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AbbVie (ABBV)
NYSE:ABBV
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AbbVie
(NYSE:ABBV)
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Rating:66Neutral
Price Target:
$241.00
â–²(12.43% Upside)
AbbVie's overall stock score is driven by strong earnings call performance and strategic corporate events, which are offset by financial stability concerns and high valuation metrics. The company's robust pipeline and strategic investments provide a positive long-term outlook, despite current profitability and leverage challenges.
Positive Factors
Robust Pipeline
A strong R&D pipeline with significant investment indicates potential for future product launches, driving long-term revenue growth and market leadership.
Market Exclusivity
Extending market exclusivity for RINVOQ until 2037 allows AbbVie to maintain market share and profitability, providing a competitive edge in the immunology sector.
Immunology Growth
Strong growth in key immunology products like Skyrizi and Rinvoq underscores AbbVie's ability to capitalize on high-demand therapeutic areas, supporting sustained revenue expansion.
Negative Factors
High Leverage
High leverage and negative equity pose financial stability risks, potentially limiting AbbVie's ability to invest in growth opportunities and manage economic downturns.
Humira Sales Decline
The significant decline in Humira sales due to biosimilar competition highlights vulnerability in AbbVie's revenue stream, necessitating successful new product launches to offset losses.
Profitability Pressure
Decreasing profit margins indicate operational challenges and cost pressures, which could impact AbbVie's ability to sustain profitability and invest in future growth initiatives.
AbbVie (ABBV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$378.84B
Dividend Yield2.87%
Average Volume (3M)5.60M
Price to Earnings (P/E)161.7
Beta (1Y)0.25
Revenue Growth7.40%
EPS Growth-53.78%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)1.86
Shares Outstanding1,767,384,600
10 Day Avg. Volume7,499,512
30 Day Avg. Volume5,603,549
Financial Highlights & Ratios
PEG Ratio-6.08
Price to Book (P/B)94.54
Price to Sales (P/S)5.58
P/FCF Ratio17.63
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue7.94
Enterprise Value/Gross Profit11.38
Enterprise Value/Ebitda37.00
Forecast
1Y Price Target
$254.31Price Target Upside18.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)14.27
Revenue Forecast (FY)$66.76B
AbbVie Business Overview & Revenue Model
Company DescriptionAbbVie 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 MoneyAbbVie 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 Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where AbbVie is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where AbbVie is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAbbVie Earnings Call Summary
Earnings Call Date:Oct 31, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
AbbVie's earnings call reflects a strong overall performance with significant growth in key therapeutic areas like immunology and neuroscience. Financial results exceeded expectations, and the company raised its full-year outlook. However, challenges persist in the aesthetics segment and Humira's sales erosion due to biosimilar competition. Despite these challenges, the company's robust pipeline and increased R&D investment underline a positive long-term outlook.Q3-2025 Updates
Positive Updates
Strong Financial Performance
AbbVie reported adjusted earnings per share of $1.86, $0.10 above guidance midpoint, and total net revenues of nearly $15.8 billion, reflecting high single-digit sales growth and beating expectations by $300 million.
Robust Growth in Immunology
Skyrizi and Rinvoq, leading immunology medicines, achieved combined sales growth of more than 40%. Skyrizi global sales were $4.7 billion (46% operational growth) and Rinvoq global revenues were nearly $2.2 billion (34.1% operational growth).
Neuroscience Segment Success
Neuroscience, AbbVie's second-largest and fastest-growing therapeutic area, delivered more than $2.8 billion in revenues, a 19.6% operational increase. The migraine portfolio achieved robust double-digit growth, with Qulipta becoming the #1 CGRP treatment for migraine prevention.
Increased R&D Investment
AbbVie anticipates $9 billion in adjusted R&D expenses in 2025, supporting 90 pipeline programs across all stages of development, including new product approvals and expanded indications.
Dividend Increase
AbbVie announced a 5.5% increase in its quarterly cash dividend, payable in February 2026, marking a more than 330% increase since inception.
Negative Updates
Decline in Aesthetics
Aesthetics segment sales were approximately $1.2 billion, down 4.2% operationally, impacted by challenging market conditions and low consumer sentiment, particularly in the U.S.
Humira Sales Erosion
Global Humira sales were $993 million, down 55.7% operationally, reflecting biosimilar competition. Anticipated access will decrease further into 2026.
Company Guidance
During AbbVie's Third Quarter 2025 Earnings Conference Call, the company raised its 2025 outlook for the third time this year, driven by strong financial performance and strategic investments. The quarter saw adjusted earnings per share of $1.86, surpassing the guidance midpoint by $0.10, and total net revenues reaching nearly $15.8 billion, which was $300 million above expectations, reflecting high single-digit sales growth. Skyrizi and Rinvoq, AbbVie's leading immunology medicines, experienced over 40% combined sales growth, while neuroscience revenues grew by double digits. The company announced a substantial increase in R&D spending to $9 billion in 2025, supporting a pipeline of approximately 90 programs. AbbVie also highlighted several upcoming product approvals and pivotal data releases, such as for tavapadon and PVEK. The company is committed to investing at least $10 billion in U.S. capital over the next decade, with ongoing projects including a new API manufacturing site in North Chicago. Additionally, AbbVie announced a 5.5% increase in its quarterly cash dividend, bringing the total increase since inception to over 330%.AbbVie Financial Statement Overview
Summary
AbbVie shows strong revenue growth and cash flow generation, but faces challenges with profitability and a highly leveraged balance sheet. The negative equity raises concerns about financial stability, despite efficient cash generation.Income Statement
AbbVie shows a stable revenue growth trajectory with a 2.26% increase in TTM. However, the net profit margin has decreased to 4.01% from 7.59% in the previous year, indicating pressure on profitability. The gross profit margin remains strong at 76.21%, reflecting efficient cost management. EBIT and EBITDA margins have declined, suggesting potential operational challenges.72
Positive
Balance Sheet
The balance sheet reveals a concerning debt-to-equity ratio of -26.02 in TTM, due to negative stockholders' equity, indicating high leverage and potential financial risk. Return on equity has improved to 4.99%, but the negative equity ratio poses significant concerns about financial stability.45
Neutral
Cash Flow
AbbVie demonstrates strong cash flow management with a 12.78% growth in free cash flow in TTM. The operating cash flow to net income ratio is healthy at 0.53, and free cash flow to net income is nearly 1, indicating robust cash generation relative to net income.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.64B | 56.33B | 54.32B | 58.05B | 56.20B | 45.80B |
| Gross Profit | 41.60B | 39.43B | 33.90B | 40.64B | 38.75B | 30.42B |
| EBITDA | 12.79B | 14.91B | 17.17B | 24.17B | 23.93B | 12.32B |
| Net Income | 2.39B | 4.28B | 4.86B | 11.84B | 11.54B | 4.62B |
Balance Sheet | ||||||
| Total Assets | 133.90B | 135.16B | 134.71B | 138.81B | 146.53B | 150.56B |
| Cash, Cash Equivalents and Short-Term Investments | 5.67B | 5.55B | 12.82B | 9.23B | 9.83B | 8.48B |
| Total Debt | 68.74B | 67.84B | 60.12B | 64.19B | 77.58B | 87.06B |
| Total Liabilities | 136.50B | 131.80B | 124.31B | 121.52B | 131.09B | 137.47B |
| Stockholders Equity | -2.64B | 3.33B | 10.36B | 17.25B | 15.41B | 13.08B |
Cash Flow | ||||||
| Free Cash Flow | 20.57B | 17.83B | 22.06B | 24.25B | 21.99B | 16.79B |
| Operating Cash Flow | 20.86B | 18.81B | 22.84B | 24.94B | 22.78B | 17.59B |
| Investing Cash Flow | -7.05B | -20.82B | -2.01B | -623.00M | -2.34B | -37.56B |
| Financing Cash Flow | -15.42B | -5.21B | -17.22B | -24.80B | -19.04B | -11.50B |
AbbVie Technical Analysis
Negative
214.35
Price Trends
224.40
Negative
222.04
Negative
203.65
Positive
Market Momentum
-2.20
Positive
39.12
Neutral
6.12
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 214.35 is below the 20-day moving average (MA) of 223.30, below the 50-day MA of 224.40, and above the 200-day MA of 203.65, indicating a neutral trend. The MACD of -2.20 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 6.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABBV.
AbbVie Risk Analysis
AbbVie disclosed 29 risk factors in its most recent earnings report. AbbVie reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AbbVie Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $270.12B | 14.40 | 39.51% | 3.12% | 1.59% | 58.02% | |
79 Outperform | $291.63B | 31.10 | 21.73% | 1.70% | 12.95% | 44.28% | |
78 Outperform | $526.82B | 21.10 | 33.62% | 2.50% | 5.08% | 71.07% | |
75 Outperform | $113.56B | 11.58 | 8.39% | 4.58% | -9.32% | 120.62% | |
74 Outperform | $145.84B | 14.95 | 10.59% | 6.65% | 4.44% | 128.96% | |
66 Neutral | $378.84B | 161.74 | 138.53% | 2.87% | 7.40% | -53.78% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ABBV
AbbVie
214.35
48.36
29.13%
AZN
AstraZeneca
94.39
29.16
44.69%
JNJ
Johnson & Johnson
218.66
74.91
52.11%
MRK
Merck & Company
108.83
16.08
17.34%
PFE
Pfizer
25.65
0.81
3.26%
SNY
Sanofi
46.59
-2.58
-5.25%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.