AbbVie (ABBV)
NYSE:ABBV
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AbbVie
(NYSE:ABBV)
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Rating:63Neutral
Price Target:
$220.00
▲(3.97% Upside)
Action:ReiteratedDate: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 strength
AbbVie produces very large, consistent operating cash flow and material free cash flow, supporting durable funding for R&D, dividends, and business development. Management projects ~$18.5B FCF for 2026, giving the company multi-year financial firepower despite near-term FCF growth headwinds.
Negative Factors
High leverage and negative equity
AbbVie's materially elevated debt and 2025 negative shareholders' equity constrain financial flexibility, increase refinancing and covenant risk, and leave less room for capital returns or opportunistic investments if cash generation weakens. This structural leverage amplifies downside risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
AbbVie produces very large, consistent operating cash flow and material free cash flow, supporting durable funding for R&D, dividends, and business development. Management projects ~$18.5B FCF for 2026, giving the company multi-year financial firepower despite near-term FCF growth headwinds.
Read all positive factors
AbbVie (ABBV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$374.13B
Dividend Yield2.87%
Average Volume (3M)6.86M
Price to Earnings (P/E)96.8
Beta (1Y)0.23
Revenue Growth7.40%
EPS Growth-53.78%
CountryUS
Employees55,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.71
Shares Outstanding1,768,169,100
10 Day Avg. Volume5,478,913
30 Day Avg. Volume6,855,939
Financial Highlights & Ratios
PEG Ratio-116.18
Price to Book (P/B)-125.12
Price to Sales (P/S)6.69
P/FCF Ratio22.97
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue7.17
Enterprise Value/Gross Profit9.77
Enterprise Value/Ebitda15.49
Forecast
1Y Price Target
$253.67Price Target Upside19.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)14.49
Revenue Forecast (FY)$67.14B
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 plaqu...
How the Company Makes Money
AbbVie makes money primarily by selling branded prescription drugs and medical aesthetics products worldwide. Its revenue model is largely product-sales driven: (1) Immunology: AbbVie generates significant sales from immunology therapies, notably ...
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:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call conveyed broad operational strength: record sales, multiple high‑growth franchises (notably SKYRIZI, RINVOQ, and neuroscience brands), significant R&D and BD investments, and an optimistic 2026 financial outlook (≈9.5% revenue growth, EPS guidance and margin expansion). Headwinds were clearly disclosed — substantial HUMIRA erosion, declines in IMBRUVICA and parts of aesthetics, acquired IPR&D charges compressing near‑term margins, and modest pricing pressure on key immunology assets — but management articulated clear mitigation levers (strong portfolio growth, new approvals, pipeline catalysts, BD additions, and a large free cash flow profile). Overall, positive execution and outlook outweigh the listed challenges.Positive Updates
Record Revenue and EPS Outperformance
Full-year adjusted EPS of $10, $0.54 above initial guidance midpoint; total net revenues (ex-IPR&D) $61.2B, beating initial guidance by >$2B; sales growth 8.6% led to an all-time high, exceeding prior peak by >$3B despite nearly $16B of U.S. HUMIRA erosion since LOE.
Negative Updates
HUMIRA Erosion and Ongoing Access Pressure
HUMIRA U.S. erosion ~ $16B since LOE. Q4 HUMIRA global sales > $1.2B, down 26.1% operationally. Management expects further access declines in 2026 as plans move to exclusive biosimilar contracts; HUMIRA revenue forecast for 2026 ~$2.9B.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Revenue and EPS Outperformance
Full-year adjusted EPS of $10, $0.54 above initial guidance midpoint; total net revenues (ex-IPR&D) $61.2B, beating initial guidance by >$2B; sales growth 8.6% led to an all-time high, exceeding prior peak by >$3B despite nearly $16B of U.S. HUMIRA erosion since LOE.
Read all positive updates
Company Guidance
AbbVie guided 2026 full-year net revenues of approximately $67.0 billion (growth of 9.5%), full‑year adjusted EPS of $14.37–$14.57 (excludes any acquired IPR&D expense), and a roughly 0.8% favorable FX impact; product-level assumptions include immunology $34.5B (SKYRIZI $21.5B, RINVOQ $10.1B, HUMIRA $2.9B), neuroscience $12.5B (Vraylar $4.0B, Botox Therapeutic $4.1B, total oral CGRPs $2.9B, BIOLIF $1.0B), oncology $6.5B (IMBRUVICA $2.2B, VENCLEXTA $3.0B, ELEHIR $850M) and aesthetics $5.0B (Botox Cosmetic $2.7B, Juvederm $950M); financial targets include adjusted gross margin above 84%, adjusted R&D ≈$9.7B, adjusted SG&A ≈$14.2B, adjusted operating margin ≈48.5%, adjusted net interest ≈$2.8B, a non‑GAAP tax rate ≈14% and share count roughly in line with 2025. Management expects 2026 free cash flow of about $18.5B (including roughly $3.5B of SKYRIZI royalties) with a cash balance of $5.2B at December to support the dividend and BD, and provided Q1 2026 guidance of ~ $14.7B revenue (FX ~2% favorable), Q1 immunology ≈$7.1B (SKYRIZI $4.4B, RINVOQ $2.0B), neuroscience $2.8B, oncology $1.6B, aesthetics $1.2B, Q1 adjusted operating margin ≈46%, non‑GAAP tax ≈13.7% and adjusted EPS $2.97–$3.01.AbbVie Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
38
Negative
Cash Flow
74
Positive
| 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
Neutral
211.59
Price Trends
220.93
Negative
222.65
Negative
214.57
Negative
Market Momentum
-3.67
Negative
45.57
Neutral
34.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Neutral. The current price of 211.59 is below the 20-day moving average (MA) of 212.52, below the 50-day MA of 220.93, and below the 200-day MA of 214.57, indicating a bearish trend. The MACD of -3.67 indicates Negative momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 34.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ABBV.
AbbVie Risk Analysis
AbbVie disclosed 31 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 2 New Risks
1.
Pharmacy benefit managers and other supply chain intermediaries exert significant influence over pricing and patient access to our products, which could adversely affect our revenues and results of operations. Q4, 2025
2.
Trade restrictions, tariffs, and other changes in global trade policy could increase costs, disrupt supply chains, and adversely affect AbbVie's business and results of operations. Q4, 2025
AbbVie Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $581.20B | 18.81 | 33.78% | 2.50% | 6.05% | ― | |
73 Outperform | £235.97B | 28.13 | 23.00% | 1.53% | 10.20% | 40.57% | |
69 Neutral | $113.56B | -31.42 | 14.71% | 4.58% | -9.32% | 120.62% | |
68 Neutral | $304.55B | 14.46 | 36.19% | 3.12% | 1.49% | 7.89% | |
64 Neutral | $156.20B | 18.21 | 8.67% | 6.65% | -1.65% | -3.74% | |
63 Neutral | $374.13B | 96.82 | -361.58% | 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
211.59
37.59
21.60%
JNJ
Johnson & Johnson
241.30
94.42
64.29%
MRK
Merck & Company
123.18
44.14
55.85%
PFE
Pfizer
27.47
6.50
31.01%
SNY
Sanofi
47.14
-2.49
-5.02%
GB:AZN
AstraZeneca
15,216.00
5,714.60
60.14%
AbbVie Corporate Events
Business Operations and StrategyPrivate Placements and Financing
AbbVie Completes $8 Billion Senior Notes Financing Offering
Positive
Mar 4, 2026
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 unde...
Business Operations and StrategyPrivate Placements and Financing
AbbVie Announces $7.5 Billion Senior Notes Offering
Neutral
Feb 26, 2026
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 in...
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.