Overview
Since the Report + 17.5%
Revenue grew 10.2% year over year, EPS beat the estimate by 0.3%; the stock fell 2.5% in its first reaction.
- RevenueQ2
- $16.99B
- +10.2% YoY
- EPSAdjusted
- $3.65
- +22.9% YoY
Verdict
BUYSkyrizi and Rinvoq carried the quarter on their own again, together selling $8.03 billion for 47% of revenue, while total revenue of $16.99 billion beat expectations. The stock still closed down 2.5% at $250.94 on earnings day, because 14 cents of Apogee dilution pulled the midpoint of the full-year adjusted profit outlook below the market estimate. From here attention turns to the autumn FDA decision on Skyrizi in Crohn's disease and the closing of the Apogee deal in the third quarter.
Close on Report DayJul 31
$243.87▼ 2.5%Report-Day Move
- Market Cap(Today)
- ≈ $506 B
- 1Y Return(At Report)
- + 24%
- P/E(At Today's Price · $10.87 · Trailing 12M)
- 26.4
- PEG(Company Guidance 2026)
- 0.66
- Net Margin(Trailing 12M)
- 9.8%
Earnings Summary
In 30 Seconds- Revenue rose 10.2% year over year to $16.99B, and adjusted EPS climbed 22.9% to $3.65.
- Skyrizi and Rinvoq together sold $8.03B and made up 47% of total revenue on their own.
- The stock fell 2.5% on earnings day after Apogee dilution trimmed full-year earnings guidance by 4 cents.
The Numbers
Skyrizi + Rinvoq
$8.03B
47% of Revenue
Adjusted Operating Margin
48.3%
37.9% GAAP
Oncology Revenue
$1.65B
-1.5%
2026 EPS Outlook
$13.87 - $14.07
Midpoint −4 Cents
Quarterly Revenue ($ Billion)
15.42
Q2 25 · $15.4 B
15.78
Q3 25 · $15.8 B · QoQ + 2.3%
16.62
Q4 25 · $16.6 B · QoQ + 5.3%
15.00
Q1 26 · $15.0 B · QoQ − 9.7%
16.99
Q2 26 · $17.0 B · QoQ + 13.3% · YoY + 10.2%
Guidance: ~$17.2B
Q3 26 · Guidance: ~$17.2B · QoQ + 1.2% · YoY + 9.0%
- Q2 25
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
Q3 FY2026 Company Guidance
- Full-Year Adjusted EPS13.87 – 14.07 $13.87 $14.07 $
Midpoint Cut by 4 Cents on Apogee's 14-cent Dilution · Consensus 14.08Midpoint 0.8% Below Estimate ▼
- Full-Year Revenue67.6 billion
Raised by $300M; $600M Total Since the Start of 2026Raised 0.4% ▲
- Skyrizi Full-Year Sales21.7 billion
Raised by $100MRaised 0.5% ▲
- Neuroscience Full-Year Sales12.7 billion
Raised by $100M; Vraylar ~$4.1B, Botox Therapeutic ~$4.2BRaised 0.8% ▲
- Q3 Adjusted EPS3.84 – 3.88 $3.84 $3.88 $
Q3 Revenue Expected Around $17.2BSequential Step Up ▲
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±0.9% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Immunology$8.79 BShare 55.3%▲ 15.1% YoY
- Neuroscience$3.23 BShare 20.3%▲ 20.3% YoY
- Oncology$1.65 BShare 10.4%▼ 1.5% YoY
- Aesthetics$1.28 BShare 8.1%▲ 0.3% YoY
- Other Key Products$935 MShare 5.9%▼ 9.9% YoY
Key Metrics
Immunology Revenue
$8.79 B
▲ 15.1% YoYPress Release
Neuroscience Revenue
$3.23 B
▲ 20.3% YoYPress Release
Aesthetics Revenue
$1.28 B
▲ 0.3% YoYPress Release
Humira Revenue
$756 M
▼ 35.9% YoYPress Release
Adjusted Gross Margin
84.7%
Press Release
Shares are computed over the segment total: $15.9 B. The segment total differs from consolidated revenue ($17.0 B); the company's eliminations and other lines are not in this table. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“AbbVie delivered another excellent quarter, with results once again exceeding our expectations. The performance of Skyrizi, Rinvoq and our neuroscience portfolio continues to be very strong, with each delivering growth above 20%.”
- Apogee As 2030s Growth Source
- Late-stage Pipeline and Approvals
- Ample Business Development Capacity
Summary and Review
Summary
AbbVie reported $16.99 billion in revenue for the second quarter, up 10.2% and roughly $300 million ahead of its own target. Adjusted earnings per share came in at $3.65, up 22.9%. Growth once again came from two immunology drugs: Skyrizi at $5.51 billion (up 24.4%) and Rinvoq at $2.53 billion (up 24.5%). Together they accounted for nearly half of quarterly revenue. The neuroscience portfolio reached $3.23 billion and grew 20.3%. Humira slid 35.9% to $756 million.
Despite those numbers, the stock fell 2.51% on July 31 to $250.94. The reason was a single line: the 2026 adjusted EPS outlook was trimmed to $13.87-$14.07 from $13.91-$14.11. The four-cent cut is not operational. It reflects 14 cents of Apogee-deal dilution, of which the business has already recovered 10 cents. Even so, the market expected about $14.08 for the year, and the midpoint landed just below. Whatever the reason, investors rarely forgive a profit-outlook cut.
The quarter itself was strong; the score has nothing to do with the share reaction. AbbVie again showed it has filled Humira's patent hole and layered double-digit growth on top. Adjusted operating margin of 48.3% sits at the top end of the industry. The reservation is plain: nearly all growth comes from two molecules, oncology shrank 1.5% and aesthetics was flat at 0.3%. Near term, the story hinges on Skyrizi's Crohn's disease decision expected this fall.
Full Review
Nearly all the growth comes from two drugs.
Skyrizi sold $5.51 billion and Rinvoq $2.53 billion, a combined $8.03 billion, or 47% of quarterly revenue. Both grew more than 24%. The company lifted Skyrizi's full-year target by $100 million to $21.7 billion — a single drug larger than the entire revenue base of many pharmaceutical companies. Immunology as a whole reached $8.79 billion and grew 15.1%. For investors this cuts both ways: it proves the quality of the portfolio while deepening concentration risk. If either Skyrizi or Rinvoq slows, there is no second lever visible today to offset it. The subcutaneous induction approval expected this fall could widen Skyrizi's runway in Crohn's disease from early 2027.
Humira is no longer the main plot.
Humira revenue fell to $756 million, down 35.9% year over year. A few years ago that line alone was the company's largest revenue item; today it is 4.5% of the total. Erosion continues, but it is no longer large enough to suppress overall growth — the quarter's 10.2% expansion is the clearest proof. The same handover is playing out in oncology: Imbruvica fell 29.4% to $532 million, Venclexta rose 11.6% to $771 million and Elahere climbed 33.1% to $211 million. It is now fair to say the steepest part of the patent cliff is behind the company. For a refresher on how to read a company's revenue lines, see our earnings guide.
Oncology and aesthetics have stalled.
This is where the quarter is weak. Oncology revenue of $1.65 billion was 1.5% smaller than a year ago; growth from Venclexta and Elahere did not fully cover the Imbruvica decline. Aesthetics came in at $1.28 billion, up just 0.3% — effectively flat. Demand for Botox and fillers tracks discretionary consumer spending and is therefore directly exposed to the macro backdrop. Together these two segments are roughly 17% of revenue. With the growth narrative leaning entirely on immunology and neuroscience, a failure of these two wings to recover leaves a question mark over the period beyond 2027. The Apogee deal is aimed squarely at reducing that dependence, but its payoff points to the 2030s.
The outlook cut is deal-driven, not operational.
The 2026 adjusted earnings per share outlook was lowered to $13.87-$14.07. The entire reduction stems from 14 cents of dilution tied to the Apogee Therapeutics acquisition. Operational performance recovered 10 cents of that, so the net hit at the midpoint is only four cents. Meanwhile the revenue outlook was raised $300 million to $67.6 billion and the neuroscience outlook lifted $100 million to $12.7 billion. For the third quarter, the company expects roughly $17.2 billion in revenue and adjusted earnings per share of $3.84-$3.88. Year to date, acquired in-process research and development charges have cost 58 cents per share. That line item recurs often enough at AbbVie to deserve attention when reading adjusted figures.
Margins and cash generation still lead the sector.
Adjusted gross margin was 84.7% and adjusted operating margin 48.3%; on a GAAP basis those figures were 74.7% and 37.9%. GAAP earnings per share came to $2.03. Research and development spending ran at 13.6% of revenue, with an adjusted tax rate of 14.7%. That margin structure is what lets the company carry a $6.92 annual dividend (roughly a 2.8% yield) while simultaneously funding a $10.9 billion cash acquisition. Robert Michael said on the call that the company has ample financial capacity for further business development, so the appetite for deals should not be assumed to be exhausted. Our dividend guide is a useful companion here. The line to watch in late October: third-quarter revenue against the roughly $17.2 billion guide and adjusted earnings against the $3.84-$3.88 range.
Looking Ahead
Strengths and Risks
6 Strengths · 6 RisksStrengths
6- Revenue of $16.99 billion came in roughly $220 million above market expectation, growing 10.2% year over year.
- Skyrizi and Rinvoq combined for $8.03 billion in sales, both growing more than 24%.
- The neuroscience portfolio reached $3.23 billion and grew 20.3%, with Vraylar, Qulipta and Ubrelvy all up double digits.
- Adjusted operating margin held at 48.3%, at the top end of the industry.
- Full-year revenue outlook was raised by $300 million to $67.6 billion.
- Adjusted earnings per share rose 22.9% year over year and landed six cents above the company's own guidance midpoint.
Risks
6- 47% of revenue comes from two drugs in a single therapeutic area, leaving concentration risk high.
- Oncology revenue shrank 1.5% year over year and aesthetics was effectively flat at 0.3%.
- The midpoint of the 2026 adjusted profit outlook sits below the $14.08 market expectation.
- Acquired in-process research and development charges have cost 58 cents per share year to date and have become a recurring expense.
- Apogee's lead asset zumilokibart is still in clinical developmentThe return on the $10.9 billion price tag extends into the 2030s.
- Humira erosion continues at 35.9% and Imbruvica is down 29.4%Together the two legacy lines still generate annual revenue loss.
What to Watch
6- Late October 2026Third-quarter results — company guidance calls for roughly $17.2 billion in revenue and adjusted earnings per share of $3.84-$3.88.
- During the third quarter: the $10.9 billion Apogee Therapeutics acquisition is expected to close, adding the IL-13 antibody zumilokibart to the atopic dermatitis pipeline.
- Fall 2026FDA decision on the subcutaneous induction formulation of Skyrizi in Crohn's disease — approval would accelerate growth from early 2027.
- Third quarter: U.S. launch of tavapadon in Parkinson's disease is planned; the company targets more than $5 billion in peak sales for its Parkinson's portfolio.
- Late 2026 to early 2027U.S. regulatory decisions expected for Rinvoq in vitiligo and alopecia areata.
- Fall 2026Interim data from the Rinvoq combination study in inflammatory bowel disease and hidradenitis suppurativa readouts.
Upcoming Earnings
To Understand This