Amneal Raises Outlook as Affordable Medicines Growth Accelerates
Second-quarter net revenue rose 10% to $796 million as the complex-drug portfolio and new launches gained ground.
Amneal Pharmaceuticals (AMRX), the pharmaceutical maker, raised its 2026 outlook after faster growth in Affordable Medicines helped lift second-quarter results.
The quarter marked an acceleration in companywide revenue growth from 4% in the first quarter, even as Specialty growth moderated and AvKARE’s low-margin distribution business remained under pressure.
Net revenue rose 10% from a year earlier and about 10% sequentially from $723 million. Net income attributable to Amneal increased 157% to $58 million, while GAAP diluted earnings rose to $0.18 a share from $0.07. Adjusted diluted earnings increased 20% to $0.30 a share, compared with 29% growth in the prior quarter.
Affordable Medicines revenue rose 13%, accelerating from 2% growth in the first quarter as the complex portfolio and new products contributed. Specialty revenue increased 17%, slowing from 23%, with continued contributions from CREXONT, BREKIYA and UNITHROID. AvKARE revenue fell 4% for a second consecutive quarter as distribution weakness offset or outweighed government-channel growth.
GAAP gross margin expanded 250 basis points to 42.0%, a narrower gain than the first quarter’s 750-basis-point expansion. Adjusted EBITDA rose 12% to $206 million, easing from 19% growth in the prior quarter while increasing about 2% sequentially.
Amneal now expects 2026 revenue of $3.10 billion to $3.20 billion, with both ends raised by $50 million. Its adjusted EBITDA forecast increased to $750 million to $780 million, and adjusted diluted EPS guidance rose to $0.96 to $1.06. Operating-cash-flow guidance remains $350 million to $400 million.
Planned capital expenditures increased to about $150 million from about $110 million. The cash-flow outlook identifies roughly $36 million of opioid-settlement costs and $30 million of Kashiv acquisition and integration costs as discrete items; the second quarter included $7.6 million of Kashiv-related acquisition costs and $8.1 million of net legal charges, primarily tied to antitrust class-action litigation.
Interest expense declined to $55.0 million from $65.1 million, and the July repricing of its $2.084 billion term loan is expected to save about $12 million in annual cash interest. Gross leverage improved to 3.7 times, though net leverage increased to 3.6 times as net debt reached $2.657 billion.