AbbVie Reports Record Q4 2025 Earnings and Strong Growth Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy ABBV?
Source: seekingalpha
- Record Performance: AbbVie reported adjusted earnings per share of $10 and total net revenues of $61.2 billion for 2025, exceeding initial guidance by $2 billion, demonstrating the company's strong market adaptability despite $16 billion erosion from Humira.
- Increased R&D Investment: The company boosted R&D spending by nearly $1 billion, funding 90 clinical programs and over $5 billion in business development in immunology, neuroscience, and oncology, indicating a commitment to innovation and long-term growth.
- Sales Growth Outlook: Management expects total sales growth of 9.5% for 2026, forecasting net revenues of approximately $67 billion, with key products Skyrizi and Rinvoq projected to generate $21.5 billion and $10.1 billion, respectively, reflecting strong market demand and product competitiveness.
- Optimistic Market Prospects: Despite facing Humira erosion and economic pressures, management maintains an optimistic outlook for the future, emphasizing that a diversified product portfolio and strategic investments will support sustained high single-digit revenue growth, projected to continue through 2029.
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Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABBV is 253.26 USD with a low forecast of 218.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 219.020
Low
218.00
Averages
253.26
High
289.00
Current: 219.020
Low
218.00
Averages
253.26
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased R&D Investment: The company boosted R&D spending by nearly $1 billion, funding 90 clinical programs and over $5 billion in business development in immunology, neuroscience, and oncology, indicating a commitment to innovation and long-term growth.
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- Earnings Beat Expectations: Although earnings per share fell 25% year-over-year to $1.26, it still exceeded estimates of $1.12, reflecting effective cost control and margin improvement strategies that further solidify its market position.
- Optimistic 2026 Outlook: The company forecasts revenue between $46 billion and $47.5 billion for 2026, exceeding the $44.16 billion expected by the market, indicating confidence in future growth, particularly driven by the new drug Cobenfy.
- Cost-Saving Commitment: Bristol Myers is committed to achieving approximately $1 billion in cost savings in 2025 and plans to save another $1 billion over the next two years, which will enhance the company's profitability and competitive edge in the market.
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Revenue Growth: The company reported solid revenue growth, particularly in its immunology segment, with significant contributions from key products, indicating a robust market presence and potential for continued expansion.
Analyst Sentiment: Analysts have responded favorably to AbbVie's 2026 guidance, highlighting double-digit growth in key product lines and suggesting a positive outlook for the company's future performance.
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- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
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See More
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- Stock Performance: Despite the reported weaknesses, the company's shares experienced an increase.
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- Record Performance: AbbVie reported adjusted earnings per share of $10 and total net revenues of $61.2 billion for 2025, exceeding initial guidance by $2 billion, demonstrating the company's strong market adaptability despite $16 billion erosion from Humira.
- Increased R&D Investment: The company boosted R&D spending by nearly $1 billion, funding 90 clinical programs and over $5 billion in business development in immunology, neuroscience, and oncology, indicating a commitment to innovation and long-term growth.
- Sales Growth Outlook: Management expects total sales growth of 9.5% for 2026, forecasting net revenues of approximately $67 billion, with key products Skyrizi and Rinvoq projected to generate $21.5 billion and $10.1 billion, respectively, reflecting strong market demand and product competitiveness.
- Optimistic Market Prospects: Despite facing Humira erosion and economic pressures, management maintains an optimistic outlook for the future, emphasizing that a diversified product portfolio and strategic investments will support sustained high single-digit revenue growth, projected to continue through 2029.
See More
