AbbVie (ABBV) Q3 2026: Strong Revenue Growth, EPS Surge — Positive Outlook

AbbVie (NYSE: ABBV) reported impressive financial results for the third quarter of 2026, showcasing a significant year-over-year performance improvement. The company delivered net revenues of $17.404 billion, reflecting an increase of $1.628 billion or 10.3% compared to the same quarter last year. This growth is a positive indicator for shareholders, as it demonstrates AbbVie's ability to expand its revenue base despite challenges in certain product lines.

Key Financial Metrics

• Net Revenues: $17.404 billion, an increase of $1.628 billion or +10.3% YoY
• Diluted EPS (GAAP): $2.37, an increase of over 100.0%
• Adjusted Diluted EPS: $3.82, an increase of over 100.0%
• Gross Margin Ratio (GAAP): 75.4%
• Adjusted Gross Margin Ratio: 85.1%
• Operating Margin Ratio (GAAP): 36.0%
• Adjusted Operating Margin Ratio: 48.7%

AbbVie’s performance this quarter is particularly noteworthy given the backdrop of a competitive pharmaceutical landscape. The substantial increase in both GAAP and adjusted EPS indicates strong operational efficiency and effective cost management, despite an unfavorable impact of $0.11 per share related to acquired IPR&D and milestones expense.

Portfolio Performance

• Immunology Portfolio: $9.165 billion, up 16.3% YoY
  • Skyrizi: $5.776 billion, up 22.7%
  • Rinvoq: $2.706 billion, up 23.9%
  • Humira: $683 million, down 31.2%
• Neuroscience Portfolio: $3.389 billion, up 19.4% YoY
  • Vraylar: $1.068 billion, up 14.3%
  • Botox Therapeutic: $1.080 billion, up 9.8%
• Oncology Portfolio: $1.696 billion, up 0.8% YoY
  • Venclexta: $803 million, up 10.7%
  • Imbruvica: $522 million, down 26.1%
• Aesthetics Portfolio: $1.176 billion, down 1.4% YoY
  • Botox Cosmetic: $669 million, up 4.9%
  • Juvederm: $222 million, down 11.9%

The growth in the immunology and neuroscience segments is particularly encouraging, as these areas are critical to AbbVie's long-term strategy. The decline in Humira sales, while concerning, is expected as the product faces increasing competition from biosimilars.

Shareholder Returns and Guidance

AbbVie announced a 5.2% increase in its quarterly dividend, raising it from $1.73 to $1.82 per share, payable on February 16, 2027. This reflects AbbVie's commitment to returning value to shareholders and positions the company as a reliable dividend payer.

Additionally, AbbVie raised its 2026 adjusted diluted EPS guidance from a range of $13.76 - $13.96 to $13.95 - $13.99, which includes an unfavorable impact of $0.69 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter.

Analyst View

Overall, AbbVie's third-quarter results are a strong indication of the company's operational strength and growth potential. The significant revenue growth, coupled with a robust increase in EPS, positions AbbVie favorably in the market. The strategic acquisition of Apogee Therapeutics further enhances its immunology pipeline, which could lead to additional revenue streams in the future.

Forward Catalyst

Investors should closely monitor AbbVie's upcoming product launches and regulatory approvals, particularly in the immunology and neuroscience segments. The anticipated data from ongoing clinical trials, especially for lutikizumab and etentamig, could provide further momentum for the stock in the coming quarters. Additionally, the company's ability to navigate the competitive landscape as Humira's market share declines will be crucial for sustaining growth.

Consolidated Statements of Earnings (Unaudited)

(in millions)

	Third Quarter Ended		Nine Months Ended
	September 30, 2026	2025	September 30, 2026	2025
Net Revenues	$ 17,404	$ 15,776	$ 49,396	$ 44,542
Cost of Products Sold	$ 4,285	$ 5,304	$ 12,794	$ 13,652
Selling, General and Admin. Exp	$ 4,087	$ 3,569	$ 11,297	$ 10,115
Research and Development Expense	$ 2,567	$ 2,319	$ 7,383	$ 6,517
Acquired IPR&D and Milestones Expense	$ 216	$ 2,680	$ 1,251	$ 3,751
Other Operating Income	$ -18	$ —	$ -18	$ -24
Total Operating Costs and Expenses	$ 11,137	$ 13,872	$ 32,707	$ 34,011
Operating Earnings	$ 6,267	$ 1,904	$ 16,689	$ 10,531
Interest Expense	$ 700	$ 667	$ 2,024	$ 1,972
Other Expense, Net	$ 738	$ 523	$ 4,519	$ 4,630
Earnings Before Income Tax	$ 4,829	$ 714	$ 10,146	$ 3,929
Income Tax Expense	$ 609	$ 526	$ 1,613	$ 1,511
Net Earnings	$ 4,220	$ 188	$ 8,533	$ 2,418
Net Earnings Attributable to Noncontrolling Interests	$ 2	$ 2	$ 7	$ 8
Net Earnings Attributable to AbbVie Inc.	$ 4,218	$ 186	$ 8,526	$ 2,410
Diluted Earnings Per Share	$ 2.37	$ 0.10	$ 4.79	$ 1.34
Adjusted Diluted Earnings Per Share	$ 3.82	$ 1.86	$ 10.12	$ 7.29
Weighted-Average Shares Used to Compute Net Income Per Share	1,772	1,772	1,772	1,772

Consolidated Balance Sheets (Unaudited)

(in millions)

	September 30, 2026	December 31, 2025
Assets
Current Assets
Cash and Cash Equivalents	$ 5,135	$ 2,487
Trade Accounts Receivable	$ 6,642	$ 7,623
Inventories	$ 2,737	$ 2,778
Other Current Assets	$ 2,056	$ 2,224
Total Current Assets	$ 16,570	$ 15,112
Noncurrent Assets
Property, Plant and Equipment	$ 4,510	$ 4,415
Intangible Assets	$ 30,953	$ 28,456
Other Noncurrent Assets	$ 3,921	$ 3,112
Total Noncurrent Assets	$ 39,384	$ 36,983
Total Assets	$ 55,954	$ 52,095
Liabilities and Equity
Current Liabilities
Trade Accounts Payable	$ 4,711	$ 4,645
Accrued Liabilities	$ 5,124	$ 4,432
Other Current Liabilities	$ 1,654	$ 1,867
Total Current Liabilities	$ 11,489	$ 10,944
Noncurrent Liabilities
Long-term Debt	$ 20,568	$ 19,372
Other Noncurrent Liabilities	$ 4,183	$ 3,293
Total Noncurrent Liabilities	$ 24,751	$ 22,665
Total Liabilities	$ 36,240	$ 33,609
Shareholders' Equity
Common Stock and Additional Paid-in Capital	$ 21,859	$ 20,296
Retained Earnings	$ 8,748	$ 6,892
Accumulated Other Comprehensive Income	$ 107	$ 298
Total Shareholders' Equity	$ 19,714	$ 18,486
Total Liabilities and Equity	$ 55,954	$ 52,095

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