Amgen Has the Drugs and the Dividend. Now It Needs the Growth

• Q2 2026 revenue up 10% to $10.1B; GAAP EPS jumped 65% but adjusted EPS grew only 4% • Repatha and EVENITY sales surged while Prolia fell 32% on biosimilar competition • Stock trades at 16.7x forward earnings, up from 13.4x a year ago; PEG ratio 2.45 Amgen (NASDAQ:AMGN) remains a strong biotech player with drugs spanning cancer, heart disease, inflammation, and rare conditions. In Q2 2026, revenue rose 10% year-over-year to $10.1 billion, and GAAP EPS jumped 65% to $4.37, while operating margin improved to 36.8% from 30.3%. However, adjusted EPS grew only 4% to $6.29, suggesting underlying growth is weaker than headline numbers imply. Free cash flow reached $3.5 billion, supporting R&D, acquisitions, and dividends. Results were mixed: Repatha sales rose 37% and EVENITY 38%, while Prolia fell 32% due to biosimilar competition, and Enbrel was hurt by lower prices tied to new Medicare rules. Amgen trades at 16.7x forward earnings (up from 13.4x in June 2025) and 25.2x trailing earnings, with a five-year PEG ratio of 2.45 — signaling the market expects growth, though recent earnings gains have been modest. Its earnings yield of about 6.0% offers only a slim premium over the 10-year Treasury yield (~5.3%), leaving limited cushion against risks like patent expirations and pricing pressure.