Amgen vs. Axsome Therapeutics: Which Healthcare Stock Is a Better Buy in 2026?

Choosing between Amgen (NASDAQ:AMGN) and Axsome Therapeutics (NASDAQ:AXSM) means weighing the established stability of a global pharmaceutical leader against the rapid growth of an emerging central nervous system specialist.

Amgen operates as a diversified biotechnology giant with products reaching patients in approximately 100 countries. Axsome Therapeutics focuses on central nervous system disorders like depression and narcolepsy. While Amgen relies on its massive scale and cash generation, Axsome is currently prioritizing the commercialization of its newer therapies to reach long-term profitability.

Amgen discovers and delivers medicines for serious diseases across several core areas, including inflammation, rare disease, and oncology. Its massive scale allows it to distribute products to roughly 100 countries, though McKesson (NYSE:MCK), Cencora (NYSE:COR), and Cardinal Health (NYSE:CAH) accounted for 77% of its fiscal 2025 revenue. Customer concentration like this adds a layer of risk, even if it is common among major biotech stocks .

In FY 2025, revenue reached nearly $36.7 billion, an increase of approximately 9.9% year over year. The company reported net income of roughly $7.7 billion, showing significant growth from the $4.1 billion earned in 2024. This resulted in a net margin of 21%, which is a measure of profitability that shows how much of each dollar of revenue is converted into profit.

As of Amgen's December 2025 balance sheet, the debt-to-equity ratio is 6.3, meaning total debt is more than six times the value of shareholder equity. The current ratio, which measures the ability to pay short-term obligations using current assets, is approximately 1.1. Free cash flow for the year reached nearly $8.1 billion, representing the cash a company generates after accounting for the money spent to maintain or expand its asset base.

Axsome Therapeutics is a biopharmaceutical company specializing in therapies for central nervous system conditions, such as migraine and major depressive disorder. It leverages strategic partnerships to expand its global reach, including research collaborations with major industry players like Pfizer (NYSE:PFE) and AstraZeneca (NYSE:AZN). The company currently markets its portfolio in the United States and works with partners to expand into European markets.

In fiscal 2025, revenue increased by approximately $638.5 million, skyrocketing 65.5% year over year. Despite this strong top-line growth, Axsome reported a net loss of nearly $183.2 million as it continues to invest in its pipeline. The resulting net margin was negative 28.7%, though this was an improvement from the negative 74.5% margin seen in 2024.