Biotech company Amgen (NASDAQ: AMGN) beat Wall Street’s revenue expectations in Q3 2026, with revenue up 8.5% year on year to $10.37 billion. The company’s full-year revenue guidance of $39.3 billion at the midpoint came in 0.8% above analysts’ consensus estimates. Its non-GAAP profit of $6.45 per share was 11.6% above analysts’ consensus estimates.

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"Amgen delivered another strong quarter as our strategy for long-term growth continued to produce results across the enterprise," said Robert A. Bradway, chairman and chief executive officer. "The strength of our commercial portfolio, combined with important clinical advances and a promising late-stage pipeline, reinforces our confidence in Amgen's ability to deliver durable growth well into the next decade."

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Any business can deliver a good quarter or two, but many enduring ones grow for years. Over the last five years, Amgen grew its revenue at a decent 8.6% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

Long-term growth matters the most, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Amgen’s annualized revenue growth of 9.4% over the last two years aligns with its five-year trend, suggesting its demand was stable.

Amgen also breaks out the revenue for its most important segment, Product & Pipeline. Over the last two years, Amgen’s Product & Pipeline revenue averaged 9% year-on-year growth.

This quarter, Amgen reported year-on-year revenue growth of 8.5%, and its $10.37 billion of revenue exceeded Wall Street’s consensus estimates by 3.1%.

Looking ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months, according to S&P, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds. Still, the company is performing well on other measures of financial health.

Adjusted operating margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes and interest on debt – items less connected to business fundamentals.

Amgen has performed well over the last five years. It demonstrated strong profitability for a healthcare business, with an average adjusted operating margin of 45.7%.

Looking at the trend in its profitability, Amgen’s adjusted operating margin decreased by 4.7 percentage points over the last five years. The company’s two-year trajectory also shows it failed to regain peak profitability as its margin fell by 1.3 percentage points. This poor performance shows its expenses were rising and it couldn’t pass those costs on to its customers.

In Q3, Amgen generated an adjusted operating margin of 45.1%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.

Earnings per share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Amgen’s decent 7% 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 $6.45, up from $5.64 in the same quarter last year. This result came in well above analysts’ consensus estimates. Over the next 12 months, Wall Street expects Amgen’s full-year EPS to grow 4.1% from $23.18 to $24.13, according to S&P.

Key takeaways from Amgen’s Q3 results

Amgen delivered a solid Q3, with revenue topping analysts’ consensus estimates and EPS also beating Wall Street’s expectations. Those were clear positives, but investors were likely hoping for more. Shares fell 2.2% to $453 immediately after the results.

Is Amgen a buy at the current price? 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. For more on Amgen, read our full research report here (it’s free).