• AbbVie recently reported strong second-quarter 2025 results, with sales rising to US$15.42 billion and adjusted earnings per share of US$2.97, both exceeding analyst expectations, and raised its full-year guidance for revenue and adjusted EPS.
• This performance was powered by robust growth in immunology drugs Rinvoq and Skyrizi, with additional pipeline momentum from positive Phase 3 trial results and regulatory milestones.
• To explore the implications for AbbVie's investment narrative, we'll consider how Rinvoq and Skyrizi's growth supports the case for sustained revenue and margin improvements.

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AbbVie Investment Narrative Recap

To own AbbVie, you need to believe in the company’s ability to outpace biosimilar erosion, particularly with Humira, by driving sustained growth from newer immunology drugs like Skyrizi and Rinvoq. While the latest quarterly outperformance and raised guidance highlight these strengths, reliance on these drugs remains the key short-term catalyst, with pressure from biosimilar competition as the leading risk; at this stage, the recent news strengthens the catalyst but does not fully resolve the core risk.

Of all the recent announcements, positive Phase 3 results for Rinvoq in alopecia areata stand out by expanding potential indications and reinforcing confidence in the drug’s momentum. This progress directly supports the narrative that Skyrizi and Rinvoq are crucial levers for near-term and medium-term revenue growth, especially as the Humira cliff continues to weigh on overall results.

Yet, investors should be mindful: despite impressive growth from new drugs, the ongoing erosion in Humira sales could create margin pressures that...

AbbVie's narrative projects $70.7 billion revenue and $19.1 billion earnings by 2028. This requires 7.2% yearly revenue growth and a $14.9 billion earnings increase from $4.2 billion today.

Uncover how AbbVie's forecasts yield a $210.08 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community show a wide US$187.76 to US$500.52 range. Your outlook may shift if you consider how AbbVie’s growth focus in immunology counters competition, yet significant margin risk remains if biosimilar pressures intensify.

Explore 8 other fair value estimates on AbbVie - why the stock might be worth just $187.76!

Build Your Own AbbVie Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AbbVie research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free AbbVie research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AbbVie's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.