AbbVie's Q1 Earnings: Riding the Immune Wave, But Can It Outpace the Blues?

Let’s cut to the chase: AbbVie (NYSE: ABBV) just delivered a first-quarter earnings report that’s a classic case of "good news, bad news." Revenues soared past estimates, but the EPS figure left some investors scratching their heads. Here’s why you should pay close attention—and what it means for your portfolio.

The Good News: Immunology Is on FIRE

The star of the show? AbbVie’s immunology portfolio, which skyrocketed 18% operationally to $6.26 billion. The real heroes here are Skyrizi ($3.43 billion in sales, up 72%) and Rinvoq ($1.72 billion, up 59%). These two drugs are dominating in inflammatory diseases like psoriasis and rheumatoid arthritis, and their growth is nothing short of explosive.

But wait—there’s a catch. The legacy giant Humira, once the cash cow, saw sales crater 50.6% to $1.12 billion as biosimilars continue their relentless assault. That’s a massive hit, but the good news is that Skyrizi and Rinvoq are more than making up for it.

The Bad News: EPS Takes a Dive—But It’s Manageable

On a GAAP basis, EPS dropped to $0.72, a 6.5% decline. But here’s the key: adjusted EPS rose 6.5% to $2.46, which is where investors should focus. The GAAP figure was dragged down by $0.13 per share in one-time expenses tied to R&D and milestones, including its new obesity drug deal with Gubra.

The company also raised its full-year adjusted EPS guidance to $12.09–$12.29, up from $11.99–$12.19. That’s a clear sign of confidence, especially considering it’s excluding any future IPR&D hits beyond Q1.

The Rest of the Story: Oncology Shines, Aesthetics Stumbles

• Oncology is a mixed bag. Imbruvica (a CLL treatment) saw sales drop 11.9%, but Elahere (a new ovarian cancer drug) is off to a roaring start with $179 million in Q1 sales.
• Neuroscience (including Botox for migraines) grew 17% operationally, led by Qulipta (up 48%).
• Aesthetics, however, is a disappointment. Botox Cosmetic sales fell 12.3%, and Juvederm tanked 22%. The beauty market is tough—competition is fierce, and consumers are pinching pennies.

The Big Picture: Pipeline Power vs. Debt Drag

AbbVie isn’t just relying on current drugs. It’s doubling down on the future:
- A Gubra partnership for an obesity drug (GUB014295) could be a blockbuster.
- A collaboration with Xilio Therapeutics targets next-gen cancer immunotherapies.
- Elahere’s strong performance in ovarian cancer trials suggests big things ahead.

But there’s a dark cloud: debt. The company’s net interest expense hit $627 million in Q1, partly due to its Allergan acquisition. Investors should monitor whether this drags on margins long-term.

The Verdict: Buy the Dip?

Here’s the bottom line: AbbVie is in the middle of a massive transition. Its old guard (Humira) is fading fast, but the new guard (Skyrizi/Rinvoq/Elahere) is firing on all cylinders. The raised guidance and robust pipeline suggest this isn’t a one-quarter wonder—it’s a sustainable shift upward.

If you’re an investor, ask yourself: Can you stomach short-term EPS volatility for long-term growth? If so, this stock is worth watching. The immunology engine alone could propel AbbVie to outperform peers like Amgen (AMGN) or Gilead (GILD).

Final Take: Hold the Course—But Keep an Eye on Debt

AbbVie’s Q1 proves it’s not just surviving—it’s thriving in its next act. The immunology and oncology growth is real, and management’s strategic bets (obesity, immunotherapy) are smart.

Buy if the stock dips below $130 (as of this writing, it’s near $135), and hold for the long haul. Just keep an eye on that debt pile and whether the new drugs can keep up their blistering pace.

In the end, this isn’t about Humira anymore—it’s about who controls the next wave of biotech innovation. And right now, AbbVie is surfing it better than most.

Conclusion: With a 9.8% operational revenue surge, a pipeline packed with potential blockbusters, and adjusted EPS growth that’s ticking upward, AbbVie is a buy for growth investors willing to look past near-term headwinds. The immunology duo of Skyrizi and Rinvoq alone are worth the price of admission—just don’t forget to watch those debt metrics. This isn’t a sprint; it’s a marathon. And AbbVie is clearly in the lead.