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AbbVie
(NYSE:ABBV)
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Rating:66Neutral
Price Target:
$278.00
▲(7.19% Upside)
Action:Reiterated
Date:07/31/26
ABBV scores solidly on strength in free cash flow and a positive, guidance-raising earnings outlook supported by accelerating immunology and neuroscience franchises. The score is tempered by balance-sheet leverage/volatile equity and a very high P/E that leaves less room for execution or macro/financing disappointments, despite supportive price trends above major moving averages.
Positive Factors
Strong Cash Generation
AbbVie's very large and growing free cash flow (TTM ~$20.9B, ~11.6% growth) that closely tracks net income (FCF ~98% of net income) is a durable foundation. It funds R&D, dividends, acquisitions and debt paydown, providing multi-year financial optionality even amid margin pressure.
Negative Factors
High Leverage
A very large debt load (~$72.9B, debt/equity ~2.65x and volatile/negative reported equity) increases refinancing, interest‑rate and covenant vulnerability. Elevated leverage constrains capital allocation and leaves less margin for error if sales disappoint or acquisition financing costs rise over the next 2–3 years.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
AbbVie's very large and growing free cash flow (TTM ~$20.9B, ~11.6% growth) that closely tracks net income (FCF ~98% of net income) is a durable foundation. It funds R&D, dividends, acquisitions and debt paydown, providing multi-year financial optionality even amid margin pressure.
Read all positive factors
AbbVie Key Performance Indicators (KPIs)
Any
Revenue by Geography
Illustrates where AbbVie generates cash around the world and which regions drive growth or volatility. Geographic trends can flag where pricing pressure, local competition, or launch success will meaningfully affect total revenue and help assess the company’s ability to offset declines in one market with gains in another.
Illustrates where AbbVie generates cash around the world and which regions drive growth or volatility. Geographic trends can flag where pricing pressure, local competition, or launch success will meaningfully affect total revenue and help assess the company’s ability to offset declines in one market with gains in another.
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The Fly
The FlyAbbVie (ABBV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$443.36B
Dividend Yield2.72%
Average Volume (3M)7.74M
Price to Earnings (P/E)123.0
Beta (1Y)0.12
Revenue Growth10.39%
EPS GrowthN/A
CountryUS
Employees57,000
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)2.04
Shares Outstanding1,766,792,800
10 Day Avg. Volume5,179,312
30 Day Avg. Volume7,744,819
Financial Highlights & Ratios
PEG Ratio-77.13
Price to Book (P/B)-124.40
Price to Sales (P/S)6.65
P/FCF Ratio22.83
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$272.57Price Target Upside5.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
EPS Forecast (FY)14.05
Revenue Forecast (FY)$67.39B
AbbVie Business Overview & Revenue Model
Company Description
AbbVie Inc. (ABBV) is a research-based biopharmaceutical company that discovers, develops, manufactures, and commercializes prescription medicines. It operates primarily in immunology, oncology, neuroscience, virology, and eye care, with a portfol...
How the Company Makes Money
AbbVie makes money primarily by selling branded prescription drugs and related products, recognizing revenue when product control transfers to customers (e.g., wholesalers, specialty pharmacies, hospitals, government channels, and certain large pr...
AbbVie Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: above‑consensus results, double‑digit growth across key franchises (notably SKYRIZI and RINVOQ), multiple regulatory approvals, raised guidance, and a broadened pipeline via the Apogee deal. These positives are tempered by expected declines in legacy products (HUMIRA, IMBRUVICA), modest softness in some aesthetics lines, acquisition‑related dilution and IPR&D expense, and higher interest costs and FX headwinds. On balance the company presented durable growth drivers and ample financial flexibility despite near‑term dilution and known legacy declines.Positive Updates
Earnings and Revenue Beat
Adjusted EPS of $3.65, $0.06 above guidance midpoint; total net revenues nearly $17.0 billion, beating expectations by ~$300 million and reflecting sales growth of 10.2% year-over-year.
Negative Updates
Legacy Product Declines—HUMIRA
HUMIRA global sales were $706 million, down 36.1% on an operational basis due to biosimilar competition (performance in line with expectations).
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and Revenue Beat
Adjusted EPS of $3.65, $0.06 above guidance midpoint; total net revenues nearly $17.0 billion, beating expectations by ~$300 million and reflecting sales growth of 10.2% year-over-year.
Read all positive updates
Company Guidance
AbbVie updated its 2026 outlook, raising full‑year net revenues to approximately $67.6 billion (up $300 million, assuming ~0.5% favorable FX) and increasing adjusted EPS guidance to $13.87–$14.07 (a $0.10 improvement in the existing business partly offset by ~$0.14 of expected Apogee dilution); Q3 guidance is net revenues of about $17.2 billion (≈0.4% FX headwind) and adjusted EPS $3.84–$3.88. Management also reiterated product assumptions including SKYRIZI global revenues of $21.7 billion (up $100 million) and total neuroscience revenues of $12.7 billion (up $100 million) with Vraylar ≈$4.1 billion and Botox Therapeutic ≈$4.2 billion. Full‑year operating metrics guidance includes adjusted gross margin above 84% of sales, adjusted R&D of ~ $9.8 billion (up $100 million for Apogee), adjusted SG&A ~ $14.5 billion, an adjusted operating margin ratio approaching 47% of sales, adjusted net interest expense ~ $2.9 billion (up $200 million), and a non‑GAAP tax rate of ~14.5%; Q2 actuals referenced were adjusted EPS $3.65 (beat midpoint by $0.06), nearly $17 billion revenue (10.2% growth), and adjusted gross margin 84.7%. The company expects the Apogee deal to close in Q3, has secured interim financing and plans long‑term debt issuance, targets ~2x net leverage within 2–3 years, and noted that guidance excludes any acquired IPR&D expense beyond Q2.AbbVie Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.82B | 61.16B | 56.33B | 54.32B | 58.05B | 56.20B |
| Gross Profit | 44.40B | 42.96B | 39.43B | 33.90B | 40.64B | 38.75B |
| EBITDA | 16.92B | 17.63B | 14.91B | 17.17B | 24.17B | 23.93B |
| Net Income | 3.64B | 4.23B | 4.28B | 4.86B | 11.84B | 11.54B |
Balance Sheet | ||||||
| Total Assets | 136.46B | 133.96B | 135.16B | 134.71B | 138.81B | 146.53B |
| Cash, Cash Equivalents and Short-Term Investments | 9.39B | 5.26B | 5.55B | 12.82B | 9.23B | 9.83B |
| Total Debt | 72.86B | 69.07B | 67.84B | 60.12B | 64.19B | 77.58B |
| Total Liabilities | 143.07B | 137.19B | 131.80B | 124.31B | 121.52B | 131.09B |
| Stockholders Equity | -6.66B | -3.27B | 3.33B | 10.36B | 17.25B | 15.41B |
Cash Flow | ||||||
| Free Cash Flow | 20.86B | 17.82B | 17.83B | 22.06B | 24.25B | 21.99B |
| Operating Cash Flow | 21.22B | 19.03B | 18.81B | 22.84B | 24.94B | 22.78B |
| Investing Cash Flow | -6.48B | -6.64B | -20.82B | -2.01B | -623.00M | -2.34B |
| Financing Cash Flow | -10.55B | -12.72B | -5.21B | -17.22B | -24.80B | -19.04B |
AbbVie Technical Analysis
Neutral
259.36
Price Trends
236.86
Positive
221.79
Positive
221.49
Positive
Market Momentum
6.88
Positive
67.21
Neutral
75.22
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 259.36 is above the 20-day moving average (MA) of 253.22, above the 50-day MA of 236.86, and above the 200-day MA of 221.49, indicating a neutral trend. The MACD of 6.88 indicates Positive momentum. The RSI at 67.21 is Neutral, neither overbought nor oversold. The STOCH value of 75.22 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 0 New Risks
AbbVie Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $617.78B | 29.64 | 25.74% | 1.99% | 8.07% | -7.21% | |
72 Outperform | $321.57B | 36.58 | 17.93% | 2.56% | 2.70% | -48.28% | |
69 Neutral | $103.82B | 22.77 | 5.52% | 5.58% | 23.68% | -30.90% | |
66 Neutral | $443.36B | 123.01 | 68.01% | 2.63% | 10.39% | ― | |
66 Neutral | £195.91B | 25.33 | 21.68% | 1.86% | 4.71% | 21.16% | |
64 Neutral | $142.54B | 19.09 | 8.37% | 7.01% | 1.36% | -5.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ABBV
AbbVie
250.94
59.68
31.21%
JNJ
Johnson & Johnson
256.35
88.52
52.74%
MRK
Merck & Company
130.20
52.92
68.49%
PFE
Pfizer
25.01
3.02
13.75%
SNY
Sanofi
43.08
-3.13
-6.77%
GB:AZN
AstraZeneca
12,632.00
1,686.76
15.41%
AbbVie Corporate Events
Business Operations and StrategyM&A Transactions
AbbVie to Acquire Apogee, Expanding Immunology Portfolio
Positive
Jun 22, 2026
On June 22, 2026, AbbVie agreed to acquire clinical-stage biotech Apogee Therapeutics for $135.11 per share in cash, valuing the deal at about $10.9 billion and adding multiple inflammatory and immunological candidates to its pipeline. The all-cas...
Executive/Board ChangesShareholder Meetings
AbbVie Shareholders Back Directors, Maintain Governance Structure
Neutral
May 12, 2026
At AbbVie’s 2026 Annual Meeting of Stockholders held on May 8, 2026, shareholders elected four Class II directors—Jennifer L. Davis, Melody B. Meyer, Robert A. Michael and Frederick H. Waddell—to terms expiring in 2029 and ratifi...
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.