AbbVie Inc
ABBV · NYSEHealthcare · Biotechnology & Pharmaceuticals
Since the Report + 5.5%
Close on Report DayJul 31
$243.87▼ 2.5%Report-Day Move
- Market Cap(Today)
- ≈ $455 B
- 1Y Return(At Report)
- + 24%
- P/E($10.87 · Trailing 12M)
- 23.7
- PEG(company guidance 2026)
- 0.60
- Net Margin(Trailing 12M)
- 9.8%
Skyrizi and Rinvoq carried the quarter on their own again, together selling $8.03 billion and accounting for 47% of revenue, while total revenue of $16.99 billion came in ahead of expectations. The stock still closed down 2.5% at $250.94 on earnings day, because the 14-cent dilution from the Apogee acquisition pulled the midpoint of the full-year adjusted profit outlook below the market estimate. From here attention turns to the autumn FDA decision on Skyrizi in Crohn's disease and the closing of the Apogee deal in the third quarter.
Revenue (Q2)
$16.99B
+10.2% YoY
Adjusted EPS
$3.65
+22.9% YoY
Skyrizi + Rinvoq
$8.03B
47% of Revenue
Adjusted Operating Margin
48.3%
37.9% GAAP
Oncology Revenue
$1.65B
-1.5%
2026 EPS Outlook
$13.87 - $14.07
Midpoint −4 Cents
Quarterly Revenue ($ Billion)
15.42
15.78
16.62
15.00
16.99
Guidance: ~$17.2B
- Q2 25
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
- Revenue Growth YoY
- 10.2%$16.99B · Q2 26
- Immunology Revenue
- $8.79B+15.1% YoY · 52% of Revenue
- Humira
- $756M-35.9% YoY · 4.5% of Revenue
Q3 FY2026 Company Guidance
- Full-Year Adjusted EPS13.87 – 14.07 $
Midpoint cut by 4 cents on Apogee's 14-cent dilution · Consensus 14.08Above the Range ▼
- Full-Year Revenue67.6 billion
Raised by $300M; $600M total since the start of 2026Revised Up ▲
- Skyrizi Full-Year Sales21.7 billion
Raised by $100MRevised Up ▲
- Neuroscience Full-Year Sales12.7 billion
Raised by $100M; Vraylar ~$4.1B, Botox Therapeutic ~$4.2BRevised Up ▲
- Q3 Adjusted EPS3.84 – 3.88 $
Q3 revenue expected around $17.2BSequential Step Up ▲
The blue band is the company's low–high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. Axis is ±0.9% around the midpoint.
- Full-Year R&D Expense
- $9.8BIncrease $100M · Apogee Pipeline
- Annual Dividend
- $6.92~2.8% Yield
- Net Leverage Target
- 2xWithin 2-3 Years of Apogee Close
“AbbVie delivered another excellent quarter, with results once again exceeding our expectations. The performance of Skyrizi, Rinvoq and our neuroscience portfolio continues to be very strong, with each delivering growth above 20%.”
- Apogee as 2030s growth source
- Late-stage pipeline and approvals
- Ample business development capacity
Summary
AbbVie reported $16.99 billion in revenue for the second quarter of 2026, up 10.2% from a year earlier and roughly $300 million ahead of the company's own target. Adjusted earnings per share came in at $3.65, a 22.9% increase, while GAAP earnings per share rose to $2.03. Growth once again came from two immunology drugs: Skyrizi at $5.51 billion (up 24.4%) and Rinvoq at $2.53 billion (up 24.5%). Together they accounted for nearly half of the quarter's total revenue. The neuroscience portfolio reached $3.23 billion and grew 20.3%, while Humira slid to $756 million, 35.9% below the year-ago quarter.
With numbers that good, a 2.51% drop on July 31 to a $250.94 close looks odd at first glance. The reason came down to a single line: the company trimmed its 2026 adjusted earnings per share outlook to $13.87-$14.07 from $13.91-$14.11. That four-cent cut is not operational deterioration — it reflects 14 cents of dilution from the $10.9 billion Apogee Therapeutics acquisition, of which the underlying business has already recovered 10 cents. The revenue outlook was actually raised by $300 million to $67.6 billion. Even so, the market had been looking for something near $14.08 for the full year, and the midpoint landed just below it. Cutting a profit outlook, whatever the reason, is a move investors rarely forgive.
The quarter itself was strong, and this score has nothing to do with the share price reaction. AbbVie showed again that it has not only filled the hole left by Humira's patent loss but layered double-digit growth on top of it, with an adjusted operating margin of 48.3% that sits at the top end of the industry. The reservation is plain: nearly all of the growth comes from two molecules, oncology is shrinking 1.5% and aesthetics is effectively flat at 0.3%. The Apogee deal is aimed squarely at reducing that dependence, but it is an investment whose payoff points to the 2030s. In the near term the story hinges on Skyrizi's Crohn's disease approval decision expected this fall.
Full Review
ClaudeNearly all the growth comes from two drugs.
Skyrizi sold $5.51 billion and Rinvoq $2.53 billion, a combined $8.03 billion, or 47% of quarterly revenue. Both grew more than 24%. The company lifted Skyrizi's full-year target by $100 million to $21.7 billion — a single drug larger than the entire revenue base of many pharmaceutical companies. Immunology as a whole reached $8.79 billion and grew 15.1%. For investors this cuts both ways: it proves the quality of the portfolio while deepening concentration risk. If either Skyrizi or Rinvoq slows, there is no second lever visible today to offset it. The subcutaneous induction approval expected this fall could widen Skyrizi's runway in Crohn's disease from early 2027.
Humira is no longer the main plot.
Humira revenue fell to $756 million, down 35.9% year over year. A few years ago that line alone was the company's largest revenue item; today it is 4.5% of the total. Erosion continues, but it is no longer large enough to suppress overall growth — the quarter's 10.2% expansion is the clearest proof. The same handover is playing out in oncology: Imbruvica fell 29.4% to $532 million, Venclexta rose 11.6% to $771 million and Elahere climbed 33.1% to $211 million. It is now fair to say the steepest part of the patent cliff is behind the company. For a refresher on how to read a company's revenue lines, see our earnings guide.
Oncology and aesthetics have stalled.
This is where the quarter is weak. Oncology revenue of $1.65 billion was 1.5% smaller than a year ago; growth from Venclexta and Elahere did not fully cover the Imbruvica decline. Aesthetics came in at $1.28 billion, up just 0.3% — effectively flat, since demand for Botox and fillers tracks discretionary consumer spending and is therefore directly exposed to the macro backdrop. Together these two segments are roughly 17% of revenue. With the growth narrative leaning entirely on immunology and neuroscience, a failure of these two wings to recover leaves a question mark over the period beyond 2027.
The outlook cut is deal-driven, not operational.
The 2026 adjusted earnings per share outlook was lowered to $13.87-$14.07. The entire reduction stems from 14 cents of dilution tied to the Apogee Therapeutics acquisition; because operational performance recovered 10 cents of that, the net hit at the midpoint is only four cents. Meanwhile the revenue outlook was raised $300 million to $67.6 billion and the neuroscience outlook lifted $100 million to $12.7 billion. For the third quarter, the company expects roughly $17.2 billion in revenue and adjusted earnings per share of $3.84-$3.88. Year to date, acquired in-process research and development charges have cost 58 cents per share — a line item recurring often enough at AbbVie that it deserves attention when reading adjusted figures.
Margins and cash generation still lead the sector.
Adjusted gross margin was 84.7% and adjusted operating margin 48.3%; on a GAAP basis those figures were 74.7% and 37.9%. Research and development spending ran at 13.6% of revenue, with an adjusted tax rate of 14.7%. That margin structure is what lets the company carry a $6.92 annual dividend (roughly a 2.8% yield) while simultaneously funding a $10.9 billion cash acquisition. Robert Michael said on the call that the company has ample financial capacity for further business development, so the appetite for deals should not be assumed to be exhausted. Our dividend guide is a useful companion here.
Strengths
6- Revenue of $16.99 billion came in roughly $220 million above market expectation, growing 10.2% year over year.
- Skyrizi and Rinvoq combined for $8.03 billion in sales, both growing more than 24%.
- The neuroscience portfolio reached $3.23 billion and grew 20.3%, with Vraylar, Qulipta and Ubrelvy all up double digits.
- Adjusted operating margin held at 48.3%, at the top end of the industry.
- Full-year revenue outlook was raised by $300 million to $67.6 billion.
- Adjusted earnings per share rose 22.9% year over year and landed six cents above the company's own guidance midpoint.
Risks
6- 47% of revenue comes from two drugs in a single therapeutic area, leaving concentration risk high.
- Oncology revenue shrank 1.5% year over year and aesthetics was effectively flat at 0.3%.
- The midpoint of the 2026 adjusted profit outlook sits below the $14.08 market expectation.
- Acquired in-process research and development charges have cost 58 cents per share year to date and have become a recurring expense.
- Apogee's lead asset zumilokibart is still in clinical development; the return on the $10.9 billion price tag extends into the 2030s.
- Humira erosion continues at 35.9% and Imbruvica is down 29.4%; together the two legacy lines still generate annual revenue loss.
What to Watch
6- Late October 2026: third-quarter results. Company guidance calls for roughly $17.2 billion in revenue and adjusted earnings per share of $3.84-$3.88.
- During the third quarter: the $10.9 billion Apogee Therapeutics acquisition is expected to close, adding the IL-13 antibody zumilokibart to the atopic dermatitis pipeline.
- Fall 2026: FDA decision on the subcutaneous induction formulation of Skyrizi in Crohn's disease — approval would accelerate growth from early 2027.
- Third quarter: U.S. launch of tavapadon in Parkinson's disease is planned; the company targets more than $5 billion in peak sales for its Parkinson's portfolio.
- Late 2026 to early 2027: U.S. regulatory decisions expected for Rinvoq in vitiligo and alopecia areata.
- Fall 2026: interim data from the Rinvoq combination study in inflammatory bowel disease and hidradenitis suppurativa readouts.
Upcoming Earnings
To Understand This