Abbvie's EPS Surge: Riding the Wave of Skyrizi and Rinvoq Dominance

Investors, let me tell you—this is a big deal. AbbVie (ABBV) just pulled off a rare feat: not only did they raise their 2025 EPS guidance, but they did it while absorbing a $0.13-per-share hit from R&D expenses. That’s the sign of a company with real momentum in its core growth engines. Let’s break this down.

First, the numbers: AbbVie’s original 2025 EPS guidance was $11.99–$12.19. Now, it’s been boosted to $12.09–$12.29—a move that screams “we’re confident.” But here’s the kicker: this new range already includes the $0.13 drag from in-process R&D (IPR&D) and milestone expenses. If you strip that out, the underlying business is actually outperforming expectations. That’s a bullish signal.

So what’s driving this? Skyrizi and Rinvoq—the duo that’s become the lifeblood of AbbVie’s growth. These blockbusters are dominating in dermatology and autoimmune diseases. Skyrizi (for psoriasis and Crohn’s) and Rinvoq (rheumatoid arthritis and atopic dermatitis) are expanding their footprints in crowded markets. Analysts estimate combined sales could hit $20 billion by 2025, and the latest guidance suggests they’re on track.

Now, let’s get real about the IPR&D expense. Yes, it’s a headwind, but here’s why it’s a one-time stumble, not a stumble block: AbbVie is investing in future growth. The company’s pipeline includes potential wins in oncology and neurology, areas where they’ve already shown prowess. The $0.13 hit is a small price to pay for locking in long-term opportunities.

But what about the stock? Let’s look at the numbers:

If the chart shows AbbVie outperforming the sector, that’s a green light. Even if it’s lagging, the EPS hike suggests it’s primed for a rebound. Remember, this isn’t a flash in the pan. Skyrizi and Rinvoq are eating market share from competitors like Amgen (AMGN) and Johnson & Johnson (JNJ), and there’s still room to grow in international markets.

Critics might argue thatbiosimilars threaten Humira, AbbVie’s cash cow. But here’s the truth: Humira’s decline is already priced in, and the new drugs are more than compensating. The EPS guidance isn’t just about offsetting losses—it’s about creating a new growth trajectory.

Final call: Buy AbbVie here. The math is undeniable. The new EPS range of $12.09–$12.29 is achievable even with R&D costs, and if those expenses ease up, we could see upside surprises. With a forward P/E around 14x (assuming $12.20 EPS), this is a bargain in a high-cost healthcare sector.

Don’t let the R&D noise distract you—Abbvie’s growth engines are firing on all cylinders. This is a buy-and-hold name for 2025 and beyond.

Bottom Line: AbbVie’s revised guidance isn’t just a tweak—it’s proof that its next-gen drugs are winning the battle. With $20 billion in peak sales on the horizon for Skyrizi and Rinvoq, and a P/E ratio that’s practically a yawn in this sector, this is a must-own stock. The future looks bright—don’t miss the train.