Amgen Stock Climbs as Drug Growth Outruns Obesity Setback
Khac Phu Nguyen
Thu, 6 August 2026 at 2:24 am GMT+5:30
2 min read
- AMGN
+4.57%
This article first appeared on GuruFocus
Amgen (NASDAQ:AMGN), the biotech heavyweight behind treatments for cancer, cardiovascular disease and other serious illnesses, gave investors another reason to cheer after posting a stronger-than-expected second quarter. Reuters reported revenue climbed 9% year over year to about $10.05 billion, while adjusted earnings landed at $6.29 per share, comfortably ahead of the $5.62 Wall Street consensus. Management wasn’t done there. It also raised its full-year 2026 outlook, lifting expected revenue to $38.2 billion-$39.4 billion from $37.0 billion-$38.4 billion previously and increasing adjusted earnings guidance to $22.30-$23.50 per share. When a company beats estimates and then raises guidance, the market usually pays attention.
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The quarter wasn’t carried by one blockbuster drug. Repatha kept firing with sales surging 37% to $953 million, while Evenity jumped 38% to $714 million. Rare-disease therapy Uplizna nearly doubled revenue with roughly 90% growth, helping cushion the hit from Prolia, whose sales dropped 32% as biosimilar competition intensified. Amgen also pulled the plug on obesity candidate AMG 513, but that’s hardly the end of its weight-loss ambitions. The company is doubling down on MariTide, with pivotal Phase 3 data expected in 2027. Better still, the midpoint of Amgen’s annual revenue forecast moved up by $1.1 billion, showing management sees enough momentum to back bigger numbers.
The GuruFocus valuation chart adds an interesting twist. Amgen is trading at $406.17 versus a GF Value of $353.96, putting the stock roughly 14.75% above its estimated fair value. That’s a sign investors are already paying up for stronger earnings, improving guidance and confidence in the pipeline. Premium valuations can last when execution stays strong, but they also leave less room for mistakes. From here, investors will likely want to see MariTide keep progressing and the company’s growth engines continue delivering enough firepower to justify the stock’s rich valuation.
