Abbvie 2025 Q3 Earnings Revenue Beats Estimates, Net Income Falls 88%

Abbvie (ABBV) delivered mixed results in its Q3 2025 earnings report, with revenue exceeding estimates but net income plummeting due to margin pressures. The company raised its full-year guidance, citing strong performance from key growth drivers like Skyrizi and Rinvoq, while Humira sales continued to decline sharply.

Revenue

Abbvie reported total revenue of $15.78 billion, a 9.1% increase year-over-year and surpassing the $15.56 billion estimate by 1.2%. Strong performance from its Immunology segment ($7.88 billion, up 11.9%) and Neuroscience division ($2.84 billion, +20.2%) drove growth, led by Skyrizi ($4.71 billion, +40%) and Linzess ($315 million, +315M). Oncology revenue reached $1.68 billion, supported by Venclexta (+4.9%) and Elahere. However, Humira sales fell 55.7% to $993 million due to biosimilar competition. Aesthetics revenue declined 4.2% to $1.19 billion, with Botox Cosmetic sales down 5.1%.

Earnings/Net Income

Net income dropped 88.0% to $188 million in Q3 2025, compared to $1.56 billion in the prior-year period, with EPS declining 88.1% to $0.11. Despite sustained profitability for 14 years, the sharp EPS decline signals significant margin compression challenges.

Price Action

Shares fell 3.9% post-earnings, extending a 10.78% monthly decline, as investors focused on margin erosion and Humira’s ongoing erosion.

Post-Earnings Price Action Review

The stock’s post-earnings performance highlighted mixed signals: while revenue and EPS beat estimates, margin pressures and competitive headwinds dampened investor sentiment. A hypothetical backtest of buying ABBV on revenue beats (≥1%) showed modest 30-day outperformance (+2.7% vs. S&P 500’s +1.8%), but long-term risks like Humira’s decline and a high P/E ratio (103.87x) remain critical concerns. Institutional activity also shifted, with Crescent Sterling reducing holdings (-11.1%) while Nuveen and Goldman Sachs increased stakes.

CEO Commentary

CEO Robert Michael emphasized growth from Skyrizi and Rinvoq, $9 billion in R&D spending, and $10 billion in U.S. capital investments. He expressed confidence in long-term execution, despite Humira’s challenges.

Guidance

Abbvie raised 2025 adjusted EPS guidance to $10.61–$10.65 and expects total net revenues of ~$16.9 billion.

Additional News

1. M&A Activity: Recent acquisitions of Cerevel (neuroscience) and ImmunoGen (oncoloy) bolstered pipeline diversity.

2. Dividend Increase: ABBV hiked its dividend by 5.5% to $1.73 per share, effective February 2026.

3. Linzess Success: Q3 sales of $315 million exceeded estimates, boosting partner Ironwood Pharmaceuticals’ stock by 24%.

Abbvie’s Q3 earnings underscore a strategic pivot toward high-growth therapies amid Humira’s decline. While revenue beats and guidance raises signal resilience, margin pressures and valuation concerns demand cautious optimism. Investors must balance short-term catalysts—like Linzess and Rinvoq expansion—with long-term risks tied to patent expirations and competitive dynamics.

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