ABBV Drug Manufacturers - General
AbbVie Inc.
AbbVie is a North Chicago, Illinois-based biopharmaceutical company, spun off from Abbott Laboratories on January 1, 2013. It operates as a single business segment, with products in immunology (Skyrizi, Rinvoq, Humira), neuroscience (Vraylar, Botox Therapeutic, Ubrelvy, Qulipta), oncology (Imbruvica, Venclexta, Elahere, Epkinly), aesthetics (Botox Cosmetic, Juvederm), and eye care. FY2025 net revenues were $61.2 billion, 76% of them in the United States. Skyrizi and Rinvoq together were about 42% of net revenues, replacing Humira, whose sales have fallen sharply since biosimilar competition arrived.
Last updated
Analysis last edited: October 2, 2026 · Financial data fetched: October 2, 2026 12:01 (SEC EDGAR) · Source 10-K filed: February 20, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- AbbVie Inc.
- Headquarters
- NORTH CHICAGO, IL
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: ABBV
- Industry
- Drug Manufacturers - General
- CIK
- 1551152
- Website
- https://www.abbvie.com/ ↗
Workforce (as of FY2025 year-end)
Employees
57,000
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 3–4 days after quarter end (Oct 3, 2025; Oct 3, 2024; Oct 4, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 3–7 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Jul 6, 2026 (+6 days) | Aug 3, 2026 10-Q (+34 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 3, 2026 (+3 days) | May 8, 2026 10-Q (+38 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 7, 2026 (+7 days) | Feb 20, 2026 10-K (+51 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 3, 2025 (+3 days) | Nov 4, 2025 10-Q (+35 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 3, 2025 (+3 days) | Aug 4, 2025 10-Q (+35 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 3, 2025 (+3 days) | May 9, 2025 10-Q (+39 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 6, 2025 (+6 days) | Feb 14, 2025 10-K (+45 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 3, 2024 (+3 days) | Nov 4, 2024 10-Q (+35 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 3, 2024 (+3 days) | Aug 7, 2024 10-Q (+38 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 3, 2024 (+3 days) | May 3, 2024 10-Q (+33 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 5, 2024 (+5 days) | Feb 20, 2024 10-K (+51 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 4, 2023 (+4 days) | Nov 6, 2023 10-Q (+37 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Immunology
Skyrizi (risankizumab)
Examples: Psoriasis, psoriatic arthritis, Crohn's disease, ulcerative colitis
IL-23 inhibitor; $17.6B in FY2025, up 50%. U.S. composition-of-matter patent expected to expire in 2033.
Immunology
Rinvoq (upadacitinib)
Examples: Rheumatoid arthritis, atopic dermatitis, ulcerative colitis, Crohn's disease, and others
Oral once-daily JAK inhibitor; $8.3B in FY2025, up 39%. After litigation settlements, no U.S. generic of Rinvoq tablets is expected before April 2037.
Immunology
Humira (adalimumab)
Examples: Rheumatoid arthritis, Crohn's disease, psoriasis, and others
$4.5B in FY2025, down 49%, facing direct biosimilar competition globally.
Neuroscience
Vraylar, Botox Therapeutic, Ubrelvy, Qulipta, Vyalev
Examples: Schizophrenia and bipolar disorder; chronic migraine; acute and preventive migraine; Parkinson's disease
Neuroscience revenue totaled about $10.8B in FY2025; Vraylar $3.6B and Botox Therapeutic $3.8B.
Oncology
Imbruvica, Venclexta, Elahere, Epkinly
Examples: Blood cancers; ovarian cancer (Elahere); lymphoma (Epkinly)
Oncology revenue about $6.7B in FY2025; Imbruvica fell 14% to $2.9B while Elahere grew to $690M.
Aesthetics
Botox Cosmetic, Juvederm Collection
Examples: Facial injectables, dermal fillers, CoolSculpting, Natrelle breast implants
Aesthetics revenue about $4.9B in FY2025; Botox Cosmetic fell 4% and Juvederm 15%, citing lower consumer demand.
Products and revenue figures are from the FY2025 Form 10-K's Item 1 and MD&A.
04
Recent strategic focus
FY2025 business development and U.S. investment, from the 10-K.
Steady acquisitions and licensing of pipeline programs
In 2025 AbbVie acquired Nimble, Capstan ($2.1B), and Gilgamesh ($906M upfront), and licensed programs from Ichnos Glenmark ($700M), Gubra ($350M), and ADARx ($335M). Acquired IPR&D and milestones expense was $5.0B. In early 2026 it agreed to license RemeGen's RC148 for $650M upfront.
Source: Form 10-K (FY2025) Note 5
U.S. investment commitment
After year-end, AbbVie announced a voluntary agreement with the U.S. government covering Medicaid pricing and direct-to-patient offerings, and pledged $100B of U.S. R&D and capital investment over the next decade.
Source: Form 10-K (FY2025) MD&A, Recent Events
Capex ÷ D&A (FY2025)
1.59x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$1,214M ÷ $762M = 1.59x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
14.9%
formularesearch & development expense ÷ revenue × 100
e.g.$9,096M ÷ $61,160M × 100 = 14.9%
M&A spend (5-year total)
$18.48B
Latest year: $204M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $787M in FY2021 to $1.21B in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$61.16B
As reported in the 10-K
Revenue CAGR (4 years)
+2.1%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($61,160M ÷ $56,197M) ^ (1÷4) − 1 = 2.1%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
24.6%▼caution
-7.2pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$15,075M ÷ $61,160M × 100 = 24.6%
ROE (FY2025)
—▼caution
5-year average: 61.3%
As reported in the 10-K
P/B (FY2025 end)
—
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
29.7x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($409,161M + $67,002M − $5,229M) ÷ ($15,075M + $762M) = 29.7x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +2.1% a year over 4 years (modest growth)
From $56.2B in FY2021 to $61.16B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 31.9% → 24.6%
How much operating profit is left per $100 of revenue. It moved -7.2 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▼
Equity ratio is -2.4% (relatively heavy reliance on debt)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 61.3% over 5 years (latest: —)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
AbbVie discovers, develops (in-house and through acquisitions and licensing), manufactures, and sells prescription medicines and aesthetic products. It markets them to physicians and other health care providers, and sells them mainly to wholesalers, distributors, government agencies, health care facilities, and specialty pharmacies; in the U.S., three wholesale distributors accounted for substantially all pharmaceutical product sales in 2025. Revenue depends on keeping patent and regulatory exclusivity on key products and replacing products that lose it.
01 what it draws on
Inputs & resources
- About 57,000 employees in over 70 countries (as of December 31, 2025)
- A pipeline of about 90 compounds, devices, or indications, about 60 of them in mid- and late-stage development
- Products and programs acquired or licensed from other companies (e.g. Allergan, Pharmacyclics, ImmunoGen, Cerevel)
- About 600 owned or leased facilities, including manufacturing sites in the U.S., Puerto Rico, Ireland, Italy, France, Costa Rica, and Singapore
02 what it does
Activities
- Research and development: R&D expense of $9.1B plus $5.0B of acquired IPR&D and milestones in 2025
- Manufacturing of small-molecule drugs and biologics, with some API, fill/finish, and packaging done by third parties
- Promotion to physicians, and contracting with managed care providers, pharmacy benefit managers, and government programs
03 who it serves
Customers
- Wholesale distributors (in the U.S., McKesson, Cardinal Health, and Cencora)
- Government agencies, health care facilities, specialty pharmacies, and retailers
- Physicians and licensed providers (aesthetic products and devices are sold directly to them)
04 how money comes in
How it earns
- Product sales (net of rebates and chargebacks)
- Collaboration revenues, e.g. AbbVie's share of Imbruvica profit outside the U.S.
How the business makes money
- FY2025 net revenues were $61.2B, up 8.6%, with U.S. revenues up 8.3% and international up 9.4%.
- Skyrizi ($17.6B, +50%) and Rinvoq ($8.3B, +39%) together were about 42% of net revenues; Humira fell 49% to $4.5B, from $14.4B in FY2023, because of direct biosimilar competition.
- Gross margin was 70% of net revenues in both FY2025 and FY2024 (62% in FY2023).
- Operating earnings ($15.1B) were reduced by $7.4B of intangible amortization and $5.0B of acquired IPR&D and milestones; a further $6.5B charge for changes in the fair value of contingent consideration sat below operating earnings, leaving net earnings of $4.2B.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Immunology (Skyrizi, Rinvoq, Humira)
30,406 (50%)Neuroscience
10,767 (18%)Oncology
6,655 (11%)Aesthetics
4,860 (8%)Other key products (Mavyret, Creon, Linzess)
3,736 (6%)All other
2,627 (4%)Eye care
2,109 (3%)
Source: Form 10-K (FY2025) — MD&A, worldwide net revenues by product AbbVie reports a single business segment. These are the 10-K's therapeutic-area groupings, totaled by this site from its product revenue table (the totals sum to the reported $61,160M). No profit figure is disclosed by area.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 76% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
46,603 (76%)International
14,557 (24%)
Source: Form 10-K (FY2025) — MD&A, net revenues The 10-K splits revenue only into United States and international; international was about 24% of FY2025 net revenues.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
AbbVie sells products order by order — the 10-K says orders are "generally filled on a current basis and order backlog is not material" — mostly to wholesalers. Prices are shaped by rebate and chargeback programs and by government programs: the U.S. government selected Imbruvica for Medicare Part D government-set prices from January 1, 2026, and Vraylar and Linzess from January 1, 2027. Some revenue comes from collaborations rather than product sales.
- Spot / one-off transaction
Product sales to wholesalers, distributors, and other customers
About 98% of FY2025 net revenues
Typical term: Orders filled on a current basis; net of rebates and chargebacks
Demand for each product depends on its exclusivity: Humira revenue fell from $14.4B (FY2023) to $4.5B (FY2025) after biosimilar entry.
- Multi-year / recurring
Collaboration revenues (e.g. Imbruvica outside the U.S., Epkinly)
About $1.0B in FY2025 (Imbruvica $821M, Epkinly $181M)
Typical term: Ongoing collaboration agreements; the Janssen Imbruvica collaboration has no set duration
Outside the U.S., AbbVie records its 50% share of Imbruvica profit as collaboration revenue.
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Business partnership
Janssen Biotech (Johnson & Johnson)
Imbruvica collaboration (via AbbVie's Pharmacyclics subsidiary, since 2011): Janssen commercializes outside the U.S. and co-exclusively with AbbVie in the U.S.; the two share pre-tax profits and losses equally, and Janssen bears about 60% of collaboration development costs. The collaboration has no set duration.
Source: Form 10-K (FY2025) — Note 5, Collaboration with Janssen Biotech
Licensing agreement
Pfizer (license assumed with Cerevel)
Through the Cerevel acquisition AbbVie assumed an exclusive global license under certain Pfizer patent rights for Cerevel's pipeline compounds, with up to $1.6B of potential milestone payments plus tiered royalties.
Source: Form 10-K (FY2025) — Note 5, Acquisition of Cerevel Therapeutics
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
AbbVie sells mainly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies, and independent retailers, and sells aesthetic products and devices directly to physicians.
Named by the company
- McKesson, Cardinal Health, and Cencora — together accounted for substantially all of AbbVie's U.S. pharmaceutical product sales in 2025; no single wholesaler accounted for more than 43% of U.S. gross revenuesForm 10-K (FY2025) — Item 1, Marketing, Sales and Distribution
What the filings disclose
- AbbVie says it has no single customer whose loss would have a material adverse effect on its business. (Form 10-K (FY2025), Item 1)
- Managed care providers, pharmacy benefit managers, and government programs are important customers that influence pricing and access. (Form 10-K (FY2025), Item 1 and Item 1A)
Suppliers
AbbVie buys raw materials from numerous suppliers worldwide and uses third parties for some API and product manufacturing, fill/finish, packaging, and logistics. It doesn't name them.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- Certain products and services come from a limited number of suppliers and, in some cases, a single source. (Form 10-K (FY2025), Item 1)
- AbbVie says its business is not substantially dependent on any individual manufacturing-related agreement. (Form 10-K (FY2025), Item 1)
- AbbVie says it has robust business continuity and supplier monitoring programs. (Form 10-K (FY2025), Item 1)
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
AbbVie's 10-K says it competes with other research-based pharmaceutical and biotechnology companies: its immunology products compete with IL-23, IL-17, and JAK inhibitors and biosimilars; its oncology products with BTK inhibitors, ADCs, and cell therapies; and other companies market products positioned as Botox competitors. Humira faces direct biosimilar competition globally. No company is named.
Competitors named in the 10-K
AbbVie's 10-K describes competing drug classes but doesn't name competitors.
Peer group the company chose
Health Care Peer Group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
The pharmaceutical companies AbbVie's compensation committee uses to benchmark executive pay; the proxy also compares AbbVie's shareholder return with this group.
- Amgensite ↗
- Bristol-Myers Squibbsite ↗
- Eli Lillysite ↗
- Gilead Sciencessite ↗
- GSKsite ↗
- Johnson & Johnsonsite ↗
- Merck & Co.site ↗
- Novartissite ↗
- Pfizersite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
The 10-K says AbbVie enters into acquisitions, option-to-acquire agreements, licensing arrangements, and other deals in addition to its own R&D. Several current major products came from acquisitions: Imbruvica from Pharmacyclics, and Vraylar and Juvederm from Allergan. Since 2024 it has bought both commercial-stage companies (ImmunoGen) and many early-stage programs, expensing those bought as asset acquisitions as acquired IPR&D.
Cash spent on acquisitions, FY2021–FY2025: $18.48B
Oct 2025 (FY2025)
Gilgamesh Pharmaceuticals
$906M upfront
Owner of bretisilocin (now ABBV-2505), a short-acting serotonin receptor agonist in development for major depressive disorder.
- Stated purpose (company)
- Acquired for its lead program; accounted for as an asset acquisition, with the payment expensed as acquired IPR&D.
Since then: In development.
Source: Form 10-K (FY2025) — Note 5
Aug 2025 (FY2025)
Capstan Therapeutics
$2.1B ($1.9B net of cash acquired)
Developer of CPTX2309 (ABBV-619), an in vivo targeted lipid nanoparticle anti-CD19 CAR-T therapy for B cell-mediated autoimmune diseases.
- Stated purpose (company)
- Acquired for its lead program; accounted for as an asset acquisition.
- What it is trying to do (this site's view)
- Adds a cell-therapy approach to the immunology franchise led by Skyrizi and Rinvoq.
Since then: $1.9B expensed as acquired IPR&D in Q3 2025.
Source: Form 10-K (FY2025) — Note 5
Jan 2025 (FY2025)
Nimble Therapeutics
$288M ($210M upfront + contingent consideration)
Developer of an investigational oral peptide IL-23R inhibitor for psoriasis.
- Stated purpose (company)
- Accounted for as a business combination; the 10-K describes Nimble as dedicated to oral peptide therapeutics.
- What it is trying to do (this site's view)
- An oral candidate in the same IL-23 pathway that Skyrizi targets as an injection.
Since then: In development.
Source: Form 10-K (FY2025) — Note 5
Dec 2024 (FY2024)
Aliada Therapeutics
About $1.4B
Owner of ALIA-1758 (ABBV-1758), an anti-amyloid antibody in development for Alzheimer's disease.
- Stated purpose (company)
- Acquired for its lead program; accounted for as an asset acquisition.
Since then: Expensed as acquired IPR&D in Q4 2024.
Source: Form 10-K (FY2025) — Note 5
Aug 2024 (FY2024)
Cerevel Therapeutics
$8.7B
A clinical-stage neuroscience company with candidates for schizophrenia, Parkinson's disease, and mood disorders.
- Stated purpose (company)
- To expand AbbVie's neuroscience pipeline, apply its commercial, regulatory, and clinical expertise to Cerevel's assets, and enhance its neuroscience discovery capabilities.
Since then: AbbVie recorded a $4.5B impairment on emraclidine in 2024. Tavapadon, another Cerevel program, was submitted to the FDA for Parkinson's disease in September 2025.
Source: Form 10-K (FY2025) — Note 5, Acquisition of Cerevel Therapeutics
Feb 2024 (FY2024)
ImmunoGen
$9.8B
A developer of antibody-drug conjugates for cancer, including Elahere for platinum-resistant ovarian cancer.
- Stated purpose (company)
- To expand the portfolio, accelerate AbbVie's clinical and commercial presence in solid tumors, and enhance its ADC development efforts.
Since then: Elahere revenue was $690M in FY2025, up 44%.
Source: Form 10-K (FY2025) — Note 5, Acquisition of ImmunoGen
Jun 2024 (FY2024)
Celsius Therapeutics
$250M
A clinical-stage company focused on precision medicine in inflammatory bowel disease.
- Stated purpose (company)
- Acquired for its lead asset CEL383 (ABBV-8736); accounted for as an asset acquisition.
Since then: Expensed as acquired IPR&D in Q2 2024.
Source: Form 10-K (FY2025) — Note 5
May 2020 (FY2020)
Allergan
$64.1B (cash and stock)
Older deal, core to today's businessA global pharmaceutical company with branded pharmaceutical, device, biologic, surgical, and regenerative medicine products.
- Stated purpose (company)
- To create a diversified company with leadership positions across immunology, hematologic oncology, aesthetics, neuroscience, eye care, and women's health.
Since then: The FY2020 10-K reported revenue for products such as Vraylar ($951M) and the Juvederm Collection ($718M) for the period after the acquisition closed; both are still AbbVie products. The FY2020 10-K also noted the significant debt AbbVie took on for the deal.
Source: Form 10-K (FY2020) — Note 5, Acquisition of Allergan
May 2015 (FY2015)
Pharmacyclics
About $20.8B ($12.4B cash + $8.4B of stock)
Older deal, core to today's businessThe company that markets Imbruvica (ibrutinib), a BTK inhibitor for B-cell blood cancers.
- Stated purpose (company)
- The FY2015 10-K said AbbVie expected Imbruvica to be a significant contributor to revenue growth in 2016.
Since then: Imbruvica revenue was $2.9B in FY2025, down 14%, and it is subject to Medicare government-set prices from 2026.
Not listed individually: license and option agreements (e.g. Ichnos Glenmark, Gubra, ADARx in 2025) and other individually insignificant arrangements. Deal dates are closing dates.
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 56,197 | 58,054 | 54,318 | 56,334 | 61,160 |
| Operating income | 17,924 | 18,117 | 12,757 | 9,137 | 15,075 |
| Pretax income | 12,989 | 13,477 | 6,250 | 3,716 | 6,597 |
| Net income (attributable) | 11,542 | 11,836 | 4,863 | 4,278 | 4,226 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 3.3% | -6.4% | 3.7% | 8.6% |
| Operating margincalcoperating income ÷ revenue × 100 | 31.9% | 31.2% | 23.5% | 16.2% | 24.6% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 20.5% | 20.4% | 9.0% | 7.6% | 6.9% |
| Balance sheet ($M) | |||||
| Total assets | 146,529 | 138,805 | 134,711 | 135,161 | 133,960 |
| Total equity | 15,436 | 17,287 | 10,397 | 3,364 | -3,228 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 75,976 | 63,129 | 59,245 | 66,841 | 67,002 |
| Equity ratio | 10.5% | 12.4% | 7.7% | 2.5% | -2.4% |
| ROE | 74.9% | 72.5% | 35.2% | 62.5% | — |
| Cash flow ($M) | |||||
| Operating CF | 22,777 | 24,943 | 22,839 | 18,806 | 19,030 |
| Investing CF | -2,344 | -623 | -2,009 | -20,820 | -6,643 |
| Financing CF | -19,039 | -24,803 | -17,222 | -5,211 | -12,724 |
| Free cash flowcalccash flow from operations − capital expenditures | 21,990 | 24,248 | 22,062 | 17,832 | 17,816 |
| Cash and equivalents | 9,746 | 9,201 | 12,814 | 5,524 | 5,229 |
| Per share & other | |||||
| EPS ($) | 6.45 | 6.63 | 2.72 | 2.39 | 2.36 |
| BVPS ($) | 8.71 | 9.75 | 5.87 | 1.88 | -1.85 |
| Dividend per share ($) | 5.31 | 5.71 | 5.99 | 6.29 | 6.65 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 82.3% | 86.1% | 220.2% | 263.2% | 281.8% |
| P/E (x) | 21.0 | 24.4 | 57.0 | 74.4 | 96.8 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 16.5 | 18.1 | 23.9 | 38.3 | 29.7 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 15.54 | 16.57 | 26.41 | 94.34 | — |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
17.8%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$15,075M × (1 − 21%) ÷ $66,990M × 100 = 17.8%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
5.57%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $409.16B ÷ ($409.16B + $67B) = 85.9%
e.g.Debt weight: $67B ÷ ($409.16B + $67B) = 14.1%
e.g.WACC: 5.9% × 85.9% + 4.3% × (1 − 21%) × 14.1% = 5.57%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 5.57% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.35 (price-derived adjusted beta, but correlation with the market is low (R² 0.00), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 5.92%
- Cost of debt
- 4.32%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 86% : 14%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 5.57%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.35 (price-derived adjusted beta. Raw β 0.03, R² 0.00, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.033 + 0.33 = 0.352
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.35 × 5.5% = 5.9%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
1.8%
Perpetual FCF growth: g = r − FCF ÷ EV = 5.6% − 3.8%
Past FCF growth (FY2021–FY2025)
-5.1%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+2.1%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $17.82B (operating CF − capex); enterprise value $470.91B = market cap $409.16B + debt $67B − cash and short-term investments $5.26B; r = WACC of 5.6% using this page’s default assumptions (β 0.35, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$468.84B
FCF $17.82B ÷ (5.6% − 1.8%)
Theoretical ÷ actual enterprise value
1.00x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 3.6% | 4.6% | 5.6% | 6.6% | 7.6% |
|---|---|---|---|---|---|
| 0% | 1.05x | 0.82x | 0.68x | 0.57x | 0.50x |
| 2% | 2.36x | 1.46x | 1.05x | 0.82x | 0.68x |
| 4% | — | 6.31x | 2.36x | 1.46x | 1.05x |
| 6% | — | — | — | 6.31x | 2.36x |
| 8% | — | — | — | — | — |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 3.54x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -11.0%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 229%
Most profit comes from core operations.
- !
Days sales outstanding: 65 → 75 days
Receivables are growing faster than revenue — worth checking for looser collection terms or channel stuffing.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$19,030M ÷ $4,226M = 4.50x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$15,075M ÷ $6,597M × 100 = 229%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$12,589M ÷ $61,160M × 365 = 75 days
17
Strengths & weaknesses
Strengths
1. Skyrizi and Rinvoq have more than replaced Humira
Skyrizi and Rinvoq grew from $11.7B (FY2023) to $25.9B (FY2025) while Humira fell from $14.4B to $4.5B. Total net revenues still rose from $54.3B to $61.2B over the same two years.
Evidence: Form 10-K (FY2025) MD&A, net revenues by product
2. Long exclusivity on the two main growth products
The U.S. composition-of-matter patents for risankizumab (Skyrizi) and upadacitinib (Rinvoq) are expected to expire in 2033, and under 2025 settlements no U.S. generic of Rinvoq tablets is expected before April 2037.
Evidence: Form 10-K (FY2025) Item 1, Intellectual Property
3. Large operating cash flow
Operating cash flow was $19.0B in FY2025 against capital expenditures of $1.2B, funding $11.7B of dividends and $5.2B of acquisitions and investments. Moody's upgraded AbbVie's senior unsecured rating to A2 in February 2026.
Evidence: Form 10-K (FY2025) MD&A, Liquidity
Weaknesses
1. Concentration in two products
The 10-K states that Skyrizi and Rinvoq accounted for approximately 42% of total net revenues in 2025, each more than 10%.
Evidence: Form 10-K (FY2025) Item 1A
2. Negative equity and high debt
Stockholders' equity was −$3.3B at FY2025 year-end, as dividends ($11.7B) far exceeded net earnings ($4.2B). Short-term borrowings and debt (including finance leases) totaled about $67.5B on the balance sheet. Because equity is negative, ROE isn't meaningful for FY2025.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A
3. Aesthetics is shrinking
Aesthetics revenue fell from about $5.3B (FY2023) to $4.9B (FY2025). The 10-K attributes the FY2025 declines to unfavorable U.S. pricing from loyalty-program changes, lower market share, and decreased consumer demand for Botox Cosmetic, and decreased consumer demand for Juvederm.
Evidence: Form 10-K (FY2025) MD&A
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What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
96.8x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
2.91%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
282%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
4.4%
(Operating CF − capex) ÷ market cap
1. Growth products have replaced its former blockbuster
Despite Humira's revenue falling by more than two-thirds from FY2023 to FY2025, total net revenues grew 8.6% in FY2025, led by Skyrizi (+50%) and Rinvoq (+39%).
- What has to hold
- Skyrizi and Rinvoq keep gaining share; their U.S. composition-of-matter patents run to 2033, and no U.S. generic of Rinvoq tablets is expected before April 2037.
- The other side
- About 42% of revenue now rests on these two products, which compete with other IL-23, IL-17, and JAK inhibitors and with biosimilars.
Evidence: Form 10-K (FY2025) Item 1, Item 1A, and MD&A
2. A large, rising dividend
Dividends per share rose from $5.31 (FY2021) to $6.65 (FY2025), about 6% a year, and dividends paid were $11.7B in FY2025. Free cash flow (operating cash flow minus capex) was $17.8B, about 1.5 times dividends paid.
- What has to hold
- Operating cash flow stays near FY2025's $19.0B as Humira declines further.
- The other side
- Dividends were about 2.8 times GAAP diluted EPS ($6.65 vs. $2.36), and paying more than net earnings has left stockholders' equity negative. The 10-K says AbbVie cannot guarantee the timing, amount, or payment of dividends.
Evidence: SEC EDGAR XBRL; Form 10-K (FY2025) MD&A and Item 1A
3. A pipeline built largely through acquisitions
The pipeline holds about 90 programs, about 60 in mid- or late-stage development, many acquired: ImmunoGen ($9.8B, 2024) brought Elahere ($690M of FY2025 revenue), and 2025 deals added cell therapy, psychiatry, and obesity programs.
- What has to hold
- Acquired programs reach approval and sales that justify their price.
- The other side
- Cerevel ($8.7B, 2024) led to a $4.5B impairment on emraclidine within months, and $88.2B of intangibles and goodwill remain subject to impairment testing.
Evidence: Form 10-K (FY2025) MD&A and Note 5
Dividend yield, payout ratio, P/E, and FCF yield above use the fiscal year-end share price, not today's price, so they shift as the stock moves. GAAP EPS (and so P/E) is depressed by large non-cash charges such as intangible amortization and contingent-consideration fair-value changes.
19
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
0.6x
$5.26B vs. $8.56B
Interest coverage (operating income ÷ interest expense)
5.2x
$15.08B vs. $2.89B
Free cash flow ÷ dividends paid
1.5x
$17.82B vs. $11.66B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -6.4% in FY2023 ($58.05B → $54.32B) | Yes, by FY2025 |
| Operating income | -29.6% in FY2023 ($18.12B → $12.76B) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Liquidity
Cash and equivalents were $5.2B at FY2025 year-end. AbbVie also had $8.0B of undrawn revolving credit facilities ($5.0B maturing March 2028 and $3.0B maturing January 2030). Short-term borrowings included $2.0B under a 364-day term loan and $499M of commercial paper.
Source: Form 10-K (FY2025), MD&A Liquidity
Revenue held up through the Humira cliff
From FY2023 to FY2025 Humira revenue fell by $9.9B, yet total net revenues rose by $6.8B as Skyrizi and Rinvoq grew by $14.1B.
Source: Form 10-K (FY2025), MD&A net revenues by product · See Business model
Customer concentration
Three U.S. wholesalers handle substantially all U.S. pharmaceutical sales, none more than 43% of U.S. gross revenues; AbbVie says no single customer's loss would be material.
Source: Form 10-K (FY2025), Item 1 · See Customers & suppliers
Geographic concentration
About 76% of FY2025 net revenues came from the United States, where government price-setting under Medicare applies.
Source: Form 10-K (FY2025), MD&A · See Where it earns
Manufacturing footprint
Significant manufacturing sites are in nine U.S. locations (including Puerto Rico) and in Ireland (four sites), Italy, France, Costa Rica, and Singapore.
Source: Form 10-K (FY2025), Item 2
Business continuity
The 10-K says AbbVie has robust business continuity and supplier monitoring programs, while warning that manufacturing problems at AbbVie or a supplier, or interruption of single-source materials, could hurt the business.
Source: Form 10-K (FY2025), Item 1 and Item 1A
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Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
Geopolitical risk highlights
- [5]Trade restrictions and tariffs
- 1Competition & technology shift
Loss of exclusivity and biosimilar competition
- Company disclosure (summarized from the 10-K)
- The 10-K lists the expiration or loss of patent protection and competition from generics and biosimilars as a risk. Humira shows the effect: revenue fell 49% in FY2025 after biosimilar entry. Skyrizi and Rinvoq's U.S. composition-of-matter patents are expected to expire in 2033.
- Company’s stated mitigation
- Litigation settlements mean no U.S. generic Rinvoq tablets are expected before April 2037; the 10-K's strategy is to grow newer products and the pipeline.
- This site’s assessment
- Impact High / Likelihood Med
- 2Law & regulation
U.S. government drug-price setting and pricing pressure
- Company disclosure (summarized from the 10-K)
- The U.S. government selected Imbruvica for Medicare Part D government-set prices from 2026, and Vraylar and Linzess from 2027. The 10-K also lists cost-containment efforts, rebate programs, and pharmacy benefit managers' influence over pricing and access as risks.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact High / Likelihood High
- 3Governance & quality
Acquisitions and intangible-asset impairments
- Company disclosure (summarized from the 10-K)
- Intangible assets ($52.6B) and goodwill ($35.6B) made up about two-thirds of total assets at FY2025 year-end and are subject to impairment testing. In 2024 AbbVie recorded a $4.5B impairment on emraclidine, acquired with Cerevel.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact High / Likelihood Med
- 4Supply chain
Complex manufacturing and single-source materials
- Company disclosure (summarized from the 10-K)
- The 10-K says manufacturing is a highly exacting and complex process, that some raw materials and components come from single suppliers, and that certain operations depend heavily on third-party service providers.
- Company’s stated mitigation
- The 10-K says AbbVie has robust business continuity and supplier monitoring programs.
- This site’s assessment
- Impact Med / Likelihood Low
- 5Geopolitical
Trade restrictions and tariffs
- Company disclosure (summarized from the 10-K)
- The 10-K lists trade restrictions, tariffs, and changes in global trade policy as a risk that could increase costs and disrupt supply chains. About 24% of FY2025 net revenues came from outside the United States.
- Company’s stated mitigation
- AbbVie is expanding U.S. manufacturing, including a new API facility in Illinois and biologics capacity in Massachusetts.
- This site’s assessment
- Impact Med / Likelihood Med
- 6FX & interest rates
Debt load
- Company disclosure (summarized from the 10-K)
- The 10-K lists its debt obligations as a risk. Interest expense was $2.9B in FY2025 against operating earnings of $15.1B.
- Company’s stated mitigation
- $8.0B of undrawn revolving credit facilities at FY2025 year-end.
- This site’s assessment
- Impact Med / Likelihood Low
21
What to watch going forward
- Whether Skyrizi and Rinvoq keep growing fast enough to offset Humira's continued decline.
- The effect of Medicare government-set prices on Imbruvica (from 2026) and on Vraylar and Linzess (from 2027).
- Regulatory decisions on submitted programs, including tavapadon (Parkinson's disease), trenibotulinumtoxinE (aesthetics), and pivekimab sunirine (blood cancer).
- Further contingent-consideration charges and acquired-IPR&D expenses, which have weighed heavily on GAAP earnings.
- Whether Botox Cosmetic and Juvederm demand recovers.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 2, 2026 · Financial data fetched: October 2, 2026 12:01 (SEC EDGAR) · Source 10-K filed: February 20, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent AbbVie Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.