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Amgen AMGN Business Segments — Royalty Expense

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Other financials

Income statement

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Revenue$10.1B+9.5%
Gross profit$7.2B+17.4%
Operating income$3.5B+32.3%
Net income$2.4B+65.9%
EPS (diluted)$4.37+64.9%

Balance sheet

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Cash & equivalents$574.0M+5.9%
Total debt$57.3B+2.0%
Total equity$11.7B+57.4%
Total assets$95.6B+8.8%

Cash flow

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Operating cash flow$4.0B+75.5%
CapEx$513.0M+39.0%
Free cash flow$3.5B+82.6%

Valuation

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Market cap$220.64B+44.0%
Enterprise value$277.37B+32.8%
P/E25.2×+2.1×
P/S5.8×+1.4×

Profitability

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Gross margin69.5%+5.0pp
Operating margin30%+6.5pp
Net margin23%+4.0pp
FCF margin26.7%-3.7pp

Returns & leverage

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Return on equity91.5%-7.7pp
Debt / equity4.9×-2.7×
Current ratio1.4×+0.1×

Where this comes from

Reported directly by Amgen in its filing.

Tagged under the XBRL concept us-gaap:RoyaltyExpense.

The source filing: Amgen’s 10-Q, filed August 5, 2026.

Filed
Aug 4, 2026, 8:00 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000318154-26-000126
Line itemThree months ended June 30, 2026Three months ended June 30, 2025Six months ended June 30, 2026Six months ended June 30, 2025
Total revenues10,0549,17918,67217,328
Less:
Manufacturing cost of sales(1)(2)2,1392,4844,3195,012
Profit share and royalties in cost of sales(1)6725271,236967
Research and development(1)1,8681,7443,5873,230
Sales and marketing(1)1,1551,1372,2892,203
General and administrative(1)5905541,0581,175
Other segment items(3)314557227(5)

Item 1. FINANCIAL STATEMENTS

FAQ

What is Amgen's business segments — royalty expense?
Amgen (AMGN) reported business segments — royalty expense of $672M in Q2 2026.
How has Amgen's business segments — royalty expense changed year-over-year?
Amgen's business segments — royalty expense increased by 27.5% year-over-year, from $527M to $672M.
What does business segments — royalty expense mean?
Represents payments made to third parties for the use of intellectual property, patents, or licensed technologies incorporated into the company's drug portfolio. These expenses are contractual obligations that directly impact the profitability of specific therapeutic products. High royalty burdens can significantly influence the net margin of licensed assets.

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