AMGN · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

AMGEN INC · 2026-11-04 · Importance 46 · Surprise 40

Cost of sales fell 10% to $2.788 billion for the third quarter and 8% to $8.343 billion for the first nine months of 2026. Cost of sales decreased to 26.9% of total revenues for the quarter and 28.7% for the nine-month period, compared with 32.2% and 33.7% a year earlier. Lower amortization expense from acquisition-related assets and lower manufacturing costs drove the quarterly improvement, partially offset by higher profit share expense and sales-mix changes. For the nine months, lower acquisition-related amortization was partly offset by higher profit share expense and sales-mix changes.

Key facts

• Cost of sales was 26.9% of total revenues in the three months ended September 30, 2026, driven by lower acquisition-related asset amortization and manufacturing costs, partly offset by higher profit share expense and sales-mix changes. source
• Cost of sales was 28.7% of total revenues in the nine months ended September 30, 2026, driven by lower acquisition-related asset amortization, partly offset by higher profit share expense and sales-mix changes. source