ABBV earnings analysis
What we found in ABBV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AbbVie delivered strong Q2 top-line growth, with revenue of $16.990B rising 10.2% year over year and gross margin expanding to 75%, led by Skyrizi and Rinvoq. EPS of $3.65 recovered sharply from Q1 but missed the $3.77 consensus estimate, while biosimilar-driven Humira erosion and continuing declines in Imbruvica remain material offsets. First-half cash generation improved to $7.265B of operating cash flow, though the proposed Apogee financing and Medicare pricing exposure for Botox add medium-term execution and capital-allocation considerations.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth accelerated sequentially
- Q2 net revenue was $16.990B, up 10.2% reported (9.5% constant currency) from $15.423B a year earlier and 13.3% from $15.0B in Q1 2026. U.S. revenue grew 9.3% to $12.861B and international revenue grew 12.8% to $4.129B.
- Gross margin expanded 300 bps YoY
- Gross margin rose to $12.699B, or 75% of revenue, from $11.077B and 72% a year ago—a 300-basis-point expansion. Management attributed the increase primarily to higher revenue against lower fixed costs, including decreased intangible-asset amortization.
- Skyrizi and Rinvoq remained core growth engines
- Skyrizi generated $5.505B of Q2 revenue, up 24.4% year over year, while Rinvoq generated $2.525B, up 24.5%. Management cited continued market-share uptake and market growth across indications for both products.
- EPS rebounded but missed consensus
- Diluted EPS was $3.65, versus $0.39 in Q1 2026 and $0.52 in Q2 2025. The Q2 result was below the $3.77 consensus estimate despite revenue exceeding the $16.760B estimate by 1.37%.
- Operating cash flow and free cash flow increased
- Six-month operating cash flow increased to $7.265B from $6.788B, while capital expenditures were $587M versus $504M. Implied six-month free cash flow was $6.678B, and capex represented 8.1% of operating cash flow.
- Liquidity and credit profile strengthened
- Liquidity remained supported by $8.0B of senior-note issuance during the first six months, no commercial paper outstanding at June 30, and undrawn $5.0B and $3.0B revolving facilities. Moody's upgraded the long-term rating to A2 in February and S&P revised its outlook to positive in June.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Humira erosion remains substantial
- Humira Q2 revenue declined 35.9% year over year to $756M, including a 47.0% decline in U.S. sales to $425M, due primarily to direct biosimilar competition following loss of exclusivity.
- Legacy oncology and HCV products are contracting
- Imbruvica revenue fell 29.4% to $532M in Q2, driven by unfavorable U.S. pricing, lower U.S. demand and lower collaboration revenue. Other legacy products also declined, including Mavyret (-21.2% to $295M).
- Pricing and aesthetics-demand pressure
- Botox was selected as one of 15 medicines subject to government-set Medicare Parts B and D prices beginning in 2028. Separately, Q2 Juvederm Collection revenue declined 6.0% to $245M due to decreased consumer demand and unfavorable pricing.
- Apogee financing adds acquisition leverage risk
- AbbVie entered a $10.0B 364-day unsecured term-loan facility after quarter-end for the proposed Apogee acquisition; no amounts had been drawn at filing. The company also issued $8.0B of senior notes in the first six months, increasing financing exposure if the transaction proceeds.
- Boey U.S. approval delayed by manufacturing CRL
- The FDA issued a Complete Response Letter for Boey in April requesting additional manufacturing-process information. Although the letter did not cite safety or efficacy concerns or request new clinical studies, it creates U.S. launch timing uncertainty.
- No new formal risk-factor amendments disclosed
- No material risk-factor update versus the 2025 Form 10-K was presented in this 10-Q; the filing instead refers investors to the 2025 Form 10-K risk factors. Management continues to identify intellectual-property challenges, competition, R&D execution, litigation, regulation, tariffs and global uncertainty as risks.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $3.65
- Gross margin
- 75%
- Segment
- AbbVie reports one global business segment. Key Q2 product revenues: Skyrizi $5.505B (+24.4% YoY), Rinvoq $2.525B (+24.5%), Humira $756M (-35.9%), Vraylar $1.071B (+18.9%), Botox Therapeutic $1.042B (+12.2%), and Imbruvica $532M (-29.4%).
What they said about what is next.
The 10-Q provides no explicit quantitative revenue or EPS outlook. Management says it anticipates several regulatory submissions, approvals and clinical-trial data readouts over the next 12 months and expects multiple mid-stage programs to transition to late-stage development in that period.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 8, 2026
- AbbVie reported Q1 2026 revenues of $15.0 billion, a 12.4% increase year-over-year, with slightly lower diluted EPS at $2.65 compared to estimates of $2.66. Notably, the Immunology segment exhibited robust growth, with…
- 10-K · February 20, 2026
- AbbVie describes itself as a single global, research-based biopharmaceutical company with leadership positions across immunology, neuroscience, oncology and aesthetics. The company delivered revenue growth in 2025 while…
- 10-Q · November 4, 2025
- AbbVie reported Q3 2025 net revenues of $15,776 million, up $1,316 million (+9.1%) versus Q3 2024, but operating earnings fell to $1,904 million from $3,831 million a year ago and diluted EPS declined to $0.10 from…
- 10-Q · August 4, 2025
- AbbVie reported Q2 net revenues of $15,423 million, up $961 million versus Q2 2024, with operating earnings rising to $4,894 million. Diluted EPS fell to $0.52 from $0.77 a year ago, driven by a large increase in other…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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