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.
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AbbVie (ABBV) Q4 CY2025 Highlights:
- Revenue: $16.62 billion vs analyst estimates of $16.25 billion (10% year-on-year growth, 2.3% beat)
- Adjusted EPS: $2.71 vs analyst estimates of $2.65 (2.2% beat)
- Adjusted EBITDA: $6.58 billion vs analyst estimates of $6.43 billion (39.6% margin, 2.3% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $14.47 at the midpoint, beating analyst estimates by 1.7%
- Operating Margin: 27.3%, 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: $393.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AbbVie’s Q4 Earnings Call
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David Risinger (Leerink Partners) pressed for details on the development and differentiation of the psychedelic depression candidate. EVP Roopal Thakkar highlighted its unique short-acting profile and durable effects, with further data expected before advancing to phase three.
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Christopher Schott (JPMorgan) questioned whether consensus growth expectations for SKYRIZI and RINVOQ now fully reflect their potential. CEO Robert Michael argued there is further upside, especially with new indications and sustained market leadership, and noted underappreciated momentum in neuroscience and oncology.
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Terence Flynn (Morgan Stanley) inquired about AbbVie’s appetite for business development. Michael emphasized the company’s willingness to pursue both early- and late-stage deals in core therapeutic areas, citing recent investments across immunology, neuroscience, and oncology.
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Asad Haider (Goldman Sachs) sought clarity on the commercial opportunity for the upcoming Trenebot toxin. CCO Jeffrey Stewart described plans to train thousands of core injectors and projected that its impact would accrue mainly to Botox share growth, beginning to appear more significantly in 2027.
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Vamil Divan (Guggenheim Securities) asked about the implications of Medicare negotiation for Botox pricing and the broader impact on the aesthetics business. Michael and Stewart said selection was anticipated and does not alter long-term guidance, with minimal expected crossover to cosmetic pricing.
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 $221.86, down from $225.66 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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