AbbVie is a global biopharmaceutical company focused on discovering, developing, manufacturing, and selling innovative medicines. It specializes in advanced therapies across immunology, neuroscience, oncology, and aesthetics to treat complex and serious diseases.
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Earnings call: Q2 2026 2026
Intel
Free
Jul 31, 2026Neutral
● Full transcript on file
Not yet announced in the press release (Company participants to be announced on the webcast), Investor Relations team (AbbVie Investor Relations)
Key metrics
No quarterly financial metrics are available yet because the call is upcoming.[5]
Forward guidance
No transcript is available yet because the earnings call has not occurred. AbbVie stated it will announce second-quarter 2026 results on July 31, 2026, before the market opens, and will host a live webcast at 8:00 a.m. Central Time.[5]
Notable Q&A
No Q&A has occurred yet, so no analyst exchanges are available.[5]
Surprise items
The only notable item currently available is the scheduled archived webcast, which should provide the transcript later the same day.[5]
Wall Street consensus — sourced weekly via public disclosures
Analyst coverage data sourced from public filings. Xavier analyst thesis summary available after weekly Perplexity scan completes.
Financial summary — Gemini analysis
Signal
Revenue
$61.16 billion
8.6% YoY
Operating margin
24.6%
Net income
$4.226 billion
Free cash flow
$17.816 billion
Dividend / share
$6.65
Total debt
$64.503 billion
Cash: $5.229 billion
Earnings quality:HIGH
Cash conversion:4.5x
Non-recurring items: Change in fair value of contingent consideration liabilities of $6.5 billion, Intangible asset impairment charges of $847 million, Acquisition and integration expenses of $276 million, Gain of $217 million related to the termination of an R&D collaboration agreement
ABBV trades at a TTM P/E of 122x — an artifact of heavy acquired IPR&D charges depressing GAAP EPS — but even on a forward basis at ~15x it is fairly priced relative to a consensus Q2 earnings miss risk, with Q2 2026 adjusted EPS guidance revised down to $3.57–$3.61 against a $3.77 consensus. The stock is 5% below its 52-week high with Q2 earnings not until July 31, leaving no near-term catalyst to re-rate higher in the next 5 sessions, while the $10.1B Apogee acquisition overhang adds balance sheet scrutiny.
Strongest bull case
Skyrizi and Rinvoq immunology franchise momentum — projected $31.6B in combined 2026 sales — continues to more than offset Humira biosimilar erosion, underpinning structural revenue growth of 12%+ and a reliable, growing dividend ($1.73/share quarterly, ex-date July 15).
Strongest bear case
AbbVie guided Q2 2026 adjusted EPS to $3.57–$3.61, materially below the $3.77 Street consensus, due to a $291M pre-tax IPR&D/milestone charge. With earnings on July 31 (just outside the 5-day window), the market will spend the next week repricing the earnings miss probability, creating a modest negative drift bias; the stock has already pulled back from its recent ~$259 level toward $248.
What the market may be missing
The July 15 ex-dividend date for the $1.73 quarterly dividend creates a technical support floor near current prices as income investors position ahead of the record date, potentially offsetting near-term sell pressure from the earnings guidance cut — this dividend timing dynamic is underappreciated relative to the guidance-miss narrative dominating headlines.
CEO Robert A. Michael discussed AbbVie's confidence in Skyrizi's growth despite new competition from J&J, projecting $21.6 billion in total net revenues for Skyrizi in 2026. He emphasized the company's preparedness and strategic positioning in the im
“"With AbbVie well aware of the competition, according to CEO Michael, Skyrizi is now expected to pick up $21.6 billion in total net revenues for 2026."”
CEO letter to shareholders
Signal
Full letter Pro
Robert A. Michael2025 Annual ReportOPTIMISTIC
Dear Shareholders,
AbbVie is committed to transforming the standard of care for millions of patients around the world. In 2025, we demonstrated that our diverse portfolio, dedication to innovation and strong culture allow us to make a remarkable impact for our patients and deliver meaningful returns for our investors. Over the past decade, AbbVie has generated a 485% total shareholder return and increased our market capitalization by $309 billion. We have an impressive track record of success, and this past year has further reinforced the strength of our business.
AbbVie had an outstanding year in 2025, delivering record total net revenues of $61.2 billion, reflecting operational sales growth of 8.5%. We surpassed our previous peak revenue by more than $3 billion in just the second full year following the U.S. Humira loss of exclusivity. These results were driven by strong execution across our growth platform, which continues to perform exceptionally well. Our immunology portfolio recorded $30.4 billion in net revenues with impressive performance from Skyrizi and Rinvoq. Neuroscience generated net revenues of $10.8 billion and is our fastest growing therapeutic area, putting us on track to be an industry leader in this space. Our oncology portfolio contributed $6.7 billion of net revenues, while aesthetics delivered $4.9 billion of net revenues.
Advancing our pipeline is a top priority. We increased our adjusted R&D investment significantly in 2025, to $13.8 billion, fully funding approximately 90 clinical and device programs currently in development. We received several important approvals including Rinvoq for giant cell arteritis, Emrelis for non-squamous, non-small cell lung cancer and Epkinly for second-line follicular lymphoma. We also bolstered our pipeline and entered new potential areas of growth with more than $5 billion in new business development. This included a novel, next-generation psychedelic compound for major depressive disorder, novel tri-specifics for multiple myeloma, an in-vivo CAR-T platform, a next-generation siRNA platform and a long-acting amylin analog for obesity.
This excellent progress is backed by our strong culture and shared purpose. We have continually shown determination and an unwavering commitment in serving our patients, shareholders and communities. In 2025, AbbVie was once again recognized by Great Place to Work U.S. and Fortune, ranking #1 in the BioPharma industry. Through our employee impact programs, employees help advance the AbbVie Foundation mission to drive transformative change in communities worldwide so that everyone can live their healthiest life. Our employees make a real difference in people's lives by generously giving their time, talent and resources. This past year, employees volunteered over 58,000 hours and raised $25 million for charities around the world through donations matched by the AbbVie Foundation. Since our inception in 2013, AbbVie and the AbbVie Foundation have provided more than $775 million to over 500 philanthropic partners.
AbbVie is well-positioned to drive significant growth in 2026 and through the end of the decade, enabling us to deliver top-tier performance and elevate the standard of care for patients for years to come. Thank you for supporting our important mission.
Robert A. Michael Chairman of the Board and Chief Executive Officer
Xavier analysis
The letter consistently uses highly positive language, emphasizing record performance, significant growth, successful overcoming of challenges, and strong future positioning, conveying a clear sense of optimism and confidence.
Strategic themes by emphasis
#1Financial Performance and Shareholder Value
#2Pipeline Advancement and R&D Innovation
#3Culture, Social Impact, and Employee Engagement
#4Long-Term Growth Outlook
13 named projects & initiatives
Humira, Skyrizi, Rinvoq, Emrelis, Epkinly, novel, next-generation psychedelic compound for major depressive disorder +7 more
5 product, 5 r and d, 3 other
Forward-looking statements
2 total: 0 quantified, 2 directional, 0 vague
Capital allocation priority
R&D Investment → New Business Development (including pipeline bolstering) → Shareholder Returns
Key quotes
“AbbVie is committed to transforming the standard of care for millions of patients around the world.”
Articulates the company's core mission and patient-centric purpose.
“AbbVie had an outstanding year in 2025, delivering record total net revenues of $61.2 billion, reflecting operational sales growth of 8.5%.”
Highlights strong financial performance and validates the successful execution of post-Humira growth strategy.
4 agreements contain cross-default provisions — a covenant breach on one facility may trigger default on others.
Xavier risk radar
Pro
Covenant headroom
No financial covenants on file
Earnings quality
High quality (cash conversion 4.5x)
Risk trend
Risk increasing — The expiration or loss of patent protection and licenses, including the loss of
Mgmt narrative
Management tone: Bullish
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jul 12, 2026
NEUTRAL
6.2/10
100%
ABBV trades at a TTM P/E of 122x — an artifact of heavy acquired IPR&D charges depressing GAAP EPS —...
$248.08
Sched.
Jul 11, 2026
NEUTRAL
6.0/10
75%
ABBV screens as fully valued for a 5-day horizon: the trailing P/E is extremely elevated, earnings g...
$248.08
Sched.
Jun 07, 2026
NEUTRAL
6.3/10
75%
ABBV's TTM P/E of ~110x is severely distorted by acquisition-related amortization and contingent con...
$227.23
Sched.
May 31, 2026
NEUTRAL
6.6/10
75%
ABBV trades at a TTM P/E of ~106x — a valuation artifact of large GAAP charges — but the forward P/E...
$217.72
Sched.
May 24, 2026
NEUTRAL
6.2/10
75%
ABBV's TTM P/E of ~105x is egregiously elevated, though this is distorted by large acquisition-relat...
$215.70
Sched.
May 17, 2026
NEUTRAL
6.5/10
75%
ABBV trades at ~$210, sitting 14% below its 52-week high and ~17% below the analyst consensus target...
$210.39
Sched.
May 10, 2026
NEUTRAL
6.9/10
67%
AbbVie has supportive macro and defensive sector characteristics, and the forward P/E near 12x looks...
$201.55
Sched.
May 03, 2026
BULLISH
7.1/10
75%
ABBV's headline TTM P/E of ~100x is deeply misleading — it is distorted by ~$5B in non-cash acquired...
$206.60
Sched.
Apr 12, 2026
BULLISH
7.0/10
50%
AbbVie cut its Q1 2026 EPS guidance to $2.56–$2.60 versus a prior consensus of ~$3.01, and slashed f...
$207.94
Sched.
Showing last 9 signals
ABBVAbbVie Inc.
Signal
FY2026 annual report (10-K filed 2026-02-20)
INCOME STATEMENT
?Revenue
$61.16 billion8.6% YoY
Total sales from drugs, medical devices, insurance premiums, and healthcare services. Up 8.6% from last year.
?Operating income
$15.075 billion
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 24.6%, meaning 25 cents of every dollar of revenue becomes operating profit.
?Net income
$4.226 billion
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 4.6%. Note: results include non-recurring items (change in fair value of contingent consideration liabilities of $6.5 billion, intangible asset impairment charges of $847 million) that may not repeat.
?Free cash flow
$17.816 billion
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$0.39
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$6.65
Cash paid to shareholders each year for every share they own. Healthcare dividends are often funded by patent-protected drug revenue with predictable cash flows.
BALANCE SHEET
?Total assets
$136.5B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes drug patents, manufacturing facilities, clinical trial data, and acquired pharmaceutical portfolios.
?Cash & equivalents
$5.229 billion
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$64.503 billion
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $5.229 billion in cash against this debt.
?Shares outstanding
1,767,876,035
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
CASH FLOW
?Operating cash flow
$3.8B
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$265M
Money spent on long-term assets — manufacturing plants, research labs, and clinical trial infrastructure. This is the cost of maintaining and growing the business.
?Free cash flow
$3.6B
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
?Interest expense
$717M
The cost of borrowing money — interest payments on bonds, loans, and credit facilities. Higher interest expense means more of the company's earnings go to lenders instead of shareholders.
?Interest coverage
5.8x
EBITDA divided by interest expense — how many times over the company can pay its interest bill from earnings. At 5.8x, coverage is healthy. Lenders typically want to see at least 3-4x.
?Depreciation & amortization
$188M
A non-cash expense that spreads the cost of pharmaceutical manufacturing equipment and acquired drug patents over their useful life. This reduces reported income but no cash actually leaves the company — that's why it gets added back to calculate EBITDA and operating cash flow.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Cash conversion
4.5x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 4.5x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
4 identified
One-time items that affect the bottom line but won't repeat: change in fair value of contingent consideration liabilities of $6.5 billion, intangible asset impairment charges of $847 million, acquisition and integration expenses of $276 million, gain of $217 million related to the termination of an r&d collaboration agreement. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Bullish
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
The expiration or loss of patent protection and licenses, including the loss of exclusivity for any of our products and increased competition from generics and biosimilars, may adversely affect AbbVie's revenues and operating earnings. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
20.05%
WACC
5.15%
🟢 VALUE CREATOR — EVA Spread: 14.90%
?WACC
5.15%
Weighted Average Cost of Capital — the minimum return AbbVie Inc. must earn on its investments to satisfy both debt holders and shareholders. Computed from a 87.02% equity / 12.98% debt capital structure. If the company earns less than 5.15% on its invested capital, it is destroying shareholder value.
?Cost of equity
5.81%
The return shareholders demand for holding ABBV stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (0.28) × Equity Risk Premium (5.50%). A beta of 0.28 means ABBV is less volatile than the overall market.
?Cost of debt (after-tax)
0.74%
What AbbVie Inc. effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 33.11%.
?Capital structure
E: 87.02% / D: 12.98%
How AbbVie Inc. finances its operations — the split between equity (stock market value: $432.5B) and debt (total borrowings: $64.5B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
20.05%
Return on Invested Capital — how efficiently AbbVie Inc. turns its total invested capital into after-tax operating profit. NOPAT ($9.7B) ÷ Invested Capital ($48.5B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$7.2B
Economic Value Added — the dollar amount of value AbbVie Inc. created (or destroyed) above its cost of capital. NOPAT ($9.7B) minus the capital charge (Invested Capital × WACC = $2.5B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$9.7B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($14.5B) × (1 - Tax Rate 33.11%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jul 12, 2026.