AbbVie (ABBV) is offsetting lower sales of Humira with two newer immunology drugs, Skyrizi and Rinvoq, and the plan is working so far. In the second quarter ended June 30, 2026, revenue was $16.99B, up 10.2% from a year earlier, and the company reports its next quarter on Oct. 30, 2026. The quarter matters because it shows whether a big drugmaker can keep growing while an older product shrinks.
Key facts
- Q2 FY2026 (ended June 30, 2026): revenue $16.99B vs. an analyst estimate of $16.80B; EPS of 3.65 vs. an estimate of 3.61 (reported July 31, 2026).
- Operating margin (the share of sales left after running costs) was 37.9% in Q2 FY2026, the highest of the last five quarters.
- Next earnings: Oct. 30, 2026. Analysts expect EPS of 3.73 and revenue of $17.32B.
- Share price: $286.79 on Oct. 26, 2026, up 0.40% on the day. The 52-week range is $190.75 to $291.40.
- Balance sheet (June 30, 2026): cash and short-term investments of $6.57B against total debt of $70.82B.
Note: the 3.65 EPS compared with analyst estimates uses a different basis (likely adjusted) than the 2.04 diluted EPS in the table, so the two figures should not be compared directly.
What is the theme: replacing a declining product?
As general industry background, big drug companies often live on a few best-selling products. When a drug loses its patent protection, cheaper copies can arrive and sales can fall. This is called a patent cliff. The question for investors is whether newer drugs can grow fast enough to fill the gap left by an older one.
The evidence here does not say why Humira's sales declined, but the pattern is visible in the numbers. Humira revenue fell to $756.0M in Q2 FY2026 from $1.18B a year earlier, while AbbVie has leaned on Skyrizi and Rinvoq, which treat many of the same immune-system conditions.
What happened
The segment data in the second quarter shows the handoff clearly:
| Product | Q2 FY2026 revenue | Q2 FY2025 revenue | |---|---|---| | Skyrizi | $5.50B | $4.42B | | Rinvoq | $2.52B | $2.03B | | Humira | $756.0M | $1.18B | | Vraylar (psychiatry) | $1.07B | $900.0M | | Imbruvica (cancer) | $532.0M | $754.0M | | Botox Cosmetic | $728.0M | $692.0M | | Juvederm Collection | $245.0M | $260.0M |
Skyrizi alone was larger than every other product line in the quarter, and both Skyrizi and Rinvoq were higher than a year earlier. Humira and Imbruvica, an older cancer drug, were lower. In aesthetics, Botox Cosmetic grew while Juvederm slipped.
Margins improved too. Over the last five reported quarters, gross margin ran 71.8%, 66.4%, 72.6%, 71.9% and 74.7%, and operating margin ran 31.7%, 12.1%, 35.0%, 31.6% and 37.9%. The third quarter of 2025 stands out: operating margin was 12.1% and net income only $186.0M. The FMP data does not explain that dip. Large one-time costs are a common cause for drugmakers, but we cannot confirm that here. By the latest quarter, margins were back above their earlier levels. Net income of $3.61B was far above the $938.0M of a year earlier, partly because that year-ago figure was low.
Other company news has been incremental. According to AbbVie's recent releases, the U.S. FDA approved a subcutaneous (under-the-skin) induction regimen for Skyrizi in adults with moderately to severely active Crohn's disease. AbbVie also announced positive topline results from the Phase 3 INTREPID study, saying lutikizumab "significantly improved signs and symptoms of disease in patients with hidradenitis suppurativa," a painful skin condition. An Oct. 26, 2026 release was about an education partnership run by its Allergan Aesthetics unit. It has no bearing on the financials.
Why it matters for investors
Cash flow is solid but not rising. Free cash flow (cash left after capital spending) by quarter, oldest to newest, was $4.88B, $6.64B, $4.89B, $3.56B and $3.11B, so it has fallen for three straight quarters. Operating cash flow in Q2 FY2026 was $3.44B. Cash flow is lower than a year earlier even though profit is higher, so the two measures are not moving together. In the same quarter AbbVie paid $3.07B in dividends, nearly all of the free cash flow. Buybacks were just $9.0M. The dividend yield is 2.4%.
The balance sheet is heavily indebted. Net debt (debt minus cash) was $64.25B, and shareholders' equity was negative at $-5.93B. Negative equity is not unusual after years of buybacks and acquisitions, but it means there is little accounting cushion. Even so, the Piotroski score, a 0-to-9 health check, is 9. The Altman Z score is 2.70.
Valuation looks high on trailing earnings, and peers are cheaper. AbbVie's trailing 12-month P/E (price divided by the last year of earnings) is 80.80. The peers are far lower:
| Company | P/E (trailing) | Net margin | |---|---|---| | AbbVie | 80.80 | 9.8% | | Amgen (AMGN) | 27.41 | 22.9% | | AstraZeneca (AZN) | 25.50 | 17.0% | | Bristol-Myers Squibb (BMY) | 13.57 | 18.9% | | GSK | 15.95 | 14.5% |
AbbVie's trailing net margin is the lowest of the group, which is why its P/E looks so high. That trailing figure likely includes the weak earnings quarters shown above, so it may overstate the price investors are paying for current profits. Price to free cash flow, at 27.83, is a less distorted check. FMP's own discounted cash flow model, an automated estimate, gives $124.90 per share, well below the market price. Models like this depend heavily on their assumptions, so treat it as one input.
Analysts lean positive. Of 44 ratings, 31 are buy, 12 are hold and 1 is sell, and the consensus is "Buy." The average analyst price target is $294.00 and the median is $300.00, in a range of $235.00 to $325.00. The stock, at $286.79, is near the top of its 52-week range. Recent rating actions were all reiterations, including Goldman Sachs (Neutral) on Oct. 23, Barclays (Overweight) on Oct. 21 and RBC Capital (Outperform) on Oct. 13. Insider filings in the past 90 days show no open-market purchases and one sale.
Our MoonshotScore is 79.8 (Exceptional). Stock Expert AI's own score compares the stock with others in its sector. Its pillars are momentum 87, quality 82, safety 72, growth 60 and valuation 49. In plain terms, the stock's price trend and business quality score well, growth is middling, and valuation is the weak spot, which matches the P/E comparison above.
What could go wrong
- Humira and Imbruvica sales fell in the latest quarter, and the newer drugs have to keep growing quickly enough to cover that.
- Skyrizi and Rinvoq now carry much of the company's revenue, so a competitor, a safety finding or a pricing change affecting them would hit hard.
- Debt is large, and the dividend takes nearly all of free cash flow.
- Valuation leaves less room for a disappointing quarter. An article on 247wallst.com on Oct. 26, 2026 noted that options markets are pricing in a sizable move around the earnings date.
What to watch next
- Oct. 30, 2026 results: analysts expect EPS of 3.73 and revenue of $17.32B. Compare both with the prior quarter's EPS of 3.65 and revenue of $16.99B.
- Skyrizi and Rinvoq growth vs. Humira's decline: whether the gap keeps widening in AbbVie's favor.
- Margins: whether operating margin stays near the latest quarter's 37.9% or returns to earlier levels.
- Free cash flow: whether it stabilizes after three straight lower quarters, given the dividend load.
- Pipeline news: whether Skyrizi's new Crohn's regimen and the lutikizumab data become meaningful revenue later.
Frequently asked questions
Q: What is AbbVie's biggest growth driver after Humira?
Skyrizi, which brought in $5.50B in the second quarter ended June 30, 2026, up from $4.42B a year earlier. Rinvoq was next in size at $2.52B, also higher than a year earlier. Humira fell to $756.0M from $1.18B.Q: When does AbbVie report earnings, and what do analysts expect?
AbbVie is scheduled to report on Oct. 30, 2026. The analyst estimates are EPS of 3.73 and revenue of $17.32B. In the previous quarter it reported EPS of 3.65 against an estimate of 3.61, and revenue of $16.99B against an estimate of $16.80B.Q: Why does AbbVie's P/E look so high compared with other drugmakers?
The trailing P/E is 80.80, against 27.41 for Amgen, 25.50 for AstraZeneca, 13.57 for Bristol-Myers Squibb and 15.95 for GSK. AbbVie's trailing net margin is 9.8%, below each of those peers, so its trailing earnings are low relative to its share price. Weak earnings in some recent quarters probably account for much of the gap, but this is not investment advice, and the ratio should be read alongside cash flow and the forward earnings picture.This is educational content, not investment advice. Past performance does not guarantee future results.