Key Takeaways ABBV guides 2026 revenues at $67B, about 9.5% above 2025, led by newer immunology drugs Rinvoq and Skyrizi.ABBV projects Skyrizi and Rinvoq sales above $31B in 2026, more than 20% YoY, even as Humira slips to $2.9B.ABBV sees neuroscience at $12.5B in 2026 with Vyalev topping $1B, while Imbruvica sales fall to $2.2B.AbbVie (ABBV) had an encouraging year in 2025, registering a sales growth of about 8.5% year over year at constant exchange rates. This number is impressive for a company that has b ...

Core Viewpoint - AbbVie Inc. is a leading biopharmaceutical company with strong financial performance in Q4 2025, driven by its immunology portfolio, and is projected to exceed profit expectations for 2026 [1][2][6] Financial Performance - AbbVie reported Q4 2025 sales of $16.62 billion, exceeding the consensus estimate of $16.42 billion, marking a 10% increase on a reported basis and a 9.5% increase operationally [2] - Adjusted earnings per share rose by 25.5% to $2.71, surpassing the expected $2.65 [2] Revenue Breakdown - The immunology portfolio generated global net revenues of $8.63 billion, reflecting an 18.3% increase, with Skyrizi sales up 32.5% to $5.01 billion and Rinvoq sales rising 29.5% to $2.37 billion [3] - Neuroscience sales climbed to $2.96 billion, a 17.9% increase, with Vraylar contributing $1.02 billion (up 10.5%) and Botox Therapeutics at $991 million (up 13.4%) [4] - The oncology portfolio saw a slight decline, generating $1.66 billion in sales, with Imbruvica's revenues down 20.8% to $671 million, while Venclexta's revenues increased by 8.6% to $711 million [4] Future Projections - AbbVie projects its 2026 profit to surpass Wall Street estimates, driven by strong sales of Skyrizi and Rinvoq [5][6] - The current stock price of ABBV is $216.97, reflecting a decrease of 3.85% or $8.69, with a market capitalization of approximately $383.47 billion [5]

Core Insights - AbbVie Inc. reported fourth-quarter earnings and revenue that surpassed Wall Street expectations, driven by strong performance in its immunology and neuroscience segments, although shares fell over 2% in premarket trading after the announcement [1] Financial Performance - The company posted adjusted earnings per share of $2.71 for the quarter, exceeding the consensus estimate of $2.65 [2] - Revenue reached $16.62 billion, surpassing analyst expectations of $16.39 billion, reflecting a year-over-year growth of 10.0%, or 9.5% on an operational basis [2] Segment Performance - Immunology was the main growth driver, with global net revenues increasing by 18.3% to $8.63 billion [3] - Skyrizi generated $5.01 billion in sales, marking a 32.5% increase from the previous year, while Rinvoq contributed $2.37 billion, representing a growth of 29.5% [3] - Sales of Humira declined by 25.9% to $1.25 billion due to biosimilar competition, but the gains in Skyrizi and Rinvoq offset this decline [3] - The neuroscience portfolio also performed well, with revenue rising 17.9% to $2.96 billion [4] - Vraylar sales increased by 10.5% to $1.02 billion, and Botox Therapeutic revenue advanced by 13.4% to $990 million [4] - The oncology portfolio saw a slight decline of 1.5% to $1.66 billion, primarily due to a 20.8% drop in Imbruvica sales, although growth in Venclexta and Elahere partially offset this [4] Future Guidance - AbbVie provided full-year 2026 adjusted earnings guidance of $14.37 to $14.57 per share, which is above the analyst consensus of $14.22 [5]

Core Insights - AbbVie Inc. reported fourth-quarter 2025 adjusted EPS of $2.71, surpassing the Zacks Consensus Estimate of $2.66 and the company's prior guidance of $2.61-$2.65, with earnings increasing over 25% year over year [1][10] - The company's revenues reached $16.62 billion, exceeding the Zacks Consensus Estimate of $16.36 billion, with a year-over-year growth of 10.0% on a reported basis and 9.5% operationally [2][10] Revenue Performance - Key drugs driving revenue included Rinvoq, Skyrizi, Venclexta, and Vraylar, alongside contributions from newer drugs like Ubrelvy, Qulipta, Elahere, and Vyalev, while sales of Humira and Imbruvica declined [3] - Immunology drug Rinvoq generated $2.37 billion in net revenues, up nearly 29%, although it missed the Zacks Consensus Estimate of $2.39 billion [4] - Skyrizi's sales reached $5.01 billion, reflecting a 32% increase and surpassing the Zacks Consensus Estimate of $4.91 billion [5] - Humira's sales fell 26% to $1.25 billion, with U.S. sales down 28% to $897 million, attributed to loss of exclusivity since January 2023, yet it exceeded the Zacks Consensus Estimate of $949 million [6] - Neuroscience portfolio sales rose over 17% to $2.96 billion, driven by Botox Therapeutic and Vraylar, but missed the Zacks Consensus Estimate of $3.00 billion [7] - Oncology franchise sales decreased 2.5% to $1.66 billion, primarily due to declining Imbruvica sales, missing the Zacks Consensus Estimate of $1.72 billion [9] Cost and Financial Outlook - Adjusted SG&A expenses increased 4% year over year to $3.71 billion, while adjusted R&D expenses rose approximately 13% to $2.56 billion [15] - For the full year 2025, AbbVie reported sales growth of 8.6% to $61.16 billion, exceeding the Zacks Consensus Estimate of $60.93 billion, with adjusted EPS of $10.00, down 1% year over year but beating estimates [16] - AbbVie provided guidance for 2026 adjusted EPS in the range of $14.37-$14.57, excluding impacts from proposed acquisitions, with the Zacks Consensus Estimate at $14.32 [17] Market Reaction and Strategic Focus - Despite strong results, AbbVie's shares traded lower in pre-market trading, likely due to underperformance in Rinvoq and oncology drugs [19] - The company is focusing on inorganic growth to strengthen its early-stage pipeline across multiple therapeutic areas, with recent acquisitions impacting near-term earnings [21][22]

AbbVie Inc. (NYSE:ABBV) reported fourth-quarter 2025 sales of $16.62 billion on Wednesday, beating the consensus of $16.42 billion.Sales increased 10% on a reported basis or 9.5% on an operational basis. The company reported adjusted earnings of $2.71 per share, up 25.5%, beating the consensus of $2.65.Global net revenues from the immunology portfolio were $8.63 billion, up 18.3% (+17.7% on an operational basis), including Skyrizi sales increased 32.5% to $5.01 billion; Rinvoq sales reached $2.37 billion, a ...

Core Insights - AbbVie reported revenue of $16.62 billion for the quarter ended December 2025, reflecting a 10% increase year-over-year and a surprise of +1.58% over the Zacks Consensus Estimate of $16.36 billion [1] - The earnings per share (EPS) for the quarter was $2.71, up from $2.16 in the same quarter last year, with an EPS surprise of +2.02% compared to the consensus estimate of $2.66 [1] Revenue Performance by Product - Humira's net revenue in the US was $897 million, significantly below the average estimate of $574.85 million, representing a year-over-year decline of -28% [4] - Internationally, Humira generated $349 million, slightly below the estimated $374.4 million, marking a -20% change year-over-year [4] - Oncology product Elahere reported $182 million, which was below the average estimate of $191.62 million but showed a +23% increase year-over-year [4] - Qulipta's international revenue reached $43 million, exceeding the estimate of $39.74 million, with a remarkable +186.7% year-over-year growth [4] - The Juvederm Collection generated $249 million, below the estimate of $272.17 million, reflecting a -10.8% year-over-year decline [4] - Vraylar's total revenue was $1.02 billion, surpassing the estimate of $994.67 million, with a +10.6% year-over-year increase [4] - Imbruvica's revenue was $671 million, below the average estimate of $714.9 million, showing a -20.9% year-over-year decline [4] - Eye Care products generated $580 million, slightly above the estimate of $568.88 million, with a -10.2% year-over-year change [4] - Botox Therapeutic revenue was $990 million, close to the estimate of $995.91 million, reflecting a +13.4% year-over-year increase [4] - Aesthetics revenue totaled $1.29 billion, slightly above the estimate of $1.28 billion, with a -0.9% year-over-year change [4] - Venclexta generated $710 million, below the estimate of $725.34 million, with an +8.4% year-over-year increase [4] - Neuroscience product Vyalev reported $183 million, exceeding the estimate of $170.15 million [4] Stock Performance - AbbVie shares returned +0.8% over the past month, compared to a +0.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported full-year adjusted earnings per share of $10, exceeding initial guidance by $0.54, with total net revenues of $61.2 billion, surpassing guidance by over $2 billion [5][6] - Sales growth of 8.6% led to record net sales, exceeding previous peak revenue by more than $3 billion despite nearly $16 billion erosion from U.S. Humira [6][9] - Adjusted earnings per share for the fourth quarter were $2.71, $0.08 above guidance midpoint, with total net revenues of $16.6 billion, reflecting robust growth of 10% [32][33] Business Line Data and Key Metrics Changes - Immunology revenues reached approximately $8.6 billion in the fourth quarter, with Skyrizi sales of $5 billion (31.9% operational growth) and Rinvoq sales of nearly $2.4 billion (28.6% operational growth) [10][11] - Neuroscience full-year revenues exceeded $10.7 billion, with a quarterly revenue of over $2.9 billion, up 17.3% operationally, driven by Vraylar and Botox Therapeutic [16][17] - Oncology revenues were nearly $1.7 billion in the quarter, down 2.5% operationally, with Venclexta sales of $710 million, up 6.4% [19][20] Market Data and Key Metrics Changes - Global sales for Skyrizi in IBD reached approximately $6.4 billion in 2025, more than double the prior year performance [13][14] - The aesthetics market faced economic headwinds, with global sales of nearly $1.3 billion in the quarter, down 1.2% operationally [21][22] - The company anticipates total sales growth of 9.5% in 2026, driven by Skyrizi and Rinvoq, with combined sales expected to exceed $31 billion [7][8] Company Strategy and Development Direction - The company is focused on advancing its pipeline across all stages of development and has invested over $5 billion in new business development [6][7] - A voluntary agreement with the U.S. government aims to enhance patient access and affordability while committing $100 billion in U.S. R&D and capital investments over the next decade [9] - The company plans to leverage its diverse portfolio to deliver high single-digit revenue growth through 2029 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong position to deliver robust growth despite headwinds from Humira erosion and pricing pressures [5][7] - The outlook for 2026 includes expectations for substantial sales growth driven by key products, with a focus on maintaining momentum in immunology and neuroscience [8][9] - Management highlighted the potential for long-term growth in neuroscience and oncology, with several promising assets in the pipeline [59][60] Other Important Information - The company anticipates a significant ramp for Vyalev, achieving blockbuster status as a treatment for Parkinson's [8][18] - The adjusted operating margin is expected to expand to approximately 48.5% in 2026, reflecting operational efficiencies [36] - The company expects to generate free cash flow of approximately $18.5 billion in 2026, supporting dividends and investments in business development [38][39] Q&A Session Summary Question: Details on the psychedelic therapy in development - Management highlighted the potential of the psychedelic therapy, noting its unique mechanism and observed high efficacy, with further readouts expected before phase III [42][43][44] Question: Insights on Skyrizi's performance in IBD - Management confirmed stable new patient starts for Skyrizi in both Crohn's and UC, with high capture rates despite competition, indicating strong market positioning [51][53][54] Question: Update on external innovation and business development - The company has invested over $8 billion in external innovation, focusing on early-stage opportunities to enhance its pipeline across core therapeutic areas [64][66] Question: Expectations for Rinvoq and lutikizumab phase III data - Management expressed optimism for Rinvoq's performance in treatment failure populations and highlighted lutikizumab's strong efficacy in phase II, anticipating meaningful results in phase III [68][69][70]

Core Viewpoint - AbbVie and Medtronic are highlighted as healthcare stocks that consistently grow their dividends, supported by healthy free cash flow, despite the general trend of lower dividend yields in the healthcare sector [1][3][15]. AbbVie - AbbVie has a dividend yield of 2.98% and has increased its quarterly dividend for 54 consecutive years, qualifying it as a Dividend King [4]. - The company reported revenue of $15.8 billion in the third quarter, a 9% year-over-year increase, although earnings per share (EPS) declined by 38% to $1.86 due to higher R&D spending [6]. - AbbVie has successfully transitioned from reliance on Humira, which previously accounted for 63% of its revenue, to a diversified portfolio including Rinvoq and Skyrizi, with Skyrizi generating $4.7 billion in the latest quarter [7]. - The oncology segment now contributes nearly 11% to AbbVie's revenue, bolstered by new therapies [8]. - AbbVie's dividend payout ratio is 58%, but its free cash flow per share of $11.11 supports its annual dividend payout of $6.92 [9]. Medtronic - Medtronic, with a market cap of $132 billion, is the largest stand-alone medical device maker, producing a wide range of medical equipment [10]. - The company reported revenue of $9 billion in the second quarter of fiscal 2026, a 6.6% year-over-year increase, with EPS rising 8% to $1.07 [13]. - Medtronic's dividend yield is approximately 2.76%, and it has increased its dividend for 48 consecutive years, with a payout ratio of 69% [14]. - The company plans to spin off its diabetes business, which accounts for only 8% of revenue, without impacting its dividend [14]. Industry Insights - Healthcare companies, unlike utilities, must continuously invest in R&D due to the nature of their products, which often face patent expirations and generic competition [2]. - AbbVie and Medtronic leverage their size and diversification to maintain revenue growth and dividend increases, mitigating risks from potential downturns in specific segments [15][16].

Core Viewpoint - AbbVie is expected to report fourth-quarter and full-year 2025 earnings on February 4, with sales projected at $16.36 billion and earnings per share (EPS) at $2.66, although EPS estimates for 2025 and 2026 have declined recently [2][6]. Earnings Performance - AbbVie has consistently exceeded earnings expectations in the past four quarters, with an average earnings surprise of 3.05%, including a 5.08% surprise in the last quarter [4][6]. Revenue Drivers - The anticipated revenue growth for AbbVie in Q4 2025 is primarily driven by increased sales of newer immunology drugs, Skyrizi and Rinvoq, as sales of the flagship drug Humira continue to decline due to biosimilar competition [9][10]. - The Zacks Consensus Estimate for Skyrizi sales is $4.91 billion, while Rinvoq is estimated at $2.39 billion [9]. Sales Estimates - Humira's sales are projected at $949 million, reflecting ongoing erosion from biosimilars, while Imbruvica sales are expected to decline to $715 million due to competition [10]. - Sales for Roche-partnered Venclexta are estimated to rise to $725 million, driven by strong demand [11]. - Neuroscience product sales are expected to reach approximately $3.00 billion, supported by strong performances from Botox Therapeutic, Vraylar, and new migraine drugs [12]. - Aesthetics product sales are projected at $1.28 billion, showing signs of recovery from previous sluggishness [13]. Valuation and Market Position - AbbVie shares are currently trading at a P/E ratio of 15.38, below the industry average of 18.42, indicating a discount relative to peers [17]. - Despite underperforming the industry over the past year, AbbVie is expected to achieve robust revenue growth driven by its newer drug launches [19]. Future Outlook - AbbVie anticipates a high single-digit revenue compound annual growth rate (CAGR) through 2029, supported by the successful launches of Skyrizi and Rinvoq [19]. - The company continues to invest in its pipeline through strategic collaborations, including a recent licensing deal with RemeGen for a bispecific antibody candidate [21]. - A favorable valuation and strong earnings growth expectations provide a compelling case for long-term investment in AbbVie stock [22].

Core Viewpoint - Analysts expect AbbVie (ABBV) to report quarterly earnings of $2.66 per share, reflecting a year-over-year increase of 23.2%, with revenues projected at $16.36 billion, up 8.3% from the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical research showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Revenue Projections - Analysts estimate 'Net Revenue- Imbruvica' at $714.90 million, indicating a year-over-year decline of 15.7% [4] - 'Net Revenue- Botox Therapeutic- Total' is expected to reach $995.91 million, reflecting a year-over-year increase of 14.1% [4] - 'Net Revenue- Venclexta' is projected at $725.34 million, suggesting a year-over-year increase of 10.7% [4] Neuroscience and Humira Revenue - 'Net Revenue- Neuroscience- Total' is estimated at $3.00 billion, indicating a year-over-year increase of 19.5% [5] - 'Net Revenue- Humira- US' is expected to be $574.85 million, reflecting a significant decline of 53.9% from the prior year [5] - 'Net Revenue- Humira- International' is projected at $374.40 million, indicating a year-over-year decrease of 14.1% [6] Oncology and New Products - 'Net Revenue- Oncology- Elahere- Total' is expected to reach $191.62 million, reflecting a year-over-year increase of 29.5% [6] - 'Net Revenue- Epkinly- International' is projected at $48.50 million, suggesting a substantial year-over-year increase of 120.5% [6] - 'Net Revenue- Qulipta- U.S.' is estimated at $271.58 million, indicating a year-over-year increase of 46% [7] - 'Net Revenue- Qulipta- International' stands at $39.74 million, reflecting a significant year-over-year increase of 165% [8] Stock Performance - AbbVie shares have decreased by 3.5% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.9%, and the stock is expected to closely follow the overall market with a Zacks Rank 3 (Hold) [8]