AbbVie (ABBV) AI Stock Analysis

• Market Cap: $388.43B
• Dividend Yield: 2.87%
• Average Volume (3M): 6.90M
• Price to Earnings (P/E): 96.8
• Beta (1Y): 0.24
• Revenue Growth: 7.40%
• EPS Growth: -53.78%
• Country: US
• Employees: 55,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): 2.71
• Shares Outstanding: 1,768,169,100
• 10 Day Avg. Volume: 6,801,147
• 30 Day Avg. Volume: 6,895,668
• PEG Ratio: -116.18
• Price to Book (P/B): -125.12
• Price to Sales (P/S): 6.69
• P/FCF Ratio: 22.97
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 7.39
• Enterprise Value/Gross Profit: 10.08
• Enterprise Value/Ebitda: 15.98
• 1Y Price Target: $253.47
• Price Target Upside: 15.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22
• EPS Forecast (FY): 14.57
• Revenue Forecast (FY): $67.14B

• Rating: 63 Neutral
• Price Target: $249.00 ▲(13.35% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is driven primarily by mixed fundamentals: strong cash generation and improving revenue trajectory are offset by high leverage/negative equity and weaker net profitability. Positive earnings-call guidance (higher 2026 growth, margin expansion, and large free cash flow) and constructive technical momentum support the outlook, but an elevated P/E keeps the overall score in the low-to-mid 60s.

Positive Factors

Cash generation

AbbVie’s operating and free cash flow history is a durable strength: consistent large absolute FCF underpins dividend coverage, R&D and BD spending, and balance-sheet servicing. Sustained cash conversion provides strategic optionality for pipeline funding and buybacks over the next 2–6 months and beyond.

Immunology franchise momentum

Rapid growth and market share gains for SKYRIZI and RINVOQ represent durable commercial strength, reducing reliance on legacy Humira sales. High frontline capture and double‑digit operational growth indicate sustainable revenue drivers, supporting medium‑term top‑line resilience and pricing/prescription leverage across immunology.

Pipeline and R&D/BD investment

Meaningful R&D increase and active BD widen the product pipeline and diversify future revenue streams. Multiple approvals, late‑stage programs and targeted acquisitions materially improve odds of new growth assets, making the business model less dependent on legacy products over the next several quarters.

Negative Factors

High leverage / negative equity

Negative shareholders’ equity and elevated debt levels constrain financial flexibility and increase refinancing and covenant risk. A leveraged capital structure limits firepower for large M&A without incremental funding and makes the company more sensitive to interest cost and rating pressures over the medium term.

HUMIRA revenue erosion

Rapid Humira erosion is a structural headwind that removes a legacy revenue base and raises the bar for growth assets to fill the gap. The need to replace very large, steady cash flows increases execution risk for launches and heightens dependence on SKYRIZI, RINVOQ and new approvals to sustain long‑term revenues.

Policy and pricing risk

Selection of Botox for Medicare negotiation and ongoing low single‑digit pricing pressure on key immunology drugs introduce structural margin and revenue downside. Regulatory pricing actions and rebate dynamics can persistently compress net pricing and complicate long‑term revenue visibility across key franchises.

AbbVie Business Overview & Revenue Model

Company Description

AbbVie Inc. discovers, develops, manufactures, and sells pharmaceuticals in the worldwide. The company offers HUMIRA, a therapy administered as an injection for autoimmune and intestinal Behçet's diseases; SKYRIZI to treat moderate to severe plaque psoriasis in adults; RINVOQ, a JAK inhibitor for the treatment of moderate to severe active rheumatoid arthritis in adult patients; IMBRUVICA to treat adult patients with chronic lymphocytic leukemia (CLL), small lymphocytic lymphoma (SLL), and VENCLEXTA, a BCL-2 inhibitor used to treat adults with CLL or SLL; and MAVYRET to treat patients with chronic HCV genotype 1-6 infection. It also provides CREON, a pancreatic enzyme therapy for exocrine pancreatic insufficiency; Synthroid used in the treatment of hypothyroidism; Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation; Lupron for the palliative treatment of advanced prostate cancer, endometriosis and central precocious puberty, and patients with anemia caused by uterine fibroids; and Botox therapeutic. In addition, the company offers ORILISSA, a nonpeptide small molecule gonadotropin-releasing hormone antagonist for women with moderate to severe endometriosis pain; Duopa and Duodopa, a levodopa-carbidopa intestinal gel to treat Parkinson's disease; Lumigan/Ganfort, a bimatoprost ophthalmic solution for the reduction of elevated intraocular pressure (IOP) in patients with open angle glaucoma (OAG) or ocular hypertension; Ubrelvy to treat migraine with or without aura in adults; Alphagan/ Combigan, an alpha-adrenergic receptor agonist for the reduction of IOP in patients with OAG; and Restasis, a calcineurin inhibitor immunosuppressant to increase tear production, as well as other eye care products. AbbVie Inc. has a research collaboration with Dragonfly Therapeutics, Inc. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

How the Company Makes Money

AbbVie generates revenue primarily through the sale of its pharmaceutical products, with a significant portion coming from its flagship drug, Humira, which has been one of the best-selling drugs globally. The company's revenue model is largely driven by direct sales to healthcare providers, hospitals, and pharmacies. Additionally, AbbVie engages in collaborations and partnerships with other pharmaceutical companies and research institutions to co-develop drugs, which can provide additional revenue streams through licensing fees and shared profits. The company also invests heavily in research and development to expand its product pipeline, targeting areas with high unmet medical needs, which can lead to new revenue opportunities as successful products are brought to market.

AbbVie Financial Statement Overview

Summary

Strong and consistent operating/free cash flow supports durability, and revenue has returned to growth. However, reported net profitability remains well below prior peaks and the balance sheet is a major concern, highlighted by very high leverage and negative shareholders’ equity in 2025.

Income Statement

Revenue has been resilient, with a return to growth in 2024 and a stronger step-up in 2025 (annual revenue growth moved from ~0% to ~2.5%). Profitability is solid at the operating level (very strong gross profit and higher EBITDA margin in 2025), but bottom-line performance is the main drag: net profit margin fell sharply versus 2021–2022 levels and net income remains well below the 2021–2022 peak, indicating heavier non-operating costs and/or charges weighing on reported earnings.

Balance Sheet

Leverage is the key risk. Total debt was very high in 2020–2024 and debt relative to equity rose meaningfully in 2024, signaling an aggressive capital structure. The biggest red flag is 2025 showing negative shareholders’ equity, which reduces balance-sheet flexibility and makes equity-based strength measures less informative. While AbbVie operates with stable, large-scale revenues, the balance sheet profile is materially more leveraged than what investors typically view as conservative for the sector.

Cash Flow

Cash generation is a clear strength. Operating cash flow has remained strong and fairly consistent across the period, and free cash flow is large in absolute terms. Cash conversion is also healthy, with free cash flow tracking close to net income in most years. The main weakness is momentum: free cash flow growth has been negative in 2023–2025 (including a larger decline in 2025), suggesting some pressure from working capital, spending levels, and/or cash costs despite stable revenue.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	61.16B	56.33B	54.32B	58.05B	56.20B
Gross Profit	51.20B	39.43B	33.90B	40.64B	38.75B
EBITDA	28.29B	14.91B	17.17B	24.17B	23.93B
Net Income	4.23B	4.28B	4.86B	11.84B	11.54B
Balance Sheet
Total Assets	133.96B	135.16B	134.71B	138.81B	146.53B
Cash, Cash Equivalents and Short-Term Investments	5.26B	5.55B	12.82B	9.23B	9.83B
Total Debt	69.07B	67.84B	60.12B	64.19B	77.58B
Total Liabilities	137.19B	131.80B	124.31B	121.52B	131.09B
Stockholders Equity	-3.27B	3.33B	10.36B	17.25B	15.41B
Cash Flow
Free Cash Flow	17.82B	17.83B	22.06B	24.25B	21.99B
Operating Cash Flow	19.03B	18.81B	22.84B	24.94B	22.78B
Investing Cash Flow	-6.64B	-20.82B	-2.01B	-623.00M	-2.34B
Financing Cash Flow	-12.72B	-5.21B	-17.22B	-24.80B	-19.04B

AbbVie Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 219.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Negative. The current price of 219.68 is below the 20-day moving average (MA) of 228.89, below the 50-day MA of 224.22, and above the 200-day MA of 212.27, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 16.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABBV.

AbbVie Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JNJ	73 Outperform	$582.04B	18.81	33.78%	2.50%	6.05%	―
AZN	73 Outperform	£223.01B	28.13	22.34%	1.53%	10.20%	40.57%
SNY	69 Neutral	$105.46B	-31.42	14.71%	4.58%	-9.32%	120.62%
MRK	68 Neutral	$285.83B	14.46	36.19%	3.12%	1.59%	58.02%
PFE	64 Neutral	$151.14B	18.21	8.67%	6.65%	4.44%	128.96%
ABBV	63 Neutral	$388.43B	96.82	-361.58%	2.87%	7.40%	-53.78%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

AbbVie Corporate Events

AbbVie Completes $8 Billion Senior Notes Financing Offering

On March 4, 2026, AbbVie completed an underwritten public notes offering totaling $8 billion, spanning a mix of senior floating rate notes and unsecured fixed-rate senior notes with maturities ranging from 2028 to 2066. The securities, issued under an existing shelf registration and governed by a long-standing indenture with U.S. Bank Trust Company as trustee, rank equally with AbbVie’s other unsecured, unsubordinated debt and include customary covenants limiting certain liens and corporate restructurings.

The structure of the issuance, including multiple long-dated tranches and flexible optional redemption features such as make-whole call provisions and par calls near maturity, underscores AbbVie’s effort to lock in diversified, long-term funding. This sizable capital raise is poised to bolster the company’s balance sheet and financial flexibility, with implications for ongoing investment in its drug pipeline and potential strategic transactions, while providing fixed-income investors with a spectrum of duration and rate exposure to AbbVie’s credit profile.

The most recent analyst rating on (ABBV) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on AbbVie stock, see the ABBV Stock Forecast page.

AbbVie Announces $7.5 Billion Senior Notes Offering

On February 24, 2026, AbbVie entered into an underwriting agreement with a syndicate of major banks to issue a total of $7.5 billion in senior notes across multiple tranches maturing between 2028 and 2066, including floating rate and fixed-rate instruments. The notes were priced at or just below par and registered under AbbVie’s existing shelf registration, with the offering expected to close on March 4, 2026, subject to customary conditions.

AbbVie expects to receive approximately $7.95 billion in net proceeds from the offering, which it intends to use to repay amounts outstanding under a $4.0 billion 364-day delayed draw term loan facility maturing in May 2026 and for general corporate purposes, including potential repayment or repurchase of other debt. The transaction underscores AbbVie’s continued use of the bond market to manage its capital structure, extend its debt maturities and maintain financial flexibility, while underwriters and their affiliates may continue to provide various financial and banking services to the company.

The most recent analyst rating on (ABBV) stock is a Hold with a $230.00 price target. To see the full list of analyst forecasts on AbbVie stock, see the ABBV Stock Forecast page.