Amneal Pharmaceuticals delivered its strongest fiscal second quarter in years on the operational side, raised full-year guidance for the second time in 2026, repriced its $2.08 billion term loan a second time in six months to drop the spread by another 50 basis points, and then, four days after reporting, closed the related-party Kashiv BioSciences acquisition that turns the company into one of the few fully integrated U.S. biosimilars manufacturers. The Kashiv consideration - $375 million in cash plus 28,942,108 newly issued Class A shares plus up to $350 million of contingent regulatory milestones plus a 25% royalty on certain gross-profit hurdles over a twelve-year tail - is the largest single transformation Amneal has undertaken since the 2018 private-to-public reorganisation, and the most consequential. Q2 2026 GAAP net revenue of $796 million rose 10% (Affordable Medicines +13%, Specialty +17%, AvKARE -4%); adjusted EBITDA of $206 million rose 12%; GAAP diluted EPS of $0.18 rose 157% (off a low prior-year base); adjusted diluted EPS of $0.30 rose 20%. The company also recognised $7.6 million of Kashiv acquisition costs in the quarter and $12.8 million in the first half, with Kashiv integration costs of roughly $30 million flagged as discrete items in the 2026 cash-flow guide. The Kashiv closing is the centre of gravity for every section of this report. It is the reason the August 3 term loan repricing launched a $350 million incremental tranche at the new lower spread. It is the reason the FY2026 OCF guide excluded roughly $36 million of opioid settlement payments and the Kashiv integration costs. It is the reason post-quarter revolver borrowings jumped by $180 million in eight days. And it is the reason a mid-July water-damage event at an India facility - bracketed in the company's own Subsequent Events note as a $10–15 million direct loss and roughly $20 million of lost pre-tax profit, mostly in the second half - is the single most material non-Kashiv event of the quarter, but does not move the FY2026 guide that was raised anyway.
The raised guide says what the quarter said: net revenue to $3.10–3.20 billion (from $3.05–3.15 billion), adjusted EBITDA to $750–780 million (from $740–770 million), adjusted diluted EPS to $0.96–1.06 (from $0.95–1.05), with the EPS measure set on approximately 340 million weighted-average diluted shares and on AvKARE's 35% non-controlling interest. The Kashiv close lands on a roughly $8.3 billion enterprise value at $17.66 per share (Class A: 319,353,919 shares outstanding at 7/31/2026), $5.64 billion of market capitalisation, $2.66 billion of net debt, and trailing-twelve-month adjusted EBITDA of $743 million - about 11.2x EV/TTM adjusted EBITDA, 8.6x TTM adjusted P/E, and a 3.6x net leverage ratio that the company has publicly targeted to drop below 3.0x by 2028. The stock closed the report period at $17.66 (8/12/2026), off its 52-week high of $19.26 (set in early August on Kashiv-close anticipation) by 8.3% and up roughly 97% from its 52-week low of $8.96.
The thesis on a closing week is that this is a transformation quarter with a known tax. A generics + specialty + federal-distribution business built on $1.75 billion of FY2025 Affordable Medicines revenue (with new 2025/2026 launches adding roughly $45 million of Q2 2026 growth on the Affordable Medicines line), a $529 million FY2025 Specialty franchise that the company has spent the last decade re-engineering around CREXONT and the BREKIYA autoinjector, a $745 million FY2025 AvKARE federal/retail/institutional distribution leg, and a biosimilars platform that just absorbed a related-party biosimilar manufacturer for cash, stock, milestones, and a 12-year royalty. The quarter proved the operating thesis (10% revenue growth, 250 bps of H1 gross-margin expansion, 12% adjusted EBITDA growth, 20% adjusted EPS growth). The Kashiv close converted the operating thesis into a structural one. The India water damage, the opioid settlement, the antitrust class action, the term loan repricing, and the contingent royalty are all live - but in the week the company closed, the dominant new fact is biosimilars.