ABBV Q2 Earnings Call Balances Growth With Apogee Dilution

ABBV Raises Revenue Outlook

Robert Michael, chairman and chief executive officer, said net revenues of $16.99 billion rose 10.2% and exceeded internal expectations by $300 million.

Second-quarter 2026 adjusted earnings of $3.65 per share topped the Zacks Consensus Estimate of $3.64. The company reported revenues of $16.99 billion, which beat the consensus estimate of $16.81 billion by 1.10%.

Scott Reents, executive vice president and chief financial officer, raised full-year revenue guidance by $300 million to about $67.6 billion. Third-quarter guidance calls for $17.2 billion in revenues and adjusted earnings of $3.84 to $3.88 per share.

AbbVie Absorbs Deal Dilution

Reents lowered the 2026 adjusted earnings range to $13.87-$14.07 from $13.91-$14.11. A 10-cent improvement in the existing business was more than offset by a 14-cent expected Apogee dilution.

The outlook includes a 58 cents per-share headwind from acquired IPR&D and milestones through the second quarter. It excludes additional such expense after June.

Reents expects Apogee to close in the third quarter. Related investment lifts expected full-year R&D spending to about $9.8 billion and net interest expense to about $2.9 billion.

ABBV Extends Immunology Momentum

Jeffrey Stewart, executive vice president and chief commercial officer, said immunology revenues reached $8.786 billion, up 14.6% operationally.

Skyrizi generated $5.505 billion, rising 24% operationally, while Rinvoq produced $2.525 billion, up 23.7%. Humira declined 36.1% operationally to $756 million amid biosimilar pressure.

Stewart emphasized Skyrizi's share gains in psoriasis and inflammatory bowel disease. He expects a planned subcutaneous induction option for Crohn's disease to improve convenience and support faster uptake, with the clearest sales effect in early 2027.

AbbVie Defends Competitive Position

A JPMorgan analyst asked whether a new oral psoriasis competitor was slowing Skyrizi. Stewart said new-prescription trends had accelerated after the competing launch.

Michael characterized the launch as market-expanding, citing disease-awareness investment. A Berenberg analyst pressed on payer negotiations, and Stewart described price concessions as consistent with the low-single-digit pattern seen previously.

Roopal Thakkar, executive vice president of research and development and chief scientific officer, said the Skyrizi subcutaneous submission remained on plan, with no manufacturing concerns.

ABBV Adds Pipeline Depth With Apogee

Michael said the roughly $10.9 billion Apogee acquisition adds long-acting candidates across dermatology, respiratory disease and related inflammatory conditions. He positioned the deal as a growth source for the 2030s.

Thakkar said AbbVie is continuing its internal atopic dermatitis programs in parallel. Management intends to advance Apogee's anti-IL-13 program quickly after closing.

Reents said AbbVie has interim financing and plans to issue long-term debt. The company targets a net leverage ratio of 2x within two to three years while retaining business-development capacity.

AbbVie Builds Neuroscience and Oncology

Stewart said neuroscience revenues increased 19.8% operationally to $3.228 billion, supported by Vraylar, Botox Therapeutic, migraine products and Vyalev.

A UBS analyst asked about tavapadon's launch. Stewart expects a modest initial ramp because Medicare formulary access will take time, but maintained the portfolio's more than $5 billion Parkinson's peak-sales outlook.

Thakkar highlighted Temab-A studies in colorectal and ovarian cancers and an interim etentamig analysis expected in the third quarter. She emphasized biomarker selection and combination strategies.

ABBV Keeps Execution at the Center

Michael's tone remained confident but execution-focused. Priorities include sustaining commercial growth, closing and financing Apogee, and delivering regulatory decisions and clinical readouts.

Management remains focused on supporting established franchises while advancing pipeline programs and developing additional growth sources for the 2030s.

Zacks Signals Point to a Mixed Setup

ABBV carries a Zacks Rank #3 (Hold) at present and a VGM Score of C. Its Growth Score of B is the strongest style reading, while the Value Score of C and Momentum Score of F provide less support. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Style Scores work best alongside a Zacks Rank #1 or 2 (Buy), while a Zacks Rank #3 can support a hold posture. ABBV's rank may change as estimate revisions incorporate the just-reported results.

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