Biotech company Amgen (NASDAQ: AMGN) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 12.4% year on year to $9.56 billion. The company’s full-year revenue guidance of $36.2 billion at the midpoint came in 1.5% above analysts’ estimates. Its non-GAAP profit of $5.64 per share was 12.5% above analysts’ consensus estimates.

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Company Overview

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, Amgen’s 7.6% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Amgen’s annualized revenue growth of 15.8% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

We can better understand the company’s revenue dynamics by analyzing its most important segment, Product & Pipeline. Over the last two years, Amgen’s Product & Pipeline revenue averaged 16.1% year-on-year growth.

This quarter, Amgen reported year-on-year revenue growth of 12.4%, and its $9.56 billion of revenue exceeded Wall Street’s estimates by 6.7%.

Looking ahead, sell-side analysts expect revenue to grow 1.1% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.

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Operating Margin

Amgen has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 27.6%.

Looking at the trend in its profitability, Amgen’s operating margin decreased by 4.4 percentage points over the last five years. This performance was caused by more recent speed bumps as the company’s margin fell by 8.9 percentage points on a two-year basis. We’re disappointed in these results because it shows its expenses were rising and it couldn’t pass those costs onto its customers.

In Q3, Amgen generated an operating margin profit margin of 26.4%, up 2.4 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Amgen’s decent 5.9% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

In Q3, Amgen reported adjusted EPS of $5.64, up from $5.58 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Amgen’s full-year EPS of $21.87 to shrink by 3.9%.

Key Takeaways from Amgen’s Q3 Results

We were impressed by how significantly Amgen blew past analysts’ revenue and EPS expectations this quarter. We were also glad it raised its full-year revenue and EPS guidance, exceeding Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock remained flat at $299.97 immediately after reporting.

Amgen had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.