AbbVie Inc Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
AbbVie's Q3 2025 earnings call highlighted strong financial performance, driven by its growth platform, particularly Skyrizi and Rinvoq, and neuroscience. The company raised its 2025 outlook for the third time this year and discussed strategic investments in R&D and external innovation, along with capital allocation priorities, including dividend increases and US capital investments. Discussions also covered the competitive landscape, PBM models, and pipeline advancements.
Key Financial Results
Adjusted earnings per share (EPS): $1.86, $0.10 above guidance midpoint.
Total net revenues: Nearly $15.8 billion, reflecting high single-digit sales growth, exceeding expectations by approximately $300 million.
Raising full-year adjusted EPS guidance to between $10.61 and $10.65.
Expect total net revenues of approximately $60.9 billion, an increase of $400 million.
Generated approximately $13 billion of free cash flow in the first nine months of the year.
Business Segment Results
Immunology: Total revenues of approximately $7.9 billion, up 11.2% on an operational basis.
Skyrizi global sales: $4.7 billion, reflecting operational growth of 46%.
Rinvoq global revenues: Nearly $2.2 billion, up 34.1% on an operational basis.
Humira global sales: $993 million, down 55.7% on an operational basis due to biosimilar competition.
Oncology: Total revenues of nearly $1.7 billion, relatively flat versus prior year.
Aesthetics: Global sales of approximately $1.2 billion, down 4.2% on an operational basis.
Neuroscience: Total revenues were more than $2.8 billion, up 19.6% on an operational basis.
Capital Allocation
Committed to investing at least $10 billion of capital in the US over the next 10 years.
Announced a 5.5% increase in the quarterly cash dividend, beginning with the dividend payable in February 2026.
Since inception, AbbVie has grown its quarterly dividend by more than 330%.
Cash balance at the end of September was more than $5.6 billion.
Remain on track to achieve a net leverage ratio of 2 times by the end of 2026.
Industry Trends and Dynamics
IBD continues to be an area of high unmet need with substantial headroom for biologic penetration as well as expanding lines of therapy.
Overall consumer sentiment remaining quite low, especially in the US, impacting aesthetics market results.
Essential tremor is the most common movement disorder, with a global patient population of about 25 million.
Competitive Landscape
Skyrizi and Rinvoq together achieving in-play share leadership in a dozen countries in Crohn's disease.
Skyrizi and Rinvoq collectively holding in-play share leadership in more than 10 key markets in ulcerative colitis.
Skyrizi continues to perform exceptionally well in psoriasis, gaining share across key markets, including an impressive 50% in-play patient share for biologics in the US.
Rinvoq continues to achieve the leading in-play patient share across lines of therapy in RA.
Imbruvica continues to be impacted by competitive dynamics in CLL.
Macroeconomic Environment
Overall consumer sentiment remaining quite low, especially in the US as concerns about the economy and inflation weigh on discretionary spending, impacting aesthetics market results.
Growth Opportunities and Strategies
Growth platform provides a clear line of sight to growth into the next decade.
Invested more than $84 billion to research, discover and develop new medicines and solutions for patients since 2013.
Pipeline programs have the potential to drive growth for AbbVie later this decade.
Continue to invest in external innovation, adding novel mechanisms and platform technologies to further augment our pipeline to drive growth in the 2030s and beyond.
Expanding commercial capabilities in both heme and solid tumors with our existing portfolio.
Investing to support patient activation with robust promotion and product innovation in aesthetics.
Actively expanding field sales team to support higher anticipated demand for Parkinson's portfolio next year.
Financial Guidance and Outlook
Raising 2025 outlook for the third time this year.
Expect approximately $9 billion of adjusted R&D expense in 2025.
Skyrizi global sales of $17.3 billion.
Neuroscience global revenues of $10.7 billion.
Aesthetics total sales of $4.9 billion.
Adjusted gross margin of 84% of sales.
Adjusted R&D expense of $9 billion.
Adjusted SG&A expense of $13.5 billion.
Adjusted operating margin ratio of approximately 41% of sales.
Forecast non-GAAP tax rate to be approximately 17.3%.
Anticipate net revenues of more than $16.3 billion for the fourth quarter.
Expect adjusted earnings per share between $3.32 and $3.36 for the fourth quarter.
