AMGN · Earnings call · 2026Q3T · Full report

Operating Expense Trends

AMGEN INC · 2026-11-03 · Importance 36 · Surprise 40

Third-quarter non-GAAP operating margin was 47%. Non-GAAP R&D spending increased 11% year over year, driven by higher research and early-pipeline spending, including business-development activity. SG&A expense decreased 1% year over year, mainly because of investment timing and, to a lesser extent, ongoing productivity efforts. Management expects a meaningful sequential increase in fourth-quarter operating expenses, including higher SG&A as investments shift into the quarter and marketed-product investment continues.

Key facts

• Amgen expected a meaningful sequential increase in operating expenses in Q4 2026.
• Amgen expected a higher Q4 cost-of-sales margin due to changes in sales mix and higher profit-share expenses, and higher SG&A expense due to investment timing and continued marketed-product investment.
• Amgen increased R&D investment 11% year-over-year in Q3 2026.
• Non-GAAP R&D spending increased 11% year-over-year in Q3 2026, driven by higher research and early pipeline spending, including business development activity.
• Amgen's SG&A expenses decreased 1% year-over-year in Q3 2026, mainly due to timing of investments and, to a lesser extent, productivity efforts.
• Amgen completed the first quarter of 2026 with non-GAAP operating margin of 47%.