Even the most dedicated income investors often avoid healthcare titles, especially those in the high-capital-expenditures pharmaceutical sector. As ever, though, we can find exceptions. Here's a brief look at two that buck the sector's general trend by not only paying dividends regularly, but also raising them on a consistent basis. Say hello to AbbVie (NYSE: ABBV) and Bristol Myers Squibb (NYSE: BMY). Will AI create the world's first trillionaire? Our team just released a report on the one little-known ...

Key Takeaways AbbVie fell below its 50-day SMA, hinting at short-term weakness, but remains above 200-day trendSkyrizi and Rinvoq drove growth with $26B sales in 2025, expected to exceed $31B in 2026Humira erosion and weak aesthetics sales persist, but pipeline, M&A, and new drugs support growthAbbVie (ABBV) stock slipped below its 50-day simple moving average (SMA) on March 13, after consistently trading above it since mid-Feb. However, the stock has remained comfortably above its 200-day SMA for more than ...

Core Insights - AbbVie reported strong fourth-quarter and full-year 2025 results, with significant revenue growth driven by its immunology portfolio and steady contributions from its neuroscience segment [1][2]. Neuroscience Segment Performance - The neuroscience segment generated $10.8 billion in revenue for 2025, accounting for approximately 18% of AbbVie's total revenues, reflecting a nearly 20% year-over-year increase [2][8]. - Key products in this segment, including Botox Therapeutic, Vraylar, Qulipta, and Ubrelvy, experienced double-digit sales growth, while the newer therapy Vyalev contributed $482 million in sales [2][8]. - For 2026, AbbVie anticipates neuroscience revenues to reach $12.5 billion, indicating a 16% growth from 2025, with expectations for Vyalev to exceed $1 billion in global sales [3][8]. Product Pipeline and Future Growth - AbbVie is preparing to expand its neuroscience portfolio with a new oral therapy for Parkinson's disease, tavapadon, which is currently under FDA review [4]. - If approved, tavapadon could enhance AbbVie's presence in the Parkinson's disease market and strengthen the long-term growth potential of its neuroscience segment [4]. Competitive Landscape - Competitors in the neuroscience space include Biogen and Johnson & Johnson, both of which are also focusing on expanding their neuroscience offerings [5][6]. - Biogen is diversifying its portfolio due to declining revenues in its multiple sclerosis franchise, while Johnson & Johnson continues to grow its neuroscience products through acquisitions and new therapies [5][6]. Valuation and Market Performance - AbbVie shares are currently trading at a price/earnings (P/E) ratio of 15.61, which is below the industry average of 18.26, although above its five-year mean of 13.73 [9]. - The Zacks Consensus Estimate for AbbVie's 2026 EPS has increased from $14.31 to $14.54, indicating positive market sentiment [11].

Core Insights - AbbVie reported better-than-expected fourth-quarter results but faced stock price pressure due to declining oncology drug sales and market caution regarding growth sustainability [1] - The company has successfully launched new drugs, Skyrizi and Rinvoq, to offset the decline from Humira, which lost patent protection [2][3] - AbbVie expects continued revenue growth driven by strong performance in immunology and neuroscience, despite challenges in aesthetics and oncology segments [9][23] Group 1: Financial Performance - AbbVie achieved combined sales of Skyrizi and Rinvoq of $26 billion in 2025, representing over 40% year-over-year growth, with projections of over $31 billion for 2026 [3][9] - The company anticipates a revenue growth of approximately 9.5% in 2026, driven by Skyrizi, Rinvoq, and Vyalev, while facing headwinds from Humira erosion [23][24] - AbbVie's neuroscience drugs generated nearly $10.8 billion in sales in 2025, marking a 20% increase, supported by products like Botox Therapeutic and Vraylar [6] Group 2: Product Pipeline and Growth Drivers - AbbVie is focusing on expanding its immunology portfolio with potential new indications for Rinvoq, which could add approximately $2 billion to peak-year sales [4] - The oncology segment generated $6.6 billion in 2025, with new drugs like Elahere and Epkinly contributing to revenue despite a decline in Imbruvica sales [8][10] - AbbVie has been actively acquiring innovative pipeline candidates, investing over $5 billion in 2025 to enhance its early-stage pipeline [11] Group 3: Challenges and Market Conditions - Humira sales are declining significantly due to biosimilar competition, with a projected 50% drop in 2025 and continued erosion expected in 2026 [12] - The aesthetics segment is facing challenges, with global sales declining 5.9% in 2025, and expectations for flat growth in 2026 [13][14] - AbbVie is navigating competitive pressures in its oncology portfolio, but remains optimistic about its pipeline and future product approvals [10][23] Group 4: Stock Valuation and Market Position - AbbVie stock has risen 17.9% over the past year, slightly underperforming the industry average of 19.5% [15][16] - The stock is trading at a price/earnings ratio of 15.75, which is lower than the industry average of 18.83, indicating reasonable valuation [18] - The Zacks Consensus Estimate for 2026 earnings has increased slightly from $14.45 to $14.49 per share, reflecting positive sentiment [20]

Group 1 - AbbVie submitted a new indication application for Upadacitinib to treat adult and adolescent non-segmental vitiligo to the FDA and EMA, potentially making it the first systemic drug for vitiligo globally [1] - AbbVie's total revenue for 2025 reached $61.16 billion, marking an 8.6% year-over-year increase, officially entering the $60 billion club [1] - Global sales of Upadacitinib amounted to $8.30 billion, reflecting a 39.1% year-over-year growth, while sales of Risankizumab reached $17.56 billion, up 49.9% [1] Group 2 - AbbVie's stock price fluctuated between $225.82 (highest on February 6) and $214.04 (lowest on February 5) during the week of February 5 to February 12, with a closing price of $223.19 on February 12, up 1.04% [2] - The pharmaceutical sector rose by 0.83% during the same period, while the Dow Jones index increased by 0.50% [2] Group 3 - AbbVie's immunology business generated $30.4 billion in revenue, a 14% year-over-year increase, becoming the core growth driver [3] - The neuroscience business has upgraded to a core pillar, with Vraylar generating $3.62 billion and Botox in the migraine field generating $3.77 billion [3] - The company acquired Capstan to gain access to the tLNP platform, positioning itself in the cutting-edge CAR-T therapy field [3] Group 4 - On February 5, multiple Wall Street firms updated their ratings, with TD Cowen maintaining a buy rating and a target price of $280, while Evercore lowered its target price to $228, and UBS maintained a hold rating with a target price of $230 [4] - Analysts are focusing on the company's pipeline progress and the potential for upward revisions in earnings guidance [4]

Core Insights - AbbVie experienced a sales growth of approximately 8.5% year over year in 2025, despite facing biosimilar erosion of its flagship drug Humira, which lost exclusivity in early 2023 [2] - For 2026, AbbVie projects revenues to reach $67 billion, indicating a growth of about 9.5% over 2025, primarily driven by newer immunology drugs Rinvoq and Skyrizi [3][10] Immunology Segment - AbbVie expects to generate over $31 billion from sales of Skyrizi and Rinvoq in 2026, with both drugs anticipated to grow more than 20% year over year [4][5][10] - Skyrizi is projected to achieve sales of approximately $21.5 billion, while Rinvoq is expected to reach around $10.1 billion [5] Neuroscience Segment - The neuroscience franchise is expected to contribute $12.5 billion in sales for 2026, reflecting a 16% growth over 2025 [7][10] - AbbVie anticipates Vyalev, a new Parkinson's disease therapy, to surpass $1 billion in global sales [7][10] - The company is also seeking FDA approval for a new oral therapy for Parkinson's disease, tavapadon, which could further enhance its neuroscience portfolio [8] Oncology Segment - AbbVie faces near-term challenges in its oncology segment, particularly with the J&J-partnered Imbruvica, which is expected to see sales decline to $2.2 billion, a drop of over 23% from 2025 [11][12][10] - Despite this decline, other oncology drugs are expected to partially offset the impact, including Venclexta, Epkinly, Elahere, and Emrelis [12] Valuation and Market Performance - AbbVie shares have underperformed the industry over the past year and are currently trading at a P/E ratio of 15.25, below the industry average of 18.75 [13][14] - The bottom-line estimate per share for 2026 and 2027 has seen a decline in the past 30 days [16]

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]

Core Insights - AbbVie Inc. reported fourth-quarter 2025 sales of $16.62 billion, exceeding the consensus estimate of $16.42 billion, with a 10% increase on a reported basis and 9.5% on an operational basis [1] - Adjusted earnings per share were $2.71, up 25.5%, surpassing the consensus of $2.65 [1] Immunology Portfolio - Global net revenues from the immunology portfolio reached $8.63 billion, an increase of 18.3% (+17.7% operationally) [2] - Skyrizi sales increased by 32.5% to $5.01 billion, Rinvoq sales rose by 29.5% to $2.37 billion, while Humira sales declined by 25.9% to $1.25 billion [2] Neuroscience Portfolio - Neuroscience portfolio sales totaled $2.96 billion, up 17.9% [2] - Vraylar net revenues were $1.02 billion, reflecting a 10.5% increase, and Botox Therapeutics generated $991 million, up 13.4% [2] Oncology Portfolio - The oncology portfolio generated sales of $1.66 billion, down 1.5% [3] - Imbruvica's net revenues were $671 million, down 20.8%, while Venclexta's revenues increased by 8.6% to $711 million, and Elahere's revenues were $182 million [3] Cosmetic Products - Global Botox Cosmetic net revenues were $717 million, up 4.2%, while Juvederm net revenues decreased by 10.7% to $249 million [3] Financial Metrics - The adjusted gross margin ratio was reported at 83.6% [3] Guidance - AbbVie provided fiscal 2026 adjusted earnings guidance of $14.37-$14.57 per share, compared to the consensus of $14.24 [4] Market Reaction - AbbVie shares experienced a decline of 6.70%, trading at $210.53 at the time of publication [5]