Abbvie 2025 Q2 Earnings Revenue Grows 6.6% Despite EPS Decline

AbbVie (ABBV), ranking 27th by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. AbbVie exceeded analyst expectations with a 7% increase in revenue, driven by the strong performance of Skyrizi and Rinvoq. Despite challenges, the company raised its full-year earnings guidance, indicating continued growth confidence.

Revenue

AbbVie reported a 6.6% increase in total revenue for Q2 2025, reaching $15.42 billion, up from $14.46 billion in Q2 2024. The immunology portfolio contributed $7.63 billion, with Skyrizi and Rinvoq generating $4.42 billion and $2.03 billion, respectively. Humira's revenue was $1.18 billion. The neuroscience segment saw $2.68 billion in revenue, with Vraylar and Botox Therapeutic accounting for $900 million and $928 million, respectively. The oncology segment earned $1.68 billion, including $754 million from Imbruvica and $691 million from Venclexta. Aesthetics brought in $1.28 billion, while eye care contributed $514 million. Other key products earned $1.04 billion.

Earnings/Net Income

AbbVie's EPS decreased by 31.6% to $0.53 in Q2 2025, as net income fell 31.5% to $941 million. Despite the revenue growth, the decline in EPS and net income indicates challenges in maintaining profit margins.

Post-Earnings Price Action Review

AbbVie's post-earnings strategy of purchasing shares on the revenue increase announcement date and holding for 30 days has historically delivered robust returns over the past three years. This approach yielded a return of 119.17%, outperforming the benchmark return of 87.61% by 31.56%. The strategy showcased a compound annual growth rate of 17.11% and maintained a maximum drawdown of 0.00%. The risk-adjusted performance was strong, with a Sharpe ratio of 0.75 and a volatility measure of 22.77%, reflecting AbbVie's ability to navigate market fluctuations effectively.

CEO Commentary

"AbbVie delivered another outstanding quarter with strong performance from our diversified growth platform. We also made meaningful pipeline progress with several regulatory approvals, encouraging clinical data, and strategic investments in promising external innovation," said Robert A. Michael, Chairman and Chief Executive Officer of AbbVie. He emphasized the company’s robust growth drivers, particularly in the immunology and neuroscience portfolios, while acknowledging challenges in the aesthetics segment. Michael expressed optimism about entering the second half of the year with substantial momentum and reiterated the company's commitment to maintaining a strong market position through ongoing innovation and strategic investments.

Guidance

AbbVie raised its 2025 adjusted diluted EPS guidance range from $11.67 - $11.87 to $11.88 - $12.08, reflecting an unfavorable impact of $0.55 per share related to acquired IPR&D and milestones expense incurred year-to-date through the second quarter 2025. The company expects to continue leveraging its diversified product portfolio and pipeline to drive growth and achieve its updated financial targets for the year.

Additional News

AbbVie announced a definitive agreement to acquire Capstan Therapeutics, a clinical-stage biotechnology company, enhancing its capabilities in in vivo cell engineering through RNA delivery using targeted lipid nanoparticles. This acquisition includes Capstan's potential first-in-class in vivo tLNP anti-CD19 CAR-T therapy candidate, CPTX2309, currently in Phase 1 development. Additionally, AbbVie and ADARx Pharmaceuticals have entered a collaboration to develop siRNA therapeutics, leveraging AbbVie's expertise in drug development with ADARx's RNA technology. These strategic moves aim to strengthen AbbVie's position in RNA therapeutics and cell therapy, aligning with its long-term growth strategy.