tapebrief

ABBV · Q4 2025 Earnings

Bullish

AbbVie

Reported February 4, 2026

30-second summary

Q4 revenue grew 10% YoY to $16.62B, beating management's own >$16.3B guide by ~$318M. Adjusted EPS of $2.71 was $0.08 above the $3.32–$3.36 guide midpoint when measured on the same basis the guide was issued — i.e., excluding acquired IPR&D — with a $0.71 IPR&D drag from Q4 BD activity reported within the adjusted figure. On the same basis, FY2025 adjusted EPS of $10.00 was $0.54 above the original guide midpoint ex-IPR&D, with $2.76 of FY IPR&D from BD (Capstan, IGI, Gilgamesh, others) that was not contemplated when the prior $10.61–$10.65 range was set. The signal that matters is FY2026: management framed +9.5% revenue growth to ~$67B and adjusted EPS of $14.37–$14.57 (excludes IPR&D, consistent with prior practice), with Skyrizi guided to $21.5B (+22.4%) and Rinvoq to $10.1B (+21.6% off the $8.304B FY2025 base) — i.e., the post-Humira growth engine is now sized at scale, and management explicitly told the street it is under-modeling the franchise.

Headline numbers

EPS

Q4 FY2025

$2.71

Revenue

Q4 FY2025

$16.62B

+10.0% YoY

Gross margin

Q4 FY2025

72.6%

Operating margin

Q4 FY2025

27.3%

Key financials

Q4 FY2025
MetricQ4 FY2025YoYQ3 FY2025QoQ
Revenue$16.62B+10.0%$15.78B+5.3%
EPS$2.71$1.86+45.7%
Gross margin72.6%66.4%+620bps
Operating margin27.3%12.1%+1520bps

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
RevenueQ4 FY2025more than $16.3 billion$16.618 billion+$0.318 billion above guideBeat
Adjusted Diluted EPSQ4 FY2025$3.32 to $3.36$2.71-$0.61 to -$0.65 below guideMissed

New guidance

MetricPeriodGuideYoY
Adjusted Diluted EPSFY 2026$14.37 to $14.57
RevenueFY 2026$67 billion+9.5%
Immunology salesFY 2026$34.5 billion
Skyrizi salesFY 2026$21.5 billion
Rinvoq salesFY 2026$10.1 billion
Humira salesFY 2026$2.9 billion
Neuroscience salesFY 2026$12.5 billion
Vraylar salesFY 2026$4 billion
Botox Therapeutic salesFY 2026$4.1 billion
Total oral CGRP revenueFY 2026$2.9 billion
Vyalev salesFY 2026$1 billion
Oncology salesFY 2026$6.5 billion

Segment KPIs

Q4 FY2025
SegmentQ4 FY2025YoY
Immunology$8.626B+18.3%
Skyrizi$5.006B+32.5%
Rinvoq$2.374B+29.5%
Humira$1.246B-25.9%
Neuroscience$2.961B+17.9%
Oncology$1.664B-1.5%
Aesthetics$1.286B-0.9%
Eye Care$0.58B-10.1%
Vraylar$1.022B
Botox Therapeutic$0.990B
Venclexta$0.710B
Botox Cosmetic$0.717B
Imbruvica$0.671B

Other KPIs

Q4 FY2025
SegmentQ4 FY2025
Adjusted Operating Margin38.3%
Adjusted Gross Margin83.6%
Adjusted Tax Rate18.3%

Management tone

Q2 2025: "clear line of sight" for 8 years → Q3 2025: pipeline depth as the underappreciated thesis → Q4 2025: explicitly telling the street consensus is too low on multiple franchises.

The most material tonal shift across the four quarters: management has progressed from defending Humira-LOE math, to claiming visibility, to actively pushing back on the sell side. On Skyrizi/Rinvoq, Rob Michael: "we do think on a longer-term basis there's clearly more upside to SkyRise and Rainbow" — noting the combined guide already exceeds the prior 2027 long-term anchor by half a billion. Separately, on migraine: "clearly the street is not modeling that type of upside for our migraine business" — pointing to a peak the franchise will now exceed $5B vs the prior $3B+ peak guide. This is the first quarter in the arc that management has explicitly called consensus too conservative on multiple flagship franchises.

Vyalev's positioning has compressed from "international launch progressing" two quarters ago to "blockbuster in 2026" this quarter. The Q3 framing was staffing-up for inflection; the Q4 framing is "Given these insights and the robust early launch trends globally, we now expect Vylev to achieve blockbuster revenue in 2026" — i.e., the $1B FY2026 guide makes the Parkinson's asset a sized contributor a full year earlier than the prior trajectory implied.

Oncology's narrative moved from defensive (Imbruvica IRA drag) to differentiated (ADC + PD-1/VEGF combinations). Rupal framed the RemeGen-licensed PD-1/VEGF as "a nice complement to our ADC portfolio" with the strategy to "initially combine this PD-1 VEGF with TMAB-A in lung and colorectal" to drive "faster disease control, longer duration, and ultimately longer survival." Two quarters ago this language was defensive; now it's strategic.

Aesthetics tone genuinely brightened for the first time in the arc. After three quarters of macro/consumer-sentiment hedging, management leaned into upcoming Trenibotulinumtoxin E ("Trenabot E") as a "fast-acting, short-duration toxin, which is expected to be approved in the U.S. later this year" and a sized share-gain thesis. The -0.9% Q4 print and the flat $5.0B FY2026 guide validate the framing.

The new theme this quarter: psychiatry pipeline as breakthrough optionality. The Mindset-acquired short-acting psychedelic (transcript ASR renderings vary: "Brett Asilison", "bredacilicin", "fredosilicin") was characterized by Rupal as "a potential breakthrough type of therapy...you see immediate efficacy and then you see that efficacy held on for quite some time...almost led to a remission-like state in the majority of patients." This is the first quarter in which management has elevated a psychiatry asset to "breakthrough" framing — meaningful in the context of the Vraylar $4.0B FY2026 anchor and the broader neuroscience $12.5B guide.

Recurring themes management leaned on this quarter:

Immunology dominance with SkyRizzy and Renvoke outperforming guidanceNeuroscience leading industry with multi-franchise growth (migraine, psychiatry, Parkinson's)Oncology pipeline advancement with novel combinations and ADC leadershipPipeline depth and R&D momentum across all therapeutic areasMarket expansion opportunities beyond current modelsStrategic M&A adding differentiated mechanisms and platforms

Risks management surfaced:

Continued Humira biosimilar erosion impacting 2026 performanceImbruvica IRA pricing headwinds in oncology portfolioAesthetics category growth remaining challenged due to economic headwindsCompetitive dynamics in IBD and psoriasis marketsForeign exchange volatility affecting international revenues

Q&A highlights

Steve Scala · TD Cowen

Addressed competitive threats to SkyRizzy and Rinvoq in sclerosis and IBD markets, and sought clarification on AbbVie's Trump administration pricing deal, specifically what exemption from future pricing mandates means beyond demonstration project avoidance.

Management emphasized stable capture rates and outlined multiple strategies to maintain SkyRizzy leadership: upcoming head-to-head data versus Intivio, planned sub-Q induction closure in early 2027, and IL-23 market expansion potential. Clarified Trump agreement includes exemption from tariffs and pricing mandates inclusive of demonstration projects during the agreement term.

Upcoming head-to-head study between SkyRizzy and Intivio expected to show significant opportunitySub-Q induction gap expected to close in early 2027Trump administration agreement exempts AbbVie from tariffs and pricing mandates inclusive of demonstration projects during termIL-23 market not zero-sum; significant competition from other products remains

David Anselm · Piper Sandler

Inquired about Rinvoq vitiligo market sizing, potential IL-15 competitive threats, and whether Vrelar replacements include long-acting injectable cariprazine formulation.

Management sized vitiligo opportunity at roughly $500M+ peak year sales as only systemic option, with $2B+ total from next-generation Rinvoq indications. Acknowledged IL-15 competitive threat but expressed confidence in Rinvoq's efficacy, tolerability, and oral formulation. Confirmed long-acting injectable cariprazine partnerships are under assessment alongside other assets.

Vitiligo peak year sales estimate: ~$500M+Total next-generation Rinvoq indication peak sales: ~$2B+Rinvoq is only approved systemic treatment for vitiligoLong-acting injectable cariprazine being assessed; strong tolerability and efficacy with Vrelar support LAI strategy

Mohit Benzel · Wells Fargo

Asked about primary care expansion strategy for migraine portfolio, competitive dynamics, and reconciliation of AbbVie's reported oral CGRP sales versus competitor's reported new prescriber share.

Management highlighted dominant position across migraine franchise: Botox (only toxin approved for chronic migraine), Ubrelvi (leading acute migraine branded drug), and Qlipta (number one branded episodic oral CGRP). Noted primary care reach of 70,000-80,000 physicians and challenged competitor's new prescriber claims by citing $1B+ higher combined oral CGRP revenue. Projected both brands to exceed $5B peak sales from current ~$3B.

2025 combined Ubrelvi + Qlipta sales: ~$3B (peak previously communicated)Projected peak for oral CGRP franchise: >$5BPrimary care physician reach: 70,000-80,000Share gains continuing at >1 point annually

Michael Yee · UBS

Asked about goals and expected outcomes from ongoing Crohn's disease immunology platform program, specifically whether the objective is to raise efficacy bar and extend SkyRizzy leadership.

Management explained platform studies focus on efficacy improvements particularly in treatment-experienced patients (second/third line), avoiding boxed warnings by excluding anti-TNF combinations, and exploring combinations with alpha-4-beta-7 (LUDY) and TL1A. Emphasized importance of co-formulation for patient-friendly delivery and noted strong SkyRizzy penetration reducing naive patient population.

Platform studies target treatment-experienced SkyRizzy patients in second/third linesStrategy avoids anti-TNF combinations to prevent boxed warningsExploring combinations: LUDY (alpha-4-beta-7), TL1ACo-formulation and patient-friendly delivery being developed in parallel

Louisa Hector · Barenberg

Asked about geographic share losses in toxins/fillers and obesity program profile expectations, including timeline to Phase 3 and regulatory pathway for weight-loss-only launch without CVOT.

Management identified Brazil as primary region with share losses (particularly fillers) while noting stability/growth in China and Asia; contextualized Brazil as <$100M market with U.S./China representing vast majority. On obesity, emphasized tolerability as key differentiator alongside weight loss efficacy, with focus on monthly dosing potential in Phase 2/3. Indicated willingness to discuss Phase 3 acceleration with regulators if strong safety/efficacy profiles emerge, suggesting potential weight-loss-only launch pathway.

Brazil market size: <$100MBrazil experienced share losses in filler categoryU.S. and China represent vast majority of aesthetics businessObesity focus: tolerability profile + weight efficacy + monthly dosing potential

Answers to last quarter's watch list

Q4 print delivers >$16.3B revenue and $3.32–$3.36 EPS as guided — Revenue cleared at $16.62B (+$318M). Adjusted EPS of $2.71 was $0.08 above the guide midpoint on the same ex-IPR&D basis the guide was issued; the reported figure includes a $0.71 drag from Q4 BD-driven IPR&D. FY adjusted EPS landed at $10.00, $0.54 above the original guide midpoint ex-IPR&D, with $2.76 of FY IPR&D. Status: Resolved positively.
Skyrizi Q4 run-rate against $4.85B/qtr needed to hit $17.3B FY — Skyrizi printed $5.01B in Q4, well above the $4.85B threshold; FY2025 landed at $17.562B (above the $17.3B raise), and the FY2026 guide of $21.5B (+22.4%) implies the franchise has not decelerated. Status: Resolved positively.
FY2026 framing operating margin recovery vs structurally elevated BD-driven OpEx — Management guided FY2026 adjusted operating margin to ~48.5% (vs FY2025 ~41% mechanical), explicitly framing this as IPR&D rolling off rather than underlying margin expansion. However, R&D guided to $9.7B (up from $9.0B) and SG&A to $14.2B (up from $13.5B) indicate the underlying cost base is still rising. Status: Resolved positively on the mechanical recovery, Continue monitoring the underlying cost trajectory.
Aesthetics: hold the -3.7% trajectory or revert toward -8%, and refresh the $4.9B FY anchor — Aesthetics improved to -0.9% in Q4 (a clear inflection from -8.1% Q2 → -3.7% Q3 → -0.9% Q4), and the FY2026 guide of $5.0B implies flat-to-slightly-positive growth. Status: Resolved positively.
Humira US Q4 print and whether the LOE floor is forming — Global Humira printed $1.25B (-25.9%), a sharp deceleration in the decline rate from Q3's -55.4%. The FY2026 guide of $2.9B is roughly half Q4 annualized, indicating management still expects further attrition in 2026 but no cliff. Status: Resolved — floor forming, additional erosion modeled.
Rinvoq next-wave clinical readouts and $2B peak-year sizing — Anselm Q&A re-confirmed the $2B+ combined peak for next-generation indications (vitiligo at ~$500M+) but no incremental HS Week 16 data was disclosed this quarter. The FY2026 Rinvoq guide of $10.1B (+21.6% off the $8.304B FY2025 base) implies the core indications continue to grow strongly. Status: Continue monitoring on specific readouts, Resolved positively on franchise trajectory.
BD-driven IPR&D charges in Q4 — Q4 GAAP EPS of $1.02 versus adjusted $2.71 reflects $1.69/share of specified items; within the adjusted figure, $0.71 is acquired IPR&D from Q4 BD. FY2025 adjusted EPS of $10.00 includes $2.76 of IPR&D vs the $10.61–$10.65 prior guide that excluded IPR&D — i.e., the basis is different, not a miss. The FY2026 operating margin guide of 48.5% assumes no Q4-scale BD repeats; that is the implicit risk to monitor. Status: Resolved — explained by BD timing, not underlying execution.

What to watch into next quarter

Whether Q1 2026 delivers revenue ~$14.7B and EPS $2.97–$3.01 (ex-IPR&D) cleanly — the credibility test for the $14.37–$14.57 FY range.

Skyrizi Q1 run-rate against the implicit ~$5.4B/qtr needed for the $21.5B FY2026 guide — any deceleration would put the FY EPS bridge at risk given Skyrizi is the largest single revenue contributor.

Rinvoq Q1 trajectory toward the $10.1B FY2026 anchor (~$2.5B/qtr implied; Q1 itself guided to ~$2.0B given seasonality and an unfavorable rebate-timing comp).

Humira Q1: $2.9B FY2026 guide implies ~$725M/qtr versus $1.25B in Q4 — watch whether the decline reaccelerates in early 2026 or the floor genuinely holds near current levels.

Vyalev quarterly run-rate against the $1B FY2026 blockbuster guide — needs ~$250M/qtr; Q4 print was $183M with strong international momentum.

Whether BD pace moderates in H1 2026 so the 48.5% adjusted operating margin guide is achievable on a reported basis, or whether another $1+/share IPR&D quarter creates a wedge between the ex-IPR&D guide and reported numbers.

Aesthetics: Q1 print versus the $5.0B FY2026 guide (~$1.25B/qtr) — does the -0.9% inflection convert to YoY positive or stall.

Trenibotulinumtoxin E ("Trenabot E") U.S. approval and launch progress later in 2026.

Sources

  1. AbbVie Q4 2025 / FY2025 Press Release, SEC EDGAR — https://www.sec.gov/Archives/edgar/data/1551152/000155115226000004/abbv-20251231xexhibit991.htm
  2. AbbVie Q4 2025 earnings call commentary (as captured in transcript extraction inputs)

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