AMGN · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

AMGEN INC · 2026-11-04 · Importance 15 · Surprise 14 · In source text

Amgen’s effective tax rate was 17.5% for the three months ended September 30, 2026, compared with 18.0% a year earlier, and 15.5% for the nine months, compared with 14.5%. The quarterly rate decrease primarily reflected a change in earnings mix, including lower net unrealized gains on equity investments, partly offset by prior-year net favorable items that did not recur in the current period. The nine-month rate increase primarily reflected prior-year Otezla intangible-asset impairment charges and current-year net unfavorable items, partly offset by lower unrealized investment gains and lower acquisition-related amortization. OB3 was enacted July 4, 2025, with most provisions effective January 1, 2026, and Amgen is monitoring the potential impact of OECD minimum-tax guidance on its 2026 tax rate.

Key facts

• On January 5, 2026, the OECD issued administrative guidance that, when fully enacted, will exempt U.S. companies from extraterritorial minimum taxes effective January 1, 2026; Amgen is monitoring potential effects on its 2026 tax rate. source
• Amgen's effective tax rates for the three and nine months ended September 30, 2026 were 17.5% and 15.5%, compared with 18.0% and 14.5% for the corresponding prior-year periods. source
• Amgen's effective tax rate decreased in the three months ended September 30, 2026, primarily due to earnings mix, including lower net unrealized gains on equity investments, partly offset by prior-year net favorable items compared with the current year. source
• Amgen's effective tax rate increased in the nine months ended September 30, 2026, primarily due to prior-year Otezla impairment charges and current-year net unfavorable items, partly offset by earnings mix, lower net unrealized equity gains, and lower acquisition-related amortization. source

Impact estimates