AbbVie Inc Earnings - Q4 2025 Analysis & Highlights
AbbVie delivered record full-year 2025 revenues of $61.2 billion with 8.6% sales growth despite significant Humira biosimilar erosion, driven by exceptional performance from Skyrizi and Rinvoq which combined exceeded 2027 long-term guidance. The company is guiding 2026 revenue growth of 9.5% to $67 billion with adjusted EPS of $14.37-$14.57, supported by robust pipeline advancement, strategic business development investments exceeding $5 billion, and a voluntary pricing agreement with the U.S. government that exempts AbbVie from tariffs and pricing mandates through the agreement term.
Key Financial Results
Full-year 2025 adjusted earnings per share of $10.00, exceeding initial guidance midpoint by $0.54 (excluding IPR&D expense).
Total net revenues of $61.2 billion in 2025, beating initial guidance by more than $2 billion.
Sales growth of 8.6% achieved an all-time high for AbbVie, exceeding the previous peak revenue by more than $3 billion, despite nearly $16 billion of U.S. Humira erosion since loss of exclusivity.
Fourth quarter adjusted earnings per share of $2.71, which is $0.08 above guidance midpoint.
Fourth quarter total net revenues of $16.6 billion, reflecting robust growth of 10%, including a 0.5% favorable impact from foreign exchange.
Fourth quarter adjusted gross margin of 83.6% of sales, adjusted R&D expense of 15.4% of sales, and adjusted SG&A expense of 22.3% of sales.
Fourth quarter adjusted operating margin of 38.3% of sales, which included a 7.6% unfavorable impact from acquired IPR&D expense.
Business Segment Results
Immunology delivered total revenues of approximately $8.6 billion in the fourth quarter.
Skyrizi total sales were $5 billion in the fourth quarter, reflecting operational growth of 31.9%.
Rinvoq total sales were nearly $2.4 billion in the fourth quarter, reflecting operational growth of 28.6%.
Skyrizi and Rinvoq delivered approximately $25.9 billion in total combined revenue for full year 2025, an impressive increase of more than $8 billion year-over-year, well exceeding initial guidance expectations.
Humira delivered global sales of more than $1.2 billion, down 26.1% on an operational basis, primarily due to biosimilar competition and in line with expectations.
Neuroscience full year revenues were more than $10.7 billion, reflecting impressive absolute sales growth of nearly $1.8 billion.
Fourth quarter neuroscience revenues were more than $2.9 billion, up 17.3% on an operational basis.
Vraylar achieved global sales of $1 billion in the fourth quarter with continued double-digit growth.
Botox Therapeutic achieved global revenues of $990 million in the fourth quarter.
Ubrelvy achieved global sales of $339 million in the fourth quarter.
Qulipta achieved global revenues of $288 million in the fourth quarter.
Vyalev total sales were $183 million in the fourth quarter, up approximately 33% on a sequential basis.
Oncology total revenues were nearly $1.7 billion in the fourth quarter, down 2.5% on an operational basis.
Venclexta global sales were $710 million, up 6.4% on an operational basis.
Imbruvica sales were down 20.8%, primarily due to continued competitive dynamics.
Aesthetics delivered global sales of nearly $1.3 billion in the fourth quarter, down 1.2% on an operational basis.
Botox Cosmetic global revenues were $717 million, up 3.8% on an operational basis.
Juvederm global sales were $249 million, down 10.8% on an operational basis.
Ex-Humira growth platform delivered reported growth of 14.5% in the fourth quarter.
Capital Allocation
Cash balance at the end of December was approximately $5.2 billion.
Expected free cash flow of approximately $18.5 billion in 2026, which includes roughly $3.5 billion of Skyrizi royalty payments.
Free cash flow will support a strong and growing quarterly dividend, which has been increased by more than 330% since inception.
Invested more than $5 billion in new business development in 2025, including several promising mechanisms and technologies.
Over the last two years, invested over $8 billion in external innovation through more than 30 deals.
Committed $100 billion in U.S. R&D and capital investments over the next decade as part of voluntary pricing agreement with U.S. government.
Increased adjusted R&D expense by nearly $1 billion in 2025, fully funding the 90 clinical programs currently in development.
Industry Trends and Dynamics
Psoriatic disease market is growing high-single digits with modest biologic penetration where AbbVie's portfolio has clear leadership.
IBD market is very robust with high-single-digit growth, driven by increasing biologic penetration and rapidly expanding lines of therapy as patients cycle to newer, high-efficacy agents.
Skyrizi's IL-23 category patient share remains very high with an in-play capture rate of approximately 75% in the frontline setting overall for IBD.
Skyrizi's frontline capture rate in Crohn's disease is roughly two-thirds of the total IBD market, with capture rates remaining strong and consistent even as the IL-23 category expands rapidly.
Economic headwinds have continued to impact market conditions globally in aesthetics, and category growth is anticipated to remain challenged in 2026.
Essential tremor is the most common movement disorder and an area with considerable need for effective and tolerable therapies.
Menstrual migraine is a distinct subtype affecting nearly 15% of women with migraine, with attacks considered more difficult to treat, more disabling, lasting longer, and having a higher tendency to recur.
Competitive Landscape
Skyrizi total prescription share in the U.S. biologics psoriasis market is now more than 45% and accelerating in the fourth quarter.
In-play capture rates of new and switching patients for Skyrizi has exceeded 55% across all lines of therapy, four times higher than the next closest competitor.
Skyrizi is now capturing roughly one out of every four in-play patients on biologics across all lines of therapy in the U.S. in PsA derm.
Skyrizi has achieved PsA frontline in-play patient share leadership for biologics in both the derm and the rheum segments.
Rinvoq continues to achieve a leading mid-teen in-play patient share for RA across all lines of therapy in the U.S., roughly double total TRx share.
Rinvoq is capturing robust mid-teens in-play share across all lines of therapy in Crohn's disease and ulcerative colitis.
Skyrizi and Rinvoq combined have already exceeded peak Humira sales by more than $4.5 billion and are on pace to deliver more than 20% growth in 2026.
Skyrizi's capture rates remain exceptionally impressive in frontline treatment of IBD despite in-class competition for most of 2025, with Skyrizi remaining the clear leader.
Skyrizi's dosing convenience is favored with less frequent maintenance treatment compared to other IL-23s.
Rinvoq has demonstrated some of the strongest response rates to date in IBD, including rapidity of action.
Botox is the only toxin approved in chronic migraine.
AbbVie has the absolute leading brand with Ubrelvy in acute migraine, with that lead expanding.
AbbVie recently became the number one branded drug in the episodic oral CGRP for prevention with Qulipta.
Combined 2025 revenue for Qulipta and Ubrelvy is almost $1 billion higher than the competitor.
Macroeconomic Environment
Botox was selected for Medicare price negotiations in 2028, though AbbVie notes it is a plasma-derived product and should have been excluded.
AbbVie planned conservatively that Botox could be selected for Medicare negotiation based on CMS spend, and its selection does not impact long-term growth guidance.
AbbVie is exempt during the term of its voluntary pricing agreement with the Trump administration from tariffs as well as pricing mandates, inclusive of demonstration projects.
The voluntary agreement with the U.S. government reinforces AbbVie's commitment to patient access and affordability while protecting the ability to invest in innovation.
Growth Opportunities and Strategies
Obtained several new product and indication approvals in 2025, including Rinvoq for GCA, EMRELIS for non-squamous non-small cell lung cancer, and Epkinly for second-line follicular lymphoma.
Bolstered pipeline by investing more than $5 billion in new business development, including an in vivo CAR-T platform in immunology from Capstan Therapeutics; bretisilocin, a next-generation psychedelic with promising data in depression; ISB 2001, a novel trispecific antibody for multiple myeloma; ABBV-295, a long-acting amylin analog for obesity; and a next-generation siRNA platform from ADARx.
Recently announced a transaction with RemeGen, adding a novel PD-1/VEGF bispecific antibody to combine with ADCs across multiple solid tumors, further strengthening AbbVie's oncology portfolio.
Anticipate a number of key catalysts across core therapeutic areas over the next 24 months, including pivotal data for three additional Rinvoq indications and initial data for Crohn's combination platform with Skyrizi in immunology.
In neuroscience, anticipate key readouts for next-generation assets ABBV-932, bretisilocin and emraclidine.
In oncology, expect registrational data for etentamig, as well as mid- to late-stage readouts for Temab-A in several solid tumors.
Regulatory applications for Rinvoq in non-segmental vitiligo were recently submitted, with an approval decision in the U.S. anticipated in the fourth quarter.
Regulatory applications for Rinvoq in alopecia areata are under review in Europe and Japan, with approval decisions expected later in 2026.
Over the course of 2026, results from several late-stage programs are anticipated, including Phase 3 data from studies for both Rinvoq and lutikizumab in hidradenitis suppurativa.
Phase 3 ECLIPSE trial evaluating Qulipta for acute treatment of migraine met its primary and key secondary endpoints, with Qulipta demonstrating superiority over placebo.
Approval decisions in Europe and Japan for Qulipta are expected later in 2026.
Phase 3 studies evaluating Qulipta and Ubrelvy for menstrual migraine prevention are progressing well, with data from both trials expected in the second half of 2026.
Approval decision anticipated in the third quarter for tavapadon in Parkinson's disease.
Tavapadon has the potential to be an important new treatment option both as a monotherapy and as an adjunct to levo/carbidopa in patients still experiencing motor fluctuations.
Phase 2 study assessing Gemibot A in essential tremor will begin in 2026.
Vyalev's launch continues to be outstanding with exceptionally strong uptake across international markets and expected sales ramp in the U.S. where Vyalev recently received full coverage.
Expect Vyalev to achieve blockbuster revenue in 2026.
Tavapadon for potential use as a monotherapy for early Parkinson's disease as well as an adjunct to optimize oral therapy for more advanced patients, with potential multibillion-dollar emerging PD franchise over the long term.
Remain on track for commercial approval of tavapadon in the U.S. later in 2026.
Anticipate another major commercial catalyst in 2026 with the global approvals of Venclexta plus Calquence in combination, offering patients the potential for time off treatment.
Regulatory application for rapid-onset, short-acting toxin TrenibotE is under review and an approval decision is expected in 2026.
Plan to train 12,000 core injectors for TrenibotE launch, with sales impact largely accruing to Botox.
Believe TrenibotE could potentially double the inflow of patients into the toxin market at peak, as there are still 55 million considerers in the U.S. that have not made the leap into the toxin market.
Expect TrenibotE to operate to increase inflows substantially, more in the 2027 and beyond timeframe as training is ramped up.
Temab-A has shown promising data in CRC, lung, gastroesophageal, and pancreatic cancers, with potential to be a multibillion-dollar opportunity in CRC alone.
Have exciting opportunities in oncology such as etentamig and follow-on trispecifics in multiple myeloma, ABBV-706 in small cell lung cancer, and ABBV-969 in prostate cancer.
Parkinson's franchise, including Vyalev, Duopa and tavapadon can achieve peak sales in excess of $5 billion.
Migraine franchise will exceed $5 billion in peak sales.
Several next-generation assets in psychiatry with ABBV-932, bretisilocin, and emraclidine can help replace the $5 billion peak of Vraylar after its LOE in 2030.
Positioned to lead in neuroscience for the long-term with three $5-billion-plus franchises.
Skyrizi and Rinvoq expected to grow robustly into the 2030s.
Combined guidance for Skyrizi and Rinvoq for 2026 is already $0.5 billion higher than 2027 estimate.
Expect both Skyrizi and Rinvoq to grow robustly into the 2030s, with longer term growth not reflected in current models.
Focused on early stage opportunities so that AbbVie has solid growth drivers in the middle part of the next decade, given how sizable Skyrizi and Rinvoq are expected to be.
Utilizing BD to enter into another growth area in obesity, which will be built upon as other differentiated assets are identified.
Willing to invest in late-stage assets if differentiated, with clear line of sight to growth drivers for this decade and no LOEs this decade.
Focused on core areas: immunology, neuroscience, oncology, and building out obesity.
Skyrizi in IBD has numerous strategies to maintain and sustain leadership over time, including head-to-head data with ENTYVIO and subcutaneous induction versus IV induction.
Will close the gap on subcutaneous induction versus IV induction for Skyrizi, believed to occur sometime in early
