AbbVie’s Immunology Powerhouse Drives Surge in Q1 Earnings – Time to Buy?

Investors, buckle up! AbbVie (NYSE: ABBV) just dropped a Q1 earnings report that screams growth—and it’s all about two drugs: Skyrizi and Rinvoq. These immunology blockbusters are firing on all cylinders, propelling revenue higher and pushing management to raise its full-year guidance. But is this a buy? Let’s dive in.

The Sky’s the Limit for Skyrizi

First, the star of the show: Skyrizi. This autoimmune drug just hit $3.425 billion in global sales, up a staggering 70.5% year-over-year (72% operationally). That’s not a typo—that’s rocket fuel growth. With a 70%+ clip, Skyrizi is now the fastest-growing segment in AbbVie’s immunology portfolio. Think about this: if Skyrizi were its own company, it’d be worth $13.7 billion at a 40x P/E—and it’s only getting started.

And Rinvoq isn’t slacking either. The rheumatoid arthritis drug delivered $1.718 billion in sales, a 57.2% jump. Its recent EU approval for giant cell arteritis (GCA) adds another indication to its resume, which already includes seven others. This duo isn’t just filling the top line—they’re offsetting the collapse of Humira, AbbVie’s cash cow-turned-also-ran, which saw sales plummet 50.6% as generics and biosimilars feast on its patent expiration.

The Numbers Don’t Lie (But the Risks Are There)

The immunology portfolio as a whole is now the engine of AbbVie’s future. Combined, it’s worth $6.264 billion in Q1 revenue, up 18.1% operationally. That’s more than half of the company’s total revenue—and the best part? The growth isn’t slowing down.

But here’s the catch: AbbVie’s guidance hike to $12.09–$12.29 per share (up from $11.99–$12.19) comes with a $0.13 per share drag from R&D expenses. Management isn’t factoring in its new obesity drug deal with Gubra, either—a move that could be a $2 billion+ opportunity if it hits.

The Pipeline’s Punch

Cramer’s rule: Follow the pipeline! And AbbVie’s is bursting at the seams. The company just filed a BLA for trenibotulinumtoxinE, a new botulinum toxin for facial lines. That could give a much-needed boost to its struggling aesthetics division, where Botox sales dropped 12.3%. Meanwhile, the oncology pipeline includes Elahere, which showed sustained efficacy in ovarian cancer trials, and a partnership with Xilio Therapeutics targeting masked T-cell engagers—a cutting-edge approach to cancer treatment.

The Bottom Line: Buy Now?

Here’s why you might want a piece of this:
- Skyrizi and Rinvoq are on track to hit $15 billion in combined sales by 2027, according to analysts.
- The raised guidance shows confidence, and with margins at 42.3%, AbbVie’s cost-cutting is paying off.
- The stock trades at just 12.7x forward earnings, a discount to peers like Roche (OTC: RHHBY) or Bristol-Myers Squibb (NYSE: BMY).

But don’t forget the risks:
- The aesthetics division is a weak link, with Juvederm sales down 22.2%.
- R&D costs could eat into profits unpredictably.
- Regulatory hurdles for new drugs are always a possibility.

Final Verdict: Buy with a Safety Net

AbbVie’s Q1 report is a buy signal for growth investors. The immunology duo is firing on all cylinders, and the pipeline has enough fuel to keep this rocket airborne. At $143, the stock is undervalued compared to its growth trajectory. But set a stop-loss—maybe at $130—to protect against pipeline hiccups or macroeconomic slowdowns.

This isn’t just about today’s earnings; it’s about owning a company that’s reinventing itself. If you can stomach some volatility, AbbVie could be the healthcare stock that keeps on giving.

Final Grade: A- (with an asterisk for pipeline execution).

Conclusion: AbbVie’s shift from Humira dependency to a diversified immunology powerhouse is paying off. With Skyrizi and Rinvoq driving 72% and 59.7% operational growth, and a pipeline rich with oncology and aesthetic innovations, this stock has momentum. The raised guidance and 18.1% immunology growth underscore its staying power. For investors willing to bet on biotech’s next wave, AbbVie is a must-watch play—just keep an eye on those R&D costs and aesthetic headwinds.