AMGN: FY25 Deep Dive
FY25 revenue $36.75B (+10%) — Repatha $3.0B (+36%), Tezspire $1.48B (+52%), Evenity $2.1B (+34%) the growth engine. Enbrel collapsed -33% on biosimilar erosion. Net income $7.71B (+89% YoY, partly equity-gain inflated). $0 buybacks for second time in three years; $5.1B dividend held. 12 analysts: 4 Buy / 8 Hold consensus $367.
Key Takeaways
Amgen closed fiscal 2025 (calendar year ended December 31, 2025) at $36.75 billion of total revenue, up 10% YoY — a clean acceleration above the FY24 +7% pace, driven by the post-Horizon-Therapeutics integration assets (Tepezza, Krystexxa, Uplizna) plus organic growth in Repatha (+36% to $3.0B), Tezspire (+52% to $1.48B), and Evenity (+34% to $2.1B). The growth was partially masked by Enbrel's -33% collapse to $2.23 billion as US biosimilar erosion accelerated in the third year post-LOE. Operating income reached $9.08 billion (+25%, the cleaner profit-quality metric). Reported net income surged to $7.71 billion (+89% YoY) and diluted EPS to $14.23 (+88%) — but the print was inflated by $2.06 billion of mark-to-market gains on equity securities (vs $159M loss FY24); the underlying operational earnings growth is closer to the +25% operating income trajectory. Operating cash flow was $9.96 billion (vs $11.49B FY24, partly on working capital seasonality), capex stepped up 69% to $1.86 billion (manufacturing buildout), free cash flow $8.10 billion. Capital allocation continued the deleveraging-over-buyback model: $0 in buybacks for FY25 (vs $200M FY24), $5.1 billion in dividends, and $5.7 billion of debt repayment / extinguishment. Net principal debt declined from $61.78B to $56.04B. Sell-side coverage is 12 analysts: 4 Buy / 8 Hold / 0 Sell, consensus PT $366.67, range $326-$432 — the Hold-heavy tilt reflects MariTide (GLP-1 obesity Phase 3) overhang and Enbrel erosion concerns.
Main business structure
Amgen reports a single biopharmaceutical operating segment with revenue disaggregated by product and geography:
| Revenue category | FY25 ($M) | FY24 ($M) | YoY |
|---|---|---|---|
| US Product Sales | 25,656 | 23,301 | +10% |
| ROW Product Sales | 9,492 | 8,725 | +9% |
| Total Product Sales | 35,148 | 32,026 | +10% |
| Other Revenues (royalties, milestones) | 1,603 | 1,398 | +15% |
| Total Revenue | 36,751 | 33,424 | +10% |
Top 10 products (FY25 Total $M)
| Rank | Product | FY25 | YoY | Therapeutic area |
|---|---|---|---|---|
| 1 | Prolia | 4,414 | +1% | Osteoporosis |
| 2 | Repatha | 3,016 | +36% | PCSK9 — cholesterol |
| 3 | Otezla | 2,265 | +6% | Psoriasis / PsA |
| 4 | ENBREL | 2,226 | -33% | Anti-TNF — biosimilar erosion |
| 5 | EVENITY | 2,100 | +34% | Osteoporosis (post-fracture) |
| 6 | XGEVA | 2,084 | -6% | Bone metastases |
| 7 | TEPEZZA | 1,903 | +3% | Thyroid eye disease (Horizon) |
| 8 | BLINCYTO | 1,559 | +28% | Acute lymphoblastic leukemia |
| 9 | Nplate | 1,524 | +5% | ITP |
| 10 | TEZSPIRE | 1,478 | +52% | Severe asthma (AZN partnership) |
The five accelerators. Repatha (+36%), Tezspire (+52%), Evenity (+34%), Blincyto (+28%), and Tepezza (+3%) are the named growth franchises driving the +10% top line. Repatha + Evenity together added ~$1.3B of incremental revenue; Tezspire + Blincyto added another ~$0.85B; this offset Enbrel's -$1.1B drag.
Enbrel erosion. The TNF-blocker franchise lost $1.1B of revenue YoY (-33%) — biosimilar competition accelerated in Year 3 post-US LOE. Enbrel was Amgen's largest single product as recently as FY18; the slow-decline-then-collapse pattern is roughly consistent with industry biosimilar erosion curves.
Horizon Therapeutics integration (closed October 2023). Brought Tepezza ($1.9B FY25), Krystexxa, Uplizna, Tavneos, Actimmune. The acquisition cost $27.8B and added the long-tail debt position; FY25 was Year 2 of integration and the assets contributed ~$3-3.5B of revenue.
Geographic mix. US product sales 73% of total — heavier US concentration than peer big pharma (Pfizer, Merck both ~50%). Reflects high-priced specialty biologics product mix.
Customer concentration. Three large drug distributors dominate US specialty distribution per industry standard.
Scale anchors. ~28,000 employees globally. R&D spend ~$5.5-6B annually (~16% of revenue). 11 manufacturing sites globally.
Key core metrics (3-year trend)
1. Revenue growth — Horizon-accelerated growth phase
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Revenue ($B) | 28.2 | 33.4 | 36.75 |
| YoY | — | +18% | +10% |
FY24's +18% was the Horizon-acquisition year (full-year contribution started). FY25 +10% is the clean post-integration organic + acquisition combined growth rate.
2. Operating leverage and reported earnings
| FY24 | FY25 | |
|---|---|---|
| Operating income ($B) | 7.26 | 9.08 (+25%) |
| Net income ($B) | 4.09 | 7.71 (+89%) |
| Diluted EPS | $7.56 | $14.23 (+88%) |
The +89% net income growth is a noisy print: it includes $2.06B of unrealized gains on equity securities and tax dynamics. The +25% operating income is the cleaner earnings signal.
3. The post-Horizon deleveraging program
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| Total debt principal ($B) | 64.9 | 61.78 | 56.04 |
| Buybacks ($M) | 0 | 200 | 0 |
| Dividends ($B) | 4.7 | 4.9 | 5.1 |
| Debt repayment ($B) | — | — | 5.7 |
Two consecutive years (FY23 + FY25) of $0 buyback while net debt was paid down by ~$9B over three years from the Horizon-deal peak. Buyback authorization remains at $6.8B but management is prioritizing deleveraging.
4. Free cash flow
| FY23 | FY24 | FY25 | |
|---|---|---|---|
| OCF ($B) | 8.47 | 11.49 | 9.96 |
| Capex ($B) | 1.11 | 1.10 | 1.86 |
| FCF ($B) | 7.36 | 10.39 | 8.10 |
FCF dipped from $10.4B → $8.1B in FY25 — partly working capital (trade receivables -$2.7B), partly the +69% capex step-up for manufacturing buildout (Ohio site, Repatha capacity, Tezspire ramp). Capex elevation likely persists FY26-FY27.
Market evaluation
Sell-side coverage (as of April 27, 2026). 12 analysts cover the stock.
| Rating | Count |
|---|---|
| Buy / Outperform / Overweight | 4 |
| Hold / Equal-Weight / Neutral | 8 |
| Sell | 0 |
Price targets. Consensus $366.67, range $326 (low: Morgan Stanley, EW) to $432 (high: Piper Sandler, OW).
Recent analyst activity (February through April 2026). 15 covered actions in the window — a mix of PT raises and three new initiations:
- Piper Sandler (David Amsellem): $381 → $432 on February 18 — Street-high, OW maintained
- UBS (Michael Yee): $390 → $400 on April 13 — Buy maintained
- Wells Fargo (Mohit Bansal): $325 → $375 on February 19 — largest single raise (+$50), EW maintained
- Morgan Stanley (Terence Flynn): $309 → $326 on April 10 — Street-low, EW maintained
- Canaccord Genuity: initiated Hold at $366 in the window
- Jefferies: initiated Hold at $350
- Barclays: initiated Equal-Weight at $350
The 8 Hold ratings (heavy for a large-cap pharma) cluster around two concerns: (1) Enbrel decline acceleration risk, (2) MariTide (Phase 3 GLP-1 obesity asset) — the catalyst that defines the Amgen 12-24 month thesis. Piper's $432 bull case bakes in MariTide commercial success; Morgan Stanley's $326 implicitly discounts MariTide. The three new initiations all came in at Hold/EW — reflecting Street caution heading into the Phase 3 readout.
Buy-side positioning. AMGN is a core specialty biotech holding. Yield-and-growth profile: ~3% dividend yield with single-digit revenue growth ex-Enbrel. Short interest ~2.5% of float — moderately elevated.
FY25 corporate structure: Horizon-bridge working, MariTide overhang
FY25 is the year that the post-Horizon integration thesis printed cleanly on revenue growth (+10%) and operating leverage (+25% OpInc) — but the Hold-heavy Street positioning (8 of 12 ratings) signals that the Amgen 12-24 month thesis is fundamentally about the MariTide Phase 3 GLP-1 obesity readout rather than the FY25 base. The growth-asset list (Repatha, Tezspire, Evenity, Blincyto) compounded as expected; the Enbrel collapse (-33%) hit on schedule; capital allocation prioritized deleveraging ($0 buybacks, $5.7B debt paydown) over shareholder returns. The two structural questions for FY26: (1) does MariTide produce a competitive efficacy / tolerability profile vs Lilly's tirzepatide and Novo's semaglutide, and what's the timeline to commercial launch? (2) does the Enbrel decline pace stabilize at -20% or accelerate further into FY26-FY27? The Q1 FY26 earnings print this week is the proximate event for any updated commentary on MariTide trial timeline, FY26 revenue guide, and the buyback resumption question (with $6.8B authorization sitting unused).