Pharmaceutical company AbbVie (NYSE:ABBV) missed Wall Street’s revenue expectations in Q4 CY2025, but sales rose 6% year on year to $16 billion. Its non-GAAP profit of $2.71 per share was 2.2% above analysts’ consensus estimates.
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AbbVie (ABBV) Q4 CY2025 Highlights:
- Revenue: $16 billion vs analyst estimates of $16.25 billion (6% year-on-year growth, 1.5% miss)
- Adjusted EPS: $2.71 vs analyst estimates of $2.65 (2.2% beat)
- Adjusted EBITDA: $6.66 billion vs analyst estimates of $6.43 billion (41.6% margin, 3.5% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $14.47 at the midpoint, beating analyst estimates by 1.7%
- Operating Margin: 28.4%, up from -9.9% in the same quarter last year
- Constant Currency Revenue rose 9.5% year on year (6.1% in the same quarter last year)
- Market Capitalization: $383.7 billion
StockStory’s Take
AbbVie’s fourth quarter results came in above Wall Street’s revenue and profit expectations, but the market responded negatively, reflecting concerns over certain business segments and future headwinds. Management attributed the quarter’s performance to robust growth in its immunology and neuroscience franchises, especially from SKYRIZI, RINVOQ, and Vraylar. Meanwhile, ongoing declines in HUMIRA due to biosimilar competition and continued softness in the aesthetics segment tempered overall results. CEO Robert Michael highlighted the company’s ability to offset HUMIRA erosion with strong execution in other therapeutic areas and a diversified portfolio.
Looking ahead, AbbVie's updated guidance builds on continued momentum in immunology and neuroscience, emphasizing expectations for double-digit growth from key products and a significant ramp in emerging therapies. Management cited the anticipated blockbuster status of Vialev in Parkinson’s disease and the expansion of SKYRIZI and RINVOQ into new indications as major contributors. However, they cautioned about persistent pricing pressures and competitive dynamics, particularly in oncology and aesthetics. CFO Scott Reents stated, “Our outlook incorporates further HUMIRA erosion and IRA pricing impacts, but we are confident in our diverse growth drivers and pipeline catalysts.”
Key Insights from Management’s Remarks
Management credited strong immunology and neuroscience results for offsetting HUMIRA declines and cited new product launches and pipeline investments as key to future growth.
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Immunology franchise momentum: SKYRIZI and RINVOQ delivered substantial market share gains in psoriasis and inflammatory bowel disease, with SKYRIZI capturing over 75% of frontline IBD patients and RINVOQ expanding into new lines of therapy. Management emphasized strength in psoriatic arthritis and high patient retention despite new competitors.
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Neuroscience outperformance: The neuroscience portfolio, led by Vraylar, UBRELVY, and QLIPTA, achieved robust double-digit growth, with Vialev showing rapid uptake in Parkinson’s and on track for blockbuster sales. Management highlighted strong prescription growth and geographic expansion, noting that the migraine franchise is nearing $3 billion in combined annual sales.
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Aesthetics headwinds persist: Aesthetics revenues remained pressured by global economic softness, particularly in dermal fillers. Management acknowledged ongoing share losses in select markets like Brazil, while U.S. and China performance was more stable. They outlined plans for new promotional campaigns and injector training to revitalize demand.
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Oncology facing competition: Oncology revenues declined due to IMBRUVICA’s continued loss of market share and IRA-related pricing changes. While VENCLEXTA and newer assets partially offset the decline, management noted that competitive dynamics would persist into next year. Pipeline readouts in solid tumors and multiple myeloma are expected to be key catalysts.
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Pipeline and business development: AbbVie advanced multiple late-stage programs and invested over $5 billion in external innovation, adding assets in immunology, neuroscience, oncology, and obesity. Management highlighted upcoming pivotal data readouts and regulatory decisions as critical for future growth.
Drivers of Future Performance
AbbVie’s outlook is shaped by the expectation of continued growth in immunology and neuroscience, alongside ongoing pricing and competitive pressures.
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Immunology and neuroscience expansion: Management anticipates sustained double-digit growth from SKYRIZI, RINVOQ, and the migraine franchise, driven by broader indication approvals, share gains, and increased biologic penetration in chronic diseases. The launch and ramp of Vialev in Parkinson’s is expected to further diversify revenue streams.
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Pricing and reimbursement headwinds: The company expects low single-digit pricing pressure on key immunology products due to increased competition and payer dynamics. The upcoming Medicare negotiation on Botox Therapeutic and continued HUMIRA biosimilar access shifts are likely to further impact pricing and profitability.
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Pipeline execution and regulatory milestones: AbbVie’s near-term performance will depend on the timely delivery of clinical data and regulatory approvals for assets in obesity, oncology, and central nervous system disorders. Management highlighted phase three readouts and new product launches as pivotal to sustaining long-term growth.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will closely monitor (1) the pace of new indication launches and share gains for SKYRIZI, RINVOQ, and Vialev, (2) the recovery trajectory for aesthetics, especially the commercial uptake of Trenebot and market response to new promotional efforts, and (3) clinical and regulatory milestones for late-stage pipeline assets in obesity, oncology, and neuroscience. Execution on pricing management and continued business development activity will also be important markers of AbbVie’s strategic progress.
AbbVie currently trades at $217.05, down from $225.56 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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