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    ABBV
    Earnings call· Mar 2026(Q1 FY26)

    AbbVie Q1 FY26 earnings call ABBV

    Apr 29, 2026 Source

    Executive summary

    AbbVie Q1 FY26 — Skyrizi/Rinvoq momentum drives beat and raised FY EPS guide

    AbbVie opened FY26 ahead of plan, with the immunology and neuroscience engines more than offsetting managed declines in legacy oncology (Imbruvica) and the ongoing Humira biosimilar runoff, letting management raise the full-year EPS guide even while absorbing a sizable acquired-IPR&D charge. The quarter's signal is durability of the ex-Humira growth algorithm and confidence that Skyrizi and Rinvoq peaks exceed sell-side consensus. Forward, management leaned into an active BD stance across neuroscience, oncology and obesity, and a dense 2026 pipeline calendar — Skyrizi subcu Crohn's, tavapadon, the Skyrizi+382 combo, and early amylin (ABBV-295) obesity data — while flagging consumer-driven softness in aesthetics as the notable macro overhang.

    Highlights

    5
    • Adjusted EPS of $2.65, $0.07 above guidance midpoint, absorbing a $0.41 unfavorable acquired IPR&D drag

    • Total net revenues of $15B, beating expectations by $300M, on 12.4% growth (incl. 2.1% favorable FX)

    • Immunology revenue of $7.3B (+$1B YoY); Skyrizi $4.5B (+29.2% operational) and Rinvoq $2.1B (+20.2% operational)

    • Neuroscience revenue of ~$2.9B, up 24.3% operational, led by Vraylar $905M (+18.4%)

    • FY26 adjusted EPS guidance raised by $0.12 to $14.08–$14.28; FY revenue raised $300M to ~$67.3B

    Concerns

    5
    • Humira global sales fell to $688M, down 40.3% operational on biosimilar erosion

    • Oncology revenue down 3% operational; Imbruvica down 24.7% on IRA pricing and competitive share loss

    • Acquired IPR&D expense created a $0.41 EPS headwind and a 5% adjusted-operating-margin drag in the quarter

    • Aesthetics grew only 5.1%; Juvederm down 2.9% on lingering inflationary pressure on consumers, with fillers still declining

    • Trenibotulinum (short-duration toxin) received a manufacturing-related CRL and is delayed in the U.S.; Skyrizi+lutikizumab IBD combo cohort discontinued for lack of differentiation

    Guidance & targets

    20
    CategoryTargetConfidence
    Adjusted EPS
    $14.08 to $14.28
    high materiality
    High
    Total net revenue
    approximately $67.3 billion
    high materiality
    High
    Product revenue — Skyrizi
    $21.6 billion global revenues
    high materiality
    High
    Product revenue — Rinvoq
    $10.2 billion global sales
    high materiality
    High
    Segment revenue — Neuroscience
    $12.6 billion total revenues
    high materiality
    High
    Adjusted gross margin
    above 84% of sales
    medium materiality
    High
    Adjusted R&D expense
    approximately $9.7 billion
    medium materiality
    High
    Adjusted SG&A expense
    approximately $14.2 billion
    medium materiality
    High
    Adjusted operating margin
    approximately 47.5% of sales
    high materiality
    High
    Adjusted net interest expense
    approximately $2.7 billion
    medium materiality
    High
    Total net revenue
    approximately $16.7 billion
    high materiality
    High
    Adjusted operating margin
    approximately 50%
    medium materiality
    High
    Adjusted EPS
    $3.74 to $3.78
    high materiality
    High
    Product sales growth — Skyrizi IBD
    more than 30% global sales growth across Crohn's and ulcerative colitis
    medium materiality
    High
    Product milestone — VYALEV
    blockbuster (>$1B) revenue this year
    medium materiality
    Medium
    Franchise peak sales — Parkinson's
    peak above $5 billion
    high materiality
    Medium
    Franchise peak sales — migraine & Parkinson's
    each expected to peak in excess of $5 billion (vs consensus peaking below $4 billion)
    high materiality
    Medium
    Peak sales — Skyrizi & Rinvoq
    peak potential to exceed consensus (~$33B Skyrizi / ~$16B Rinvoq in 2031)
    high materiality
    Medium
    Net price — Skyrizi
    low single-digit price erosion for the full year
    medium materiality
    High
    Product revenue — Rinvoq new derm indications
    ~$2 billion in aggregate (base case), with upside skew
    medium materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Immunology
    Growth led by Skyrizi (psoriatic-disease leadership, leading IBD new-patient share, >30% global IBD growth on track) and Rinvoq (strength across rheum and gastro, UC inflection post expanded label). Humira decline in line with expectations on biosimilar competition.
    Skyrizi net sales: $4.5B (+29.2% operational)Rinvoq global sales: $2.1B (+20.2% operational)Humira global sales: $688M (-40.3% operational)Rinvoq in-play patient share: high-teens (rheum)Skyrizi in-play/total share vs next competitor: >4x
    $7.3B+$1B (sales growth in dollars)
    Neuroscience
    Outperformance across the portfolio; migraine leadership continues to gain share, Vraylar strong in bipolar and adjunctive MDD, VYALEV on track for blockbuster status, with tavapadon launch pending in 2H.
    Vraylar global sales: $905M (+18.4%)VYALEV sales: $201M (+~10% sequential)Migraine portfolio: robust double-digit sales growthBotox Therapeutic: robust double-digit sales growth
    ~$2.9B+24.3% operational
    Oncology
    Venclexta strong in CLL as fixed-duration BTK combinations gain preference (full U.S./U.K. approvals and positive CHMP opinion); growth partially offset the expected Imbruvica decline.
    Venclexta total sales: $770M (+9.7% operational)Imbruvica: -24.7% (IRA pricing + competitive share pressure)
    >$1.6B-3% operational
    Aesthetics
    Botox Cosmetic up on favorable U.S. price comparison and modest global market growth; Juvederm down on continued dermal-filler headwinds amid economic pressure. Long-term category prospects seen attractive on low penetration.
    Botox Cosmetic total revenues: $668M (+17%)Juvederm global sales: $232M (-2.9%)
    ~$1.2B+5.1% operational

    Operational metrics

    16
    Adjusted EPS
    $2.65$0.07 above guidance midpoint
    Q1 FY26

    Beat despite absorbing acquired-IPR&D drag.

    Total revenue growth
    12.4%beat expectations by $300M
    Q1 FY26

    FX split is call-only enrichment on the reported revenue line.

    Adjusted gross margin
    83.6%
    Q1 FY26

    FY26 guide is above 84%.

    Adjusted R&D expense ratio
    15.1%
    Q1 FY26

    FY26 adjusted R&D guided to ~$9.7B.

    Adjusted SG&A expense ratio
    22.7%
    Q1 FY26

    FY26 adjusted SG&A guided to ~$14.2B.

    Adjusted operating margin
    40.8%
    Q1 FY26

    IPR&D drag depressed the in-quarter margin; FY guide ~47.5%.

    Adjusted net interest expense
    $645M
    Q1 FY26

    FY26 guided to ~$2.7B (reduced $100M on favorable debt rates).

    Adjusted effective tax rate
    15.4%
    Q1 FY26

    Reported adjusted tax rate for the quarter.

    Acquired IPR&D EPS impact
    $0.41 unfavorable
    Q1 FY26

    Call-only enrichment; FY guidance excludes IPR&D beyond Q1.

    Skyrizi NBRx trend
    all-time highs, acceleratingvs prior quarters
    Q1 FY26

    From audits/trackers; supports leadership claim ahead of new oral competition.

    Skyrizi total demand growth
    ~30%consistent with IQVIA
    Q1 FY26

    Underlying demand vs reported sales bridge; net pricing flat this quarter, low-single-digit erosion expected for FY.

    Rinvoq in-play patient share
    high-teens
    Q1 FY26

    Demand strong across all indications; earlier-line IBD access expanding.

    Skyrizi psoriatic arthritis radiographic stability
    ~90% of patients with no radiographic progression through 5 years
    5-year data

    Added to Skyrizi's PsA evidence base; supports frontline leadership claim.

    Skyrizi maintenance efficacy (psoriasis)
    PASI 100 ~60%; PASI 90 >80%
    maintenance (beyond week 16)

    Cited to justify keeping next-gen IL-23 half-life only 2–2.5x Skyrizi's.

    US capital investment commitment
    $100B total
    next decade

    Program metric: total commitment with named-site sub-investments.

    ABBV-295 half-life
    ~270 hours
    Q1 FY26 disclosure

    Long-acting amylin analog (DACRA signaling amylin + calcitonin); tolerability strong with no severe GI events reported.

    Industry KPIs

    11
    MetricValueDetails
    Capital deployment$100B U.S. R&D + capital investment over next decade ($1.4B NC campus, $380M North Chicago); strong and growing dividend; active BD in neuro/oncology/obesityUSD
    Launch access metricsExpanded field force for Rinvoq new indications; Parkinson's team build-out for tavapadon
    Patent cliff loe bridgeSkyrizi composition patent 2033; Rinvoq/neuro portfolio bridging Humira LOE
    Pipeline read out calendarDense 2026 calendar across immunology, neuroscience, oncology, obesity
    Product franchise net salesSkyrizi $4.5B; Rinvoq $2.1B; Humira $688M; Vraylar $905M; VYALEV $201M; Venclexta $770M; Botox Cosmetic $668M; Juvederm $232MUSD
    Lead franchise concentrationSkyrizi + Rinvoq = $6.6B of $15B (~44% of total revenue)% of total revenue
    Regulatory approvals filingsRinvoq alopecia areata US submission; Skyrizi subcu Crohn's US application; Venclexta+BTK full US/UK approvals + positive CHMP; trenibotulinum US CRL; Skyrizi genital/scalp psoriasis label update approved
    Peak long term sales guidanceParkinson's franchise peak >$5B; migraine & Parkinson's each peak >$5B (vs consensus <$4B); Skyrizi/Rinvoq peaks exceed 2031 consensus (~$33B/~$16B); Rinvoq new derm indications ~$2B aggregate; Temab-A and ABBV-383 multibillion-dollar peak potentialUSD
    Therapeutic drug market shareSkyrizi >4x in-play/total share of next competitor in psoriatic disease; frontline in-play share leader in PsA and IBD
    Prescription volume new startsSkyrizi NBRx at all-time highs and accelerating; >4x in-play/total share vs next competitor; leading total new-patient starts in U.S. IBD
    Clinical trial efficacy safety dataAFFIRM (Skyrizi subcu Crohn's): 61% endoscopic response, 73% clinical remission at wk12 in bio-naive (both +45 pts vs placebo); Skyrizi+382: ~42% endoscopic remission wk24 (double monotherapy)%

    Product announcements

    4
    ProductTypeDetails
    Tavapadon (Parkinson's disease)roadmap
    Vraylar new lower doses / pediatric usageexpansion
    North Carolina manufacturing campusexpansion
    North Chicago plants (2)expansion

    Deals & partnerships

    5
    Remagenlicensing/acquisition (oncology asset)

    Agreement closed this quarter, expanding the solid-tumor pipeline; key value in combination with the ADC portfolio (esp. Temab-A).

    Castro Therapeuticspartnership / external innovation (oncology)

    Recently began a Phase I study; strategy to combine the pan-KRAS inhibitor with Temab-A in pancreatic, lung and colorectal cancers. Counterparty name possibly ASR-garbled.

    Nimble (oral peptides platform)acquisition (prior)

    Cited as part of the multi-year BD build-out supporting the combination immunology strategy; oral anti-IL-23 asset to be first-in-human this year.

    Capstan Therapeuticsacquisition (prior)

    Rob highlighted the Capstan in vivo CAR-T platform as an under-appreciated addition to the immunology pipeline.

    IRAK4 partner (China; name indiscernible)partnership (licensing/collaboration)

    Partnership underlying the oral IRAK4 program advancing to Phase IIb in RA later this year.

    Risks & headwinds

    8
    Humira biosimilar erosionongoing

    Global sales $688M, down 40.3% operational

    Mitigation: In line with expectations; offset by Skyrizi/Rinvoq growth (ex-Humira growth algorithm)

    Imbruvica decline from IRA pricing and competitionongoing

    Down 24.7%

    Mitigation: Partially offset by Venclexta growth (+9.7% operational) within oncology

    Acquired IPR&D expense dragQ1 FY26 (guidance excludes further IPR&D)

    $0.41 unfavorable EPS; 5% unfavorable to Q1 adjusted operating margin (~1% on FY basis)

    Mitigation: FY EPS guide still raised $0.12 despite the drag

    Aesthetics consumer weakness / dermal-filler headwindslingering (unusual 40-year inflationary pressure)

    Juvederm -2.9% to $232M; aesthetics segment +5.1%; fillers still declining, toxins low-single-digit growth

    Mitigation: Investing in promotion/innovation and patient activation; long-term category prospects seen attractive on low penetration

    Trenibotulinum manufacturing-related CRL / U.S. delayU.S. delayed; international launches expected this year

    Not quantified

    Mitigation: CRL cited no safety/efficacy/labeling issues and no new trials required; working with FDA on resubmission

    Intensifying I&I competition (new oral entrant and broad pipeline)launch quite early / near-term

    Not quantified

    Mitigation: Head-to-head superiority data, durability, PsA leadership, next-gen combinations; competition already factored into guidance

    Skyrizi loss of exclusivitybiosimilar filings not expected until end of the decade

    Composition patent expires 2033; regulatory data protection to 2031; later IP into mid-2030s and beyond

    Mitigation: Later-expiring IP portfolio and strong track record of vigorously defending patents

    Skyrizi+lutikizumab IBD combo discontinuation / ABBV-932 missdecisions this quarter

    Combo cohort dropped; 932 missed overall Phase II endpoint (signal only in bipolar-I subgroup)

    Mitigation: 932 being evaluated for continued development in bipolar I; broad platform pipeline continues (Skyrizi+382, TL1A)

    Q&A highlights

    10

    How is AbbVie thinking about the impact of the new competitive rollout on Skyrizi, and what are the counter-detailing messages to physicians?

    Jeff stressed Skyrizi's NBRx is still hitting all-time highs at >4x the in-play share of the next competitor, backed by head-to-head superiority data across 5 mechanisms, category-leading real-world durability, PsA 5-year joint-stability data, and new hard-to-treat-area (scalp/genital/hands/feet) data. He argued the new oral has materially lower efficacy and weak PsA evidence, and expects some market expansion (as seen with Otezla). Rob added that competition is already contemplated in guidance, which was again raised for Skyrizi.

    our NBRx has accelerated and continued to hit all-time highs... over 4x basically the in-play share and total share versus the next leading competitor

    asked by David Amsellem · answered by Jeffrey Stewart

    3 min read6 chapters

    Detailed Narrative

    01

    Q1 beat and raised full-year guidance

    AbbVie delivered Q1 adjusted EPS of $2.65, $0.07 above the guidance midpoint, absorbing a $0.41 unfavorable acquired-IPR&D charge. Total net revenues were $15B, $300M above expectations, growing 12.4% including a 2.1% favorable FX tailwind. On the strength of the quarter, management raised FY26 adjusted EPS by $0.12 to $14.08–$14.28 and lifted FY revenue $300M to ~$67.3B, with Skyrizi ($21.6B), Rinvoq ($10.2B) and Neuroscience ($12.6B) each raised $100M. Q2 is guided to ~$16.7B revenue, ~50% adjusted operating margin, and $3.74–$3.78 adjusted EPS.

    02

    Immunology — Skyrizi and Rinvoq extend leadership

    Immunology delivered $7.3B in revenue, up ~$1B YoY. Skyrizi grew 29.2% operationally to $4.5B, holding over 4x the in-play and total share of the next competitor in psoriatic disease and capturing leading new-patient share in IBD, where it is tracking to >30% global IBD growth this year. Rinvoq grew 20.2% operationally to $2.1B on strength across rheumatology and gastro (high-teens in-play share, inflection in UC after the expanded label). Humira continued its managed decline, down 40.3% operationally to $688M on biosimilar competition, in line with expectations.

    03

    Neuroscience momentum and the emerging Parkinson's franchise

    Neuroscience revenue rose 24.3% operationally to ~$2.9B. Vraylar grew 18.4% to $905M on bipolar and adjunctive-MDD script strength, with new lower doses and pediatric usage ahead. Migraine (led by the oral CGRP portfolio and Botox Therapeutic) posted double-digit growth. VYALEV reached $201M (+~10% sequential) and is tracking to blockbuster status this year, with tavapadon's expected Q3 approval set to build an oral Parkinson's franchise management believes can peak above $5B — one of three $5B+ neuroscience franchises alongside psychiatry and migraine.

    04

    Oncology reshaping and a broad solid-tumor pipeline

    Oncology revenue fell 3% operationally to >$1.6B as Imbruvica declined 24.7% on IRA pricing and competition, partially offset by Venclexta (+9.7% operational to $770M) on fixed-duration BTK-combination uptake in CLL. Management pivoted the Temab-A colorectal pivotal to an all-comers Temab-A+bevacizumab regimen (30% ORR, 97% disease-control rate vs 0%/70% for control), broadening the population and speeding enrollment, with initial data in 2H next year. Temab-A earned its first lung breakthrough designation, and the closed Remagen deal adds a PD-1×VEGF bispecific (ABBV-148) to pair with the ADC portfolio.

    05

    Aesthetics pressured by the consumer

    Aesthetics grew 5.1% operationally to ~$1.2B. Botox Cosmetic rose 17% to $668M on a favorable U.S. price comparison and modest market growth, while Juvederm fell 2.9% to $232M on continued dermal-filler headwinds. Management characterized the softness as an unusually lingering inflationary pressure on consumers — different from prior recessions where the category rebounded faster — but still sees attractive long-term category prospects given low penetration. The short-duration toxin trenibotulinum received a manufacturing-related CRL (no safety/efficacy/labeling issues) and is delayed in the U.S., though international approvals are expected this year.

    06

    Capital investment and business development

    As part of a $100B commitment to U.S. R&D and capital investments over the next decade, AbbVie announced a $1.4B pharmaceutical manufacturing campus in North Carolina and a $380M investment for two new North Chicago plants. Management reiterated an active BD posture focused on neuroscience, oncology and obesity — willing to pursue early-, late-stage or on-market differentiated assets — while stressing it does not need BD to deliver top-tier growth this decade. Recent deals span TL1A, IRAK4, Nimble (oral peptides), Capstan (in vivo CAR-T B-cell depletion), Remagen and Castro Therapeutics (KRAS).

    AI-generated summary of the company’s earnings call. Not investment advice.