AbbVie Inc Earnings - Q1 2026 Analysis & Highlights

AbbVie reported strong Q1 2026 results with robust portfolio growth across immunology and neuroscience, raised full-year guidance, announced significant R&D investments and manufacturing expansion, and discussed competitive positioning in key therapeutic areas while highlighting pipeline advancement opportunities.

Key Financial Results

  • Adjusted earnings per share of $2.65, exceeding guidance midpoint by $0.07.
  • Total net revenues of $15 billion, beating expectations by $300 million with 12.4% sales growth.
  • Adjusted gross margin of 83.6% of sales.
  • Adjusted R&D expense of 15.1% of sales and adjusted SG&A expense of 22.7% of sales.
  • Adjusted operating margin ratio of 40.8% of sales, including a 5% unfavorable impact from acquired IPR&D expense.
  • Net interest expense of $645 million.
  • Adjusted tax rate of 15.4%.

    • Business Segment Results

    Immunology

  • Total immunology revenues of $7.3 billion, reflecting $1 billion in impressive sales growth.
  • Skyrizi total sales of $4.5 billion, up 29.2% on an operational basis, exceeding expectations.
  • Rinvoq global sales of $2.1 billion, up 20.2% on an operational basis.
  • Humira global sales of $688 million, down 40.3% on an operational basis, reflecting biosimilar competition.
  • Skyrizi demonstrating exceptional performance across psoriatic disease with clear leadership over all biologics and orals by a very wide margin.
  • Skyrizi on track to deliver more than 30% global sales growth across Crohn's disease and ulcerative colitis this year.
  • Rinvoq achieving high teens in-play patient share in RA and seeing nice inflection in prescriptions across gastro, especially in UC.

    • Neuroscience

  • Total neuroscience revenues of nearly $2.9 billion, up 24.3% on an operational basis.
  • Vraylar global sales of $905 million, up 18.4%, reflecting strong prescription growth in both bipolar disorder and adjunctive MDD.
  • Vyalev total sales of $201 million, up approximately 10% on a sequential basis, on track to achieve blockbuster revenue this year.
  • Migraine portfolio continuing to gain market share with Ubrelvy, Qulipta and Botox Therapeutic each delivering robust double-digit sales growth.

    • Oncology

  • Total oncology revenues of more than $1.6 billion, down 3% on an operational basis.
  • Venclexta total sales of $770 million, up 9.7% on an operational basis.
  • Imbruvica down 24.7% due to IRA pricing and competitive share pressure.

    • Aesthetics

  • Global aesthetics sales of nearly $1.2 billion, up 5.1% on an operational basis.
  • Botox Cosmetic total revenues of $668 million, up 17%, reflecting favorable price comparison in the US and modest market growth globally.
  • Juvederm global sales of $232 million, down 2.9%, reflecting continued headwinds in key derma filler markets.

    • Capital Allocation

  • $100 billion commitment to US R&D and capital investments over the next decade.
  • $1.4 billion investment to build a pharmaceutical manufacturing campus in North Carolina.
  • $380 million investment for two new plants in North Chicago.
  • Strong and growing dividend being returned to shareholders.
  • Record levels of investment in the business with financial flexibility to pursue compelling business development.

    • Industry Trends and Dynamics

  • Psoriatic market growing robustly, with Skyrizi gaining share and demonstrating clear leadership over all biologics and orals by a very wide margin.
  • IBD competitive dynamics playing out in line with expectations, with Skyrizi continuing to capture a leading share of total new patient starts in the US, including very significant in-play leadership in the frontline setting.
  • Combination use with BTK inhibitors emerging as a preferred fixed treatment duration globally for CLL.
  • Increasing use of anti-CD38 antibodies in earlier treatment settings driving need for CD38 free BCMA combinations.
  • Oral market representing about 85% of the Parkinson's market.

    • Competitive Landscape

  • Skyrizi demonstrating exceptional performance with over four times the in-play share and total share versus the next leading competitor.
  • Head-to-head trials against five mechanisms in psoriasis, including two oral agents, showing category-leading durability in the real world.
  • New oral competitors with efficacy parameters quite a bit lower when matching controls and understanding populations.
  • PsA indication showing not a lot of evidence for new oral competitors.
  • Skyrizi's best-in-class profile including high and durable efficacy on both skin and joints, as well as simple quarterly dosing, providing distinct advantage relative to all existing and emerging therapies.
  • Management well prepared for competitive dynamics and believes they can navigate this competitor quite well.
  • Potential for market expansion similar to what was observed with Otezla over a decade ago.

    • Macroeconomic Environment

  • Lingering inflationary dynamic not seen for 40 years impacting aesthetics business differently than past recessionary periods.
  • Economic headwinds continuing to impact market conditions globally in aesthetics, though long term prospects for the category remain attractive given high consumer interest and low penetration rates.
  • Relative stability in aesthetics markets now, with low-single-digit growth for toxins and still decline for fillers.

    • Growth Opportunities and Strategies

    Pipeline Advancement

  • US regulatory submissions of Rinvoq for alopecia areata, giving potential new source of growth in dermatology.
  • Skyrizi subcu induction in Crohn's, with approval decision expected later this year.
  • Promising interim data from Crohn's platform study combining Skyrizi and novel alpha-4 beta-7, with potential to deliver transformational efficacy.
  • Early-stage data for amylin analog ABBV-295 with very encouraging weight loss results.
  • Regulatory submission for etentamig expected by end of this year, earlier than previous expectations.
  • Expanded emerging oncology pipeline by closing RemeGen agreement, giving novel PD-1/VEGF bispecific antibody.

    • Immunology Expansion

  • Skyrizi plus ABBV-382 (alpha-4 beta-7) combination demonstrating double the endoscopic remission rate of either monotherapy arm.
  • Phase 2b study planned to begin this summer evaluating Skyrizi in combination with both ABBV-382 and extended half-life TL1A antibody.
  • Phase 3 acceleration options being evaluated for Skyrizi plus ABBV-382 in Crohn's disease.
  • IRAK4 inhibitor ABBV-848 nearing completion of Phase 1 study with plan to begin Phase 2 in rheumatoid arthritis later this year.
  • Extended half-life IL-23 (ABB-547) with dosing already initiated.
  • Long-acting IL-23 TL1A bispecific antibody and Nimble anti-IL-23 asset both anticipated to be first in human this year.

    • Neuroscience Development

  • ABBV-932 showing efficacy signal in pre-specified bipolar I patient subgroup, with evaluation of next steps for continued development.
  • Emraclidine dose escalation work continuing in both schizophrenia and elderly patients, with Phase 2 studies planned to begin in fourth quarter.
  • Bretisilocin (psychedelic acid) with additional Phase 2 data in major depressive disorder available this year.
  • Tavapadon approval decision expected in third quarter for Parkinson's disease.

    • Oncology Pipeline

  • Temab-A progressing well across broad range of tumor types with early-stage safety and efficacy results for head and neck and ovarian cancers to be presented at ASCO.
  • Regulatory engagement underway regarding acceleration of Temab-A plus pembrolizumab in frontline head and neck cancer and Temab-A plus bevacizumab in frontline ovarian cancer.
  • Strategy updated for colorectal cancer to focus pivotal program on Temab-A in combination with bevacizumab in all-comers population.
  • Temab-A receiving first breakthrough therapy designation as monotherapy in second line plus EGFR wild type non-squamous non-small cell lung cancer.
  • Phase 3 trial for monotherapy ABBV-706 recently begun in relapsed refractory small cell lung cancer.
  • Etentamig Phase 3 trial tracking ahead of schedule with response rate readout anticipated in third quarter.

    • Obesity Strategy

  • ABBV-295 demonstrating clinically meaningful weight loss of nearly 10% after only 12 weeks of treatment.
  • Higher doses of ABBV-295 to be tested in patients with obesity, including every other week and monthly regimens.
  • Interim data from Phase 1 study in obese patients anticipated later this year.
  • Phase 2 program now expected to begin in third quarter.

    • Business Development

  • Active pursuit of external innovation in immunology, neuroscience, oncology and obesity.
  • Recent deals including Capstan, Gilgamesh, IGI, RemeGen, ADARx and Gubra adding significant depth to pipeline.
  • Acquired Nimble to provide oral peptides capability.
  • Capstan acquisition providing B-cell depletion approach with in vivo CAR-T platform.
  • Kestrel Therapeutics partnership with pan-KRAS inhibitor in Phase 1 study for advanced solid tumors.

    • Financial Guidance and Outlook

    Full Year 2026 Guidance

  • Adjusted earnings per share guidance raised to between $14.08 and $14.28, an increase of $0.12.
  • Total net revenues of approximately $67.3 billion, an increase of $300 million.
  • Skyrizi global revenues of $21.6 billion, an increase of $100 million.
  • Rinvoq global sales of $10.2 billion, an increase of $100 million.
  • Total neuroscience revenues of $12.6 billion, an increase of $100 million.
  • Full year adjusted gross margin above 84% of sales.
  • Adjusted R&D expense of approximately $9.7 billion.
  • Adjusted SG&A expense of approximately $14.2 billion.
  • Adjusted operating margin ratio of approximately 47.5% of sales.
  • Adjusted net interest expense of approximately $2.7 billion, a reduction of $100 million.

    • Second Quarter 2026 Guidance

  • Net revenues of approximately $16.7 billion.
  • Adjusted operating margin ratio of approximately 50%.
  • Adjusted earnings per share between $3.74 and $3.78.

    • Long-Term Outlook

  • Upside to sell-side consensus forecast for Skyrizi and Rinvoq going out each year with upside growing each year.
  • Migraine and Parkinson's each expected to peak in excess of $5 billion, compared to consensus peaking below $4 billion.
  • Etentamig and Temab-A believed to have significant multibillion dollar peak potential.
  • Significant runway and upside opportunity for both Skyrizi and Rinvoq assets.
  • Skyrizi composition of matter patent expires in 2033, with later-expiring IP granted and in process expiring in US in mid-2030s and later.
  • Regulatory data protection for Skyrizi does not expire until 2031, with no expectation to see biosimilar application filings until end of this decade.

    • Pipeline and R&D Progress

  • Meaningful progress advancing programs across all stages of development.
  • Recent FDA approval adding new study results on Skyrizi's efficacy in genital and scalp psoriasis to label.
  • Long-term efficacy and radiographic data in psoriatic arthritis demonstrating Skyrizi's durable efficacy, with nearly 90% of patients showing no radiographic progression through five years of treatment.
  • Skyrizi subcutaneous induction study for Crohn's meeting all co-primary and key secondary endpoints.
  • Skyrizi subcu induction achieving numerically higher results across key endpoints compared to IV induction program.
  • Bio-naïve population in Crohn's study showing 61% endoscopic response and 73% clinical remission at week 12, 45 points higher than placebo on both measures.
  • FDA complete response letter for TrenibotE related to manufacturing questions, with no issues identified related to safety, efficacy, or labeling.
  • Discussions ongoing with FDA regarding revised label language related to tuberculosis evaluation for Skyrizi.

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