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AbbVie (ABBV)
NYSE:ABBV
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AbbVie
(NYSE:ABBV)
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Rating:60Neutral
Price Target:
$236.00
▲(4.98% Upside)
Action:ReiteratedDate:02/21/26
The score is primarily held back by balance-sheet risk (high leverage/negative equity) and an expensive P/E multiple despite solid cash generation. Offsetting these are constructive technicals and a notably positive earnings outlook with strong 2026 guidance driven by continued strength in key growth franchises.
Positive Factors
Cash generation
AbbVie’s operating and free cash flow have been consistently large, providing durable internal funding for dividends, R&D and business development. Reliable cash generation supports strategic investments and shareholder returns even while the company addresses balance-sheet constraints.
Diversified growth franchises
Rapidly growing immunology (SKYRIZI, RINVOQ) and expanding neuroscience and oncology revenues materially reduce reliance on Humira. This multi-franchise growth provides structural revenue diversification and resilience as newer brands scale across indications and geographies.
Visible 2026 financial outlook
Management’s explicit 2026 targets for revenue, margin expansion, and sizable free cash flow imply operational leverage and credible execution. This guidance provides a multi-year planning anchor, supporting sustained investment in pipeline and shareholder returns over the medium term.
Negative Factors
Balance-sheet leverage
Negative shareholders’ equity and elevated debt materially reduce financial flexibility and increase refinancing and interest-rate vulnerability. This constraint can impede strategic optionality, make equity-based measures less informative, and raise execution risk in adverse markets.
Legacy product erosion
Humira’s post-LOE decline represents a lasting structural revenue loss that must be replaced by newer franchises. Replacing such a large legacy cash flow is a multi-year task; any shortfall in pipeline uptake or market share gains raises sustained revenue and margin pressure.
Pricing and policy pressure
Anticipated pricing headwinds on core immunology brands indicate structural reimbursement pressure. Persistent unit-price erosion or policy-driven negotiation (e.g., payer leverage) can blunt revenue growth and margin expansion, limiting the upside from volume-driven gains.
AbbVie (ABBV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$404.24B
Dividend Yield2.87%
Average Volume (3M)6.88M
Price to Earnings (P/E)96.0
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 Outstanding1,767,384,600
10 Day Avg. Volume6,215,932
30 Day Avg. Volume6,879,363
Financial Highlights & Ratios
PEG Ratio-116.18
Price to Book (P/B)-157.43
Price to Sales (P/S)6.69
P/FCF Ratio21.50
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue6.41
Enterprise Value/Gross Profit8.74
Enterprise Value/Ebitda13.86
Forecast
1Y Price Target
$254.06Price Target Upside13.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 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.Q4-2025 Updates
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.
Robust Immunology Momentum (SKYRIZI & RINVOQ)
Q4 immunology revenues ~ $8.6B. SKYRIZI Q4 sales $5B (operational growth 31.9%); RINVOQ Q4 sales ~$2.4B (operational growth 28.6%). Combined FY SKYRIZI + RINVOQ ≈ $25.9B, up ~ $8B YoY; SKYRIZI IBD global sales ~$6.4B in 2025 (more than double prior year); SKYRIZI US biologic psoriasis prescription share >45% and frontline in-play capture ~75% in IBD.
Neuroscience Outperformance and Parkinson's Launch
Full-year neuroscience revenues >$10.7B, up ~$1.8B YoY; Q4 neuroscience +17.3% operational. Key brands: Vraylar $1B, Botox Therapeutic $990M, UBRELVY $339M, QULYPTA $288M. Violet (Parkinson's) Q4 sales $183M, +33% sequential; company now expects Violet to reach blockbuster status in 2026.
Pipeline Progress and R&D Investment
Adjusted R&D expense increased by nearly $1B in 2025, fully funding 90 clinical programs. New approvals include RINVOQ (GCA), EMERALIS (nonsquamous NSCLC), and Epkinle (2L follicular lymphoma). >$5B invested in business development adding in‑vivo CAR T, next‑gen psychedelics, trispecific antibodies, long‑acting amylin analog (ABBV‑295), siRNA platform and a PD‑1/VEGF bispecific from Remagen.
2026 Financial Guidance and Margin Expansion
2026 guidance: total net revenues ≈ $67B (growth 9.5%), adjusted EPS $14.37–$14.57. Forecasted adjusted gross margin >84%, adjusted operating margin ~48.5% (meaningful expansion vs 2025). Free cash flow expected ~$18.5B in 2026 to support dividends and BD.
Strategic U.S. Agreement and Capital Commitment
Voluntary three‑year agreement with the U.S. government to expand patient access (low Medicaid prices, direct-to-patient cash pay options) and commit $100B in U.S. R&D and capital investments over the next decade, aligning affordability and innovation objectives.
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.
IMBRUVICA Decline and IRA Pricing Headwinds
IMBRUVICA Q4 sales down 20.8% operationally; oncology segment down 2.5% in the quarter. Management expects IRA-related pricing dynamics to unfavorably impact oncology portfolio growth in 2026 (IMBRUVICA revenue guidance ~$2.2B for 2026).
Aesthetics Weakness and Regional Share Losses
Q4 aesthetics sales nearly $1.3B, down 1.2% operationally. Juvederm Q4 sales $249M, down 10.8% operationally; Botox Cosmetic $717M up 3.8% but category growth remains challenged. Company noted share declines in markets like Brazil and macro headwinds affecting global aesthetics demand.
Acquired IPR&D Expense Impacting Margins and EPS
Acquired IPR&D expense had a $0.71 unfavorable EPS impact in Q4 and drove a 7.6 percentage point unfavorable impact to adjusted operating margin; also increased the adjusted tax rate to 18.3% in the quarter, affecting short‑term profitability metrics.
Pricing Headwinds for Leading Immunology Brands
Company expects low single‑digit pricing headwinds for SKYRIZI and RINVOQ in 2026 and over the next few years. RINVOQ faces a high‑single‑digit unfavorable first‑quarter comparison due to prior year rebate timing.
Policy/Regulatory Uncertainty for Botox
Botox was selected for Medicare negotiation (price negotiation process beginning 2028). Management indicated they planned conservatively for the possibility and do not expect a material impact to long‑term guidance, but selection represents policy risk.
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
Strong and durable operating/free cash flow supports the business, and revenue is back to growth. However, reported net profitability has weakened versus prior peaks, and the balance sheet is a major constraint with 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.66
Positive
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.38
Negative
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.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 | 5.46B | 135.16B | 134.71B | 138.81B | 146.53B |
| Cash, Cash Equivalents and Short-Term Investments | 5.23B | 5.55B | 12.82B | 9.23B | 9.83B |
| Total Debt | 0.00 | 67.84B | 60.12B | 64.19B | 77.58B |
| Total Liabilities | 26.29B | 131.80B | 124.31B | 121.52B | 131.09B |
| Stockholders Equity | -2.60B | 3.33B | 10.36B | 17.25B | 15.41B |
Cash Flow | |||||
| Free Cash Flow | 19.03B | 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
Positive
224.81
Price Trends
222.92
Positive
224.43
Positive
208.62
Positive
Market Momentum
1.50
Negative
51.29
Neutral
48.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABBV, the sentiment is Positive. The current price of 224.81 is above the 20-day moving average (MA) of 223.66, above the 50-day MA of 222.92, and above the 200-day MA of 208.62, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 48.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $301.96B | 16.71 | ― | 3.12% | 1.59% | 58.02% | |
73 Outperform | $590.40B | 22.20 | 35.03% | 2.50% | 6.05% | ― | |
73 Outperform | $155.62B | 20.13 | ― | 6.65% | 4.44% | 128.96% | |
73 Outperform | £240.98B | 31.05 | 22.34% | 1.53% | 10.20% | 40.57% | |
69 Neutral | $110.69B | 19.18 | 6.76% | 4.58% | -9.32% | 120.62% | |
60 Neutral | $404.24B | 95.96 | 9999.00% | 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
224.81
27.35
13.85%
JNJ
Johnson & Johnson
242.49
82.34
51.41%
MRK
Merck & Company
122.26
34.30
38.99%
PFE
Pfizer
26.65
1.80
7.26%
SNY
Sanofi
46.76
-5.33
-10.23%
GB:AZN
AstraZeneca
15,270.00
3,699.65
31.98%
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.