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American Express beat earnings expectations and lifted its profit forecast, then disclosed plans to eliminate thousands of jobs on the same call. What spooked investors had less to do with the cuts themselves and more to do with what the…

On October 23, 2026, American Express (NYSE:AXP | AXP Price Prediction) raised its full-year profit forecast. On the earnings call that same morning, it said it would cut about 5% of its global workforce.

Full-year 2026 GAAP earnings per share guidance rose to $18.30 to $18.60, from a prior range of $17.30 to $17.90. The cuts come to roughly 3,500 jobs out of about 78,000 workers worldwide.

Investors weighted the cuts and slower spending growth more than the higher forecast. Shares fell 3.68%, or $11.95, to $313.22. That leaves the stock down 14.39% for the year, with a market cap of $211.52 billion.

What AmEx Put in Writing and What It Held Back
The signed and disclosed part is a $336 million pretax restructuring charge, or $0.37 per share. AmEx did not say which units or countries will lose jobs, or when the cuts will be finished. It also did not say how much the cuts will save or whether those savings are already in its plans for next year. At year-end 2025, about 50,900 of its employees worked outside the U.S. and about 25,900 worked inside it.

A nonrecurring item drives much of the GAAP raise: a $982 million pretax gain on selling AmEx’s stake in Global Business Travel Group (NYSE:GBTG), worth $1.11 a share. The adjusted range of $17.60 to $17.90 moved only at the low end.

Chief executive Stephen Squeri said, “We’ve got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization.” Chief financial officer Christophe Le Caillec said the goal is to make the company “leaner, more agile, and also to prepare for AI” by removing layers of management before more work is automated.

How Much the Cuts Matter to Earnings
Third-quarter revenue net of interest expense was a record $20.06 billion, up 9%. Adjusted EPS rose 13% to $4.68. Analysts surveyed by LSEG expected $4.48 and $20.12 billion, so AmEx beat earnings expectations but missed revenue expectations.

Billed business, the total spent on AmEx cards, rose 8% to $454.0 billion, down from a 9% rate in the first half, while marketing expense grew 11%. Provisions for credit losses fell to $1.0 billion from $1.3 billion because AmEx released some of its loan-loss reserves, a boost it cannot count on every quarter.

Why the Market Sold an Earnings Beat
Barclays (NYSE:BCS) announced about 5,000 job cuts on October 22 and pointed to productivity gains from AI. Large lenders are increasingly cutting staff ahead of automation, so AmEx’s cuts fit a wider pattern.

Visa (NYSE:V) slipped 1.55%, and Mastercard (NYSE:MA) slipped 1.52%. Both are still up for the year, Visa by 17% and Mastercard by 9.93%. They earn fees on spending without lending funds, while AmEx both issues the cards and runs the network, so if spending slows, it loses fee income and faces higher credit losses at the same time.

What the Results Mean for AXP Shares Into Year-End
Credit remains healthy, with the net write-off rate declining to 1.8% from 1.9%. Squeri said AmEx is “on track to deliver another year of 10 percent revenue growth.”

The shares trade well below the $372.47 average price target in the TipRanks analyst consensus before the report. The $3.80 annual dividend, a 1.21% yield, provides some income while the job cuts take effect.

Check billed business growth in the fourth-quarter report. If it falls below 8%, or the shares close under the 52-week low of $290.97, the outlook for the shares would weaken.

Contact [email protected] for any questions or corrections.

Newmont's Q3 earnings report did little to alleviate growing fears of cost pressures in 2027. Falling gold prices, rising costs, and record-low trading volume signal a potential period of elevated volatility going forward. At the same time, NEM is priced at levels that do not suggest any material change to the business going forward.

On its third-quarter 2026 earnings call, held on Oct. 21, 2026, SAP (SAP -1.02%) announced that quarterly revenue surpassed 10 billion euros for the first time in the company's history. The enterprise software provider is converting existing clients to higher-margin recurring cloud subscriptions by embedding artificial intelligence directly into core business operations.

Three takeaways from management explain how this strategy is driving long-term value.

1. Artificial Intelligence Is Accelerating the Transition to Cloud ContractsManagement reported a 26% increase in current cloud backlog, representing unfulfilled contract obligations expected within 12 months, to 24.1 billion euros. Customers migrating through the RISE with SAP program, an enterprise resource planning software modernization package, are adopting artificial intelligence features at high rates to improve operational efficiency.

In Q3, AI was the main driver behind our customers' move to the cloud. There are 3 key reasons. First, AI accelerates the RISE with SAP cloud migration. Second, AI makes the business case for our suite more attractive. And finally, our customers embrace our Business AI platform with RISE with SAP.
-- Christian Klein, CEO2. Services Revenue Is Being Sacrificed to Drive High-Margin Cloud AdoptionServices revenue fell 5% year over year as the company intentionally shifted consulting resources away from billable hourly work toward software adoption support. Management expects artificial intelligence automation to disrupt traditional hourly consulting models, favoring scalable, higher-margin software subscriptions instead.

We want to leverage services more intentionally to promote the adoption of our AI solutions and build critical mass. This strategy has served SAP well to date. And as we are seeing positive return on investment, we will continue to double down on delivering even stronger adoption support to our cloud and AI customers, which will likely put more downward pressure on billable hours and services revenue also next year.
-- Dominik Asam, CFO3. Data Privacy Commitments Provide a Structural Competitive AdvantageThe company protects proprietary customer data by processing information locally through its Business Data Cloud platform rather than feeding public artificial intelligence models. This strict data isolation policy encourages risk-averse enterprise clients to integrate automated AI agents across critical business functions.

And one key principle is very important. At SAP, the customer's data remains the customer's data. We never upload customer data or process IP into large language models. Not for training, not for model improvement, not for any purpose.
-- Christian Klein, CEOLooking AheadCloud expansion is driving operational momentum, converting top-line growth into bottom-line profits.

The second half is off to a strong start, and we remain committed to investing in growth by preserving our bottom line in lockstep with the operational framework we have put in place for balancing expense versus revenue growth.
-- Dominik Asam, CFODeep software integration and proprietary data structures create high switching costs, while management prioritizes execution discipline entering the final quarter.

While we have been able to maintain steady momentum year to date, we will put our full focus on the decisive fourth quarter bookings required to maintain our growth acceleration against, now, even more challenging comparables in 2027.
-- Dominik Asam, CFOThe Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Four high-yield giants are heading into year-end with payouts their own profits can cover, but each one carries a specific risk that could change the math fast.

Four of the market’s biggest income payers are heading into year-end with yields their businesses can actually support. Verizon Communications (NYSE:VZ | VZ Price Prediction) yields 6.18%, and it sits alongside Realty Income (NYSE:O), Altria Group (NYSE:MO) and PepsiCo (NASDAQ:PEP) in a basket where profits or cash flow exceed the dividend every time. Here is what supports each payout, and the one risk to watch with each.

Verizon Communications: An Ultra-High Yield Funded by Record Cash Flow Dividend safety: Verizon earned $3.84 per diluted share over the trailing twelve months, against an annual dividend of $2.795 per share. That gives it the highest yield on this list at 6.18%, putting it in ultra-high-yield territory with earnings left over after the payout. Cash flow tells the same story. First-half free cash flow reached $10.2 billion, while dividends over the same period cost $5.9 billion. In July, management raised its full-year FCF growth outlook to 9%-10%.

Debt metrics are moving improving as well. Verizon paid off substantially all of Frontier’s debt 6 months ahead of schedule, and net unsecured debt to adjusted EBITDA stood at 2.5x, with management on track to reach its target leverage range in the 2027 time frame. Verizon’s dividend record shows a raise every year since 2007, most recently to a quarterly $0.7075. As CEO Dan Schulman put it on the July call: “We are growing our dividend, and we are paying down our debt.”

Bull case: The wireless turnaround has started. Verizon added 184,000 postpaid phones in the second quarter, the adjusted EBITDA margin rose to a record 40.1%, and broadband subscribers now total over 17.1 million. A dark fiber deal with Google worth over $1 billion opens an AI infrastructure revenue stream, and the buyback target was raised to up to $4.5 billion. Shares closed at $44.63, up 17.12% year to date, after slipping 1.26% Friday as telecom stocks sold off on news of Elon Musk pushing into the industry (Barron’s).

Risk: Reported profit is moving backward. Verizon’s quarterly earnings fell 22% from a year ago, a reminder that Frontier deal costs and promotional spending still weigh on GAAP results even as adjusted EPS of $1.30 beat estimates.

Realty Income: Monthly Checks Backed by Rising AFFO Dividend safety: Realty Income is a real estate investment trust, so earnings per share understate its cash generation because of heavy depreciation charges. The right metric is AFFO, a REIT’s measure of recurring cash available for distribution. Management raised 2026 AFFO guidance to $4.44-$4.45 per share, compared with an annualized forward dividend of $3.258. That shock lets the company keep raising payouts while still funding growth.

The stock yields 5.84%, and Realty Income pays monthly. Its latest declared payment is $0.2715 per share, with an ex-dividend date of October 30 and payment on November 13. To collect that November check, you must own the shares before the ex-dividend date. Anyone buying on October 30 or later collects the following monthly payment instead. (If a 30-day paycheck appeals, we rounded up six more names that pay on the same schedule in a free report on monthly dividend stocks.)

Realty Income has declared 673 consecutive monthly dividends and belongs to the S&P 500 Dividend Aristocrats index with over 31 consecutive years of increases. Occupancy is at 98.8%, credit ratings are A3/A-/A from Moody’s, S&P and Fitch, and pro forma liquidity tops $5.7 billion.

Bull case: Realty Income is diversifying away from pure retail. Industrial made up about 65% of global real estate investments in the second quarter, deals closed at a 7.3% initial cash yield, and full-year investment guidance rose to $10 billion. A $6 billion hyperscale data center joint venture adds AI-era exposure. CEO Sumit Roy called it “a once-in-a-generation demand for a particular asset type with attractive clients and locations.”

Risk: Interest rates set the ceiling. Management said that if the 10-year Treasury stays in the 4.6% to potentially 5% range, acquisition cap rates will have to adjust, which contracts the spread Realty Income earns on new deals. That pressure shows in the stock, which is down 0.34% over the past year at $56.89.

Altria: A Fresh Dividend Hike Covered by Tobacco’s Pricing Power Dividend safety: Altria earned $4.89 per diluted share over the trailing twelve months, against an annual dividend of $4.24. Full-year adjusted EPS guidance of $5.61 to $5.72 adds more buffer. In August, the board raised the quarterly payout to $1.11 from $1.06, for an annualized forward rate of $4.44. Altria’s dividend record shows a raise every year from 2017 through 2026. The stock yields 5.74%.

Cash flow carries the load. Altria paid about $3.6 billion in dividends in the first half, and CFO Heather Newman said, “Historically, after we have the dividend, we have about $1 billion excess in cash.” Its finances are unusual: shareholders’ equity was negative at -$2.6B in the second quarter, a product of years of aggressive capital returns. Management says it is “really well positioned to manage those debt maturities in ’26 and ’27.”

Bull case: Pricing power keeps profits rising even as volumes shrink. Smokeable price realization reached 4.5%, Marlboro’s retail price rose about 7%, and smokeable adjusted margins expanded to 64.8%. On the smoke-free side, on! expanded to 120,000 stores and its retail share climbed to 8.6% behind on! PLUS. Investors have noticed: shares are up 35.13% year to date at $74.33.

Risk: Earnings momentum is fading. Quarterly earnings slipped 2.7% from a year ago, and second-quarter adjusted EPS of $1.48 came in below the $1.50 estimate, missing expectations. With adjusted cigarette industry volumes down an estimated 5%, price hikes have to keep doing the heavy lifting.

PepsiCo: A Dividend Growth Machine Trading Below Its 200-Day Average Dividend safety: PepsiCo earned $7.95 per diluted share over the trailing twelve months, against an annual dividend of $5.80. The company plans to return $8.9B to shareholders this year, including $7.9B in dividends, while targeting free cash flow conversion of at least 80%. Interest coverage of 10.26x and net debt to EBITDA of 2.60x leave plenty of room. Its dividend record shows a raise every year since 1999, most recently to a quarterly $1.48 from $1.4225. The stock yields 4.31%.

Bull case: International is now a real growth engine. Third-quarter adjusted EPS of $2.34 beat the $2.30 estimate, revenue rose 5.6% to $25.27B, and international organic revenue grew 8%. International accounted for 45% of profit year to date, and CEO Ramon Laguarta called that momentum “much more structural.” North American snacks shifted to low-single-digit positive volume growth, and structural cost cuts should start helping “as we turn the calendar year.”

Risk, and the opportunity: Shares trade at $135.77, below the 200-day moving average of $146.18 though just above the 50-day at $134.21. The stock is down 6.76% over the past year because PepsiCo lowered core EPS growth guidance to 2.5%-3.5% on rising input costs. CFO Steve Schmitt was blunt: “It’s the margin piece that’s driving the guide down in EPS.” That gap shows how far sentiment has fallen below the longer-term trend. At roughly 22 times earnings, the stock prices in a dividend raiser with annual increases since 1999 while margin worries keep the price down.

A Core Income Basket Built on Coverage Together, these four give income investors telecom cash flow, monthly real estate rent, tobacco pricing power and global snack and beverage demand, with yields running from 4.31% to 6.18%. Each pays out less than it earns, or in Realty Income’s case less than its AFFO, and each has years of dividend increases behind it. That combination of coverage and track record supports each yield heading into November.

Contact [email protected] for any questions or corrections.

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Nearly 80% of Patients Were Alive at One Year Versus 53% with IMFINZI Alone and Progression-Free Survival More Than Tripled

Late-Breaking Phase 3 DeLLphi-305 Results Presented in ESMO Presidential Symposium and Simultaneously Published in The New England Journal of Medicine

Longer DeLLphi-303 Follow-Up Data Showed Median Overall Survival Exceeded 37 Months in First-Line Maintenance with IMDELLTRA and Either IMFINZI or TECENTRIQ® 

, /PRNewswire/ -- Amgen (NASDAQ:AMGN) today announced landmark interim Phase 3 results showing that IMDELLTRA® (tarlatamab-dlle) in combination with AstraZeneca's IMFINZI® (durvalumab) reduced the risk of death by 58% as a first-line maintenance treatment for extensive stage small cell lung cancer (ES-SCLC) (hazard ratio [HR]: 0.42; 95% confidence interval [CI]: 0.32, 0.54; P < 0.001) at a median follow-up of approximately 16 months. The DeLLphi-305 study found that IMDELLTRA in combination with durvalumab extended median overall survival (OS) by more than eight months to 21.1 months compared with 12.7 months with durvalumab alone for patients with ES-SCLC who had not progressed following initial treatment with durvalumab, platinum-based chemotherapy and etoposide. The clinical implications of these findings are substantial and suggest that earlier use of IMDELLTRA could markedly alter the trajectory of a disease previously considered extremely difficult to control. The data are being presented during a Presidential Symposium (abstract LBA3) at the European Society for Medical Oncology (ESMO) Congress 2026 and simultaneously published in The New England Journal of Medicine.1

"These results represent an unprecedented advance for patients with extensive-stage small cell lung cancer, demonstrating a magnitude of survival benefit rarely seen in this aggressive disease," said Jay Bradner, M.D., executive vice president, Research and Development, Artificial Intelligence and Data at Amgen. "Extending median overall survival beyond 21 months while reducing the risk of death by 58% reinforces the potential to revolutionize the standard of survival and redefine expectations for patients by introducing IMDELLTRA earlier in the course of treatment. These findings underscore our ambition to fundamentally change the trajectory of small cell lung cancer, and we are moving with urgency to share these results with regulatory authorities worldwide."

"For a disease where durable survival has remained extremely difficult to achieve, the magnitude and consistency of benefit in DeLLphi-305 are striking," said Jacob Sands, M.D., Associate Chief of the Lowe Center for Thoracic Oncology at Dana-Farber Cancer Institute. "Importantly, the benefit was seen across clinically relevant groups, including patients with brain metastases. Today's remarkable results demonstrate substantial progress in our work to achieve meaningfully longer disease control and survival for patients with extensive-stage small cell lung cancer, further highlighting the importance of effective treatment at the earliest possible opportunity."

The DeLLphi-305 study showed:

At one year, nearly 80% of patients treated with IMDELLTRA in combination with durvalumab remained alive compared to 53% with durvalumab alone (95% CI: 74.2, 83.7 vs. 47.3, 59.0).
At a median follow-up of 13.9 months, IMDELLTRA in combination with durvalumab reduced the risk of disease progression or death by 66% compared to durvalumab alone (HR: 0.34; 95% CI: 0.28, 0.42; P < 0.001), with a median progression-free survival of 7.4 months versus 1.9 months.
IMDELLTRA in combination with durvalumab demonstrated substantial anti-tumor activity, with more than six times as many patients achieving an objective response (26.4%; 95% CI: 20.9, 32.5) compared with durvalumab alone (4.1%; 95% CI: 2.0, 7.4) (P < 0.001).
Overall and progression-free survival benefits were observed across prespecified subgroups, including patients with brain or liver metastases, populations historically associated with poorer outcomes.
Overall, the safety profile of IMDELLTRA in combination with durvalumab was consistent with the known safety profiles of the individual medicines.

In DeLLphi-305, Grade 3 or higher treatment-related adverse events (TRAEs) occurred in 20.9% of patients treated with IMDELLTRA in combination with durvalumab and 10.8% of patients treated with durvalumab alone. The most common Grade 3 or greater TRAEs with IMDELLTRA in combination with durvalumab were decrease in neutrophil count (3.2%), decreased appetite (2.1%), neutropenia (2.1%), asthenia (1.8%) and weight loss (1.8%). The study design included monitoring in a healthcare setting for 1 to 2 hours (6 to 8 hours in certain regions including Europe) following IMDELLTRA infusion on Cycle 1 Day 1 and Cycle 1 Day 8. Cytokine release syndrome (CRS) was reported in 49.6% of patients who received IMDELLTRA and was predominantly Grade 1 (41.8%) or Grade 2 (7.4%) with only one Grade 3 event (0.4%) and no Grade 4 or greater events. Immune effector cell-associated neurotoxicity syndrome (ICANS) occurred in 1.1% of patients treated with IMDELLTRA, and there were no Grade 3 or higher ICANS events.

Growing IMDELLTRA Evidence Across the SCLC Treatment Continuum
Additional data presented at ESMO reinforce sustained outcomes with IMDELLTRA across multiple lines of ES-SCLC treatment.

Sustained Survival in First-Line Maintenance: Updated OS data with a median follow-up of 30.8 months in the Phase 1b DeLLphi-303 trial (abstract 3821P) showed median OS was 37.9 months from the start of first-line maintenance therapy with IMDELLTRA plus standard-of-care anti-PD-L1 therapy (95% CI: 22.5-NE). At two years, 58.1% of patients remained alive. The safety profile remained consistent with the known profile of IMDELLTRA, with no new safety signals observed.

Durable Benefit in Previously Treated ES-SCLC: Updated data from the Phase 3 DeLLphi-304 trial (abstract 3808O) demonstrated that the survival benefit with IMDELLTRA was sustained with 23 months of follow-up. Patients receiving IMDELLTRA lived approximately five months longer than those receiving chemotherapy (13.6 versus 8.4 months), with a 38% reduction in the risk of death (HR 0.62; 95% CI, 0.51–0.76). No new safety signals were observed during extended follow-up.

"For too long, patients with small cell lung cancer have had too few treatment advances and too little time," said Andrea Ferris, MBA, President and CEO of LUNGevity Foundation. "For the patients we serve, today's results represent not only the potential to substantially improve outcomes for patients before they progress on first-line treatment, but also a tangible source of hope – hope for more life milestones, more moments of joy, and, ultimately, more time."

Amgen will host a virtual event with the investment community on Saturday, October 24, 2026, at 8:30 p.m. CEST / 2:30 p.m. EDT / 11:30 a.m. PDT in conjunction with the ESMO Congress 2026. The call will be accessible via investors.amgen.com and will discuss Amgen's oncology portfolio and selected data being presented at ESMO 2026.

About the Phase 3 DeLLphi-305 Study
The DeLLphi-305 trial is sponsored by Amgen, with partial funding and durvalumab provided by AstraZeneca. It is a global Phase 3, randomized, open-label clinical trial evaluating the efficacy and safety of IMDELLTRA in combination with durvalumab compared to durvalumab alone as first-line maintenance treatment for patients with ES-SCLC who had not progressed following treatment with durvalumab, platinum-based chemotherapy and etoposide. Five hundred and sixty-three patients who completed initial treatment with durvalumab, platinum-based chemotherapy and etoposide were randomized 1:1 to receive either IMDELLTRA in combination with durvalumab or durvalumab alone until progression or unacceptable toxicity. Following IMDELLTRA infusion on Cycle 1 Day 1 and Cycle 1 Day 8, patients were monitored in a healthcare setting for 1 to 2 hours (6 to 8 hours in certain regions including Europe). The trial included patients with both treated and untreated asymptomatic brain metastases at baseline. The primary outcome measure of the trial is OS. Secondary endpoints include progression-free survival (PFS) and objective response rate (ORR).2

About Tarlatamab Clinical Trials 
Tarlatamab is being investigated in multiple studies including DeLLphi-303, a Phase 1b study investigating tarlatamab in combination with standard-of-care (SOC) therapies in first-line ES-SCLC; DeLLphi-304, a randomized Phase 3 study comparing tarlatamab monotherapy with SOC chemotherapy in second-line treatment of SCLC; DeLLphi-305, a randomized Phase 3 study comparing tarlatamab in combination with durvalumab vs. durvalumab alone as first-line maintenance treatment in ES-SCLC; DeLLphi-306, a randomized placebo-controlled Phase 3 study of tarlatamab following concurrent chemoradiotherapy in limited-stage SCLC; DeLLphi-308, a Phase 1b study evaluating subcutaneous tarlatamab in second-line or later ES-SCLC; DeLLphi-309, a Phase 2 study evaluating alternative intravenous dosing regimens with tarlatamab in second-line ES-SCLC; DeLLphi-310, a Phase 1b study of tarlatamab in combination with YL201 with or without durvalumab in patients with ES-SCLC; DeLLphi-311, a Phase 1b study of tarlatamab in combination with etakafusp alfa (AB248), a novel CD8+ T-cell selective interleukin-2 (IL-2), in patients with ES-SCLC; DeLLphi-312, a randomized Phase 3 study evaluating tarlatamab in combination with durvalumab, carboplatin and etoposide as an induction and maintenance therapy in first-line treatment of ES-SCLC; DeLLphi-313, a Phase 1b study of tarlatamab in combination with zocilurtatug pelitecan, a DLL3 targeting antibody drug conjugate, with and without durvalumab in patients with ES-SCLC, and DeLLphi-315, a Phase 3 study of subcutaneous tarlatamab in patients with second-line ES-SCLC.3

For more information, please visit www.tarlatamabclinicaltrials.com. 

About Small Cell Lung Cancer (SCLC)
SCLC is one of the most aggressive and devastating forms of solid tumor cancers. Each year, SCLC accounts for approximately 13-15% of the more than 2.6 million cases of lung cancer diagnosed worldwide.4-6 Despite advances in the treatment of ES-SCLC, outcomes remain poor, with a median survival of approximately one year from the start of first-line maintenance treatment and only about 40% of patients receiving second-line therapy.7-10

About IMDELLTRA® (tarlatamab-dlle)
IMDELLTRA is a first-in-class targeted immunotherapy engineered by Amgen researchers to bind to both DLL3 on tumor cells and CD3 on T cells, thereby activating T cells to kill DLL3-expressing SCLC cells. This results in the formation of a cytolytic synapse with lysis of the cancer cell.11,12 DLL3 is a protein that is expressed on the surface of SCLC cells in ~85-96% of patients with SCLC, but is minimally expressed on healthy cells, making it an exciting target.13,14

U.S. INDICATION
IMDELLTRA® (tarlatamab-dlle) is indicated for the treatment of adult patients with extensive stage small cell lung cancer (ES-SCLC) with disease progression on or after platinum-based chemotherapy.

IMDELLTRA IMPORTANT SAFETY INFORMATION

WARNING: CYTOKINE RELEASE SYNDROME and NEUROLOGIC TOXICITY including IMMUNE EFFECTOR CELL-ASSOCIATED NEUROTOXICITY SYNDROME

Cytokine release syndrome (CRS), including life-threatening or fatal reactions, can occur in patients receiving IMDELLTRA®. Initiate IMDELLTRA® using the step-up dosing schedule to reduce the incidence and severity of CRS. Withhold IMDELLTRA® until CRS resolves or permanently discontinue based on severity.
Neurologic toxicity and immune effector cell-associated neurotoxicity syndrome (ICANS), including life-threatening or fatal reactions, can occur in patients receiving IMDELLTRA®. Monitor patients for signs and symptoms of neurologic toxicity, including ICANS, during treatment and treat promptly. Withhold IMDELLTRA® until ICANS resolves or permanently discontinue based on severity.

WARNINGS AND PRECAUTIONS

Cytokine Release Syndrome (CRS): IMDELLTRA® can cause CRS including life-threatening or fatal reactions. In the pooled safety population, CRS occurred in 57% (268/473) of patients who received IMDELLTRA®, including 39% Grade 1, 15% Grade 2, 1.7% Grade 3 and 0.2% Grade 4. Recurrent CRS occurred in 24% of IMDELLTRA®-treated patients including 20% Grade 1 and 3.4% Grade 2; one patient experienced recurrent Grade 3. Among the 268 patients who experienced CRS, 73% had CRS after the first dose, 60% had CRS after the second dose, and 15% had CRS following the third or later dose. Following the Cycle 1 Day 1, Day 8, Day 15 infusions, 24%, 8%, and 1% of patients experienced Grade ≥ 2 CRS, respectively. From Cycle 2 onwards, 1.5% of patients experienced Grade ≥ 2 CRS. Of the patients who experienced CRS, 31% received steroids and 10% required tocilizumab. The median time to onset of all grade CRS from most recent dose of IMDELLTRA® was 16 hours (range: start of infusion to 15 days). The median time to onset of Grade ≥ 2 CRS from most recent dose of IMDELLTRA® was 15 hours (range: start of infusion to 15 days).

Clinical signs and symptoms of CRS included pyrexia, hypotension, fatigue, tachycardia, headache, hypoxia, nausea, and vomiting. Potentially life-threatening complications of CRS may include cardiac dysfunction, acute respiratory distress syndrome, neurologic toxicity, renal and/or hepatic failure, and disseminated intravascular coagulation (DIC).

Administer IMDELLTRA® following the recommended step-up dosing and administer concomitant medications before and after Cycle 1 Day 1 and Cycle 1 Day 8 IMDELLTRA® infusions as described in Table 3 of the Prescribing Information (PI) to reduce the risk of CRS. Administer IMDELLTRA® in an appropriate healthcare facility equipped to monitor and manage CRS. Ensure patients are well hydrated prior to administration of IMDELLTRA®.

 Closely monitor patients for signs and symptoms of CRS during and after treatment with IMDELLTRA®. At the first sign of CRS during treatment, immediately discontinue IMDELLTRA® infusion. If CRS occurs during or after treatment, evaluate the patient for hospitalization and manage based on severity. Withhold or permanently discontinue IMDELLTRA® based on severity. Counsel patients and caregivers to seek immediate medical attention should signs or symptoms of CRS occur after discharge.

Neurologic Toxicity, Including ICANS: IMDELLTRA® can cause life-threatening or fatal neurologic toxicity, including ICANS. In the pooled safety population, neurologic toxicity occurred in 65% of patients who received IMDELLTRA®, with Grade 3 or higher events in 7% of patients including fatal events in 0.2%. The most frequent neurologic toxicities were dysgeusia (34%), headache (17%), peripheral neuropathy (9%), dizziness (9%), and insomnia (8%). The incidence of signs and symptoms consistent with ICANS was 10% in IMDELLTRA®-treated patients including events with the preferred terms: ICANS (4.7%), muscular weakness (3.2%), cognitive disorder (0.6%), aphasia (0.6%), depressed level of consciousness (0.4%), seizures (0.4%), encephalopathy (0.4%), and leukoencephalopathy (0.2%). There was one fatal reaction of ICANS. Recurrent ICANS occurred in 1.5% of patients. Of the patients who experienced ICANS, most experienced the event following Cycle 1 Day 1 (2.5%) and Cycle 1 Day 8 (3.6%). Following Day 1, Day 8, and Day 15 infusions, 1.3%, 1.3% and 0.4% of patients experienced Grade ≥ 2 ICANS, respectively. ICANS can occur several weeks following administration of IMDELLTRA®. The median time to onset of ICANS from the first dose of IMDELLTRA® was 16 days (range: 1 to 862 days). The median time to resolution of ICANS was 4 days (range: 1 to 40 days). The onset of ICANS can be concurrent with CRS, following resolution of CRS, or in the absence of CRS. Clinical signs and symptoms of ICANS may include but are not limited to confusional state, depressed level of consciousness, disorientation, somnolence, lethargy, and bradyphrenia.

 Patients receiving IMDELLTRA® are at risk of neurologic adverse reactions and ICANS resulting in depressed level of consciousness. Advise patients to refrain from driving and engaging in hazardous occupations or activities, such as operating heavy or potentially dangerous machinery, until neurologic symptoms resolve.

 Closely monitor patients for signs and symptoms of neurologic toxicity and ICANS during treatment with IMDELLTRA®. At the first sign of ICANS, immediately discontinue the infusion, evaluate the patient and provide supportive therapy based on severity. Withhold IMDELLTRA® or permanently discontinue based on severity.

Cytopenias: IMDELLTRA® can cause cytopenias including neutropenia, thrombocytopenia, and anemia. In the pooled safety population, based on laboratory data, decreased neutrophils occurred in 16% of patients, including 9% Grade 3 or 4. The median time to onset for Grade 3 or 4 decreased neutrophil count was 41 days (range: 2 to 306 days). Decreased platelets occurred in 30% including 2.2% Grade 3 or 4. The median time to onset for Grade 3 or 4 decreased platelets was 67 days (range: 3 to 420 days). Decreased hemoglobin occurred in 56% of patients, including 4.7% Grade 3 or 4. Febrile neutropenia was reported as an adverse event in 1.5% of patients treated with IMDELLTRA®.

 Monitor patients for signs and symptoms of cytopenias. Perform complete blood counts prior to treatment with all doses of IMDELLTRA®, up through Cycle 5 Day 15 and then prior to administration on Day 1 of each cycle starting with Cycle 6. Based on the severity of cytopenias, temporarily withhold, or permanently discontinue IMDELLTRA®.

Infections: IMDELLTRA® can cause serious infections, including life-threatening and fatal infections. In the pooled safety population, infections, including opportunistic infections, occurred in 43% of patients who received IMDELLTRA®, including 14% Grade 3 or 4. The most frequent infections were pneumonia (11%), urinary tract infection (9%), COVID-19 (6%), upper respiratory tract infection (4.7%), respiratory tract infection (4%), candida infection (2.1%), oral candidiasis (2.1%), and nasopharyngitis (2.1%).

 Monitor patients for signs and symptoms of infection prior to and during treatment with IMDELLTRA® and treat as clinically indicated. Withhold or permanently discontinue IMDELLTRA® based on severity.

Hepatotoxicity: IMDELLTRA® can cause hepatotoxicity. In the pooled safety population, based on laboratory data, elevated ALT occurred in 39% of patients who received IMDELLTRA®, including 2.5% with Grade 3 or 4 ALT. Elevated AST occurred in 43% of patients, including 3.2% Grade 3 or 4. Elevated bilirubin also occurred in 16% of patients, including 1.3% Grade 3 or 4. Liver enzyme elevation can occur with or without concurrent CRS. Monitor liver enzymes and bilirubin prior to treatment with IMDELLTRA®, and as clinically indicated. Withhold IMDELLTRA® or permanently discontinue based on severity.

Hypersensitivity: IMDELLTRA® can cause severe hypersensitivity reactions. Clinical signs and symptoms of hypersensitivity may include, but are not limited to, rash and bronchospasm. Monitor patients for signs and symptoms of hypersensitivity during treatment with IMDELLTRA® and manage as clinically indicated. Withhold or consider permanent discontinuation of IMDELLTRA® based on severity.
 
Embryo-Fetal Toxicity: Based on its mechanism of action, IMDELLTRA® may cause fetal harm when administered to a pregnant woman. Advise patients of the potential risk to a fetus. Advise females of reproductive potential to use effective contraception during treatment with IMDELLTRA® and for 2 months after the last dose.

ADVERSE REACTIONS

The pooled safety population reflects exposure to intravenous IMDELLTRA®, as a single agent, at the recommended dosage of IMDELLTRA® 1 mg on Cycle 1 Day 1 followed by 10 mg on Days 8 and 15, and then every 2 weeks until disease progression or intolerable toxicity in 473 patients with small cell lung cancer enrolled in three clinical trials: DeLLphi-300, DeLLphi-301 and DeLLphi-304. Among 473 patients who received IMDELLTRA®, 40% were exposed for 6 months or longer and 19% were exposed for greater than one year.
The most common (≥ 20%) adverse reactions were CRS (57%), fatigue (48%), decreased appetite (38%), dysgeusia (34%), pyrexia (33%), constipation (31%), musculoskeletal pain (31%), and nausea (25%).
The most common (≥ 5%) Grade 3 or 4 laboratory abnormalities were decreased lymphocytes (43%), decreased sodium (12%), decreased total neutrophils (9%), and increased uric acid (6%).

DOSAGE AND ADMINISTRATION: Important Dosing Information

Administer IMDELLTRA® as an intravenous infusion over 1 hour.
Administer IMDELLTRA® according to the step-up dose in the IMDELLTRA® PI (Table 1) to reduce the incidence and severity of CRS.
Evaluate complete blood count, liver enzymes and bilirubin prior to administration of all doses of IMDELLTRA® up through Cycle 5 Day 15 and then prior to administration of IMDELLTRA® on Day 1 of each cycle starting with Cycle 6. More frequent evaluation may be necessary if clinically indicated.
For Cycle 1, administer recommended concomitant medications before and after Cycle 1 Day 1 and Cycle 1 Day 8 IMDELLTRA® infusions to reduce the risk of CRS reactions as described in the PI (Table 3).
IMDELLTRA® should only be administered by a qualified healthcare professional with appropriate medical support to manage severe reactions such as CRS and neurologic toxicity including ICANS.
Due to the risk of CRS and neurologic toxicity, including ICANS, monitor patients from the start of the IMDELLTRA® infusion for 6 to 8 hours following Cycle 1 Day 1 and Cycle 1 Day 8 in an appropriate healthcare setting.
Perform patient assessment including vital signs check on Cycle 1 Days 2 and 9.
Recommend that patients remain within 1 hour of an appropriate healthcare setting for a total of 48 hours from the start of the infusion with IMDELLTRA® following Cycle 1 Day 1 and Cycle 1 Day 8 doses, accompanied by a caregiver.
Inform both the patient and the caregiver on the signs and symptoms of CRS and ICANS prior to discharge.
Ensure patients are well hydrated prior to administration of IMDELLTRA®.

Please see IMDELLTRA® full Prescribing Information, including BOXED WARNINGS.

About Amgen 
Amgen discovers, develops, manufactures and delivers innovative medicines to fight some of the world's toughest diseases. Harnessing the best of biology and technology, Amgen reaches millions of patients with its medicines.

More than 45 years ago, Amgen helped establish the biotechnology industry at its U.S. headquarters in Thousand Oaks, California, and it remains at the cutting edge of innovation, using technology and human genetic data to push beyond what is known today. Amgen is advancing a broad and deep pipeline and portfolio of medicines to treat cancer, heart disease, inflammatory conditions, rare diseases and obesity and obesity-related conditions.

Amgen has been consistently recognized for innovation and workplace culture, including honors from Fast Company and Forbes. Amgen is one of the 30 companies that comprise the Dow Jones Industrial Average®, and it is also part of the Nasdaq-100 Index®, which includes the largest and most innovative non-financial companies listed on the Nasdaq Stock Market based on market capitalization.

For more information, visit Amgen.com and follow Amgen on X, LinkedIn, Instagram, YouTube, Facebook, TikTok and Threads.

Amgen Forward-Looking Statements

This news release contains forward-looking statements that are based on the current expectations and beliefs of Amgen. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including any statements on the outcome, benefits and synergies of collaborations, or potential collaborations, with any other company (including BeOne Medicines Ltd.), the performance of Otezla® (apremilast), our acquisitions of ChemoCentryx, Inc., Dark Blue Therapeutics, Ltd. or Horizon Therapeutics plc (including the prospective performance and outlook of Horizon's business, performance and opportunities, and any potential strategic benefits, synergies or opportunities expected as a result of such acquisition), as well as estimates of revenues, operating margins, capital expenditures, cash, other financial metrics, expected legal, arbitration, political, regulatory or clinical results or practices, customer and prescriber patterns or practices, reimbursement activities and outcomes, effects of pandemics or other widespread health problems on our business, outcomes, progress, and other such estimates and results. Forward-looking statements involve significant risks and uncertainties, including those discussed below and more fully described in the Securities and Exchange Commission reports filed by Amgen, including our most recent annual report on Form 10-K and any subsequent periodic reports on Form 10-Q and current reports on Form 8-K. Unless otherwise noted, Amgen is providing this information as of the date of this news release and does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

No forward-looking statement can be guaranteed and actual results may differ materially from those we project. Discovery or identification of new product candidates or development of new indications for existing products cannot be guaranteed and movement from concept to product is uncertain; consequently, there can be no guarantee that any particular product candidate or development of a new indication for an existing product will be successful and become a commercial product. Further, preclinical results do not guarantee safe and effective performance of product candidates in humans. The complexity of the human body cannot be perfectly, or sometimes, even adequately modeled by computer or cell culture systems or animal models. The length of time that it takes for us to complete clinical trials and obtain regulatory approval for product marketing has in the past varied and we expect similar variability in the future. Even when clinical trials are successful, regulatory authorities may question the sufficiency for approval of the trial endpoints we have selected. We develop product candidates internally and through licensing collaborations, partnerships and joint ventures. Product candidates that are derived from relationships may be subject to disputes between the parties or may prove to be not as effective or as safe as we may have believed at the time of entering into such relationship. Also, we or others could identify safety, side effects or manufacturing problems with our products, including our devices, after they are on the market.

Our results may be affected by our ability to successfully market both new and existing products domestically and internationally, clinical and regulatory developments involving current and future products, sales growth of recently launched products, competition from other products including biosimilars, difficulties or delays in manufacturing our products and global economic conditions, including those resulting from geopolitical relations and government actions. In addition, sales of our products are affected by pricing pressure, political and public scrutiny and reimbursement policies imposed by third-party payers, including governments, private insurance plans and managed care providers and may be affected by regulatory, clinical and guideline developments and domestic and international trends toward managed care and healthcare cost containment. Furthermore, our research, testing, pricing, marketing and other operations are subject to extensive regulation by domestic and foreign government regulatory authorities. Our business may be impacted by government investigations, litigation and product liability claims. In addition, our business may be impacted by the adoption of new tax legislation or exposure to additional tax liabilities. Further, while we routinely obtain patents for our products and technology, the protection offered by our patents and patent applications may be challenged, invalidated or circumvented by our competitors, or we may fail to prevail in present and future intellectual property litigation. We perform a substantial amount of our commercial manufacturing activities at a few key facilities, including in Puerto Rico, and also depend on third parties for a portion of our manufacturing activities, and limits on supply may constrain sales of certain of our current products and product candidate development. An outbreak of disease or similar public health threat, and the public and governmental effort to mitigate against the spread of such disease, could have a significant adverse effect on the supply of materials for our manufacturing activities, the distribution of our products, the commercialization of our product candidates, and our clinical trial operations, and any such events may have a material adverse effect on our product development, product sales, business and results of operations. We rely on collaborations with third parties for the development of some of our product candidates and for the commercialization and sales of some of our commercial products. In addition, we compete with other companies with respect to many of our marketed products as well as for the discovery and development of new products. Further, some raw materials, medical devices and component parts for our products are supplied by sole third-party suppliers. Certain of our distributors, customers and payers have substantial purchasing leverage in their dealings with us. The discovery of significant problems with a product similar to one of our products that implicate an entire class of products could have a material adverse effect on sales of the affected products and on our business and results of operations. Our efforts to collaborate with or acquire other companies, products or technology, and to integrate the operations of companies or to support the products or technology we have acquired, may not be successful, and may result in unanticipated costs, delays or failures to realize the benefits of the transactions. A breakdown, cyberattack or information security breach of our information technology systems could compromise the confidentiality, integrity and availability of our systems and our data. Our stock price is volatile and may be affected by a number of events. Our business and operations may be negatively affected by the failure, or perceived failure, of achieving our sustainability objectives. The effects of global climate change and related natural disasters could negatively affect our business and operations. Global economic conditions may magnify certain risks that affect our business. Our business performance could affect or limit the ability of our Board of Directors to declare a dividend or our ability to pay a dividend or repurchase our common stock. We may not be able to access the capital and credit markets on terms that are favorable to us, or at all.

The scientific information discussed in this news release related to our product candidates is preliminary and investigative. Such product candidates are not approved by the U.S. Food and Drug Administration, and no conclusions can or should be drawn regarding the safety or effectiveness of the product candidates. Further, any scientific information discussed in this news release relating to new indications for our products is preliminary and investigative and is not part of the labeling approved by the U.S. Food and Drug Administration for the products. The products are not approved for the investigational use(s) discussed in this news release, and no conclusions can or should be drawn regarding the safety or effectiveness of the products for these uses.

CONTACT: Amgen, Thousand Oaks
Brianna Wilkins, 513-284-9807 (media)
Elissa Adair, 609-251-1407 (media)
Casey Capparelli, 805-447-1746 (investors) 

REFERENCES

Sands, J et al. Tarlatamab plus durvalumab (durva) vs durva as 1L maintenance (1LM) therapy following durva, platinum, and etoposide (1L durva + EP) in extensive-stage small cell lung cancer (ES-SCLC): Primary analysis of the phase 3 DeLLphi-305 trial. Presented at the European Society for Medical Oncology Congress 2026, 24 October at 17:18 CEST.
ClinicalTrials.gov. DeLLphi-305 clinical trial listing. Accessed July 16, 2026. https://clinicaltrials.gov/study/NCT06211036.
ClinicalTrials.gov. Tarlatamab clinical trial listings. US National Library of Medicine. Accessed September 2026. https://www.clinicaltrials.gov.
Oronsky B, Abrouk N, Caroen S, et al. A 2022 update on extensive stage small-cell lung cancer (SCLC). J Cancer. 2022;13(9):2945-2953. doi:10.7150/jca.75622.
International Agency for Research on Cancer. Trachea, bronchus and lung fact sheet. Global Cancer Observatory: Cancer Today. Published 2024. Accessed September 2, 2026. https://gco.iarc.who.int/today/en/fact-sheets-cancers/15/trachea-bronchus-and-lung.
Sabari JK, Lok BH, Laird JH, et al. Unravelling the biology of SCLC: implications for therapy. Nat Rev Clin Oncol. 2017;14(9):549-561. doi:10.1038/nrclinonc.2017.71.
Cramer-van der Welle CM, Schramel FMNH, van Leeuwen AS, Groen HJM, van de Garde EMW; Santeon SCLC Study Group. Real-world treatment patterns and outcomes of patients with extensive disease small cell lung cancer. Eur J Cancer Care (Engl). 2020;29(5):e13250. doi:10.1111/ecc.13250.
Shaw J, Pundole X, Balasubramanian A, et al. Recent treatment patterns and real-world survival following first-line anti-PD-L1 treatment for extensive-stage small cell lung cancer. Oncologist. 2024;29(12):1079-1089. doi:10.1093/oncolo/oyae234.
Paz-Ares L, Borghaei H, Liu SV, et al. Efficacy and safety of first-line maintenance therapy with lurbinectedin plus atezolizumab in extensive-stage small-cell lung cancer (IMforte): a randomised, multicentre, open-label, phase 3 trial. Lancet. 2025;405(10495):2129-2143. doi:10.1016/S0140-6736(25)01011-6.
Reck M, Mok TSK, Mansfield A, et al. Brief report: exploratory analysis of maintenance therapy in patients with extensive-stage SCLC treated first line with atezolizumab plus carboplatin and etoposide. J Thorac Oncol. 2022;17(9):1122-1129. doi:10.1016/j.jtho.2022.05.016.
Giffin MJ, Cooke K, Lobenhofer EK, et al. AMG 757, a half-life extended, DLL3-targeted bispecific T-cell engager, shows high potency and sensitivity in preclinical models of small-cell lung cancer. Clin Cancer Res. 2021;27(5):1526-1537. doi:10.1158/1078-0432.CCR-20-2845.
Baeuerle PA, Kufer P, Bargou R. BiTE: Teaching antibodies to engage T-cells for cancer therapy. Curr Opin Mol Ther. 2009;11(1):22-30.
Ahn MJ, Cho BC, Felip E, et al. Tarlatamab for patients with previously treated small-cell lung cancer. N Engl J Med. 2023;389(22):2063-2075. doi:10.1056/NEJMoa2307980.
Rojo F, Corassa M, Mavroudis D, et al. International real-world study of DLL3 expression in patients with small cell lung cancer. Lung Cancer. 2020;147:237-243. doi:10.1016/j.lungcan.2020.07.026.

SOURCE Amgen

Income seekers and growth investors often choose between biotech pioneers and diversified pharmaceutical giants. Comparing Amgen (AMGN -1.79%) and Johnson & Johnson (JNJ -1.42%) reveals two distinct paths for healthcare investing in 2026.

Amgen leverages its expertise in biological medicines to target complex diseases while expanding into rare treatments. Johnson & Johnson provides a broader foundation by combining massive drug development with its leading medical technology division. Both companies aim to provide long-term value, but their risk profiles and financial structures differ significantly.

The case for AmgenAmgen develops and delivers biological medicines for serious illnesses, focusing on inflammation, oncology, and rare diseases. In its latest annual report, filed for the fiscal year ended Dec. 31, 2025, the company noted that it distributes products primarily through pharmaceutical wholesale distributors. McKesson Corp. (MCK -1.14%), Cencora (COR -2.21%), and Cardinal Health (CAH -2.37%) collectively accounted for 77% of gross revenues in 2025. Customer concentration like this adds a layer of risk to the business.

In FY 2025, revenue reached about $36.7 billion, representing a growth rate of approximately 10% compared to the prior year. Net income for the period was around $7.7 billion, yielding a net margin of roughly 21%. This growth reflects a significant improvement over the prior year, where net income was closer to $4.1 billion.

As of its December 2025 balance sheet, the debt-to-equity ratio was nearly 6.3x, showing total debt is over six times the value of shareholder equity. The current ratio, which measures the ability to cover short-term liabilities with short-term assets, was approximately 1.1x. Free cash flow for the year was roughly $8.1 billion, providing the capital necessary to fund research and development.

The case for Johnson & JohnsonJohnson & Johnson operates through two primary segments: Innovative Medicine and MedTech. This structure makes it a heavyweight among healthcare stocks because it captures both drug discovery and surgical hardware sales. The company maintains a massive global presence, distributing products to hospitals, wholesalers, and healthcare professionals in virtually every country.

In FY 2025, revenue for the company climbed to roughly $94.2 billion, which was a 6% increase over the previous fiscal year. Net income was approximately $26.8 billion, resulting in a net margin of 28.5%. These figures show the company remains highly profitable while steadily growing its massive top-line sales.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.6x, indicating a conservative use of debt relative to equity. Its current ratio was nearly 1.0x, showing the company has enough short-term assets to meet its immediate obligations. Free cash flow was very strong at roughly $19.7 billion for the fiscal year.

Risk profile comparisonAmgen faces risks from intense scrutiny on drug prices, including mandatory price setting for Medicare under the Inflation Reduction Act. The company also deals with manufacturing concentration, as its production is heavily dependent on facilities in Puerto Rico and California. Furthermore, it faces an ongoing tax dispute with the IRS regarding profit allocations that could result in a significant financial liability.

Johnson & Johnson deals with significant pricing and reimbursement headwinds from global healthcare reforms. The company also faces extensive legal proceedings, including product liability claims related to talc-based products and patent challenges. It must also compete for market share against other pharmaceutical leaders like Pfizer Inc. (PFE -1.28%) and AbbVie Inc. (ABBV +0.16%) while managing a complex global supply chain.

Valuation comparisonAmgen appears to be the more affordable option based on future earnings, though Johnson & Johnson carries significantly less debt relative to its equity base.

MetricAmgenJohnson & JohnsonForward P/E19.4x24.1xP/S ratio6.3x6.5xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

Which stock would I buy in 2026?Amgen is not a fast-growing company by sales, as reflected in its ratios in the table above. Given its scale, it should be able to achieve a roughly 3% revenue increase in 2026, to around $37.8 billion. But size forgives a lot in pharmaceuticals. For one, its billions in net income could enable Amgen to pursue future growth by acquiring other drugmakers. The business also has six drug franchises that generate $1 billion-plus in annual revenue. There is real value there.

Late last year, Amgen became one of nine companies to reach a deal with the U.S. government to lower drug prices (Bristol Myers Squibb (BMY -2.41%), Merck & Co. (MRK -1.34%), and Gilead Sciences (GILD -0.73%) are also among the companies that signed a deal). Based on this agreement, Amgen will be exempt from Trump's pharmaceutical tariffs for three years, a positive, in exchange for the company reducing prices on its key migraine drug Aimovig and rheumatoid arthritis medicine Amjevita by about 60% and 80%, respectively, in a direct-to-consumer platform launched this month.

Johnson & Johnson, meanwhile, is an overlooked behemoth compared with faster-growing biotech companies. The business has 28 products and platforms that generate more than $1 billion in annual revenue. Its pharmaceuticals arm, Innovative Medicine, has received two FDA approvals this year and has two more approved drug product launches in the E.U. and the U.S. The Innovative Medicine division accounts for 65% of JNJ's annual revenue and appears to have a robust pipeline beyond the pending products. MedTech, its other arm, sells a wide range of healthcare products, including wound care, surgical instruments and implants, hip and knee replacements, and spinal implants. The recent buy of Atraverse Medical bolsters that business. Revenue for Johnson & Johnson is expected to rise to $101 billion in the current fiscal year.

These are both pharma stalwarts and could make a nice addition to a portfolio. The key differentiator right now is the cheapness of the stock. under the philosophy of buying good stocks at good prices. That gives the nod to Amgen, which has a lower forward P/E and P/S than J&J.

Booking maintains a dominant position in the global travel market with high net margins and strong cash flow generation. Home Depot continues to leverage its massive scale and professional contractor services to navigate a volatile housing market.

Franklin Templeton just moved a massive tokenized fund position onto the XRP Ledger, yet XRP barely flinched. The reason why reveals something uncomfortable about what blockchain adoption actually does for a coin's price.

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Franklin Templeton (NYSE: BEN | BEN Price Prediction) recently allocated $150 million in shares of its tokenized money market fund to the XRP (CRYPTO: XRP) Ledger, with ledger records showing all new shares stored in a single wallet. A money market fund is a low-risk investment that holds short-term debt and offers a yield, while “tokenized” means that each fund share exists as a digital token on a blockchain.

The token in question is called sgBENJI, and this latest addition raises Franklin’s tokenized fund assets on the XRP Ledger to around $200 million. These details come from on-chain data and media reports, as Franklin has not yet formally announced the deposit.

Despite this large deposit, XRP’s price did not surge. It trades at $1.28, down 2.7% over the past 24 hours, 16.2% over the last month, and 30.1% year to date. So far, Franklin’s deposit has not noticeably impacted XRP’s price.

Each sgBENJI Token Is a Share of Franklin’s Money Market Fund

Each sgBENJI token is equivalent to a share of Franklin’s Singapore-domiciled OnChain U.S. Dollar Short-Term Money Market Fund. The fund invests in short-term dollar debt, including government securities, commercial paper, and bank deposits, and returns through share price appreciation rather than issuing new tokens.

This XRP Ledger version stems from a collaboration Ripple, DBS, and Franklin announced in September 2025. Under this arrangement, the DBS Digital Exchange agreed to list sgBENJI alongside Ripple USD (CRYPTO: RLUSD), Ripple’s dollar-pegged stablecoin. This setup lets accredited and institutional clients exchange the stablecoin for fund shares 24/7, enabling them to earn yields as crypto prices fluctuate.

Additionally, DBS plans to explore allowing clients to use sgBENJI as collateral for loans, including repurchase agreements (repos). In a repo, the borrower provides an asset as collateral and agrees to buy it back later at a slightly higher price, with the bank holding the pledged tokens for the lender.

Franklin generates income from sgBENJI in the same way it does with any fund, through a management fee on the assets. The token facilitates distribution while the fund earns, and Franklin retains control of its XRP Ledger holdings. It can approve, freeze, or recover the fund’s assets, although the shares are hosted on a public blockchain.

Why Franklin Keeps Every sgBENJI Share in One Wallet

Ledger records indicate that the receiving wallet utilizes the same authorized signers as Franklin’s issuing account. However, it is unclear whether this wallet represents a single investor or multiple clients, as Franklin has not disclosed the number of holders.

Storing all shares in one wallet is a common practice for tokenized funds at this stage. Typically, the issuer or its transfer agent — the company responsible for maintaining official records of share ownership — mints shares into a wallet under its control. The shares remain there until investors request subscription or delivery to their personal wallets, meaning one wallet can hold shares for multiple investors.

This arrangement creates two separate figures: the on-chain balance shows the fund’s total value staged on the XRP Ledger, but it does not reveal the number of actual shareholders or how many shares have reached end investors. Regulatory scrutiny is also a factor, as the SEC has highlighted tokenization as an area of heightened examination for 2027, which may explain an issuer’s choice to keep shares in a tightly controlled wallet.

Franklin’s Fund Shares Create Little Direct Demand for XRP

Franklin’s fund shares do not create significant direct demand for XRP. In the competitive XRP Ledger landscape, RWA.xyz ranks Franklin as the second-largest tokenized asset platform, behind Ripple USD and ahead of Ondo. Ripple’s 2025 release noted that Franklin has now included the XRP Ledger in its existing roster of blockchains, indicating competition with other networks for the same fund shares.

Moreover, XRP does not play a role in facilitating sgBENJI trades. The DBS framework pairs the fund directly with Ripple USD, allowing investors to buy and redeem shares using dollars or dollar tokens. This approach relegates XRP to network fuel.

The cost associated with using XRP is minimal. Each XRP Ledger account requires a small XRP reserve, and each transaction burns a fraction of XRP. Transferring millions of dollars in fund shares incurs about the same cost as moving just one dollar, which means that sgBENJI creates little direct demand for XRP.

Nevertheless, Ripple’s corporate profile continues to grow. Notable attendees at Ripple’s upcoming Swell 2026 conference in New York, scheduled for October 27 to 29, include BlackRock (NYSE: BLK) and the IMF. While big names may boost Ripple’s appeal, they don’t obligate anyone to hold XRP.

Does Franklin Templeton’s XRP Ledger Deposit Help XRP’s Price?
For now, it appears that all shares remain in one wallet since an account controlled by Franklin’s authorized signers holds the entire supply. This deposit benefits both companies: Franklin expands its fee-generating fund assets while providing a functional product through the XRP Ledger. However, XRP gains little directly, since the fees and reserves are too small to move its price.

XRP’s 2.7% slide on the day of the report suggests traders saw the deposit as Franklin news, not XRP news. Shares moving into wallets with different signers could show investor distribution, and a Franklin filing naming XRP for settlement could mean more. If the balance stays in that one wallet through December, the deposit looks more like unsold inventory than investor demand.

Contact [email protected] for any questions or corrections.

AI servers are quietly driving up the cost of every laptop on the shelf, and the companies caught in the middle face a choice between shrinking margins and shrinking sales.

Carvana hits its quarterly reckoning with record sales volumes colliding against shrinking margins and a valuation that punishes any slip. Whether the used-car giant can hold its premium multiple depends on answers it has not yet given investors.

Carvana (NYSE:CVNA | CVNA Price Prediction) reports third-quarter results on Wednesday, Oct. 28. Shares are down 31.51% year to date. This report will show whether record volume can offset a persistent margin pressure.

Record Volume Meets Thinner Margins
Carvana delivered growth again last quarter. Revenue reached $7.38B, up 52.4% year over year and ahead of the $6.91B estimate. EPS of $0.42 beat the $0.3815 consensus, and retail units hit a record 197,325, up 38%.

Profitability went the other way. Adjusted EBITDA margin slipped to 10.4% from 12.4%, and total GPU fell $412 as Carvana passed more than 100 basis points of rate cuts to customers and lapped a roughly $100 tariff benefit. Management still raised full-year adjusted EBITDA guidance to $2.70B to $3.00B, compared with $2.24B in 2025.

The stock fell 7.36% on earnings day despite the beat. Over the past month it has dropped 9.6% to $57.79.

What Wall Street Expects for Q3 and Full-Year 2026

Metric
Consensus
Year-Ago
YoY Change

Q3 EPS
$0.4387
$0.206
113.0%

Q3 Revenue
$7.67B
$5.647B
35.8%

FY2026 EPS
$1.5639
$1.69
-7.5%

FY2026 Revenue
$29.05B
$20.322B
43.0%

Year-ago EPS figures are split-adjusted. Q3 2025 absorbed a $120M Root warrant loss, and FY2025 included a $618M non-cash tax benefit.

Inventory and Financing Margins Will Set the Tone
Management guided for a sequential increase in retail units, and the focus is whether volume tops Q2’s record. Inventory is the bigger question. CEO Ernie Garcia admitted “inventory has undergrown sales over the last several months”, and the gap shows up by region: inventory grew 57% in the Midwest and Northeast versus 17% in the West and Southeast.

The GPU breakdown deserves a close look. Retail GPU fell $105, and other GPU fell $192, the latter hit by customer rate cuts and higher benchmark rates. Advertising dollars will rise in Q3, testing SG&A leverage after per-unit costs improved to $3,568 from $3,846.

Credit mix matters too. Rate reductions targeted prime customers, and buyers earning over $100,000 grew a little more than 60%. Any stress in lower-income groups would hit financing revenue.

The FTC fee rule offers upside. Garcia estimated dealer website prices rose $500 or $600 while Carvana’s no-fee pricing held steady. ADESA progress also deserves attention: 19 sites are integrated, and the first full expansion targets production in early 2027.

A Premium Multiple Leaves Little Room for Slippage
At $57.79, Carvana trades near 37x full-year 2026 consensus EPS, with a beta of 3.548. The Q3 2025 miss triggered a 13.81% earnings-day drop. If margins level off while volume compounds, the path to 3 million units at a 13.5% adjusted EBITDA margin looks credible. If GPU keeps falling, that premium becomes hard to defend.

Contact [email protected] for any questions or corrections.

Alibaba continues to dominate the digital landscape through its focus on artificial intelligence, cloud computing, and massive e-commerce marketplaces. Dick's Sporting Goods has significantly expanded its global reach and revenue base following the strategic acquisition of Foot Locker.

ENSG Investors Have Opportunity to Lead The Ensign Group, Inc. Securities Fraud Lawsuit Filed by The Rosen Law FirmPR NewswireNEW YORK, Oct. 24, 2026NEW YORK, O

Bloom Energy delivered blockbuster Q3 '26 results, guiding up for Q4 and projecting robust long-term growth in data center power solutions. BE is rapidly expanding capacity, targeting over 5 GW and potentially $20 billion in annual revenue, with major customers like Oracle and Nebius driving demand. Despite recent negative cash flow from inventory and equipment build, the fuel-cell power company maintains a strong $2.5 billion cash balance and positive YTD free cash flow.

Energy Transfer is a leading U.S. midstream MLP, positioned for growth via extensive infrastructure and exposure to major natural gas basins. ET benefits from rising natural gas demand, driven by data centers and international LNG markets, with significant new supply contracts secured. The recent Vaquero Midstream acquisition expands ET's Permian footprint, expected to be immediately accretive to distributable cash flow per unit.

Investors are watching O'Reilly Automotive (NASDAQ:ORLY | ORLY Price Prediction) ahead of its third-quarter results on Oct. 28. Professional demand carried the first half.

Instacart's stock surged after reports that grocery delivery's biggest rivals are circling the company for a potential acquisition, but one named buyer has already walked away and the other carries serious antitrust baggage.

Shares of Instacart (NASDAQ:CART | CART Price Prediction) jumped in the last minutes of trading on October 23, 2026. A report at around 3:56 PM ET said the grocery delivery company is exploring a sale. The stock closed up $4.76, or 9.21%, at $56.44, just under its 52-week high of $57.98.

People familiar with the matter said Instacart has held preliminary talks with Uber (NYSE:UBER) and DoorDash (NASDAQ:DASH) and is working with an investment bank. The talks were described as early and ongoing, and they may not produce a deal.

Hours later, a second report said Instacart had approached Uber in recent weeks, and Uber walked away. Talks with other companies continue. Instacart declined to comment, no company has confirmed talks, and nobody has made a bid.

Both of the named buyers fell. Uber dropped 3.43% to $66.70, and DoorDash fell 3.53% to $179.38, so shareholders are more worried about overpaying than excited about the asset.

What a Buyer Would Actually Get Instacart makes money and generates cash. Second-quarter revenue rose 14% to $1.043 billion. Net income was $111 million and free cash flow was $480 million on 90.3 million orders.

Advertising and other revenue grew 16%, and Instacart sells e-commerce software and Caper smart carts to retailers. A buyer would get a retail advertising business along with the delivery network.

DoorDash would likely value Instacart most, because U.S. grocery and retail already drive its order growth. With a $77.72 billion market cap against Instacart’s $13.07 billion, DoorDash could afford the deal. The purchase would also give DoorDash its closest grocery competitor.

Uber already lets customers order Uber Eats through the Instacart app. Uber is also absorbing its nearly $15 billion Delivery Hero deal from July and a pending ezCater purchase, which likely explains why it reportedly stepped away.

Why Instacart Would Sell Now Instacart’s revenue grew 11% in both 2024 and 2025, while DoorDash’s grew 28% last year. Retailers are building their own digital channels, and bigger platforms bundle delivery with other services.

The stock’s run gives Instacart more leverage in any negotiation. Shares rose 31.38% over one month and 43.18% over one year. The close sits about 88% above the $30 IPO price, although that is still far below the $39 billion valuation Instacart announced in early 2021.

Antitrust Risk Limits the Premium DoorDash reportedly discussed buying Instacart in 2021 at a likely $40 billion to $50 billion, and those talks fell apart partly over antitrust concerns. Industry analyst Zak Stambor said the Trump administration has shown “greater willingness” to approve deals, possibly on the condition that parts of the business are sold off. If a buyer has to sell off pieces, it would likely pay less for the whole.

Instacart was worth about $12 billion at the October 22 close. A typical takeover premium of 30% to 40% means roughly $16 billion to $17 billion, but that range is only an example, and no buyer has offered it. At $13.07 billion, the stock already reflects part of that premium.

What Investors Should Watch Before Instacart’s November 5 Report The gain rests on anonymous sources, one of the two named buyers has reportedly walked away, and the most likely remaining buyer carries antitrust risk.

Chief executive Chris Rogers said on the August 6 call, “Our business is performing incredibly well.” Results on November 5 will test that claim against guidance of $10.30 billion to $10.55 billion in GTV (gross transaction value, the total dollar value of orders) and $320 million to $340 million in adjusted EBITDA.

DoorDash offers a useful comparison. It is down 20.8% this year, yet its second-quarter revenue rose 35.6%. DoorDash remains the faster-growing company whether or not a deal happens.

Watch for a signed agreement or confirming filing by Instacart’s November 5 report. Without one, the stock would likely drift back toward its $51.68 close from before the report.

Contact [email protected] for any questions or corrections.

SharkNinja and other top stocks are catching sectoral tailwinds that often have little to do with AI.

After two decades of sluggish growth, U.S. electricity demand appears to be approaching a major inflection point. Rabobank research projects that power consumption could climb 20% by 2030 -- a dramatic shift for a grid accustomed to nearly flat annual growth of around 0.5%.

For investors, surging power demand shifts focus to the energy sector, from steady utility providers to power generators and companies supplying critical grid equipment. Here are the stocks that stand to benefit from rising electricity demand.

Image source: Getty Images.

What's driving such strong power demand
Growing demand from AI hyperscalers, the electrification of the power grid (think electric vehicles), and the reindustrialization of manufacturing could drive strong growth in U.S. electricity demand over the next decade.

Growing power demand will ripple through the economy. Regulated utilities should benefit from surging peak demand, which will encourage investment in substations, high-voltage lines, and power plants. As these utilities invest more in infrastructure, their earnings should grow as their rate base expands.

Regulated utilities, especially those in the fast-growing regions with data centers, should see solid growth. Companies like Dominion Energy (D -0.31%), Southern Company (SO -0.99%), and American Electric Power (AEP -0.73%) stand to benefit. Regulated utilities offer less upside exposure to rising power demand, but their stability makes them ideal for conservative investors or those seeking reliable dividends.

SO Southern Company$92.89-$0.93 (-0.99%)

NYSE · As of 4:00 PM ET 10/23/26

Independent power producers capture more upside compared to regulated utilities
Beyond regulated utilities are independent power producers. These companies own power-producing assets, such as nuclear power plants, and sell electricity to companies through long-term power purchase agreements and into spot markets. Because they aren't regulated utilities, they can capture more upside from rising electricity prices.

Companies like Constellation Energy (CEG -0.69%), Vistra (VST -0.48%), and Talen Energy (TLN -1.06%) are all merchant power producers that have locked in long-term agreements with hyperscalers. Earlier this month, Constellation signed a 20-year power purchase agreement with Alphabet. It also has deals with Amazon, Microsoft, and Walmart. Amazon also has PPA agreements with Vistra and Talen.

CEG Constellation Energy$253.45-$1.76 (-0.69%)

NASDAQ · As of 4:00 PM ET 10/23/26

Don't overlook power equipment manufacturers
Finally, power equipment providers are seeing historical demand for their products. These companies benefit because they can get data centers powered and operating in months, not years.

GE Vernova (GEV -1.50%), which manufactures gas turbines and other power equipment, has a massive backlog of over $176 billion. Meanwhile, the narrative around Bloom Energy (BE -11.24%) has shifted dramatically in recent years, as the company has seen incredibly strong demand for its solid-oxide fuel cells.

GEV GE Vernova$815.00-$12.42 (-1.50%)

NYSE · As of 4:00 PM ET 10/23/26

These companies offer diversified upside from the growing demand for power
Power demand is set to grow rapidly over the next decade, and the market is rewarding companies that can meet that demand quickly. If you're a conservative investor seeking income while still getting in on the trend, regulated utilities like Southern Company offer stable upside.

If you're more aggressive and don't mind the risk, independent power producers like Constellation and Vistra are appealing, and both are down 30% and 22% over the past year. If you want to play the power boom from the equipment angle, manufacturers like GE Vernova and Bloom Energy offer another attractive way to capture upside from the growing need for power.

Courtney Carlsen has positions in Alphabet, Bloom Energy, Constellation Energy, GE Vernova, Microsoft, and Vistra. The Motley Fool has positions in and recommends Alphabet, Amazon, Bloom Energy, Constellation Energy, GE Vernova, Microsoft, Talen Energy, Vistra, and Walmart. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.

Ukraine's Defense Ministry said Starlink and Starshield connectivity is again stable on equipment moving above 400 km/h (249 mph). Ukrainian officials said the restrictions disrupted some drone operations and weakened the country's ability to respond to Russian attacks.

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Meta Platforms delivered 26% revenue growth and robust ad performance, but heavy capex and legal costs cloud near-term free cash flow. At ~$649, META trades near my $645 fair value; I'd become more bullish at $550 or below, given current ad economics. AI-driven ad improvements are already boosting results, but the economics of new initiatives like Muse remain unproven and warrant caution.

CFRA's Garrett Nelson says Tesla (TSLA) earnings were better than expected with its positive cash flow and signs that shifting revenue flow is helping margins. When it comes to timing, Garrett emphasizes to take roadmaps on new products like its Roadster with "a grain of salt.

Neighbors fought back against a massive Amazon data center project in Virginia, and something unexpected happened next. The outcome could set a precedent that forces every major cloud company to rethink where and how it builds.

SummaryThe falling knife thesis had turned out as posited, given Netflix's decelerating revenue growth, moderating US market share, and delayed growth reversal.Otherwise, they enjoyed robust international engagement trends, with the growing FCF, healthy balance sheet, and ongoing share repurchases underpinning their resilience.NFLX guides sustained double-digit revenue growth, margin expansion, and significant advertising monetization while hiring a new Content Officer to drive renewed US engagement.Risks include pessimistic sentiments, potential price-driven churn, and lack of bullish catalysts, which may keep the stock trading sideways or lead to further downside.The recent selloff and oversold technicals signal NFLX's deep-value, contrarian buy thesis, with the 3Y PEG ratio of 0.89x implying a rich upside to LTPT of $100.90. wildpixel/iStock via Getty Images

Netflix's (NFLX) falling knife thesis had turned out as posited in my last article, with the stock underperforming across the decelerating revenue growth, the moderating US market share, and the delayed growth reversal.

Otherwise, NFLX remains

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX, GOOG, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.