ 682 23 %

Global Nplate sales for the three months ended March 31, 2026 increased 32% and included a U.S.

government order of $60 million for the three months ended March 31, 2026.

The increase in global Nplate sales for the three months ended June 30, 2026 was driven by volume growth of 13% and higher net selling price.

Global Nplate sales for the six months ended June 30, 2026 increased 23% and included a U.S.

government order of $60 million for the six months ended June 30, 2026.

Excluding the U.S.

government order from this comparison, global Nplate sales increased 12% for the three months ended March 31, 2026, driven by volume growth of 8% and higher net selling price.

government order from this comparison, global Nplate sales increased 15% for the six months ended June 30, 2026, driven by volume growth of 11% and higher net selling price.

Total TEZSPIRE sales by geographic region were as follows (dollar amounts in millions):

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TEZSPIRE — U.S.

$ 486 $ 342 42 % $ 829 $ 627 32 %

The increases in TEZSPIRE sales for the three and six months ended June 30, 2026 were primarily driven by volume growth.

Total XGEVA sales by geographic region were as follows (dollar amounts in millions):

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$ 187 $ 347 (46) % $ 415 $ 707 (41) %

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Total XGEVA $ 352 $ 532 (34) % $ 763 $ 1,098 (31) %

The decrease in global XGEVA sales for the three months ended March 31, 2026 was driven by lower volume of 19% and lower net selling price.

For 2026, we continue to expect accelerated sales erosion driven by increased competition, as multiple biosimilars have launched in the United States and ROW.

The decreases in global XGEVA sales for the three and six months ended June 30, 2026 were primarily driven by lower volume of 22% and 20%, respectively, and lower net selling price of 8% for both periods.

For the remainder of 2026, we continue to expect accelerated sales erosion driven by increased competition, as multiple biosimilars have launched in the United States and ROW.

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025, Part I, Item 1.

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For a discussion of litigation, including associated settlements, related to XGEVA, see Part IV—Note 20, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025;

and Note 13, Contingencies and commitments, to the condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

Total TEZSPIRE sales by geographic region were as follows (dollar amounts in millions):

and Note 13, Contingencies and commitments, to the condensed consolidated financial statements in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026.

Total Aranesp sales by geographic region were as follows (dollar amounts in millions):

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TEZSPIRE — U.S.

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Aranesp — U.S.

$ 94 $ 107 (12) % $ 171 $ 198 (14) %

The increase in TEZSPIRE sales for the three months ended March 31, 2026 was driven by volume growth of 32%, partially offset by 8% from lower inventory.

Aranesp — ROW 258 252 2 % 492 501 (2) %

Total Aranesp $ 352 $ 359 (2) % $ 663 $ 699 (5) %

The decreases in global Aranesp sales for the three and six months ended June 30, 2026 were primarily driven by lower net selling price.

Total KRYSTEXXA sales by geographic region were as follows (dollar amounts in millions):

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KRYSTEXXA — U.S.

$ 399 $ 349 14 % $ 654 $ 585 12 %

KRYSTEXXA — ROW

1 — N/A 1 — N/A

Total KRYSTEXXA

$ 400 $ 349 15 % $ 655 $ 585 12 %

N/A = not applicable

The increases in global KRYSTEXXA sales for the three and six months ended June 30, 2026 were driven by higher net selling price of 23% and 20%, respectively, partially offset by lower inventory for both periods.

Total KYPROLIS sales by geographic region were as follows (dollar amounts in millions):

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KYPROLIS — U.S.

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Total KYPROLIS $ 314 $ 378 (17) % $ 644 $ 702 (8) %

The increase in global KYPROLIS sales for the three months ended March 31, 2026 was primarily driven by higher net selling price.

The decreases in global KYPROLIS sales for the three and six months ended June 30, 2026 were driven by lower volume.

For a discussion of ongoing litigation related to KYPROLIS, see Part IV—Note 20, Contingencies and commitments, to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2025;

and Note 13, Contingencies and commitments, to the condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

Total ENBREL sales by geographic region were as follows (dollar amounts in millions):

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ENBREL — U.S.

$ 314 $ 504 (38) %

ENBREL — Canada 6 6 — %

Total ENBREL $ 320 $ 510 (37) %

The decrease in ENBREL sales for the three months ended March 31, 2026 was primarily driven by unfavorable changes to estimated sales deductions of 18% and lower net selling price of 15% resulting from the impact of U.S.

Medicare Part D price setting under the IRA, effective January 1, 2026, as well as an increased 340B Program mix.

Total Aranesp sales by geographic region were as follows (dollar amounts in millions):

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Aranesp — U.S.

$ 77 $ 91 (15) %

Aranesp — ROW 234 249 (6) %

Total Aranesp $ 311 $ 340 (9) %

The decrease in global Aranesp sales for the three months ended March 31, 2026 was driven by lower volume of 5%, lower net selling price of 2% and lower inventory.

and Note 13, Contingencies and commitments, to the condensed consolidated financial statements in our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026.

Total Vectibix sales by geographic region were as follows (dollar amounts in millions):

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Vectibix — U.S.

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Total Vectibix $ 338 $ 305 11 % $ 625 $ 572 9 %

The increase in global Vectibix sales for the three months ended March 31, 2026 was driven by volume growth of 11%, partially offset by lower inventory.

The increases in global Vectibix sales for the three and six months ended June 30, 2026 were primarily driven by volume growth.

Total UPLIZNA sales by geographic region were as follows (dollar amounts in millions):

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UPLIZNA — U.S.

$ 317 $ 132 * $ 563 $ 214 *

UPLIZNA — ROW 18 44 (59) % 34 53 (36) %

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The increase in global UPLIZNA sales for the three months ended March 31, 2026 was primarily driven by volume growth.

The increases in global UPLIZNA sales for the three and six months ended June 30, 2026 were primarily driven by volume growth.

IMDELLTRA/IMDYLLTRA

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IMDELLTRA — U.S.

$ 233 $ 107 * $ 421 $ 186 *

IMDYLLTRA — ROW 55 27 * 125 29 *

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* Change in excess of 100%

The increase in global IMDELLTRA/IMDYLLTRA sales for the three months ended March 31, 2026 was driven by volume growth.

Total KRYSTEXXA sales by geographic region were as follows (dollar amounts in millions):

Three months ended

2026 2025 Change

KRYSTEXXA — U.S.

$ 255 $ 236 8 %

The increase in KRYSTEXXA sales for the three months ended March 31, 2026 was primarily driven by higher net selling price of 20%, partially offset by 8% from lower inventory, and unfavorable changes to estimated sales deductions.

The increases in global IMDELLTRA/IMDYLLTRA sales for the three and six months ended June 30, 2026 were primarily driven by volume growth.

Other products

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Three months ended

2026 2025 Change

June 30, Six months ended

2026 2025 Change 2026 2025 Change

PAVBLU — U.S.

PAVBLU — ROW 4 — N/A

AMJEVITA — U.S.

AMGEVITA — ROW

$ 280 $ 126 * $ 556 $ 225 *

PAVBLU — ROW 7 4 75 % 11 4 *

Neulasta — U.S.

164 63 * 313 172 82 %

Neulasta — ROW 15 19 (21) % 31 39 (21) %

AMJEVITA — U.S.

26 — N/A 67 4 *

AMGEVITA — ROW

129 133 (3) % 261 265 (2) %

106 142 (25) % 202 280 (28) %

47 49 (4) % 101 90 12 %

TAVNEOS — U.S.

143 103 39 % 257 180 43 %

TAVNEOS — ROW 7 7 — % 12 20 (40) %

LUMAKRAS — U.S.

62 52 19 % 111 107 4 %

LUMYKRAS — ROW

49 38 29 % 94 68 38 %

Parsabiv — U.S.

54 51 6 % 97 101 (4) %

Parsabiv — ROW 47 41 15 % 91 79 15 %

Aimovig — U.S.

81 64 27 % 149 149 — %

Aimovig — ROW 7 6 17 % 13 11 18 %

PROCYSBI — U.S.

71 55 29 % 118 112 5 %

PROCYSBI — ROW 3 2 50 % 4 4 — %

WEZLANA — U.S.

— — N/A 4 123 (97) %

WEZENLA — ROW 61 35 74 % 104 62 68 %

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Other — ROW (1)

42 56 (25) % 89 114 (22) %

Total other products $ 1,697 $ 1,380 23 % $ 3,225 $ 2,855 13 %

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N/A = not applicable

(1) Consists of product sales from KANJINTI, AVSOLA, RAVICTI, BKEMV/BEKEMV, RIABNI, EPOGEN, NEUPOGEN, IMLYGIC, ACTIMMUNE, Sensipar/Mimpara, RAYOS, BUPHENYL, QUINSAIR, DUEXIS, Corlanor and PENNSAID.

(1) Consists of product sales from KANJINTI, AVSOLA, RAVICTI, BKEMV/BEKEMV, RIABNI, EPOGEN, IMLYGIC, NEUPOGEN, ACTIMMUNE, RAYOS, Sensipar/Mimpara, BUPHENYL, QUINSAIR, DUEXIS, Corlanor and PENNSAID.

Operating expenses

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Three months ended

2026 2025 Change

June 30, Six months ended

2026 2025 Change 2026 2025 Change

Operating expenses:

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Total operating expenses $ 6,540 $ 6,523 0 % $ 12,492 $ 13,494 (7) %

* Change in excess of 100%

Cost of sales

Cost of sales decreased to 31.8% of total revenues for the three months ended March 31, 2026, due to lower amortization expense from acquisition-related assets, partially offset by higher profit share and royalty expense and changes in our sales mix.

Cost of sales decreased to 28.0% of total revenues for the three months ended June 30, 2026, driven by lower amortization expense from acquisition-related assets, partially offset by higher profit share expense, higher manufacturing costs and changes in our sales mix.

Cost of sales decreased to 29.8% of total revenues for the six months ended June 30, 2026, driven by lower amortization expense from acquisition-related assets, partially offset by higher profit share expense and changes in our sales mix.

Research and development

The increase in R&D expense for the three months ended March 31, 2026, was driven by higher spend in Later-Stage Clinical Programs, including those related to MariTide.

We expect to continue to grow our spend on Later-Stage Clinical Programs as we advance our pipeline.

The increase in R&D expense for the three months ended June 30, 2026, was driven by higher spend in both Later-Stage Clinical Programs, primarily those related to MariTide, and Marketed Product Support.

The increase in R&D expense for the six months ended June 30, 2026, was driven by higher spend in Later-Stage Clinical Programs, primarily those related to MariTide.

Selling, general and administrative

The decrease in SG&A expense for the three months ended March 31, 2026, was due to lower general and administrative expenses, partially offset by higher commercial product-related expenses.

Other operating income for the three months ended March 31, 2026, included litigation settlements.

Other operating expenses for the three months ended March 31, 2025, included the Otezla intangible asset impairment charge of $800 million.

The increase in SG&A expense for the three months ended June 30, 2026, was driven by higher general and administrative expenses and higher commercial product-related expenses.

The decrease in SG&A expense for the six months ended June 30, 2026, was driven by lower general and administrative expenses, partially offset by higher commercial product-related expenses.

Other operating expenses for the three and six months ended June 30, 2026, included litigation expenses and settlements, respectively.

Other operating expenses for the three months ended June 30, 2025, included litigation expenses.

Other operating expenses for the six months ended June 30, 2025, included the Otezla intangible asset impairment charge of $800 million following its selection for price setting under the IRA.

See Note 8, Goodwill and other intangible assets, to the condensed consolidated financial statements.

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Three months ended

June 30, Six months ended

2026 2025 2026 2025

Interest expense, net $ (673) $ (694) $ (1,330) $ (1,417)

Other income, net $ 75 $ 1,518

Other (expense) income, net $ (73) $ (394) $ 2 $ 1,124

Provision for income taxes $ 393 $ 136 $ 658 $ 379

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Interest expense, net

Interest expense, net, decreased for the three months ended March 31, 2026, primarily due to lower average debt outstanding driven by deleveraging in 2025 and, to a lesser extent, lower weighted-average fixed and floating interest rates on the debt.

Other income, net

Other income, net, decreased for the three months ended March 31, 2026, primarily due to net unrealized losses on equity investments, primarily BeOne, in the current-year period compared to net unrealized gains on equity investments, primarily BeOne, in the prior-year period.

Interest expense, net, decreased for the three and six months ended June 30, 2026, primarily due to lower average debt outstanding.

Other (expense) income, net

The change in Other (expense) income, net, for the three months ended June 30, 2026, was primarily due to lower net unrealized losses on equity investments, primarily BeOne.

See Note 6, Investments, to the condensed consolidated financial statements.

The increase in our effective tax rate for the three months ended March 31, 2026, was primarily due to the change in earnings mix, including lower amortization expense from acquisition-related assets, partially offset by the net unrealized losses on equity investments in the current-year period compared to net unrealized gains in the prior-year period.

The change in Other (expense) income, net, for the six months ended June 30, 2026, was primarily due to net unrealized losses on equity investments, primarily BeOne, in the current-year period compared to net unrealized gains on equity investments, primarily BeOne, in the prior-year period.

See Note 6, Investments, to the condensed consolidated financial statements.

The increase in our effective tax rate for the three months ended June 30, 2026, was primarily due to the change in earnings mix, including lower amortization expense from acquisition-related assets.

The increase in our effective tax rate for the six months ended June 30, 2026, was primarily due to the change in earnings mix, including lower amortization expense from acquisition-related assets, partially offset by the net unrealized losses in the first half of 2026 compared to net unrealized gains in the prior-year period on equity investments.

See Note 6, Investments, to the condensed consolidated financial statements.

In 2021, the OECD reached an initial agreement to align countries on a minimum corporate tax rate and an expansion of the taxing rights of market countries.

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taxable income for the years 2013–2015 by an amount that would result in additional federal tax of approximately $5.1 billion, plus interest and asserts penalties of approximately $2.0 billion.

Any additional tax that could be imposed for the years 2013–2015 would be reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid on our foreign earnings.

Any additional tax that could be

imposed for the years 2013–2015 would be reduced by up to approximately $2.2 billion of repatriation tax previously accrued and paid on our foreign earnings.

We firmly believe that the IRS positions set forth in the 2010–2012 and 2013–2015 Notices are without merit.

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The parties filed post-trial reply briefs on October 10, 2025.

On March 16, 2026, the Court ordered supplemental closing briefs, which are due May 20, 2026.

On March 16, 2026, the Court ordered supplemental closing briefs, which were filed on May 20, 2026.

The Company expects a decision from the U.S.

Tax Court no earlier than the second half of 2026.

Tax Court no earlier than late 2026 or early 2027.

We are currently under examination by the IRS for the years 2016–2018.

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territory of Puerto Rico.

If sustained in full, the adjustments set forth in the draft NOPA could have a material impact on our financial statements.

We disagree with the draft NOPA and have informed the IRS audit team that its methodology is inconsistent with certain positions asserted by the IRS in the Tax Court, which positions were more favorable to Amgen than those previously taken by the exam team.

We intend to contest the draft NOPA.

We expect that the IRS will begin its audit for years 2019–2022 in the first half of 2026, and we believe that it may seek to continue to audit similar issues related to the allocation of income between the United States and our foreign jurisdictions.

In May and July 2026, the IRS reissued the NOPA in substantially the same form.

We disagree with the NOPA and have informed the IRS audit team that its methodology is inconsistent with certain positions asserted by the IRS in the Tax Court, which positions were more favorable to Amgen than those previously taken by the audit team.

If sustained in full, the adjustments set forth in the NOPA could have a material impact on our financial statements.

We intend to contest the NOPA.

The IRS began its audit for years 2019–2022 in the second quarter of 2026, and we believe that it may seek to continue to audit similar issues related to the allocation of income between the United States and our foreign jurisdictions.

In addition, we are under examination by a number of state and foreign tax jurisdictions.

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Selected financial data were as follows (in millions):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Cash and cash equivalents $ 13,989 $ 9,129

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Cash and cash equivalents

Our balance of cash and cash equivalents was $12.0 billion as of March 31, 2026.

Our balance of cash and cash equivalents was $14.0 billion as of June 30, 2026.

The primary objective of our investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk.

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Capital allocation

Consistent with the objective to optimize our capital structure, we deploy our accumulated cash balances in a strategic manner and consider a number of alternatives, including investments in innovation both internally and externally (including investments that expand our portfolio of products in areas of therapeutic interest), capital expenditures, repayment of debt, payment of dividends and stock repurchases.

investments that expand our portfolio of products in areas of therapeutic interest), capital expenditures, repayment of debt, payment of dividends and stock repurchases.

We intend to continue investing in our business while returning capital to stockholders through the payment of cash dividends and stock repurchases.

This reflects our desire to optimize our cost of capital and our confidence in the future cash flows of our business.

The timing and amount of future dividends and stock repurchases will vary based on a number of factors,

including future capital requirements for strategic transactions, debt levels and debt service requirements, our credit rating, availability of financing on acceptable terms, changes to applicable tax laws or corporate laws, changes to our business model and periodic determination by our Board of Directors that cash dividends and/or stock repurchases are in the best interests of stockholders and are in compliance with applicable laws and the Company’s agreements.

The timing and amount of future dividends and stock repurchases will vary based on a number of factors, including future capital requirements for strategic transactions, debt levels and debt service requirements, our credit rating, availability of financing on acceptable terms, changes to applicable tax laws or corporate laws, changes to our business model and periodic determination by our Board of Directors that cash dividends and/or stock repurchases are in the best interests of stockholders and are in compliance with applicable laws and the Company’s agreements.

In addition, the timing and amount of stock repurchases may also be affected by our overall level of cash, stock price and blackout periods, during which we are restricted from repurchasing stock.

The manner of stock repurchases may include block purchases, tender offers, accelerated share repurchases and market transactions.

In December 2025, our Board of Directors declared a quarterly cash dividend of $2.52 per share of common stock for the first quarter of 2026, an increase of 6% over the same period in the prior year, which was paid in March 2026.

In March 2026, our Board of Directors declared a quarterly cash dividend of $2.52 per share of common stock to be paid in June 2026.

During the three months ended March 31, 2026, we did not repurchase shares under our stock repurchase program.

As of March 31, 2026, $6.8 billion of authorization remained available under the stock repurchase program.

As a result of stock repurchases and quarterly dividend payments, we have an accumulated deficit as of March 31, 2026 and December 31, 2025.

In December 2025 and March 2026, our Board of Directors declared quarterly cash dividends of $2.52 per share of common stock for the first and second quarters of 2026, respectively, an increase of 6% over the same periods in the prior year, which were paid in March 2026 and June 2026, respectively.

In July 2026, our Board of Directors declared a quarterly cash dividend of $2.52 per share of common stock to be paid in September 2026.

During the six months ended June 30, 2026, we did not repurchase shares under our stock repurchase program.

As of June 30, 2026, $6.8 billion of authorization remained available under the stock repurchase program.

As a result of stock repurchases and quarterly dividend payments, we have an accumulated deficit as of June 30, 2026 and December 31, 2025.

Our accumulated deficit is not anticipated to affect our future ability to operate, repurchase stock, pay dividends or repay our debt given our expected continued profitability and strong financial position.

During the three months ended March 31, 2026, we issued $4.0 billion of debt consisting of $1.0 billion of the 4.20% 2031 Notes, $1.75 billion of the 4.85% 2036 Notes, $500 million of the 5.50% 2046 Notes and $750 million of the 5.65% 2056 Notes.

There were no debt issuances during the three months ended March 31, 2025.

During the three months ended March 31, 2026, we repaid the €750 million aggregate principal amount of our 2.00% 2026 euro Notes ($833 million upon settlement of the related cross-currency swap), compared to $2.5 billion of debt repayments during the three months ended March 31, 2025.

During the six months ended June 30, 2026, we issued $4.0 billion of debt consisting of $1.0 billion of the 4.20% 2031 Notes, $1.75 billion of the 4.85% 2036 Notes, $500 million of the 5.50% 2046 Notes and $750 million of the 5.65% 2056 Notes.

There were no debt issuances during the six months ended June 30, 2025.

During the six months ended June 30, 2026, we repaid the €750 million aggregate principal amount of our 2.00% 2026 euro Notes ($833 million upon settlement of the related cross-currency swap), compared to $3.5 billion of debt repayments during the six months ended June 30, 2025.

We periodically consider the repurchase of our debt when conditions are favorable.

During the three months ended March 31, 2026 and 2025, we repurchased aggregate principal amounts of our debt of $324 million and $414 million, respectively, for aggregate costs of $233 million and $301 million, respectively, which resulted in the recognition of gains on extinguishment of debt of $90 million and $111 million respectively, recorded in Other income, net, in the Condensed Consolidated Statements of Income.

During the six months ended June 30, 2026 and 2025, we repurchased aggregate principal amounts of our debt of $324 million and $832 million, respectively, for aggregate costs of $233 million and $602 million, respectively, which resulted in the recognition of gains on extinguishment of debt of $90 million and $228 million respectively, recorded in Other (expense) income, net, in the Condensed Consolidated Statements of Income.

We believe that existing funds, cash generated from operations and existing sources of and access to financing are adequate to satisfy our needs for working capital, capital expenditure and debt service requirements, as well as our plans to pay dividends and repurchase stock, and other business initiatives we plan to strategically pursue, including acquisitions and licensing activities.

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See Part II, Item 1A.

Risk Factors— Global economic conditions may negatively affect us and may magnify certain risks that affect our business, of this Quarterly Report on Form 10-Q.

Risk Factors— Global economic conditions may negatively affect us and may magnify certain risks that affect our business, of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

In February 2026, we filed a shelf registration statement with the SEC that allows us to issue unspecified amounts of debt securities, common stock, preferred stock, warrants to purchase securities (including debt securities, common stock, preferred stock or depositary shares), rights to purchase common stock or preferred stock, securities purchase contracts, securities purchase units, and depositary shares.

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This shelf registration statement expires in February 2029.

During the three months ended March 31, 2026, we extended the term of our $4.0 billion syndicated, unsecured, revolving credit facility by one year to March 2029.

As of March 31, 2026 and December 31, 2025, no amounts were outstanding under this facility.

In the first quarter of 2026, we extended the term of our $4.0 billion syndicated, unsecured, revolving credit facility by one year to March 2029.

As of June 30, 2026 and December 31, 2025, no amounts were outstanding under this facility.

Certain of our financing arrangements contain nonfinancial covenants.

In addition, our revolving credit agreement and term loan credit agreement include a financial covenant that requires us to maintain a specified minimum interest coverage ratio of (i) the sum of consolidated net income, interest expense, provision for income taxes, depreciation expense, amortization expense, unusual or nonrecurring charges and other noncash items (consolidated earnings before interest, taxes, depreciation and amortization) to (ii) Consolidated Interest Expense, each as defined and described in the respective agreements.

We were in compliance with all applicable covenants under these arrangements as of March 31, 2026.

and amortization) to (ii) Consolidated Interest Expense, each as defined and described in the respective agreements.

We were in compliance with all applicable covenants under these arrangements as of June 30, 2026.

Our summarized cash flow activity was as follows (in millions):

Three months ended

Six months ended

Net cash provided by operating activities $ 6,191 $ 3,671

Net cash used in investing activities $ (1,285) $ (836)

Net cash provided by (used in) financing activities $ 1,436 $ (4,107)

Net cash used in financing activities $ (46) $ (6,780)

Cash provided by operating activities has been and is expected to continue to be our primary recurring source of funds.

Cash provided by operating activities during the three months ended March 31, 2026, increased as compared to the same period in the prior year primarily due to higher net income in the current-year period after adjustments for noncash items and the timing of working capital items.

Cash used in investing activities during the three months ended March 31, 2026 and 2025, was primarily due to capital expenditures of $712 million and $411 million, respectively, including construction costs for new plants and expansion of manufacturing capacity.

Cash provided by operating activities during the six months ended June 30, 2026, increased as compared to the same period in the prior year primarily due to the final $1.8 billion repatriation tax payment in the second quarter of 2025 and higher net income in the current-year period after adjustments for noncash items.

Cash used in investing activities during the six months ended June 30, 2026 and 2025, was primarily due to capital expenditures of $1.2 billion and $780 million, respectively, including construction costs for new plants and expansion of manufacturing capacity.

We currently estimate full year 2026 investments in capital projects to be approximately $2.6 billion.

Cash provided by financing activities during the three months ended March 31, 2026, was primarily due to $4.0 billion of net proceeds from long-term debt issuances, partially offset by the payment of dividends of $1.4 billion and the repayment and extinguishment of debt of $833 million and $233 million, respectively.

Cash used in financing activities during the three months ended March 31, 2025, was primarily due to the repayment and extinguishment of debt of $2.5 billion and $301 million, respectively, and the payment of dividends of $1.3 billion.

Cash used in financing activities during the six months ended June 30, 2026, was primarily due to the payment of dividends of $2.7 billion and the repayment and extinguishment of debt of $833 million and $233 million, respectively, partially offset by $4.0 billion of net proceeds from long-term debt issuances.

Cash used in financing activities during the six months ended June 30, 2025, was primarily due to the repayment and extinguishment of debt of $3.5 billion and $602 million, respectively, and the payment of dividends of $2.6 billion.

See Note 9, Financing arrangements, and Note 10, Stockholders’ equity, to the condensed consolidated financial statements for further discussion.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no material changes to our critical accounting policies and estimates during the three months ended March 31, 2026.

There have been no material changes to our critical accounting policies and estimates during the six months ended June 30, 2026.

Recently issued accounting standards

For a discussion of recently issued accounting standards, see Note 1, Significant accounting policies, to the condensed consolidated financial statements.

For a discussion of recently issued accounting standards, see Note 1, Summary of significant accounting policies, to the condensed consolidated financial statements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis