Abbvie 2025 Q3 Earnings Sharp EPS Decline Amid Strong Revenue Growth

Abbvie (ABBV) reported fiscal 2025 Q3 earnings on Nov 4, 2025, with revenue rising 9.1% to $15.78 billion, exceeding expectations. The company guided to Q4 2025 EPS of $3.32–$3.36, aligning with analyst forecasts of $3.31. Despite robust revenue growth, net income plummeted 88% to $188 million, signaling operational challenges.

Revenue

Abbvie’s revenue surged 9.1% year-over-year to $15.78 billion, driven by strong performance across key therapeutic areas. Immunology led with $7.88 billion, bolstered by Skyrizi ($4.71 billion) and Rinvoq ($2.18 billion). Humira, despite its decline, contributed $993 million. Neuroscience revenue totaled $2.84 billion, led by Vraylar ($934 million) and Botox Therapeutic ($985 million). Oncology revenue reached $1.68 billion, with Venclexta ($726 million) and Imbruvica ($706 million) as key drivers. Aesthetics generated $1.19 billion, anchored by Botox Cosmetic ($637 million) and Juvederm Collection ($253 million). Eye Care revenue stood at $509 million, while Other Key Products, including Mavyret and Linzess, added $1.01 billion.

Earnings/Net Income

Earnings per share (EPS) fell sharply to $0.10 in 2025 Q3, a 88.6% decline from $0.88 in 2024 Q3. Net income dropped to $188 million, down 88.0% from $1.56 billion. The significant decline underscores cost pressures or margin compression despite revenue gains.

Post-Earnings Price Action Review

Following the earnings release, Abbvie’s stock price edged up 1.66% on the latest trading day but faced downward pressure in the broader timeframe, dropping 5.12% for the week and 7.70% month-to-date. The mixed performance reflects investor caution amid declining profitability, despite strong revenue growth.

CEO Commentary

CEO Richard Gonzalez emphasized Abbvie’s resilience in driving revenue growth, highlighting Skyrizi and Rinvoq as key growth pillars. He acknowledged margin pressures but stressed ongoing R&D investments and market access initiatives to sustain long-term value. "Our focus remains on innovation and expanding our leadership in immunology and oncology," Gonzalez stated, underscoring strategic priorities to navigate competitive landscapes.

Guidance

Abbvie provided Q4 2025 EPS guidance of $3.32–$3.36, in line with analyst expectations. The company reaffirmed its commitment to maintaining a high dividend yield and exploring strategic opportunities to enhance shareholder value, including potential in-licensing and partnerships.

Additional News

1. Dividend Increase: Abbvie raised its quarterly dividend to $1.73 per share, reflecting a 5.5% increase from the prior quarter.

2. Insider Sales: Executive Vice Presidents Azita Saleki-Gerhardt and Nicholas Donoghoe sold shares, reducing their holdings by 19.3% and 18.6%, respectively, in August 2025.

3. Analyst Upgrades: Berenberg Bank upgraded Abbvie to "Buy" with a $270 price target, while HSBC cut its rating to "Hold," citing margin risks.

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