AbbVie Inc.

AbbVie reported adjusted EPS of $3.65, beating the guidance midpoint by $0.06. Quarterly net revenues were nearly $17 billion, up 10.2% year over year, including a 0.7% favorable foreign exchange impact. Adjusted gross margin was 84.7% of sales, adjusted R&D was 13.6% of sales, adjusted SG&A was 21% of sales, and adjusted operating margin was 48.3% of sales. By segment, immunology revenue was nearly $8.8 billion (+14.6% operationally), neuroscience was more than $3.2 billion (+20%), oncology was more than $1.6 billion (-2.4%), and aesthetics was nearly $1.3 billion (-0.9%). For the year, management raised total net revenue guidance to approximately $67.6 billion and EPS guidance to $13.87-$14.07; third-quarter guidance was about $17.2 billion in revenue and EPS of $3.84-$3.88. They also raised expected SKYRIZI full-year revenue to $21.7 billion and neuroscience revenue to $12.7 billion.

CEO Robert A. Michael framed the quarter as broad-based execution across the business, saying results again exceeded expectations and that the company is seeing double-digit sales growth from its diverse portfolio. He emphasized the pipeline, including new approvals in hematology, migraine, aesthetics, and dermatology, and said the Apogee acquisition adds depth to immunology and supports growth into the 2030s and beyond. His tone was constructive and confident, stressing that AbbVie has ample financial capacity for more business development.

CFO Scott Reents said the quarter included a $0.17 unfavorable impact from acquired IPR&D expense, with adjusted EPS of $3.65 and net revenues of nearly $17 billion. He cited adjusted gross margin of 84.7%, adjusted R&D of 13.6% of sales, adjusted SG&A of 21% of sales, operating margin of 48.3%, net interest expense of $679 million, and an adjusted tax rate of 14.7%. He raised full-year EPS guidance to $13.87-$14.07, revenue to about $67.6 billion, R&D to about $9.8 billion, SG&A to about $14.5 billion, and net interest expense to about $2.9 billion, while saying AbbVie remains financially well positioned for Apogee with interim financing secured and a target net leverage ratio of 2 times within 2 to 3 years after close.

Analysts focused heavily on SKYRIZI and the upcoming Crohn’s subcutaneous induction decision, with management saying the submission is complete, the FDA review is on track, and there are no manufacturing concerns. Questions also centered on the large alpha-4 beta-7/TL1A IBD platform study; management said it is ready to start, will use SKYRIZI as the anchor, and could support phase 3 initiation in the first half of 2028 if interim data are strong. Other notable topics included HS trial design, where management said the studies were built to maximize success, the tevapadone launch, where they expect a modest initial ramp due to Medicare formulary timing, and the Alzheimer’s shuttle program, where they pointed to better CSF penetration and said data should begin next year.