Amgen Q3 2025 Earnings: New Drugs Drive Growth Amid R&D Surge

Biopharmaceutical giant Amgen (NASDAQ: AMGN) recently released its financial results for the third quarter of 2025. To understand the company's performance, let's take a closer look at the income statement from its latest 10-Q filing with the SEC. The report reveals a story of robust growth from key products, strategic investments in the future, and ongoing pressure on some of its established drugs.

Strong Revenue Growth Driven by Key Performers

Amgen posted total revenues of $9.6 billion for the third quarter, a healthy 12% increase from the $8.5 billion reported in the same period last year. This growth was fueled by a 12% jump in product sales, which reached $9.1 billion.

The following flow diagram provides a visual breakdown of Amgen's revenues and expenses for the third quarter, illustrating how the company converted sales into profit.

A Tale of Two Portfolios

Digging into the product sales reveals a clear divergence in performance across Amgen's portfolio. Several key drugs delivered impressive growth, showcasing strong market demand:

• Repatha, for high cholesterol, saw sales surge by 40% to $794 million for the quarter.
• EVENITY, a treatment for osteoporosis, grew 36% to $541 million.
• TEZSPIRE, for severe asthma, posted a 40% sales increase to $377 million.
• BLINCYTO, a cancer therapy, increased sales by 20% to $392 million.

However, this growth was partially offset by declines in some of Amgen's more mature products. ENBREL, a treatment for autoimmune diseases, experienced a significant 30% drop in sales to $580 million. Similarly, KYPROLIS sales fell 5% due to what the company describes as increased competition. Looking ahead, Amgen also explicitly noted in its filing that it expects "sales erosion driven by biosimilar competition" for its major bone health drugs, XGEVA and Prolia.

Investing Heavily in the Pipeline

While managing its current portfolio, Amgen is also making substantial investments in its future. Research and Development (R&D) expenses climbed 31% to $1.9 billion for the quarter. The company attributes this significant increase to investments in its later-stage clinical programs, including its promising obesity drug candidate, MariTide.

This increased R&D spending didn't derail profitability. Thanks to strong top-line growth and a lower cost of sales—which fell as a percentage of product sales from 40.6% to 33.7%—Amgen's operating income grew 23% to $2.5 billion. Ultimately, the company delivered a net income of $3.2 billion, or $5.93 per diluted share, a 14% increase from the prior-year quarter.

Final Thoughts

Amgen's third-quarter results paint a picture of a company in successful transition. The impressive growth from newer drugs like Repatha and EVENITY is more than compensating for the expected decline of older blockbusters facing competition. The sharp rise in R&D spending underscores a clear strategy: to leverage current profits to build the next generation of revenue drivers. Amgen's ability to execute on its late-stage pipeline, particularly with high-profile candidates like MariTide, will be critical to sustaining its growth in the years to come.