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A month has gone by since the last earnings report for AbbVie (ABBV). Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is AbbVie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
AbbVie reported fourth-quarter 2025 adjusted EPS of $2.71, which beat the Zacks Consensus Estimate of $2.66. The reported figure also exceeded the company’s guidance of $2.61-$2.65. Earnings rose more than 25% year over year.
Revenues of $16.62 billion beat the Zacks Consensus Estimate of $16.36 billion as well as the company’s guidance of $16.3 billion. Sales rose 10.0% year over year on a reported basis and 9.5% on an operational basis.
Revenues in the quarter were driven by robust sales of key drugs Rinvoq, Skyrizi, Venclexta and Vraylar, coupled with significant contributions from newer drugs, namely Ubrelvy, Qulipta, Elahere and Vyalev. However, overall growth was partially offset by Humira’s continued generic erosion, lower sales of Imbruvica and aesthetics portfolio.
Sales of AbbVie’s ex-Humira drugs rose 14.5% (on a reported basis) in the quarter, above the company’s expectations, driven by Skyrizi, Rinvoq and neuroscience.
Global net revenues from the immunology portfolio were $8.63 billion, up 17.7% on an operational basis.
In immunology, Skyrizi registered sales of $5.01 billion, up about 31.9% on an operational basis year over year, reflecting strong volume growth and continued market share gains across the psoriatic and IBD indications. Skyrizi sales beat the Zacks Consensus Estimate of $4.91 billion.
Rinvoq registered sales of $2.37 billion, up nearly 28.6% on an operational basis year over year, primarily driven by market share gains across all approved indications. However, Rinvoq’s sales missed the Zacks Consensus Estimate of $2.39 billion.
Across IBD, Skyrizi and Rinvoq continue to capture a significant share. While Skyrizi is well-positioned in frontline setting in IBD, Rinvoq holds a strong position in second-line.
For other indications, Skyrizi is gaining share across our key markets in psoriasis while Rinvoq commands a leading mid-teens in-play patient share in rheumatoid arthritis (RA) across all lines of therapy in the United States.
In 2026, AbbVie expects combined Skyrizi and Rinvoq sales of more than $31 billion, which is $0.5 billion more than its 2027 long-term guidance of $31 billion. However, AbbVie expects a low single-digit pricing headwind for both Skyrizi and Rinvoq in 2026 and over the next few years.
Humira recorded a sales decline of 26% to $1.25 billion in the quarter due to biosimilar competition. Sales in the United States declined 28% to $897 million, while ex-U.S. market sales were down 20.3% to $349 million. However, the drug’s sales beat the Zacks Consensus Estimate of $949 million.
AbbVie expects Humira’s access in the United States to continue to decrease through 2026 as more plans select exclusionary formularies for existing patients.
In 2026, AbbVie expects global immunology sales of $34.5 billion, including Skyrizi revenue of $21.5 billion and Rinvoq sales of $10 billion. Humira revenues are expected to be $2.9 billion.
AbbVie’s oncology/hematology sales fell 2.5% to $1.66 billion in the quarter, as rising Venclexta sales and contributions from Elahere, Epkinly and Emrelis were offset by declining Imbruvica sales. The metric missed the Zacks Consensus Estimate of $1.72 billion.
Fourth-quarter net revenues from Imbruvica were down 20.8% to $671 million, missing the Zacks Consensus Estimate of $715 million.
U.S. sales of Imbruvica declined 25% to $469 million, reflecting continued competitive pressure in CLL. AbbVie shares international profits earned from Imbruvica with J&J. AbbVie’s share of profit from the drug’s international sales declined 9% to $202 million.
Venclexta generated revenues of $710 million in the reported quarter, reflecting growth of 6.4% driven by continued strong demand in CLL. Venclexta sales missed the Zacks Consensus Estimate of $725 million.
Epkinly sales, which comprise AbbVie’s share of profit from U.S. revenues and product revenues from international markets, amounted to $81 million in the quarter compared with $69 million in the previous quarter.
Elahere revenues rose 21.3% to $182 million. Sales of the drug missed the Zacks Consensus Estimate of $192 million.
In 2026, oncology sales are expected to be $6.5 billion, including Imbruvica revenue of $2.2 billion. The impact of lower IRA-related pricing on Imbruvica is expected to hurt oncology sales in 2026. Venclexta sales are expected to be $3 billion, while Elahere revenues are expected to be $850 million.
Sales from the neuroscience portfolio increased 17.3% to $2.96 billion, driven by higher sales of Botox Therapeutic, Vraylar, and migraine drugs Ubrelvy and Qulipta. Neuroscience sales missed the Zacks Consensus Estimate of $3.0 billion.
In neuroscience, sales of Vraylar increased 10.5% to $1.02 billion, driven by growth in both MDD and bipolar disorders. Botox Therapeutic sales rose 13% to $990 million.
Duodopa sales declined 18.6% to $92.0 million. Sales of Ubrelvy totaled $339 million, up 12%. Qulipta sales rose 41.8% to $288 million.
Sales of Vyalev, the recently approved transformative therapy for advanced Parkinson’s disease, totaled $183 million, up 32.6% on a sequential basis, reflecting a strong global launch. While the uptake across international markets is encouraging, AbbVie expects sales to ramp in the United States in 2026 where Vyalev recently received full coverage.
Given the robust early launch trends globally, AbbVie expects Vyaley to achieve blockbuster status in 2026.
In 2026, neuroscience global sales are expected to be $12.5 billion, reflecting growth in a double-digit range. While Vraylar revenues are expected to be $4 billion, Botox Therapeutic sales are expected to be $4.1 billion. While total oral CGRP revenue is expected to be $2.9 billion, Vyalev sales are expected to be $1 billion.
AbbVie’s aesthetics portfolio sales were down 1.2% to $1.29 billion, which beat the Zacks Consensus Estimate of $1.28 billion. Botox Cosmetic sales rose 3.8% to $717 million. Juvederm sales declined 10.8% to $249 million due to continued headwinds in key dermal filler markets.
Continued macro challenges and economic headwinds are hurting aesthetics sales.
U.S. aesthetic sales were $811 million, down 3.3% year over year due to challenging market conditions. Botox Cosmetic sales declined 2.1% to $420 million in the United States. Juvederm sales declined 11% to $107 million in the United States.
International aesthetic sales were $475 million, up 2.5% year over year on an operational basis.
AbbVie expects the aesthetics category growth to remain challenged in 2026. Global aesthetics sales are expected to be $5 billion in 2026 which includes Botox Cosmetic revenue of $2.7 billion and Juvederm sales of $950 million.
A regulatory application seeking approval of AbbVie’s fast-acting short-duration toxin TrenibotE is under review with an approval decision expected later in 2026. This product, if approved, can improve growth in the segment.
Eye care portfolio sales declined 11% to $580 million. Sales of Ozurdex, a key drug in the portfolio, rose 4.3% to $128 million.
Among other key drugs, Mavyret rose 8.9% operationally to $324.0 million. Linzess sales declined 25.2% to $175 million.
Adjusted gross margin was 83.6% in the quarter. Adjusted SG&A expenses rose 4% year over year to $3.71 billion. Adjusted R&D expenses amounted to $2.56 billion, up around 13%.
The adjusted operating margin was 38.3% in the quarter, which includes a 7.6% unfavorable impact from acquired IPR&D expense.
Full-year sales rose 8.6% on a reported basis and 8.5% on an operational basis to $61.16 billion, which beat the Zacks Consensus Estimate of $60.93 billion. Sales were slightly higher than the guided figure of about $60.9 billion.
Adjusted EPS for 2025 were $10.00 per share, down 1% year over year. This metric beat the Zacks Consensus Estimate of $9.95 as well as the guided range of $9.90 and $9.94.
AbbVie issued fresh guidance for the full year. It expects adjusted EPS to be in the range of $14.37-$14.57. This guided range does not include any impact from acquired IPR&D and milestones expense
Total revenues are expected to be $67 billion in 2026, representing a growth of approximately 9.5%. The top-line growth is expected to be driven by continued strong increase in Skyrizi and Rinvoq sales, a substantial sales ramp for Vyalev and continued double-digit revenue growth from migraine drugs, partially offset by headwinds from continued Humira erosion and Imbruvica IRA pricing.
Foreign exchange is expected to have a roughly 0.8% favorable impact on full year sales growth
Adjusted gross margin is expected to be above 84% of sales. Adjusted R&D is expected to be approximately $9.7 billion. Adjusted SG&A expense is expected to be approximately $14.2 billion. Adjusted operating margin is expected to be approximately 48.5%, representing a significant increase from 2025 levels.
AbbVie is expected to generate free cash flow of approximately $18.5 billion in 2026.
In the first quarter of 2026, adjusted earnings are expected to be between $2.97 and $3.01 per share. AbbVie expects net revenues of approximately $14.7 billion in the first quarter. Currency is expected to have a positive impact of around 2% on sales.
While global immunology sales are expected to approach $7.1 billion, Skyrizi sales are expected to be $4.4 billion while Rinvoq revenue guidance is $2 billion. AbbVie also expects neuroscience revenue of $2.8 billion, oncology sales of $1.6 billion, and aesthetics revenue of $1.2 billion.
Adjusted operating margin is expected to be roughly 46%.
In the past month, investors have witnessed a downward trend in estimates revision.
At this time, AbbVie has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AbbVie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
AbbVie belongs to the Zacks Large Cap Pharmaceuticals industry. Another stock from the same industry, Pfizer (PFE), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Pfizer reported revenues of $17.56 billion in the last reported quarter, representing a year-over-year change of -1.2%. EPS of $0.66 for the same period compares with $0.63 a year ago.
For the current quarter, Pfizer is expected to post earnings of $0.77 per share, indicating a change of -16.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pfizer. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
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