Start here if you're new
what it is
AbbVie makes prescription drugs for immune disease, cancer, beauty, brain, and eye care.
how it gets paid
FY2025 net revenues were $61.2B (+8.6%). Immunology (Skyrizi, Rinvoq, Humira, etc.) was about half the company; neuroscience, oncology, aesthetics, and other lines make up the rest—see AbbVie’s release for segment tables.
why it's growing
FY2025 revenue grew 8.6% on a reported basis. Do not mix quarterly net revenue lines with full‑year totals, and reconcile GAAP gross margin to non‑GAAP/adjusted figures in the earnings materials.
what just happened
Q4 2025 adjusted diluted EPS was $2.71—ahead of the roughly $2.65 consensus (AbbVie FY2025 release).
At a glance
A balance sheet — strong enough to weather a downturn
90/100 earnings predictability — you can trust these numbers
21.4x trailing p/e — priced about right
3.0% dividend yield — cash in your pocket every quarter
40.0% return on capital — every dollar works hard here
xvary composite: 66/100 — average
What they do
AbbVie makes prescription drugs for immune disease, cancer, beauty, brain, and eye care.
AbbVie wins because patients do not swap these drugs easily. FY2025 net revenues were $61.2B, with Skyrizi and Rinvoq together now the dominant immunology engine while Humira shrinks as a share of sales. The cash math: 24.6% operating margin and 40.0% return on capital (xvary model inputs) describe how fee‑like pharma economics show up in the P&L.
How they make money
$61.2B
annual revenue · their business grew +8.6% last year
Skyrizi
$17.6B
FY2025
Humira
$4.5B
declined YoY
Rinvoq
$8.3B
FY2025
All other net revenue
$30.8B
FY2025
The products that matter
immunology franchise
Skyrizi & Rinvoq
~$25.9B combined · ~42% of FY2025 sales
Skyrizi plus Rinvoq together exceeded $25B in FY2025—that is the immunology handoff from Humira in one line.
franchise replacement
cosmetic neuromodulator business
Botox Cosmetic
$5.3B revenue · 73% market share
this is a $5.3B cash generator with 73% share in its niche. in a patent-cycle business, brands this sticky are rare.
brand moat
oncology expansion
Oncology Pipeline
Elahere + Epkinly · still small vs. core business
this is the least quantified part of the $61.2B story on this page. that tells you something: the promise is real, but current scale still sits well behind the $17B+ immunology franchise.
next leg
Key numbers
40.0%
return on capital
That is 40 cents of operating profit for each dollar tied up in the business. You want that kind of math in a pharma stock.
24.6%
operating margin
AbbVie keeps 24.6 cents of operating profit on every sales dollar. That leaves room for R&D, dividends, and the occasional Wall Street sulk.
3.0%
dividend yield
You get paid 3.0% while you wait. That is real cash, not a PowerPoint promise.
$63.0B
long-term debt
Debt is $63.0B, or 14% of capital. That is manageable, but it is not nothing.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $63.0B (14% of capital)
- net profit margin 38.3% — keeps 38 cents of every dollar in revenue
A with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in ABBV 3 years ago → it's now worth $15,580.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
$2.71 EPS missed the $3.36 estimate by 19.35%.
Revenue was $16.6B. Gross margin was 19.7%, which looks ugly next to the 83.6% adjusted gross margin on management's slide deck.
$16.6B
revenue
$2.71
eps
19.7%
gross margin
EPS miss
The $2.71 EPS miss matters because it shows spend outran earnings even with $16.6B of sales.
-
abbvie is well positioned to end 2025 on solid footing.
-
the company expects fourth-quarter adjusted earnings of $3.32-$3.36 a share, implying vs. prior year growth of 55% at the midpoint.however, subscribers should note that the range does not include any potential impact from acquired in-process research & development (ipr&d) and milestone expenses, as both can not be reliably forecasted quarter to quarter. these unpredictable costs stem from collaborations, licensing agreements, and asset acquisitions with other companies, all of which have been core parts of leadership’s recent strategy to bolster its drug pipeline.
-
a sharp increase in ipr&d weighed heavily on third-quarter earnings.
-
the company is targeting full-year adjusted share earnings of $10.61-$10.65.the range includes an unfavorable impact of $2.05 related to ipr&d and milestone expenses incurred through the first nine months of 2025.
-
it also reflects sales of around $60.9 billion, representing a new record.
source: company earnings report, 2026
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What could go wrong
the #1 risk here is post-Humira replacement execution. AbbVie already proved it can stabilize the revenue base. Now it has to prove the new immunology franchise can keep carrying it.
med
Skyrizi and Rinvoq slow before Humira fully fades
the replacement franchise generated $17B+ last year, while Humira still contributed $9.8B. if the new drugs decelerate too soon, the whole post-patent-cliff script gets tighter.
that would pressure the path from $61.2B in revenue to the $64B estimate the street is using for 2026.
med
deal spending keeps making earnings messier
AbbVie's pipeline strategy depends on partnerships, licenses, and acquisitions. that's how you rebuild a drug portfolio. it's also how you end up with charges management says cannot be forecast reliably quarter to quarter.
2025 guidance already included a $2.05 unfavorable impact from IPR&D and milestone expense. another year like that would keep reported EPS under pressure.
med
Botox loses some of its pricing and brand edge
Botox Cosmetic generated $5.3B and still holds 73% share in its category. that's a moat, but it also means even modest pressure matters because expectations are built around that dominance holding.
if that franchise weakens, AbbVie loses one of the cleanest non-Humira cash engines supporting its 38.1% net margin.
a $9.8B legacy franchise still running off, a $17B+ replacement engine that has to keep growing, and a $2.05 earnings drag from deal costs already in guidance — this is steadier than biotech, but less sleepy than the dividend label implies.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Skyrizi and Rinvoq staying ahead of Humira runoff
the big math problem is simple: $17B+ from the new pair has to outrun the decline of a $9.8B legacy blockbuster.
calendar
next guidance reset
watch the next earnings release for whether management still supports the $64B 2026 revenue setup and how it frames deal spending.
trend
IPR&D and milestone expense trend
one noisy quarter is fine. repeated charges like the $2.05 drag in 2025 would turn a stable story into a messy one.
risk
Botox holding its category lead
73% share and $5.3B in revenue make this a real moat. if either starts slipping, the diversification case weakens.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts trust the business more than they trust a near-term breakout in the stock.
risk profile
below average
stability score 2 means safer trading behavior than roughly 80% of stocks. not risk-free. just steadier.
chart momentum
average
technical score 3 — the chart is not screaming anything dramatic right now.
earnings predictability
90 / 100
guidance quality is high. you usually do not get wild surprises here unless deal charges intrude.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 1,892 buyers vs. 1,528 sellers in 3q2025. total institutional holdings: 1.3B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$181
$323
$227
current price
$252
target midpoint · +11% from current · 3-5yr high: $325 (+45% · 12% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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