AMGN · 10-Q · 2026Q2 · Full report
Operating Expense Trends
AMGEN INC · 2026-08-05 · Importance 57 · Surprise 50 · No source text
Total operating expenses decreased 7% to $12.492 billion in the six months ended June 30, 2026, primarily because prior-year expenses included an $800 million Otezla intangible-asset impairment charge. Cost of sales declined 7% to $5.555 billion for the first six months and fell to 29.8% of total revenue from 34.5%, mainly because of lower amortization expense from acquisition-related assets. Research and development expense increased 11% to $3.587 billion in the first six months, driven primarily by higher spending on later-stage clinical programs related to MariTide. SG&A decreased 1% to $3.347 billion in the first six months, as lower general and administrative expenses more than offset higher commercial product-related expenses.
Key facts
- Total estimated future amortization of finite-lived intangible assets remaining: six months ending Dec 31, 2026 $1.8 billion; 2027 $3.6 billion; 2028 $2.8 billion; 2029 $2.3 billion; 2030 $2.2 billion; 2031 $2.1 billion source
- Cost of sales was 29.5% of product sales for the three months ended June 30, 2026 and 34.3% for the three months ended June 30, 2025. source
- Cost of sales was 28.0% of total revenues for the three months ended June 30, 2026 and 32.8% for the three months ended June 30, 2025. source
- Research and development expense was $3,587 million for the six months ended June 30, 2026 and $3,230 million for the six months ended June 30, 2025. source
- Otezla impairment in first quarter 2025: intangible asset fair value $4.0 billion, carrying value $4.8 billion, and a partial impairment of $ million recorded (amount redacted) source
- Operating expenses for the three months ended June 30, 2026: $6,540 million; for the three months ended June 30, 2025: $6,523 million. source
- Operating expenses for the six months ended June 30, 2026: $12,492 million; for the six months ended June 30, 2025: $13,494 million (decrease 7%). source
- Cost of sales was $2,811 million for the three months ended June 30, 2026 and $3,011 million for the three months ended June 30, 2025, a decrease of 7%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -109.9% | Total estimated future amortization of finite-lived intangible assets remaining: six months ending Dec 31, 2026 $1.8 billion; 2027 $3.6… |
| operating_income | negative | committed | -15.2% | Total estimated future amortization of finite-lived intangible assets remaining: six months ending Dec 31, 2026 $1.8 billion; 2027 $3.6… |
| operating_income | positive | realized | +10.0% | Operating expenses for the six months ended June 30, 2026: $12,492 million; for the six months ended June 30, 2025: $13,494 million… |
| margin | positive | realized | +4.8% | Cost of sales was 29.5% of product sales for the three months ended June 30, 2026 and 34.3% for the three months ended June 30, 2025. |
| margin | positive | realized | +4.8% | Cost of sales was 28.0% of total revenues for the three months ended June 30, 2026 and 32.8% for the three months ended June 30, 2025. |
| operating_income | positive | realized | +4.2% | Cost of sales was $5,555 million for the six months ended June 30, 2026 and $5,979 million for the six months ended June 30, 2025, a… |
| operating_income | negative | realized | -3.5% | Research and development expense was $3,587 million for the six months ended June 30, 2026 and $3,230 million for the six months ended… |
| operating_income | positive | realized | +2.0% | Cost of sales was $2,811 million for the three months ended June 30, 2026 and $3,011 million for the three months ended June 30, 2025, a… |
| operating_income | negative | realized | -1.2% | Research and development expense was $1,868 million for the three months ended June 30, 2026 and $1,744 million for the three months ended… |
| operating_income | negative | realized | -0.5% | Selling, general and administrative expense was $1,745 million for the three months ended June 30, 2026 and $1,691 million for the three… |
| operating_income | positive | realized | +0.3% | Selling, general and administrative expense was $3,347 million for the six months ended June 30, 2026 and $3,378 million for the six… |
| operating_income | negative | realized | -0.2% | Operating expenses for the three months ended June 30, 2026: $6,540 million; for the three months ended June 30, 2025: $6,523 million. |