AMGN · 8-K · 20260804PR000124
Gross Margin Drivers
AMGEN INC · 2026-08-04 · Importance 49 · Surprise 32 · No source text
GAAP cost of sales decreased 7% year over year to $2.811 billion, reducing cost of sales to 29.5% of product sales from 34.3%. The 4.8-percentage-point GAAP improvement was driven by lower amortization expense from acquisition-related assets, partially offset by higher profit-share expense, higher manufacturing costs, and product-mix changes. Non-GAAP cost of sales increased 21% to $1.874 billion, raising the non-GAAP ratio to 19.6% from 17.7% because of higher profit-share expense, manufacturing costs, and mix.
Key facts
- GAAP Cost of Sales decreased 7% to $2,811 million in Q2 ’26 from $3,011 million in Q2 ’25; GAAP cost of sales as a percentage of product sales decreased 4.8 percentage points to 29.5% from 34.3%. source
- The acquisition-related adjustment primarily includes noncash amortization of intangible assets and fair value step-up of inventory acquired in business combinations. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +4.8% | GAAP Cost of Sales decreased 7% to $2,811 million in Q2 ’26 from $3,011 million in Q2 ’25; GAAP cost of sales as a percentage of product… |
| operating_income | positive | realized | +2.0% | GAAP Cost of Sales decreased 7% to $2,811 million in Q2 ’26 from $3,011 million in Q2 ’25; GAAP cost of sales as a percentage of product… |