TLDR
- AbbVie’s EPS plunges 88%, but Skyrizi and Rinvoq drive revenue growth.
- Strong immunology sales offset Humira’s drop, keeping AbbVie resilient.
- Neuroscience shines with Botox and Vraylar boosting double-digit growth.
- Aesthetics slips as consumer demand cools, weighing on AbbVie margins.
- AbbVie lifts 2025 EPS outlook and dividend, signaling long-term strength.
AbbVie Inc. shares fell 4.45% to close at $218.04 after reporting weaker quarterly earnings.
AbbVie Inc., ABBV
The company’s diluted EPS dropped sharply by 88.6% to $0.10 on a GAAP basis. However, total revenues grew 9.1% year over year, driven by solid immunology and neuroscience sales.
Strong Revenue Growth Led by Immunology Portfolio
AbbVie delivered third-quarter net revenues of $15.776 billion, up 9.1% on a reported basis and 8.4% operationally. Immunology remained the company’s top-performing segment, generating $7.885 billion in revenue, up 11.9% year over year. Skyrizi and Rinvoq continued to post strong gains, with Skyrizi revenue surging 46.8% and Rinvoq rising 35.3%.
Humira sales fell 55.4% as biosimilar competition intensified across global markets. Despite the Humira decline, the strong double-digit growth of newer immunology drugs offset losses. AbbVie maintained a dominant position in the immunology market with continued demand for its newer therapies.
Neuroscience and Oncology Portfolios Show Mixed Trends
The neuroscience segment produced $2.841 billion in revenue, a 20.2% increase from the previous year. Vraylar generated $934 million, while Botox Therapeutic brought in $985 million, reflecting rising adoption rates. Additionally, Ubrelvy and Qulipta combined contributed $642 million, supported by strong migraine treatment demand.
The oncology business posted $1.682 billion in quarterly revenue, down 0.3% from last year. Imbruvica fell 14.8% amid competition, though Venclexta rose 7.1% and Elahere gained 23.3%. These trends reflected a balanced oncology portfolio, though Imbruvica’s continued erosion weighed on segment performance.
Aesthetics Segment Declines as Costs Weigh on Earnings
The aesthetics portfolio generated $1.193 billion in revenue, down 3.7% on a reported basis. Botox Cosmetic fell 4.9%, while Juvederm slipped 2.2%, showing weaker consumer demand. Nevertheless, AbbVie retained strong brand recognition in the aesthetics space despite softer market conditions.
On a GAAP basis, operating margin declined to 12.1%, while adjusted margin stood at 30.9%. The company’s acquired IPR&D and milestone expenses negatively impacted results by $1.50 per share. AbbVie reported a high GAAP tax rate of 73.7% and an adjusted tax rate of 24.5%.
Outlook and Dividend Update
AbbVie raised its 2025 adjusted diluted EPS guidance range to $10.61–$10.65, signaling confidence in future earnings strength. The updated forecast includes a $2.05 per-share unfavorable impact from acquired IPR&D and milestone expenses. Moreover, the company announced a 5.5% dividend increase starting February 2026.
Despite near-term profit pressure, AbbVie’s revenue growth and strong portfolio performance underscored its resilient business model. Continued expansion in immunology and neuroscience positions the company for sustained long-term growth. The stock’s sharp decline reflected short-term earnings pressure rather than fundamental weakness.
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