Shares of AbbVie Inc. (NYSE: ABBV) fell 6.5% to $210.93 on Wednesday, after the pharmaceutical leader reported fourth-quarter 2025 results. While the company exceeded analyst estimates for both revenue and profit and issued a 2026 forecast above consensus, the stock faced significant pressure. Investors pointed to declining oncology and aesthetics sales, alongside a major R&D and capital spending pledge, as drivers for the intraday retreat.
Company Description
AbbVie Inc. is a global, research-based biopharmaceutical company focused on developing and marketing advanced therapies in complex therapeutic areas. Its core business is centered on immunology, featuring blockbuster treatments Skyrizi and Rinvoq, as well as neuroscience, oncology, and medical aesthetics. The company serves patients in more than 170 countries, with a primary manufacturing and research footprint in the United States.
Market Performance and Valuation
- Current Stock Price: $210.93 (Close Feb 4, 2026)
- Market Capitalization: Approximately $372.79 billion
- 52-Week Context: Shares have traded between $164.39 and $244.81 over the past 12 months. Wednesday’s move erased gains from the previous month, as the stock had recently approached its all-time high.
- Valuation: AbbVie trades at a forward P/E ratio of 14.5x based on the $14.47 midpoint of its 2026 adjusted EPS guidance. This multiple reflects a discount to its recent peak valuation as the market recalibrates for increased long-term capital commitments.
Fourth Quarter and Full-Year 2025 Results
AbbVie reported financial results for the period ended December 31, 2025:
- Q4 Revenue: $16.62 billion, up 10.0% year-over-year, beating the $16.39 billion analyst consensus.
- Q4 Adjusted EPS: $2.71, exceeding the $2.65 consensus estimate. Note: These results include a $0.71 per share impact from acquired IPR&D and milestones.
- Full-Year Revenue: $61.16 billion, an increase of 8.6% over 2024.
- Segment Performance:
- Immunology: Net revenues rose 18.3% in Q4 to $8.63 billion. Skyrizi (+32.1%) and Rinvoq (+29.8%) continued to offset Humira erosion.
- Neuroscience: Net revenues grew 15.5% to $2.81 billion.
- Oncology: Net revenues fell 1.5% to $1.66 billion, pressured by competition for Imbruvica.
- Aesthetics: Net revenues declined 0.9% to $1.29 billion, as Juvederm sales fell 10.7%.
2026 Guidance and Forecasts
The company issued an upbeat outlook for the upcoming fiscal year:
- Adjusted EPS Guidance: Projected at $14.37 to $14.57, above the Zacks consensus of $14.32. This guidance notably excludes potential future acquired IPR&D and milestone expenses.
- Revenue Growth: Anticipated to grow approximately 9.5% operationally in 2026 to nearly $67 billion.
Geopolitical Risk and Trade Policy
On January 12, 2026, AbbVie announced a landmark three-year agreement with the U.S. administration:
- Tariff Protections: The company secured a three-year exemption from potential tariffs on imported medical components.
- Pricing & Access: AbbVie will provide lower Medicaid pricing and expand direct-to-patient cash-pay options via the “TrumpRx” initiative.
- Domestic Commitment: AbbVie pledged $100 billion in U.S.-based R&D and capital investments over the next decade. Analysts noted that while this ensures regulatory stability, the high investment commitment may impact near-term free cash flow margins.
SWOT Analysis
| Strengths | Weaknesses |
| High capture rate in immunology with Skyrizi and Rinvoq. | Persistent oncology headwinds (Imbruvica IRA pricing). |
| Non-Humira growth engines delivering 14%+ operational growth. | Negative growth in global aesthetics and oncology segments. |
| Opportunities | Threats |
| Regulatory and tariff stability through 2029 U.S. agreement. | High 10-year capex/R&D pledge ($100B) potentially capping buybacks. |
| Obesity and neuropsychiatry pipeline expansion (90 clinical programs). | Continued biosimilar erosion for Humira (sales down to $4.5B). |