AbbVie’s third quarter results were marked by strong year-on-year revenue growth, driven primarily by continued momentum in its immunology and neuroscience portfolios. Management pointed to sales growth from Skyrizi and Rinvoq, as well as double-digit expansion in neuroscience products, as key contributors to the performance. However, despite surpassing Wall Street revenue and profit estimates, the market reacted negatively, reflecting heightened concern over a sharp drop in operating margin and the persistence of headwinds in the aesthetics segment. CEO Rob Michael acknowledged challenging economic conditions affecting discretionary spending and emphasized the company’s execution in core therapeutic areas.
Is now the time to buy ABBV? Find out in our full research report (it’s free for active Edge members).
AbbVie (ABBV) Q3 CY2025 Highlights:
- Revenue: $15.78 billion vs analyst estimates of $15.58 billion (9.1% year-on-year growth, 1.2% beat)
- Adjusted EPS: $1.86 vs analyst estimates of $1.78 (4.2% beat)
- Adjusted EBITDA: $5.07 billion vs analyst estimates of $4.86 billion (32.2% margin, 4.3% beat)
- Management lowered its full-year Adjusted EPS guidance to $10.63 at the midpoint, a 11.3% decrease
- Operating Margin: 12.1%, down from 26.5% in the same quarter last year
- Constant Currency Revenue rose 8.4% year on year (4.9% in the same quarter last year)
- Market Capitalization: $387.1 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AbbVie’s Q3 Earnings Call
- Terence Flynn (Morgan Stanley) asked about the impact of evolving PBM models and IRA price negotiations. CEO Rob Michael emphasized AbbVie’s adaptability and said IRA outcomes for key drugs will not affect long-term guidance.
- Christopher Schott (JPMorgan) inquired about competitive dynamics in the IL-23 market and 2026 outlook. Commercial chief Jeffrey Stewart noted category expansion is benefiting Skyrizi, while Michael highlighted diversified growth beyond immunology.
- Vamil Divan (Guggenheim Securities) sought clarification on long-term guidance for Skyrizi and Rinvoq, and U.S. aesthetics market share. Michael signaled that guidance is likely to be exceeded, and Stewart outlined BOTOX and Juvederm’s leadership but acknowledged market softness.
- David Amsellem (Piper Sandler) probed the Parkinson’s portfolio’s competitive positioning and tavapadon’s prospects in a generic-heavy segment. Stewart and R&D head Roopal Thakkar described VYALEV’s differentiation and tavapadon’s safety and efficacy advantages.
- Geoffrey Meacham (Citibank) pressed for leading indicators of aesthetics recovery and policy priorities. Michael pointed to consumer confidence and new launches as potential signals, while affirming continued engagement with U.S. policymakers on access and innovation.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be monitoring (1) the pace of label expansions and regulatory milestones for Rinvoq, Skyrizi, and tavapadon; (2) stabilization and potential rebound in aesthetics demand as new consumer campaigns and product launches roll out; and (3) the impact of recent pipeline acquisitions and R&D investments on clinical progress and future revenue streams. Execution on these fronts, alongside margin recovery efforts, will be key to AbbVie’s trajectory.
AbbVie currently trades at $219, down from $228.08 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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