AbbVie rallies on earnings beat, bullish 2026 outlook
Pharmaceutical giant raises full-year guidance as immunology drugs Skyrizi and Rinvoq drive growth
AbbVie shares climbed in early trading Wednesday after the pharmaceutical company reported stronger-than-expected fourth-quarter earnings and issued optimistic guidance for 2026, underscoring the successful transition from its flagship Humira franchise to newer immunology treatments.
The North Chicago, Illinois-based drugmaker posted adjusted earnings per share of $2.71 for the quarter ended December 31, 2025, topping analyst estimates of $2.65. Revenue reached $16.62 billion, exceeding the projected $16.39 billion, according to analyst data compiled by StreetInsider.
Most notably, AbbVie provided full-year 2026 adjusted EPS guidance of $14.37 to $14.57, well above the Wall Street consensus of $14.22. The midpoint of that range represents approximately 44% growth from fiscal year 2025's expected $10.00 per share, a figure that signals the company's accelerating momentum beyond the Humira patent cliff that had pressured results in recent years.
The quarter's performance was driven by continued robust growth from the company's newer immunology treatments. Skyrizi, which treats psoriasis and other inflammatory conditions, grew 32.5% in the fourth quarter, while Rinvoq, designed for rheumatoid arthritis and other autoimmune disorders, surged 29.5%. The strong performance of these drugs demonstrates AbbVie's successful effort to replace declining Humira sales, which faced intense competition from biosimilars following the expiration of patent protection in the U.S. and Europe.
Bloomberg reported that Botox sales also rebounded, providing an additional boost to the quarter's results. The aesthetics franchise, which AbbVie acquired through its $63 billion Allergan purchase in 2020, has been recovering from pandemic-induced demand softness.
"We expect robust growth in 2026 based on our strong fundamentals," AbbVie's management stated in the earnings announcement, reflecting confidence in the company's ability to sustain momentum across its diversified portfolio.
The upbeat outlook comes amid some analyst caution in recent weeks. Wolfe Research downgraded AbbVie from Outperform to Peer Perform in late January, arguing that the stock price already reflected gains from key immunology drugs and that investors needed greater visibility on long-term growth. Goldman Sachs maintained a Neutral rating with a $223 price target, while Citigroup modestly cut its target to $230 from $235, citing sector-wide concerns despite a generally more supportive policy environment expected in 2026.
Despite these cautious notes, the overall Wall Street consensus remains positive. Among 28 analysts covering AbbVie, 15 rate the stock a Strong Buy, one recommends Moderate Buy, and 12 suggest holding, according to data from MarketBeat. The average 12-month price target stands at $251.17, implying roughly 11% upside from current levels.
The strong guidance highlights AbbVie's successful navigation of one of the most challenging periods in its corporate history. When the company spun off from Abbott Laboratories in 2013, Humira accounted for more than 60% of total revenue. The biosimilar erosion that began in Europe in 2018 and accelerated in the U.S. in 2023 threatened to create a massive revenue void.
However, Skyrizi and Rinvoq have emerged as powerful successors. Skyrizi, approved for multiple indications including psoriasis, psoriatic arthritis, and Crohn's disease, has established itself as a market leader in the rapidly growing immunology space. Rinvoq, which competes with Pfizer's Xeljanz and other JAK inhibitors, has continued to gain market share despite regulatory warnings in the JAK inhibitor class.
AbbVie's diversified portfolio also includes oncology treatments like Imbruvica, a leukemia drug co-developed with Johnson & Johnson, and neuroscience products such as Botox and Vraylar. This breadth has helped stabilize revenue even as individual product categories face competitive pressures.
The company's dividend remains attractive to income-focused investors, with an annual yield of approximately 2.9% at current prices. AbbVie has increased its dividend for 52 consecutive years, making it a Dividend King—an elite group of companies with at least 50 years of consecutive dividend increases.
Looking ahead, investors will focus on the company's ability to maintain the momentum in Skyrizi and Rinvoq while navigating the final stages of Humira's biosimilar erosion. The robust 2026 guidance suggests management believes the worst of the transition is now behind it, setting the stage for a potential re-rating of the stock as revenue growth accelerates and margin expansion follows.