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    ABBV
    Earnings call· Jun 2026(Q2 FY26)

    AbbVie Q2 FY26 earnings call ABBV

    Jul 31, 2026 Source

    Executive summary

    AbbVie Q2 FY26 — Strong Growth Across Key Products and Strategic Acquisition

    AbbVie delivered an excellent quarter, surpassing revenue and EPS expectations driven by strong performance from its diverse portfolio, particularly Skyrizi, Rinvoq, and neuroscience assets. The company is strategically bolstering its long-term growth prospects through the acquisition of Apogee Therapeutics, enhancing its immunology pipeline. Despite expected headwinds from biosimilar competition for Humira and IMBRUVICA, management remains confident in its commercial execution and pipeline advancements, raising full-year revenue guidance.

    Highlights

    5

    • Adjusted EPS of $3.65, exceeding guidance midpoint by $0.06.

    • Total net revenues of nearly $17 billion, beating expectations by $300 million, reflecting 10.2% robust sales growth.

    • Skyrizi, Rinvoq, and neuroscience portfolio delivered double-digit sales growth, each above 20%.

    • Full-year revenue guidance raised by $300 million, totaling $600 million increase since year start.

    • Acquisition of Apogee Therapeutics bolsters immunology pipeline with significant sales potential.

    Concerns

    5

    • Humira global sales down 36.1% operationally due to biosimilar competition, in line with expectations.

    • IMBRUVICA sales down 29.4% due to IRA pricing and competitive share pressure.

    • Juvederm global sales down 6.6% operationally, reflecting continued headwinds in key dermal filler markets.

    • Full-year adjusted EPS guidance updated to $13.87-$14.07, reflecting $0.14 dilution from Apogee acquisition.

    • Adjusted net interest expense increased by $200 million to $2.9 billion due to Apogee financing costs.

    Guidance & targets

    16
    CategoryTargetConfidence
    Full-year adjusted EPS
    $13.87-$14.07
    high materiality
    High
    Full-year total net revenues
    approximately $67.6 billion
    high materiality
    High
    Full-year Skyrizi global revenues
    $21.7 billion
    medium materiality
    High
    Full-year total neuroscience revenues
    $12.7 billion
    medium materiality
    High
    Full-year adjusted gross margin
    above 84% of sales
    medium materiality
    High
    Full-year adjusted R&D expense
    approximately $9.8 billion
    medium materiality
    High
    Full-year adjusted SG&A expense
    approximately $14.5 billion
    medium materiality
    High
    Full-year adjusted operating margin ratio
    approaching 47% of sales
    medium materiality
    High
    Full-year adjusted net interest expense
    approximately $2.9 billion
    medium materiality
    High
    Full-year non-GAAP tax rate
    approximately 14.5%
    medium materiality
    High
    Q3 FY26 net revenues
    approximately $17.2 billion
    medium materiality
    High
    Q3 FY26 adjusted EPS
    $3.84-$3.88
    high materiality
    High
    Net leverage ratio
    2x
    medium materiality
    High
    Combined peak sales for Rinvoq in vitiligo and alopecia areata
    approach $2 billion
    medium materiality
    High
    Oral CGRP collective peak sales
    more than $5 billion
    medium materiality
    High
    Parkinson's portfolio collective peak sales
    more than $5 billion
    medium materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Immunology
    Very strong operational sales growth, driven by Skyrizi and Rinvoq. Humira sales declined as expected due to biosimilar competition.
    Skyrizi total sales: $5.5 billionSkyrizi operational sales growth: 24%Rinvoq global sales: $2.5 billionRinvoq operational sales growth: 23.7%Humira global sales: $756 millionHumira operational sales decline: 36.1%
    		$8.8 billion14.6%——
    Neuroscience
    Outperformed expectations with robust sales growth across all three leading neuro pillars (Vraylar, migraine portfolio, Parkinson's portfolio).
    Vraylar global sales: $1.1 billionVraylar sales growth: 19%VYALEV total sales: $256 millionVYALEV sequential sales growth: 27%
    		$3.2 billion20%——
    Oncology
    Operational sales decline primarily due to IMBRUVICA, partially offset by strong VENCLEXTA performance and contributions from other assets.
    VENCLEXTA total sales: $771 millionVENCLEXTA operational sales growth: 9.6%IMBRUVICA sales decline: 29.4%
    		$1.6 billion-2.4%——
    Aesthetics
    Global sales declined slightly, with Botox Cosmetic showing modest growth and Juvederm facing headwinds in dermal filler markets.
    Botox Cosmetic total revenues: $728 millionBotox Cosmetic operational growth: 3.4%Juvederm Global sales: $245 millionJuvederm operational sales decline: 6.6%
    		$1.3 billion-0.9%——

    Operational metrics

    21
    Adjusted EPS
    $3.65$0.06 above guidance midpoint
    Q2 FY26

    Exceeded guidance midpoint despite unfavorable impact from acquired IPR&D expense.

    Total net revenues operational growth
    10.2%
    Q2 FY26

    Reflecting robust sales growth, with a favorable impact from foreign exchange.

    Adjusted gross margin
    84.7%
    Q2 FY26

    Reported for the quarter.

    Adjusted R&D expense
    13.6%
    Q2 FY26

    Reported for the quarter.

    Adjusted SG&A expense
    21%
    Q2 FY26

    Reported for the quarter.

    Adjusted operating margin
    48.3%
    Q2 FY26

    Includes unfavorable impact from acquired IPR&D expense.

    Net interest expense
    $679 million
    Q2 FY26

    Reported for the quarter.

    Adjusted tax rate
    14.7%
    Q2 FY26

    Reported for the quarter.

    Apogee acquisition dilution
    $0.14
    FY26

    Anticipated dilution to full-year adjusted EPS related to the planned Apogee acquisition.

    Full-year FX impact on sales growth
    0.5%
    FY26

    Assumed favorable impact from foreign exchange on full-year sales growth, less than previous expectation.

    Q3 FY26 FX impact on net revenues
    0.4%
    Q3 FY26

    Estimated unfavorable impact from foreign exchange for Q3 net revenues.

    Skyrizi in-place share of new and switching psoriasis patients
    4x higherthan any other biologic or oral treatment
    Q2 FY26

    Skyrizi continues to capture robust in-place share in the US psoriasis market.

    Skyrizi market share leadership
    30+
    Q2 FY26

    Achieved market share leadership in over 30 countries globally for psoriasis.

    Skyrizi leading share of total new patient starts
    leading share
    Q2 FY26

    Skyrizi continues to capture a leading share of total new patient starts in the US IBD market, particularly in the frontline setting.

    Rinvoq gastroenterology global sales growth
    30%
    FY26

    Rinvoq is on pace to deliver 30% global sales growth in gastroenterology this year.

    Skyrizi subcutaneous induction endoscopic response and clinical remission
    25 points highervs placebo
    Study results

    In the overall population, and 45 points higher in patients who had not previously experienced advanced therapy. These results in naive patients are the highest reported for induction therapies in Crohn's disease.

    Skyrizi plus anti-alpha4beta7 endoscopic remission
    doublingvs monotherapy
    Week 24

    Interim results demonstrated a doubling of endoscopic remission at week 24 compared to either monotherapy.

    Tmab A response rate in cMET selected platinum-resistant ovarian cancer
    80%
    Early stage results

    Tmab A showed strong antitumor activity, particularly in cMET selected patients.

    Tmab A response rate in clear cell carcinoma
    50%
    Early stage results

    A segment with high unmet need that typically does not respond well to cytotoxic therapy.

    Tmab A response rate in c-MET selected advanced head and neck cancer
    31%
    Early stage results

    Demonstrated a 31% response rate and a median overall survival of 15.3 months, comparing favorably to standard of care.

    Atentamig hematologic complete response rate
    100%
    Early stage results

    At the 40-milligram dose, 100% of patients achieved hematologic complete response with a promising safety profile that included no CRS or ICANS.

    Industry KPIs

    4
    MetricValueDetails
    Peak long term sales guidance$2 billionUSD
    Therapeutic drug market share4x higher
    Prescription volume new startsno degradation
    Clinical trial efficacy safety data25 points higher

    Product announcements

    5
    ProductTypeDetails
    Decupazlaunch
    Quliptaexpansion
    Kinleyexpansion
    Boeylaunch
    Rinvoqexpansion

    Deals & partnerships

    1
    Apogee TherapeuticsAcquisition of a portfolio of long-acting biologics targeting atopic dermatitis, respiratory conditions, and other immune-mediated diseases.

    The acquisition will add multiple differentiated assets in dermatology, respiratory, and other related inflammatory diseases with significant sales potential, bolstering AbbVie's immunology portfolio.

    Risks & headwinds

    7
    Biosimilar competition for HumiraQ2 FY26

    Global sales down 36.1% operationally

    Mitigation: In line with expectations; focus on growth from diverse portfolio (Skyrizi, Rinvoq).

    IRA pricing and competitive share pressure for IMBRUVICAQ2 FY26

    Sales down 29.4%

    Mitigation: Partially offset by double-digit sales growth from Ellahere, Kinley, Amarilis.

    Headwinds in dermal filler markets for JuvedermQ2 FY26

    Global sales down 6.6% operationally

    Mitigation: Continued investment in the highly underpenetrated aesthetics market; launch of Boey to expand toxin market.

    Dilution from Apogee Therapeutics acquisitionFY26

    $0.14 to FY26 adjusted EPS

    Mitigation: More than offset by underlying business overperformance; commitment to achieving 2x net leverage ratio within 2-3 years post-close.

    Increased net interest expense due to Apogee financingFY26

    $200 million increase to $2.9 billion for FY26

    Mitigation: Secured interim financing and expect to issue long-term debt; strong cash flows and balance sheet provide financial flexibility.

    Foreign exchange impact on full-year sales growthFY26

    0.5% favorable impact (less than previous expectation)

    Mitigation: Factored into updated revenue guidance.

    Medicare formulary timing for Tavapadon launchInitial launch period

    Modest ramp at first

    Mitigation: Will take time to be added to Medicare formularies, but expected to be a substantial long-term contributor to Parkinson's peak sales.

    What to watch in Q3 FY26

    5

    Skyrizi subcutaneous induction approval

    Later this fall
    CurrentUnder FDA review
    TargetApproval decision

    Why it matters

    Approval will enable a more convenient dosing option for Crohn's disease, potentially accelerating Skyrizi's capture rate and market share in IBD.

    The U.S. application for Skyrizi subcutaneous induction in Crohn's disease is under review with an approval decision expected later this fall.

    Q&A highlights

    5

    What is the confidence in FDA approval for Skyrizi subcutaneous induction for Crohn's, and will the Skyrizi + alpha4beta7 data be presented at UEGW?

    Confidence in Skyrizi subcutaneous induction approval is high due to strong data, known asset, and established manufacturing. The Skyrizi + alpha4beta7 combination data will be presented either later this fall or at congresses next year, depending on timing.

    “So on the CD subcutaneous Skyrizi as I highlighted, very strong data. It is with Skyrizi. So it's asset well known to health authorities and manufacturing is very well known to us. So we have a very complete submission that's in front of the agency. And so far, that review is going according to plan. So no concerns at this moment.”

    asked by Terence Flynn · answered by Roopal Thakkar

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Commercial Execution and Portfolio Growth

    AbbVie reported robust Q2 FY26 performance with total net revenues of nearly $17 billion, up 10.2% operationally, exceeding expectations by $300 million. Key growth drivers included Skyrizi, Rinvoq, and the neuroscience portfolio, each achieving over 20% sales growth. The company raised its full-year revenue guidance by $300 million, marking a total increase of $600 million for the year, reflecting sustained commercial momentum.

    02

    Strategic Pipeline Advancements and Apogee Acquisition

    The company continues to advance its pipeline, highlighted by the US approval of Decupaz for a rare blood cancer and European approvals for Qulipta (migraine), Kinley (follicular lymphoma), and Boey (aesthetics). Rinvoq also received European approvals for vitiligo and alopecia areata, with combined peak sales for these indications now anticipated to approach $2 billion. The planned acquisition of Apogee Therapeutics will further strengthen AbbVie's immunology pipeline with differentiated assets in dermatology and respiratory conditions, aligning with long-term growth strategy.

    03

    Immunology Franchise Performance and Market Dynamics

    Immunology delivered nearly $8.8 billion in total revenues, growing 14.6% operationally. Skyrizi sales reached $5.5 billion, up 24% operationally, maintaining market leadership in psoriasis and IBD. Rinvoq global sales exceeded $2.5 billion, up 23.7% operationally, with strong momentum in gastroenterology. Humira sales declined 36.1% operationally due to biosimilar competition, consistent with expectations. Management noted Skyrizi's continued robust NBRx growth in psoriasis despite new market entrants, indicating market expansion.

    04

    Neuroscience Portfolio Outperformance and Future Launches

    Neuroscience revenues surpassed $3.2 billion, up approximately 20% operationally, driven by Vraylar, Botox Therapeutic, Ubrelvy, and Qulipta. Qulipta received European approval for acute and preventative migraine treatment, contributing to a long-term outlook of over $5 billion in peak sales for oral CGRPs. The Parkinson's portfolio, including VYALEV ($256 million, up 27% sequentially) and the anticipated US approval of tavapadon in Q3, is expected to achieve collective peak sales exceeding $5 billion.

    05

    Oncology and Aesthetics Updates

    Oncology revenues were over $1.6 billion, down 2.4% operationally, primarily due to IMBRUVICA's 29.4% decline from IRA pricing and competition, partially offset by VENCLEXTA's 9.6% growth and contributions from Ellahere, Kinley, and Amarilis. Decnupas was launched for BPDCN, expanding the ADC portfolio. Aesthetics global sales were nearly $1.3 billion, down 0.9% operationally, with Botox Cosmetic up 3.4% and Juvederm down 6.6%. The European and Canadian approvals of Boey, a rapid-onset toxin, are expected to expand the toxin market.

    06

    Pipeline Progress in Dermatology, Neuroscience, and Oncology

    In dermatology, Rinvoq's US approval decisions for vitiligo and alopecia areata are expected later this year/early next year. Phase III trials for Rinvoq and lutikizumab in hidradenitis suppuritiva are on track for 16-week data. Skyrizi subcutaneous induction for Crohn's disease is under FDA review. In neuroscience, tavapadon's FDA decision is expected in Q3. Oncology programs like Tmab A (colorectal, ovarian, head and neck cancers) and atentamig (multiple myeloma, amyloidosis) showed promising early-stage results, with several trials advancing to Phase III.

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