Abbvie 2025 Q3 Earnings Revenue Surges 9.1% as Net Income Plummets 88%

Abbvie (ABBV) reported Q3 2025 results that exceeded revenue expectations while significantly missing profit targets. The company raised its full-year guidance for adjusted EPS despite a sharp decline in net income and operating margins.

Revenue

Abbvie’s total revenue surged 9.1% year-over-year to $15.78 billion, driven by robust performance across its key therapeutic areas. The Immunology segment led with $7.88 billion, fueled by Skyrizi ($4.71 billion) and Rinvoq ($2.18 billion). Neuroscience contributed $2.84 billion, with Botox Therapeutic ($985 million) and Vraylar ($934 million) showing notable growth. Oncology revenue reached $1.68 billion, supported by Venclexta ($726 million) and Imbruvica ($706 million). Aesthetics revenue totaled $1.19 billion, though Botox Cosmetic ($637 million) and Juvederm ($253 million) faced softer demand. Humira, despite a 55.7% decline to $993 million, remained a significant contributor.

Earnings/Net Income

Earnings per share (EPS) plummeted 89.4% to $0.09, far below the $0.88 reported in the prior-year period. Net income fell to $188 million, a 88.0% drop from $1.56 billion in 2024 Q3. The EPS decline reflects margin compression from R&D expenses and biosimilar competition, underscoring near-term profitability challenges.

Post-Earnings Price Action Review

Following the earnings release, AbbVie’s stock fell 3.9%, marking its worst performance in months. Despite beating revenue estimates by $200 million, the market focused on the steep EPS decline and reduced full-year guidance. Historically, AbbVie has seen mixed 30-day returns after revenue beats, averaging +2.1% but with high volatility (ranging from +15.3% to -8.7%). Recent catalysts like Humira erosion and IRA pricing pressures have amplified short-term risks. The company’s long-term prospects remain tied to pipeline advancements, including Skyrizi and Rinvoq growth, but near-term execution risks persist.

CEO Commentary

CEO Robert Michael highlighted the company’s “exciting time” with strong portfolio momentum and pipeline progress. He emphasized confidence in AbbVie’s long-term outlook despite near-term headwinds. The CFO, Scott Reents, noted the need for continued R&D investment and capital allocation discipline.

Guidance

Abbvie raised its 2025 adjusted EPS guidance to $10.61–$10.65 from $10.38–$10.58, citing overperformance in neuroscience and oncology. The company also announced a 5.5% dividend increase for 2026, reflecting its commitment to shareholder returns.

Additional News

1. M&A Activity: AbbVie completed the acquisition of Cerevel Therapeutics in neuroscience and ImmunoGen in oncology, expanding its pipeline.

2. Dividend Increase: The company announced a 5.5% dividend hike, payable in February 2026, continuing its 10-year growth streak.

3. Manufacturing Expansion: AbbVie broke ground on a $195 million API facility and a $70 million biologics expansion, part of its $10+ billion U.S. manufacturing commitment.

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