After the market close on August 4th US time, biopharmaceutical giant Amgen released its Q2 2026 financial results. The data showed that the company's quarterly revenue reached $8.73 billion, a year-on-year increase of 8.2%, and adjusted EPS was $5.31, both exceeding market expectations. What more excited dividend investors was that the board of directors simultaneously announced an increase in the quarterly dividend to $2.39 per share, a 6% increase, which is Amgen's 14th consecutive year of dividend increases. After the announcement, Amgen's stock price rose about 2.3% in after-hours trading, trading near $312.
Multi-point Growth in Performance, Core Products Maintain Resilience
Looking at business segments, Amgen's performance this quarter is commendable. Bone disease drugs Prolia and Evenity contributed a combined $2.15 billion in revenue, a year-on-year increase of 11%, with Evenity accelerating its launch after expanding osteoporosis indications. In the inflammation field, although Enbrel and Otezla face biosimilar competition, their combined revenue still reached $1.52 billion, slightly exceeding expectations.
Notably, Amgen's obesity pipeline, heavily invested in recent years, has begun to show promise. Its oral small molecule weight loss drug AMG-133 (MariTide) showed excellent results in Phase II clinical trials, with an average weight loss of 14.5% in 12 weeks, better than existing oral therapies. Amgen's management revealed in the earnings conference call that the company plans to initiate Phase III pivotal trials by the end of 2026 and will increase capacity investment by 40%. This news directly boosted market expectations for Amgen's long-term growth potential.
14 Consecutive Years of Dividend Increases, Dividend Defense Attributes Highlight
Amgen increased its quarterly dividend from $2.25 to $2.39 per share this time, with an annualized dividend reaching $9.56, corresponding to a dividend yield of about 3.1% based on the current stock price, at the upper-middle level among large pharmaceutical stocks. Notably, Amgen's dividend payout ratio is only 42%, with sufficient free cash flow to support future continuous growth.
Over the past decade, Amgen has repurchased about $80 billion worth of stock while increasing its dividend per share from $1.60 in 2016 to the current $9.56, with an average annual compound growth rate of about 11%. Against the background of increasing overall volatility in the US pharmaceutical sector, this "stable cash flow + continuous dividend" feature makes Amgen an indispensable core holding in dividend healthcare strategies.
Expanding AI Computing Power, Reshaping Drug Development Paradigms
Another highlight of this earnings report is Amgen's announcement of a new cooperation agreement with NVIDIA (Nvidia), adopting NVIDIA's latest generation Blackwell Ultra GPU and AI Enterprise suite to expand AI computing centers in San Francisco and Boston. Amgen CEO Robert Bradway stated in the earnings meeting: "AI is not just an auxiliary tool, but the fourth pillar of our R&D process. The next-generation computing power will enable us to complete protein engineering simulations that used to take a year in just a few weeks."
According to disclosures, Amgen has built a large language model with over 5 billion parameters, specifically designed to predict protein 3D structures and design antibody drugs. With AI assistance, the company's early drug discovery costs have decreased by about 30%, and the lead compound optimization cycle has been shortened by 40%. This move not only strengthens Amgen's innovation barrier but also makes it one of the leading enterprises with the most practical implementation scenarios in the "AI pharma" track.
Institutional Views: Dual Drive of Dividends + Technology, Valuation Still Has Room for Improvement
Several Wall Street institutions updated their ratings after the earnings release. JPMorgan raised Amgen's target price from $315 to $340, citing that "the value of the weight loss pipeline has not been fully reflected." Goldman Sachs emphasized that Amgen is one of the few large biotech stocks that simultaneously possess "high dividend defensiveness" and "AI growth explosiveness," with significantly enhanced attractiveness to capital in a declining interest rate environment.
From an industry perspective, the US pharmaceutical sector in 2026 shows a clear differentiation trend: traditional generic drug companies are under pressure from patent cliffs, while companies with strong R&D pipelines and high dividend protection are receiving valuation premiums. With over 50% gross profit margin and a solid balance sheet, Amgen stands out among its peers.
Risk Warnings and Investment Outlook
Of course, investors also need to pay attention to potential risks. Enbrel's market share continues to be eroded by biosimilars, and new drug launch timelines have uncertainties; if the weight loss drug AMG-133 Phase III data underperforms, market sentiment may fluctuate violently. Additionally, Amgen's heavy investment in AI computing power may drag down profit growth in the short term, with full-year 2026 capital expenditure expectations already raised to $5.8 billion.
Overall, against the background of inflation easing and a warming policy environment, Amgen, with its "14 consecutive years of dividend growth" and "AI-driven new drug pipeline" as core labels, provides investors with an offensive and defensive allocation value. For investors optimistic about the US dividend healthcare track, Amgen is undoubtedly a quality worth long-term tracking.
