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    ABBV
    Earnings call· Sep 2025(Q3 FY25)

    AbbVie Inc. ABBV

    Oct 31, 2025 Source

    Executive summary

    AbbVie Q3 FY25 — Strong Growth Platform Drives Raised FY25 Outlook

    AbbVie delivered a strong Q3 FY25, exceeding revenue and EPS expectations, driven by robust performance from its growth platform, particularly Skyrizi, Rinvoq, and neuroscience. The company raised its full-year outlook for the third time, underscoring confidence in its diversified portfolio and pipeline. Despite ongoing Humira erosion and macro headwinds in aesthetics, AbbVie is strategically investing in R&D and external innovation to secure long-term growth beyond the current decade.

    Highlights

    5

    • Adjusted EPS of $1.86, which is $0.10 above guidance midpoint.

    • Total net revenues were nearly $15.8 billion, beating expectations by approximately $300 million.

    • Combined sales growth of more than 40% from Skyrizi and Rinvoq.

    • Neuroscience delivered double-digit revenue growth of 19.6% on an operational basis.

    • Announced a 5.5% increase in quarterly cash dividend, to $1.73 per share.

    Concerns

    5

    • Humira global sales were $993 million, down 55.7% on an operational basis due to biosimilar competition.

    • Oncology delivered total revenues of nearly $1.7 billion, relatively flat versus prior year, impacted by Imbruvica sales decline.

    • Aesthetics global sales were approximately $1.2 billion, down 4.2% on an operational basis, reflecting challenging market conditions.

    • Imbruvica IRA pricing will kick in next year, adding a headwind.

    • Aesthetics market conditions have been more protracted than anticipated, with the U.S. filler market down double digits.

    Guidance & targets

    14
    CategoryTargetConfidence
    Full-year 2025 Adjusted EPS
    $10.61 to $10.65
    high materiality
    High
    Full-year 2025 Total Net Revenues
    approximately $16.9 billion
    high materiality
    High
    Full-year 2025 Skyrizi Global Sales
    $17.3 billion
    medium materiality
    High
    Full-year 2025 Neuroscience Global Revenues
    $10.7 billion
    medium materiality
    High
    Full-year 2025 Aesthetics Total Sales
    $4.9 billion
    medium materiality
    High
    Full-year 2025 Adjusted Gross Margin
    84% of sales
    medium materiality
    High
    Full-year 2025 Adjusted R&D Expense
    $9 billion
    medium materiality
    High
    Full-year 2025 Adjusted SG&A Expense
    $13.5 billion
    medium materiality
    High
    Full-year 2025 Adjusted Operating Margin Ratio
    approximately 41% of sales
    medium materiality
    High
    Full-year 2025 Non-GAAP Tax Rate
    approximately 17.3%
    medium materiality
    High
    Q4 2025 Net Revenues
    more than $16.3 billion
    medium materiality
    High
    Q4 2025 Adjusted EPS
    $3.32 to $3.36
    high materiality
    High
    Net Leverage Ratio
    2x
    medium materiality
    High
    Compound Revenue Growth
    high single-digit
    high materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Immunology
    Strong performance driven by Skyrizi and Rinvoq, exceeding expectations across multiple indications, particularly in gastroenterology. Rinvoq's expanded label in IBD further strengthens its position.
    Skyrizi global sales: $4.7 billionSkyrizi operational growth: 46%Rinvoq global revenues: nearly $2.2 billionRinvoq operational growth: 34.1%Skyrizi and Rinvoq combined IBD sales: nearly double this yearSkyrizi and Rinvoq in-play share leadership in Crohn's disease: a dozen countriesSkyrizi and Rinvoq capture of newer switching Crohn's patients (U.S.): roughly 50%Skyrizi and Rinvoq in-play share leadership in ulcerative colitis: more than 10 key marketsSkyrizi and Rinvoq capture of newer switching UC patients (U.S.): nearly 1 out of every 3Skyrizi in-play patient share for biologics in psoriasis (U.S.): 50%
    		$7.9 billion11.2% operational basis——
    Humira
    Reflects biosimilar competition. Anticipated decrease in U.S. access throughout remainder of 2025 and into 2026, partially offset by price benefit.
    		$993 milliondown 55.7% operational basis——
    Oncology
    Momentum from Venclexta and newer products helped offset expected sales decline from Imbruvica. Expanding commercial capabilities in heme and solid tumors.
    Venclexta momentumNewer products (Elahere, Epkinly, EMRELIS) contributingImbruvica sales decline due to competitive dynamics in CLL
    		nearly $1.7 billionrelatively flat——
    Aesthetics
    Facing challenging market conditions globally due to low consumer sentiment and impact on discretionary spending. Investing in patient activation, promotion, and product innovation.
    Botox Cosmetic global revenues: $637 millionJuvederm global sales: $253 millionBotox Cosmetic U.S. share: low 60s%HA filler U.S. share: mid-40s% (approx. 45%)
    		approximately $1.2 billiondown 4.2% operational basis——
    Neuroscience
    Exceptional performance driven by the migraine portfolio (Ubrelvy, Qulipta, Botox Therapeutic) and Vraylar. Qulipta is now the #1 CGRP for migraine prevention. VYALEV launch trajectory impressive, especially internationally.
    Qulipta total prescription share for migraine prevention: approximately 7.5%Vraylar total sales: $934 millionVraylar growth: 6.7%VYALEV total sales: $138 millionVYALEV sequential growth: 40%
    		more than $2.8 billion19.6% operational basis——

    Operational metrics

    21
    Adjusted EPS
    $1.86$0.10 above guidance midpoint
    Q3 FY25

    Includes a $1.50 unfavorable impact from acquired IPR&D expense, primarily reflecting upfront charges for the acquisition of Capstan Therapeutics and our license agreement with IGI.

    Total Net Revenues
    nearly $15.8 billionexceeding expectations by approximately $300 million
    Q3 FY25
    Ex-Humira Growth Platform Sales Growth
    more than 20%exceeding expectations
    Q3 FY25
    Adjusted Gross Margin
    83.9%
    Q3 FY25
    Adjusted R&D Expense as % of Sales
    14.3%
    Q3 FY25
    Adjusted SG&A Expense as % of Sales
    21.6%
    Q3 FY25
    Adjusted Operating Margin Ratio
    30.9%
    Q3 FY25

    Includes a 17% unfavorable impact from acquired IPR&D expense.

    Net Interest Expense
    $667 million
    Q3 FY25
    Adjusted Tax Rate
    24.5%
    Q3 FY25

    Reflecting the lower deductibility of acquired IPR&D expense this quarter.

    Cash Balance
    more than $5.6 billion
    End of September
    Quarterly Cash Dividend
    $1.735.5% increase
    Quarterly

    Beginning with the dividend payable in February 2026. Since inception, grown by more than 330%.

    R&D Expense
    $9 billionsubstantial increase from prior year
    FY25

    Supports numerous pipeline opportunities across core areas: immunology, oncology, neuroscience and aesthetics as well as new sources of growth like obesity.

    Capital Investment in U.S.
    at least $10 billion
    Next 10 years

    Construction underway for new API manufacturing site in North Chicago and expansion of biologics manufacturing and R&D capacity in Worcester.

    Number of Pipeline Programs
    approximately 90
    Current

    Across all stages of development.

    Number of Deals Executed
    approximately 30
    Since beginning of 2024

    Assessing external innovation across all key growth areas.

    IL-23 NBRx share for UC
    approaching 40%up from 5% just over a year ago
    Latest quarter

    Dramatic change in adoption of IL-23s.

    U.S. Toxin Market Growth
    flattish
    Current
    U.S. Filler Market Growth
    down double digits
    Current
    VYALEV In-play Capture
    roughly 80%-85%
    Current
    Biopenetration in Crohn's Disease
    above 50%
    Current
    Biopenetration in Atopic Dermatitis
    high single-digit
    Current

    Industry KPIs

    9
    MetricValueDetails
    Launch access metricsFull formulary coverage
    Pipeline read out calendarMultiple readouts and approvals expected
    Product franchise net sales$4.7 billionUSD
    Regulatory approvals filingsMultiple submissions and approvals
    Peak long term sales guidanceat least $2 billionUSD
    Therapeutic drug market share50%%
    Prescription volume new startsapproximately 7.5%%
    Clinical trial efficacy safety dataMultiple positive results
    Collaboration milestone royalty revenue$2.2 billionUSD

    Product announcements

    2
    ProductTypeDetails
    BOTOX and Fillerslaunch
    Rinvoqupdate

    Deals & partnerships

    4
    GilgameshAcquisition of bretisilocin

    Acquired bretisilocin, a novel (5-HT)2A receptor agonist and 5-HT releaser with a short duration of hallucination, for MDD.

    Capstan TherapeuticsAcquisition of Capstan Therapeutics

    Acquired Capstan Therapeutics, strengthening immunology pipeline with an in vivo CAR-T platform.

    IGILicense agreement

    License agreement with IGI, contributing to acquired IPR&D expense.

    SimcereBD transaction for trispecific antibodies

    BD transaction for trispecific antibodies from Simcere, contributing to oncology pipeline.

    Risks & headwinds

    5
    Humira biosimilar competitionQ3 FY25, continuing into 2026

    global sales down 55.7% on an operational basis

    Mitigation: Growth platform (Skyrizi, Rinvoq, Neuroscience) overperformance; price benefit from exclusionary contracts in Q4.

    Imbruvica competitive dynamicsongoing, IRA pricing kicks in next year

    expected sales decline

    Mitigation: Momentum from Venclexta and newer oncology products (Elahere, Epkinly, EMRELIS).

    Challenging market conditions in aestheticsQ3 FY25, more protracted than anticipated

    global sales down 4.2% on an operational basis

    Mitigation: Investing in patient activation, robust promotion, product innovation (new consumer campaigns for BOTOX/fillers, novel toxins like TrenibotE, next-generation fillers).

    Consumer sentiment and discretionary spendingongoing

    overall consumer sentiment remaining quite low, especially in the U.S.

    Mitigation: Investing in market stimulation, product innovation (TrenibotE, next-gen fillers) to disproportionately benefit upon market recovery.

    IRA price negotiationsprices for Vraylar and Linzess take effect in 2027

    administration's focus on achieving greater reductions was very clear

    Mitigation: Outcomes for Vraylar and Linzess will not impact long-term guidance.

    What to watch in Q4 FY25

    5

    VYALEV U.S. Revenue Inflection

    next year
    Current$138 million (Q3 FY25 sales), 40% sequential growth
    TargetFurther revenue inflection

    Why it matters

    VYALEV is an emerging leadership product in Parkinson's, and U.S. uptake is critical for its growth trajectory.

    We anticipate expanded coverage of VYALEV in the U.S. soon, which we expect will provide further revenue inflection next year.

    Q&A highlights

    5

    What are the implications of Cigna's new PBM model for AbbVie, and how did IRA negotiations go for Vraylar and Linzess?

    Rob Michael stated that AbbVie's performance is driven by differentiated medicines and execution, adaptable to PBM model changes. Jeff Stewart added that AbbVie is used to various market approaches globally. Rob confirmed IRA outcomes for Vraylar and Linzess will not impact long-term guidance, though prices are not yet public.

    “Ultimately, what drives AbbVie's performance is our differentiated medicines, along with our execution track record and strong culture. And that's why we deliver similar strong performance in markets outside the U.S. where PBMs and DTC do not play a role.”

    asked by Terence Flynn · answered by Robert Michael

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 Performance Highlights

    AbbVie reported adjusted EPS of $1.86, exceeding guidance by $0.10, and total net revenues of nearly $15.8 billion, beating expectations by $300 million. This strong performance was driven by the growth platform, with Skyrizi and Rinvoq combined sales up over 40% and neuroscience revenue growing 19.6% operationally. The company's ex-Humira growth platform delivered over 20% reported sales growth, surpassing expectations.

    02

    Pipeline Advancement & Strategic Investments

    The company is making significant R&D investments, anticipating $9 billion in adjusted R&D expense in 2025, a substantial increase from the prior year. This supports a robust pipeline of approximately 90 programs across immunology, oncology, neuroscience, and aesthetics, including new growth areas like obesity. AbbVie expects several key milestones in the next two years, such as new product approvals for tavapadon and PVEK, and expanded indications for Rinvoq, Epkinly, Qulipta, and Ubrelvy.

    03

    Capital Allocation & Shareholder Returns

    AbbVie remains committed to its capital allocation priorities, including investing at least $10 billion in the U.S. over the next decade for manufacturing and R&D expansion. The company also announced a 5.5% increase in its quarterly cash dividend, payable in February 2026, demonstrating a commitment to sustainable dividend growth. Free cash flow of approximately $13 billion in the first nine months of the year supports these initiatives and continued business development.

    04

    Immunology & IBD Leadership

    Skyrizi and Rinvoq continue to drive strong growth in immunology, with combined sales up over 40%. In gastroenterology, these medicines are on track to nearly double their combined IBD sales this year, achieving in-play share leadership in Crohn's disease and ulcerative colitis across multiple countries. Rinvoq's recently expanded label in IBD allows for earlier use in certain patients, further strengthening AbbVie's competitive position.

    05

    Neuroscience Momentum

    Neuroscience delivered exceptional performance with total revenues up 19.6% operationally, making it the second-largest and fastest-growing therapeutic area. The migraine portfolio (Ubrelvy, Qulipta, Botox Therapeutic) showed robust double-digit growth, and Qulipta is now the #1 CGRP for migraine prevention. VYALEV's launch trajectory in Parkinson's disease has been impressive, with strong uptake internationally and anticipated U.S. revenue inflection next year.

    06

    Aesthetics Market Headwinds

    Global aesthetics sales were down 4.2% operationally, with Botox Cosmetic and Juvederm sales declining due to challenging market conditions and low consumer sentiment, particularly in the U.S. The company acknowledges macro pressures🌐 impacting discretionary spending but remains confident in the long-term potential, investing in patient activation, promotion, and product innovation, including novel toxins and next-generation fillers.

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