AMRX Down Despite Q2 Earnings Beat, 2026 Revenue Outlook Raised

Amneal Pharmaceuticals AMRX reported second-quarter 2026 adjusted earnings of 30 cents per share, which beat the Zacks Consensus Estimate of 24 cents. Earnings increased 20% year over year, driven by strong performance across the company’s three business segments.

Total revenues of $796 million in the second quarter of 2026 increased 10% year over year. The top line also beat the Zacks Consensus Estimate of $768 million. The upside reflected strong growth across Affordable Medicines and Specialty and a favorable product mix.

Despite better-than-expected results, Amneal shares were down 3.1% yesterday following the announcement.

The stock has rallied 46.8% so far this year against the industry’s decline of 2.4%.

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AMRX’s Q2 Segment Performance

Affordable Medicines' second-quarter revenues were $490 million, up 13% year over year. Segment growth was driven by strength in the company’s broad-based complex portfolio, including Women's Health products, injectables and higher naloxone sales.

Specialty’s second-quarter revenues of $149 million grew 17% year over year, driven by continued momentum in Crexont, Unithroid and Brekiya. Sales of all these products came in ahead of management’s expectations.

AvKARE net revenues of $157 million declined 4% year over year as growth in the government channel was offset by a decline in the low-margin distribution channel during the quarter.

Adjusted research and development expenses decreased 17.7% year over year to $38.2 million in the second quarter of 2026, while adjusted selling, general and administrative expenses surged 19.6% year over year to $134.9 million.

As of June 30, 2026, Amneal had cash and cash equivalents worth $127.6 million compared with $197.7 million as of March 31, 2026.

AMRX 2026 Guidance Updated

Amneal raised its 2026 net revenue guidance from $3.05-$3.15 billion to $3.10-$3.20 billion.

The company now expects adjusted EBITDA of $750 million to $780 million, up from its earlier projection of $740 million to $770 million.

Adjusted EPS is now expected to be in the range of 96 cents to $1.06, up from its earlier estimate of 95 cents to $1.05.

Amneal Eyes Biosimilars Portfolio Expansion

In April 2026, Amneal announced a definitive agreement to acquire privately held biotech company Kashiv BioSciences for up to $1.10 billion. The transaction is expected to be closed in the second half of 2026, subject to customary closing conditions.

The pending Kashiv acquisition is expected to create a fully integrated biosimilars platform spanning development, clinical execution, regulatory capabilities and commercial supply. The combined pipeline will include more than 20 biosimilar programs.

Management believes biosimilars will become a durable long-term growth pillar, further diversifying the company's portfolio alongside its Affordable Medicines, Specialty and AvKARE businesses while strengthening its competitive position in the global biologics market.

AMRX’s Zacks Rank & Stocks to Consider

Amneal currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY, Repligen RGEN and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.30, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have lost 4.2% year to date.

Harmony Biosciences’ earnings missed estimates in each of the trailing four quarters, with the average negative surprise being 25.16%.

Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.03, while estimates for 2027 have increased from $2.43 to $2.44 during the same time. RGEN shares have declined 12.3% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 151.7% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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