Business Description
AbbVie Inc. is a global biopharmaceutical company dedicated to the discovery, development, manufacturing, and commercialization of advanced medicines. Its extensive therapeutic portfolio encompasses several key areas: Immunology and Inflammation: Leading products include HUMIRA, an injectable therapy for autoimmune and intestinal Behçet's diseases; SKYRIZI, which addresses moderate to severe plaque psoriasis in adults; and RINVOQ, a JAK inhibitor for moderate to severe active rheumatoid arthritis in adult patients. Oncology and Hematology: For blood cancers, AbbVie provides IMBRUVICA and VENCLEXTA (a BCL-2 inhibitor), both indicated for adult patients with chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL). Virology: MAVYRET offers a treatment option for individuals with chronic HCV genotype 1-6 infection. Gastroenterology and Endocrinology: The company supplies CREON, an enzyme replacement therapy for exocrine pancreatic insufficiency, and Synthroid, used to manage hypothyroidism. Linzess/Constella helps treat irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation. Women's Health and Urology: Lupron serves as a palliative treatment for conditions like advanced prostate cancer, endometriosis, central precocious puberty, and anemia caused by uterine fibroids. ORILISSA, a nonpeptide small molecule GnRH antagonist, is designed for women experiencing moderate to severe endometriosis pain. Neurology: AbbVie offers Duopa and Duodopa, a levodopa-carbidopa intestinal gel for Parkinson's disease, and Ubrelvy to treat migraines (with or without aura) in adults. The therapeutic formulation of Botox is also part of its offerings. Ophthalmology: Its eye care segment features Lumigan/Ganfort (a bimatoprost ophthalmic solution) and Alphagan/Combigan (an alpha-adrenergic receptor agonist), both aimed at reducing elevated intraocular pressure (IOP) in patients with open-angle glaucoma (OAG) or ocular hypertension. Restasis, a calcineurin inhibitor immunosuppressant, is provided to enhance tear production, alongside other specialized eye care products. AbbVie Inc. also engages in research collaborations, including a partnership with Dragonfly Therapeutics, Inc. The company was founded in 2012 and operates from its headquarters in North Chicago, Illinois.
Business History
Generated: Jun 24, 2026 3:02amPrice Overview
Last updated: Jun 24, 2026 3:00am (3d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 2.37
Total Equity: -$3.27B
Shares: 1,774,000,000
Total Debt: $68.36B
Cash: $5.23B
EBITDA: $17.63B
Total Debt: $68.36B
Cash: $5.23B
Revenue: $61.16B
Revenue: $61.16B
Revenue: $61.16B
Total Equity: -$3.27B
Tax Rate: 35.8%
Equity: -$3.27B
Total Debt: $68.36B
Cash: $5.23B
Current Liabilities: $43.29B
Long-Term Debt: $59.61B
Total Debt: $68.36B
Total Equity: -$3.27B
Shares: 1,774,000,000
Shares: 1,774,000,000
CapEx: -$1.21B
Shares: 1,774,000,000
Stock Price: $234.76
Net Income: $4.23B
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
AbbVie remains a cash machine: revenue recovered from the 2023 Humira biosimilar trough ($54.3B) to $61.2B in 2025, gross margins are back to 70%+, and FCF has been $17-24B every year for five years. The Skyrizi/Rinvoq immunology successors plus the Allergan portfolio appear to be carrying the franchise through the loss-of-exclusivity transition, and 2025 operating margin snapped back to 32.8% from a depressed 16.2% in 2024 (which was weighed by acquisition-related IPR and D charges, inferred). Earnings quality screens clean: OCF/NI of 3.54x, accruals -10.5% of assets, Beneish M of -2.87 - no manipulation flags. Share count is essentially flat (diluted CAGR ~0%), buybacks run 178% of SBC, and SBC is only 1.6% of revenue, so per-share value is genuinely protected. The real constraint is the balance sheet: net debt of roughly $63B against only $5.3B liquid cash, with $8.75B short-term debt exceeding cash on hand. Altman Z of 2.48 sits in the grey zone. For a company throwing off $17B+ FCF this is serviceable, but it is a constraint, not a cushion - leaving little room for another large levered deal without stressing the structure. Insider tape is routine equity awards with no open-market buys and modest sales ($21.8M over 12 months); not a quality signal either way.
Verify before trusting this (6)
- Pace of Humira erosion vs Skyrizi/Rinvoq growth trajectory in segment disclosures
- Debt maturity ladder and refinancing schedule for the $8.75B short-term portion
- Nature of 2023-2024 operating margin compression - acquired IPR and D vs operational issues
- Pipeline depth beyond immunology (oncology, neuroscience) to gauge next-decade durability
- Patent cliff exposure for Skyrizi and Rinvoq themselves (late 2020s/early 2030s)
- Goodwill and intangibles on balance sheet from Allergan and other deals - impairment risk
The e2e composite and signal-adjusted fair value both land at $189.93, while shares change hands at $234.76. That is roughly a 24% premium to deserved value, or put differently, the market is paying $235 for what the blended methods say is worth $190. Earnings quality is high (no haircut needed) and the business is genuinely strong, which justifies a premium multiple - but a premium is already embedded in the $190 fair value, so paying another ~24% on top is doubling up on quality.
Verify before trusting this (4)
- RINVOQ and SKYRIZI quarterly script trends and guidance updates
- Updated immunology peak-sales guidance from management
- Net debt paydown pace and any large BD/M&A that re-levers
- Oncology pipeline readouts that could justify a higher deserved value
The macro tape is neutral-to-slightly-soft (VIX 19.5, S&P off 3% from highs, 10y at 4.5%), which would normally drag equities, but with a beta of 0.31 ABBV barely feels the rates pressure. Big Pharma is currently the market's preferred hide-out: the healthcare sector closed higher Tuesday, and the active narrative around ABBV is the 'boring but trustworthy' steady-compounder archetype that investors lean into during regime uncertainty. That archetype is being actively reinforced this week by the $10.9B Apogee deal, which the tape read as a pipeline-deepening, immunology-bolstering move - shares jumped, and the bull case (offsetting HUMIRA cliff with JAK and now Apogee assets) just got fresh oxygen. Analyst tone confirms the lean: 28 Buys vs 12 Holds, target $258 vs $235, and 2 upward revisions this month averaging $266.5 - tone is tilting MORE positive, not diverging negatively from the narrative. The competing news flow (Lilly dominating by 2032, Merck's $50B plan) is a low-grade headwind reminding investors ABBV is not the glamour name in pharma, but the cult coefficient is low and nobody owns ABBV for glamour. Net: defensive sector bid + fresh deal narrative + improving analyst revisions > mild macro drag.
Verify before trusting this (4)
- Whether Apogee deal sentiment holds past the initial pop or fades into integration concerns
- Any further analyst target hikes following the APGE announcement
- Rotation flows: if risk-on returns, defensive pharma bid could reverse
- HUMIRA biosimilar erosion datapoints in next print - could break the steady-compounder narrative
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 24, 2026 3:06am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $56.2B | $58.1B | $54.3B | $56.3B | $61.2B |
| Cost of Revenue | $17.4B | $17.4B | $20.4B | $16.9B | $18.2B |
| Gross Profit | $38.8B | $40.6B | $33.9B | $39.4B | $43.0B |
| Operating Expenses | $20.8B | $22.5B | $21.1B | $30.3B | $22.9B |
| Operating Income | $17.9B | $18.1B | $12.8B | $9.1B | $20.1B |
| Net Income | $11.5B | $11.8B | $4.9B | $4.3B | $4.2B |
| EBITDA | $23.9B | $24.2B | $17.2B | $14.9B | $17.6B |
| EPS | $6.48 | $6.65 | $2.73 | $2.40 | $2.37 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 24, 2026 3:00am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $9.7B | $9.2B | $12.8B | $5.5B | $5.2B |
| Total Current Assets | $27.9B | $28.5B | $33.0B | $25.6B | $29.1B |
| Total Assets | $146.5B | $138.8B | $134.7B | $135.2B | $134.0B |
| Current Liabilities | $35.2B | $29.5B | $37.8B | $38.7B | $43.3B |
| Long-Term Debt | $64.2B | $59.1B | $52.2B | $60.3B | $59.6B |
| Total Liabilities | $131.1B | $121.5B | $124.3B | $131.8B | $137.2B |
| Total Equity | $15.4B | $17.3B | $10.4B | $3.3B | -$3.3B |
| Retained Earnings | $3.1B | $4.8B | -$1.0B | -$7.9B | -$15.5B |
Cash Flow (Annual)
Last updated: Jun 24, 2026 3:06am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $22.8B | $24.9B | $22.8B | $18.8B | $19.0B |
| Capital Expenditure | -$787.0M | -$695.0M | -$777.0M | -$974.0M | -$1.2B |
| Free Cash Flow | $22.0B | $24.2B | $22.1B | $17.8B | $17.8B |
| Acquisitions (net) | -$1.9B | -$794.0M | -$1.2B | -$17.5B | -$204.0M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$934.0M | -$1.5B | -$2.0B | -$1.7B | -$980.0M |
| Net Change in Cash | $1.3B | -$545.0M | $3.6B | -$7.3B | -$295.0M |
Analyst Estimates (Annual)
Last updated: Jun 24, 2026 3:00am (3d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$72.7B $71.2B – $74.0B
|
$78.0B $77.9B – $78.0B
|
$82.2B $80.5B – $83.4B
|
$83.7B $82.0B – $84.9B
|
| EBITDA |
$24.9B $24.4B – $25.3B
|
$26.7B $26.7B – $26.7B
|
$28.1B $27.6B – $28.5B
|
$28.7B $28.1B – $29.1B
|
| Net Income |
$29.3B $27.7B – $30.8B
|
$30.3B $24.6B – $35.9B
|
$34.7B $33.8B – $35.3B
|
$35.7B $34.7B – $36.3B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 24, 2026 3:06am (3d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +3.3% | -6.4% | +3.7% | +8.6% |
| Gross Profit Growth | +4.9% | -16.6% | +16.3% | +8.9% |
| Operating Income Growth | +1.1% | -29.6% | -28.4% | +119.9% |
| Net Income Growth | +2.5% | -58.9% | -12.0% | -1.2% |
| EBITDA Growth | +1.0% | -29.0% | -13.2% | +18.2% |
Insider Trading (Recent)
Last updated: Jun 24, 2026 3:06am (3d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-05-08 | FALK THOMAS J | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | WADDELL FREDERICK H | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | Roberts Rebecca B | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | RAPP EDWARD J | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | Quaggin Susan E | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | MEYER MELODY B | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | Hart Brett J | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | FREYMAN THOMAS C | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | Davis Jennifer L. | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | BURNSIDE WILLIAM H.L. | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-05-08 | AUSTIN ROXANNE S | A-Award | 1,118.00 | $0.00 | $0 |
| 2026-03-31 | Quaggin Susan E | A-Award | 71.00 | $217.49 | $15,442 |
| 2026-03-31 | RAPP EDWARD J | A-Award | 155.00 | $217.49 | $33,711 |
| 2026-03-31 | Alpern Robert J | A-Award | 35.00 | $217.49 | $7,612 |
| 2026-02-27 | Purdue David Ryan | F-InKind | 2,108.00 | $232.08 | $489,225 |
| 2026-03-04 | Purdue David Ryan | S-Sale | 5,230.00 | $233.56 | $1.2M |
| 2026-02-27 | Crum Demetris D | F-InKind | 1,594.00 | $232.08 | $369,936 |
| 2026-02-27 | Thakkar Roopal | F-InKind | 8,037.00 | $232.08 | $1.9M |
| 2026-02-27 | Michael Robert A. | F-InKind | 36,523.00 | $232.08 | $8.5M |
| 2026-02-27 | Stewart Jeffrey Ryan | F-InKind | 23,812.00 | $232.08 | $5.5M |
Dividend History (Last 20)
Last updated: Jun 24, 2026 3:00am (3d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-07-15 | $1.73 | 2026-06-18 | 2026-07-15 | 2026-08-14 |
| 2026-04-15 | $1.73 | 2026-02-19 | 2026-04-15 | 2026-05-15 |
| 2026-01-16 | $1.73 | 2025-10-31 | 2026-01-16 | 2026-02-17 |
| 2025-10-15 | $1.64 | 2025-09-05 | 2025-10-15 | 2025-11-14 |
| 2025-07-15 | $1.64 | 2025-06-20 | 2025-07-15 | 2025-08-15 |
| 2025-04-15 | $1.64 | 2025-02-13 | 2025-04-15 | 2025-05-15 |
| 2025-01-15 | $1.64 | 2024-10-30 | 2025-01-15 | 2025-02-14 |
| 2024-10-15 | $1.55 | 2024-09-06 | 2024-10-15 | 2024-11-15 |
| 2024-07-15 | $1.55 | 2024-06-20 | 2024-07-15 | 2024-08-15 |
| 2024-04-12 | $1.55 | 2024-02-15 | 2024-04-15 | 2024-05-15 |
| 2024-01-12 | $1.55 | 2023-10-27 | 2024-01-16 | 2024-02-15 |
| 2023-10-12 | $1.48 | 2023-09-08 | 2023-10-13 | 2023-11-15 |
| 2023-07-13 | $1.48 | 2023-06-22 | 2023-07-14 | 2023-08-15 |
| 2023-04-13 | $1.48 | 2023-02-16 | 2023-04-14 | 2023-05-15 |
| 2023-01-12 | $1.48 | 2022-10-28 | 2023-01-13 | 2023-02-15 |
| 2022-10-13 | $1.41 | 2022-09-09 | 2022-10-14 | 2022-11-15 |
| 2022-07-14 | $1.41 | 2022-06-23 | 2022-07-15 | 2022-08-15 |
| 2022-04-13 | $1.41 | 2022-02-17 | 2022-04-15 | 2022-05-16 |
| 2022-01-13 | $1.41 | 2021-10-29 | 2022-01-14 | 2022-02-15 |
| 2021-10-14 | $1.30 | 2021-09-10 | 2021-10-15 | 2021-11-15 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Starting with the raw tape: TTM revenue is roughly $62.8B (Q2'25 through Q1'26: 15.42+15.78+16.62+15.00), up from ~$58B a year prior — call it 8% organic growth, consistent with the SKYRIZI/RINVOQ ramp narrative. But the net income line is ugly and noisy: Q1'26 NI $699M on $15B revenue (4.7% margin), Q3'25 NI $186M (1.2%), Q4'24 essentially zero. Full-year 2025 GAAP NI of $4.23B on $61.16B revenue is a 6.9% net margin versus 20%+ in 2021-22. Operating income did rebound to $20.1B in 2025 from $9.1B in 2024, so the operating engine is recovering — the gap between op income and NI ($20.1B vs $4.2B) is the IPR&D charges, amortization of the Allergan/ImmunoGen/Cerevel deals, and interest expense on the debt stack. FCF of $17.8B against a $415B market cap is a 4.3% FCF yield, plus a 2.87% dividend. That is not "priced for perfection"; that is priced like a quality compounder with a known overhang.
Where I diverge from the prior models: the pre-flight thesis says the market implies "15% margins, not 20%." Look at the actual operating margin — 32.9% TTM and 32.9% on 2025 annual. The GAAP NI compression is largely non-cash amortization and one-time charges, not a real economic margin collapse. EV/EBITDA of 28x is the more honest multiple and it is rich — but not crazy for a company growing revenue 8-9% with $17.8B in FCF and a credible post-HUMIRA growth algorithm (SKYRIZI alone is tracking to $20B+ peak). The synthesis verdict of "Reasonable Premium" is directionally right but understates the cash quality. The Market Narrative engine's $190 DCF fair value implies a 19% downside; I think that DCF is using GAAP earnings and missing that maintenance capex is only $1.2B against $19B operating cash — this is a capital-light franchise with structurally high FCF conversion.
The contrarian case I'd actually press: (1) The Q1'26 print shows revenue stepped down to $15.00B from $16.62B in Q4'25 — sequential deceleration that could be seasonality but warrants scrutiny against the "accelerating SKYRIZI ramp" story. Recent revenue YoY of 8.6% is good, but the quarterly trend tag says "decelerating," and that matters at 28x EV/EBITDA. (2) Negative book value (P/B -124) means AbbVie has bought back more equity than it has retained earnings and carries $60B+ of goodwill from Allergan — any impairment is a headline risk and the balance sheet has zero margin of safety, current ratio 0.67. (3) Cash is only $5.23B against a debt load the file conspicuously omits (it's ~$67B gross last I checked); refinancing at 5%+ rates versus the sub-3% legacy stack is a real EPS drag the bulls hand-wave. (4) JAK class safety overhangs (boxed warnings on RINVOQ) are a tail risk that doesn't show up in any multiple until it does. (5) Insider activity is ten identical 1,118-share awards on the same day — that's a board grant, not a signal; the "Neutral Insider Activity" tag is correct but the absence of open-market buying at $235 is itself a mild tell.
GPT Critique
In analyzing AbbVie's recent financial performance, a few key points stand out. The company's quarterly revenue has been relatively stable, with a slight upward trend over the past year, reaching $15.00 billion in Q1 2026. However, net income has been erratic, with significant fluctuations in margins, such as a 4.7% margin in the most recent quarter down from 10.9% in the prior quarter. The annual figures show a stark contrast between operating and net income, likely due to non-cash charges, indicating that while operationally strong, AbbVie's profitability is heavily impacted by amortization and interest expenses. Their cash flow remains robust with a free cash flow of $17.82 billion, supporting a 2.87% dividend yield, a clear signal of financial strength amidst the transition from HUMIRA.
I disagree with Opus's assertion that AbbVie is "not priced for perfection" but is a "quality compounder with a known overhang." The high EV/EBITDA of 28x amidst a transitioning phase suggests that much optimism is baked into the current price. While Opus mentions the credible growth trajectory with SKYRIZI and RINVOQ, the significant amortization charges and the negative book value due to the Allergan acquisition are concerning, reflecting potential balance sheet vulnerabilities. The high price-to-earnings ratio of 114.44x further indicates that the market's valuation is aggressive given the current earnings profile.
I concur with Opus's point on the potential risks arising from the "sequential deceleration" in revenue from Q4 2025 to Q1 2026, which contradicts the narrative of an accelerating SKYRIZI ramp. This deceleration, combined with the negative book value and significant goodwill, suggests a precarious balance sheet position that could become problematic if the macro environment worsens or if competitive pressures from Eli Lilly intensify.
A careful skeptic might argue that both Opus and I are underestimating AbbVie's potential for operational improvement and margin recovery, particularly if the company's pipeline assets diversify successfully. They might also point to the company's strategic acquisitions as a long-term value driver, which could mitigate the immediate concerns around amortization and debt. However, this optimism is contingent on execution and market conditions, which remain uncertain.