AbbVie Inc. (ABBV) Q3 2025 Earnings Summary

Executive Summary

• Q3 revenue of $15.776B grew 9.1% YoY (8.4% operational) and beat S&P Global consensus; adjusted EPS was $1.86, also above consensus, while GAAP EPS was $0.10 due to $2.7B acquired IPR&D expense impacting both GAAP and adjusted EPS by $1.50 per share .
• Immunology and Neuroscience drove the quarter: Skyrizi $4.708B (+46.8% YoY) and Rinvoq $2.184B (+35.3% YoY); Neuroscience $2.841B (+20.2% YoY) with Vraylar $934M and Botox Therapeutic $985M; Oncology was $1.682B (flat) and Aesthetics declined to $1.193B (-3.7% YoY) .
• Guidance raised: FY25 adjusted EPS to $10.61–$10.65 (including YTD IPR&D impact), FY25 total net revenues now ~$60.9B; Q4 guide >$16.3B revenue and $3.32–$3.36 EPS. Dividend increased 5.5% to $1.73 per share starting Feb 2026 .
• Catalysts: FDA label update allows earlier Rinvoq use in IBD when TNFs are clinically inadvisable, Phase 3 vitiligo success for Rinvoq, expanding ADC data at ESMO, and continued momentum in Parkinson’s (Violev ramp, tevapadon NDA) .

What Went Well and What Went Wrong

What Went Well

• Strong top-line and beat-and-raise quarter: revenue “nearly $15.8B” beating expectations by ~$300M; adjusted EPS $1.86, $0.10 above guidance midpoint, reflecting strength in Immunology and Neuroscience .
• Immunology leadership: Skyrizi +46.8% and Rinvoq +35.3% YoY; management cited “combined sales growth of more than 40%” and in-play leadership across IBD and psoriasis; label update enables earlier Rinvoq use in IBD in clinically inadvisable TNF cases .
• Neuroscience outperformance: $2.841B (+20.2% YoY), with migraine franchise (Ubrelvy $354M, Qulipta $288M) and Vraylar $934M; Violev $138M with strong international uptake and U.S. coverage ramp expected .

What Went Wrong

• Aesthetics softness persisted: revenue down 3.7% YoY to $1.193B; management highlighted macro-driven consumer sentiment weakness, with toxins flattish and fillers down double digits in key markets .
• Humira continued erosion: global revenue fell to $993M (−55.4% YoY), and management expects step-up in U.S. volume erosion through 2026 as more plans adopt exclusionary contracts .
• Elevated tax rate and margin pressure from IPR&D: GAAP tax rate 73.7% due to low deductibility of IPR&D; adjusted operating margin 30.9% (includes 17% IPR&D impact) versus 44.3% in Q2 .

Financial Results

Revenue and EPS vs prior periods and estimates

Note: Values retrieved from S&P Global.*

Margins and expense ratios

Segment and key product breakdown (Q3 2025)

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “We delivered another excellent quarter… Given our positive momentum, we are raising our 2025 outlook for the third time this year.” — CEO Robert Michael .
• “Immunology… delivered total revenues of approximately $7.9B… SKYRIZI global sales were $4.7B, reflecting operational growth of 46%… RINVOQ… up 34.1%.” — CCO Jeff Stewart .
• “We now expect total net revenues of approximately $60.9 billion… Adjusted EPS between $10.61 and $10.65… Q4 net revenues of more than $16.3 billion… Adjusted EPS $3.32 to $3.36.” — CFO Scott Reents .
• “FDA approval… updates the indication statement for RINVOQ… allowing use prior to TNFs when clinically inadvisable.” — Company press release .
• “Positive topline results from two replicate Phase 3 studies [vitiligo]… co‑primary endpoints met.” — Company press release .

Q&A Highlights

• PBM reform/IRA: Management confident in adapting to PBM changes; indicated IRA negotiated prices (Vraylar, Linzess) won’t impact 2026; orphan exemption expansion benefits Venclexta longer term .
• IL‑23 competitive dynamics: SKYRIZI’s leadership persists as class expands rapidly; earlier Rinvoq use in IBD supports “one‑two punch” strategy against TNFs .
• Aesthetics trajectory: Toxins flattish; fillers pressured; company investing in campaigns and training; new short‑acting toxin expected to catalyze consumer activation next year .
• Parkinson’s: Violev winning share based on 24‑hour control and tolerability; tevapadon differentiation vs generics could be significant (low impulsivity/sedation; efficacy approaching levodopa) .
• Oncology/ADC roadmap: Temab‑A showing strong activity in MET‑amplified and pancreatic tumors; PVEK BLA submitted for BPDCN; expanding trials planned .

Estimates Context

• Q3 beats: Revenue $15.776B vs $15.586B consensus; Adjusted EPS $1.86 vs $1.785 consensus. Q2 beats: Revenue $15.423B vs $15.030B; Adjusted EPS $2.97 vs $2.908 (S&P Global).
• Implication: Consensus likely to lift for Immunology and Neuroscience; Aesthetics estimates may be revised lower given macro commentary.
• The company’s raised FY revenue and EPS guidance further supports upward estimate revisions for core growth platforms .

Note: Values retrieved from S&P Global.*

Key Takeaways for Investors

• Core engines intact: Immunology (Skyrizi/Rinvoq) and Neuroscience continue to outgrow expectations; narrative remains “beat-and-raise” with visibility into 2026 despite Humira tail and IRA pricing in 2027 .
• Near-term trade: Positive catalysts include earlier Rinvoq use in IBD, Phase 3 vitiligo success, and ongoing Parkinson’s ramp (Violev, tevapadon NDA). These should support sentiment on growth durability .
• Watch margins and tax: Elevated IPR&D drove lower adjusted operating margin and higher tax rate; Q4 guide implies margin normalization absent new IPR&D, but investors should monitor BD cadence .
• Aesthetics is a swing factor: Management reduced FY25 guidance; recovery likely tied to macro, consumer sentiment, and 2026 toxin launch; position sizing should reflect ongoing uncertainty .
• Oncology optionality: Temab‑A data and PVEK submission broaden mid‑to‑late‑decade growth levers; Elahere international pricing strategy may support ex‑U.S. monetization .
• Capital allocation: Dividend raised 5.5%; free cash flow supports BD while net leverage target (~2x by end 2026) remains on track—balanced return and reinvestment profile .
• Estimate revisions: Expect upward adjustments in Immunology/Neuroscience and modest downward tweaks in Aesthetics; overall FY25 EPS path improved with guidance raise .

All document-based figures and statements are cited inline per section. 
Consensus estimates are from S&P Global.