Will Immunology Drugs Continue to Drive AbbVie's Top Line in 2026?

Core Insights - AbbVie reported strong fourth-quarter and full-year 2025 results, surpassing expectations, primarily driven by its newer immunology drugs, Rinvoq and Skyrizi, which offset the decline of the legacy drug Humira [1] Financial Performance - Skyrizi and Rinvoq generated combined revenues of approximately $26 billion, reflecting over 40% year-over-year growth. Skyrizi sales increased by 50% year-over-year to $17.56 billion, while Rinvoq sales rose by 39% to $8.30 billion [2] - AbbVie anticipates overall sales to grow at a high single-digit revenue CAGR through 2029, with combined sales of Skyrizi and Rinvoq expected to exceed $31 billion in 2026, surpassing the long-term guidance of $31 billion for 2027 [4] Market Dynamics - The immunology market is experiencing strong growth, with significant market share gains for Skyrizi in psoriasis and Rinvoq in rheumatoid arthritis. New indications for both drugs, including recent approvals and potential future approvals, are expected to drive further growth [3][5] - AbbVie expects Rinvoq to secure approvals for vitiligo and alopecia areata in 2026, with additional phase III data anticipated for hidradenitis suppurativa and systemic lupus erythematosus [5] Competitive Landscape - AbbVie faces competition from Johnson & Johnson, which markets Stelara and Tremfya, and Eli Lilly, which recently received FDA approval for Omvoh in ulcerative colitis [7][8] Valuation and Estimates - AbbVie shares are currently trading at a P/E ratio of 15.14, below the industry average of 18.74, but above its five-year mean of 13.68 [12] - Estimate revisions for 2026 EPS have trended higher, while those for 2027 have decreased over the past 30 days [14]