AbbVie Inc. (ABBV)

Business

From the 2025 Form 10-K (fiscal year ended December 31, 2025), SEC accession 0001551152-26-000008.

AbbVie is a global, research-based biopharmaceutical company that discovers, develops, manufactures and sells prescription medicines, medical aesthetics products and eye care products. Its portfolio is built around four areas in which it describes itself as holding leadership positions, immunology, neuroscience, oncology and aesthetics. Worldwide net revenues were $61.2 billion in 2025, of which approximately 24% came from outside the United States. The company employed approximately 57,000 people in more than 70 countries at December 31, 2025.

AbbVie reports as a single global business segment. A global research-and-development and supply-chain organization handles discovery, development, manufacturing and supply, while commercial teams are organized by geographic region or therapeutic area. The Chief Executive Officer, as chief operating decision maker, reviews results on a global basis and uses net earnings as the measure of profit, so there is no segment breakout; the useful disaggregation is by product, which the company reports in detail.

How the revenue is composed. The key products below account for most of 2025 net revenues of $61.2 billion; the remainder is eye care, other aesthetics, other neuroscience and a long tail of other products ($ millions):

The shape of the business is dominated by two immunology franchises. Skyrizi (an IL-23 inhibitor for psoriasis, psoriatic arthritis, Crohn's disease and ulcerative colitis) and Rinvoq (an oral JAK inhibitor approved across rheumatology, dermatology and gastroenterology indications) each exceeded 10% of net revenues and together made up approximately 42% of 2025 net revenues. Their growth has absorbed the erosion of Humira, which fell from $14.4 billion in 2023 to $4.5 billion in 2025 under direct biosimilar competition. Neuroscience (Vraylar for schizophrenia, bipolar disorder and adjunctive major depressive disorder; Botox Therapeutic for chronic migraine, spasticity and bladder conditions; the migraine drugs Ubrelvy and Qulipta; and the Parkinson's therapies Vyalev and Duodopa) is the second growth leg. Oncology centres on blood cancers (Imbruvica, Venclexta, Epkinly) plus the ovarian-cancer antibody-drug conjugate Elahere. Aesthetics (Botox Cosmetic, Juvederm, and Alloderm, CoolSculpting, Natrelle breast implants, SkinMedica, Latisse and DiamondGlow) and eye care (Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, and Refresh/Optive, Xen, Durysta and Restasis) are consumer- and procedure-exposed businesses, and both declined in 2025.

How the products reach customers. Products are sold worldwide to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses; aesthetic products and devices are also sold directly to physicians and other licensed providers. In the United States three wholesale distributors, McKesson Corporation, Cardinal Health, Inc. and Cencora, Inc., accounted for substantially all pharmaceutical product sales in 2025, with no single wholesaler above 43% of 2025 U.S. gross revenues. Managed care providers, pharmacy benefit managers, hospitals and government agencies are also important customers. Outside the United States AbbVie sells mainly through wholesalers or distributors and negotiates reimbursement with largely centralized national payer systems. Provisions for rebates and chargebacks, the gap between gross and net price, totaled $65.1 billion in 2025 against $59.3 billion in 2024, larger than reported net revenues. The business has no significant seasonality, though revenues move with wholesaler inventory levels and buying patterns.

Research and development. At the time of the 10-K the pipeline comprised approximately 90 compounds, devices or indications in development, of which approximately 60 were in mid- and late-stage development, focused on immunology, neuroscience, oncology and aesthetics plus other specialties including obesity. Internal discovery is supplemented by acquisitions, option-to-acquire and licensing agreements and collaborations. Two collaborations shape reported margins: Venclexta is a 50/50 U.S. profit share with Genentech (a member of the Roche Group), with royalties payable outside the United States; Imbruvica is a 50/50 profit share with Janssen Biotech (Johnson & Johnson), which holds exclusive ex-U.S. commercialization rights and bears approximately 60% of collaboration development costs.

Competition and intellectual property. AbbVie's immunology products compete with other IL-23, IL-17 and JAK inhibitors and with biosimilars; its oncology products compete with BTK inhibitors, antibody-drug conjugates and cell therapies; and several competitors market products positioned against Botox. The company owns or licenses thousands of patent families, with patents expiring between 2026 and the mid-2040s. The patents it names as significant cover risankizumab (Skyrizi) and upadacitinib (Rinvoq); the U.S. composition-of-matter patents for both are expected to expire in 2033. In September 2025 AbbVie settled with all generic manufacturers that had filed for generic upadacitinib tablets; under those settlements, and assuming pediatric exclusivity is granted, no generic entry for Rinvoq tablets is expected in the United States before April 2037.

Origins. AbbVie was incorporated in Delaware in 2012 and became independent on January 1, 2013, when Abbott Laboratories distributed all of its shares to Abbott shareholders. The portfolio has since been extended by acquisition, most significantly Allergan (under a transaction agreement signed in 2019), whose entities remain defendants in the Biocell breast-implant and opioid litigation AbbVie carries, and in 2024 ImmunoGen, Inc. and Cerevel Therapeutics Holdings, Inc. for $18.5 billion of cash consideration.

Risk factors

From Item 1A of the 2025 Form 10-K, SEC accession 0001551152-26-000008, condensed. The Form 10-Q for the quarter ended September 30, 2026 contains no update to these risk factors.

• Concentration in two products. Skyrizi and Rinvoq each exceeded 10% of net revenues and together were approximately 42% of 2025 net revenues, so a patent challenge, safety signal, formulary loss or competing mechanism affecting either would hit a disproportionate share of the company.
• Loss of exclusivity. Patent expiry is typically followed promptly by generic or biosimilar substitutes that can sharply cut a product's sales in a short time, Humira is the example inside AbbVie's own results. Generic makers file abbreviated new drug applications and inter partes or post-grant review challenges, and governments outside the United States may seek compulsory licenses.
• Government price-setting. Under the Inflation Reduction Act, the Department of Health and Human Services can set Medicare prices for selected drugs as soon as nine years (small molecules) or 13 years (biologics) after approval, at a statutory ceiling likely to be a significant discount. Imbruvica's government-set Part D price took effect January 1, 2026; Vraylar and Linzess follow on January 1, 2027; and Botox was selected in January 2026 for Medicare Parts B and D prices beginning January 1, 2028. Since 2025 the Part D redesign also requires a 10% manufacturer discount below a $2,000 out-of-pocket threshold and 20% above it. Governments may also pursue most-favored-nation or international reference pricing. AbbVie's January 2026 voluntary agreement with the U.S. government grants a three-year exemption from tariffs and future pricing mandates in exchange for pricing concessions and U.S. investment, but its pricing concessions and direct-to-patient offerings may themselves expose it to new pricing or reimbursement policies.
• Pharmacy benefit managers. Consolidated and vertically integrated PBMs and managed care organizations control formulary placement through exclusions, step therapy, prior authorization and tiering, can change access with little notice, and may extract larger rebates; legislated changes to PBM rebate methods could shift costs to manufacturers.
• 340B and government programs. Growth in entities claiming 340B discounts has increased the share of sales subject to those discounts, and manufacturer program-integrity policies face enforcement actions and litigation; violations of fraud-and-abuse, price-reporting or Sunshine Act rules can bring fines and exclusion from federal programs.
• R&D failure. Failure rates in drug development are high and can occur after substantial investment; new products must earn enough to cover R&D and replace revenue lost to competition.
• Manufacturing, supply and biologics. Production is complex and batch failures can cause shortages, recalls and product-liability exposure. Some raw materials and components come from single suppliers whose replacement requires regulatory approval, and AbbVie relies on third parties for manufacturing and IT. Biologics, including Skyrizi, Botox, Humira and Creon, carry added risks from limited biological materials, heavier regulation and purpose-built facilities.
• Trade policy and tariffs. Global supply chains, including active-ingredient sourcing, expose AbbVie to tariffs and trade restrictions that could raise costs, compress margins or disrupt supply.
• Product liability and litigation. AbbVie self-insures product liability, having judged insurance not worth its cost; claims can involve many plaintiffs, indeterminate damages and years of unresolved exposure.
• Intangibles and goodwill. At December 31, 2025 developed product rights and other intangibles carried $52.6 billion and goodwill $35.6 billion; acquired in-process R&D assets carry a significant risk of failure and write-off.
• Debt and financing. Debt service diverts operating cash flow from investment, and loss of the investment-grade rating or of access to funding on acceptable terms would constrain growth and acquisitions.
• Acquisitions. Deals may not close, may cost more or deliver less than expected, may be hard to integrate, and bring assumed debt, contingent liabilities, amortization and impairment charges that could pressure the credit rating.
• International operations. About 24% of 2025 net revenues came from outside the United States, bringing currency, reimbursement, tax, political and anti-corruption exposure.
• Wholesaler concentration. Financial difficulty at McKesson, Cardinal Health or Cencora would directly affect AbbVie's U.S. sales and collections.
• Information technology and AI. Systems, including cloud and third-party hosted systems, are exposed to cyberattack and breakdown that cyber insurance may not fully cover; failing to adopt AI effectively could weaken competitiveness, while AI-generated analyses could themselves be deficient.
• Common stock. Dividends and buybacks are discretionary; ownership can be diluted by equity issuance or preferred stock issued without a shareholder vote; and takeover defenses, no shareholder right to call a special meeting, a classified board, removal of directors only for cause, an 80% supermajority for certain charter amendments, and Delaware Section 203, may delay or prevent an acquisition.

Management's discussion and analysis, fiscal 2025

From Item 7 and Item 7A of the 2025 Form 10-K, SEC accession 0001551152-26-000008.

Headline result. 2025 net revenues were $61.2 billion, up 8.6% at actual currency rates and 8.5% at constant currency; U.S. revenues were $46.6 billion and international $14.6 billion. Operating earnings were $15.1 billion against $9.1 billion in 2024, net earnings attributable to AbbVie were $4.2 billion against $4.3 billion, and diluted earnings per share were $2.36 against $2.39. Cash flows from operations were $19.0 billion.

What drove revenue. On a constant-currency basis Skyrizi rose 50% and Rinvoq 39%, both on continued market-share uptake and market growth across all indications. Humira fell 49% on direct biosimilar competition. Qulipta rose 57%, Elahere 43%, Ubrelvy 27%, Botox Therapeutic 15%, Vraylar 11% and Venclexta 8%. Imbruvica fell 14% on lower U.S. demand and pricing plus lower collaboration revenues. Aesthetics was the weak spot: Botox Cosmetic fell 4%, down 11% in the United States on unfavorable pricing from customer loyalty program changes, lower market share and softer consumer demand, and up 6% internationally, while Juvederm Collection fell 15% on decreased consumer demand.

Margins and costs. Gross margin was $43.0 billion, or 70% of net revenues, flat against 2024: revenue leverage, lower intangible amortization and lower acquisition and integration costs were offset by $847 million of intangible asset impairment charges. SG&A was $14.0 billion, falling to 23% of net revenues from 26% on revenue leverage, lower litigation reserve charges and lower acquisition and integration costs. R&D was $9.1 billion, down 29% from $12.8 billion because 2024 carried $4.5 billion of intangible asset impairment charges; R&D other than impairments increased. Acquired IPR&D and milestones expense was $5.0 billion against $2.8 billion, including upfront charges of $1.9 billion for Capstan Therapeutics, $906 million for Gilgamesh Pharmaceuticals, $700 million for the Ichnos Glenmark Innovation license, $350 million for the Gubra license and $335 million for the ADARx option-to-license agreement. Other operating income included a $217 million gain on terminating an R&D collaboration with Calico Life Sciences LLC.

The contingent consideration line. Other expense, net carried $6.5 billion of fair-value charges on contingent consideration liabilities in 2025 against $3.8 billion in 2024. These liabilities, principally royalties owed on Skyrizi, are re-measured using discount rates, estimated future sales and the passage of time. In 2025 the charge reflected higher estimated Skyrizi sales, passage of time, lower discount rates and a longer estimated royalty period, so the same commercial success that lifts revenue also enlarges this non-operating charge. Other 2025 costs named by management were $7.4 billion of intangible amortization and $276 million of acquisition and integration expenses.

Tax. The effective tax rate was 36% in 2025, (15)% in 2024 and 22% in 2023. The 2025 rate was higher mainly because 2024 included a one-time benefit from closing a three-year U.S. IRS examination. AbbVie flags OECD Pillar Two (a 15% global minimum tax) and Pillar One, including the side-by-side agreement released January 5, 2026, as sources of future tax uncertainty.

Cash flow and capital. Operating cash flow rose on higher revenues, working-capital timing and lower acquisition-related cash costs, partly offset by higher litigation and contingent-consideration payments; it also included $348 million of pension contributions. Investing outflows included $5.2 billion for other acquisitions and investments and $1.2 billion of capital expenditures, against $18.5 billion of cash consideration for ImmunoGen and Cerevel Therapeutics in 2024. Financing included $4.0 billion of senior notes issued and $2.0 billion drawn under a 364-day term loan, against repayment of $3.0 billion of 3.80% notes and $3.8 billion of 3.60% notes. Dividends paid were $11.7 billion against $11.0 billion; the board raised the quarterly dividend from $1.64 to $1.73 per share (about 5.5%) beginning with the February 2026 payment. Buybacks were 3 million shares for $606 million, with $2.9 billion of authorization remaining at year end.

Obligations at year end. Short-term borrowings were $2.0 billion under the 364-day term loan and $499 million of commercial paper. A $1.1 billion one-time transition tax liability from 2017 U.S. tax reform was classified as current, and liabilities for unrecognized tax benefits totaled $5.6 billion with no reliable estimate of timing.

A decade-long commitment. After year end AbbVie announced a voluntary agreement with the U.S. government under which it pledged $100 billion of U.S.-based research and development and capital investment, including manufacturing, over the next decade.

Market risk. A 10% appreciation of the hedged currencies against the U.S. dollar would reduce the fair value of foreign exchange forward contracts by $2.0 billion (with offsetting effects on the hedged transactions); €3.1 billion of euro notes are designated as net investment hedges. A 100 basis point rise in interest rates would reduce the fair value of interest rate swaps by about $81 million and of long-term debt by $4.5 billion.

Current quarter, three and nine months ended September 30, 2026

From the Form 10-Q for the quarter ended September 30, 2026, SEC accession 0001551152-26-000037, with adjusted (non-GAAP) figures and portfolio totals from the third-quarter earnings release furnished as Exhibit 99.1 to the Form 8-K filed October 30, 2026, SEC accession 0001551152-26-000033.

Results. Third-quarter net revenues were $17.4 billion, up 10.3% at actual currency rates and 10.5% at constant currency; U.S. revenues were $13.3 billion (+10.5%) and international $4.1 billion (+9.8% reported, +10.6% constant currency). Operating earnings were $6.3 billion against $1.9 billion a year earlier, net earnings attributable to AbbVie were $4.2 billion against $186 million, and diluted earnings per share were $2.37 against $0.10. The prior-year quarter was depressed by $2.7 billion of acquired IPR&D and milestones expense (chiefly $1.9 billion for Capstan and $700 million for the Ichnos Glenmark license) and $847 million of impairment charges on the Resonic and Durysta intangible assets. Adjusted diluted EPS was $3.82 against $1.86, including an unfavorable $0.11 from third-quarter acquired IPR&D and milestones expense. For the nine months, net revenues were $49.4 billion (+10.9% reported, +10.1% constant currency), operating earnings $16.7 billion, diluted EPS $4.79 (adjusted $10.12) and operating cash flow $14.9 billion.

What moved. Portfolio totals below are at reported rates and product growth rates at constant currency unless stated. The immunology portfolio grew 16.3% to $9.2 billion: Skyrizi rose 23% (constant currency) to $5.8 billion and Rinvoq 24% to $2.7 billion on continued share uptake and market growth across indications, together roughly 49% of quarterly net revenues, while Humira fell 31% to $683 million. Neuroscience grew 19.4% to $3.4 billion: Vraylar +14% and Ubrelvy +27% (both helped by favorable pricing), Qulipta +39%, Botox Therapeutic +10%, and Vyalev more than doubled to $286 million on strong demand uptake. Oncology was essentially flat at $1.7 billion: Venclexta +11% and Elahere +31% on demand, Epkinly up 58% reported to $108 million, but Imbruvica fell 26% to $522 million on unfavorable U.S. pricing, lower U.S. demand and lower collaboration revenues. Aesthetics fell 1.4% to $1.2 billion: Botox Cosmetic rose 4% on international consumer demand, while Juvederm Collection fell 12% on weaker demand and unfavorable pricing. Mavyret fell 15% reported.

Margins and expenses. Gross margin rose to 75% of net revenues from 66%, driven by higher revenues against lower fixed costs, mainly lower intangible amortization ($1.7 billion in the quarter against $1.9 billion), and the absence of the prior-year impairments. SG&A rose 15% to $4.1 billion but held at 23% of revenues: leverage was offset by acquisition and integration costs for Apogee Therapeutics, including cash-settled post-closing employee awards, and litigation reserve charges. R&D rose 11% to $2.6 billion, flat at 15% of revenues. Acquired IPR&D and milestones expense was $216 million ($56 million upfront, $160 million development milestones), and $1.25 billion for the nine months, including the $650 million RemeGen upfront in the first quarter. Apogee-related cash-settled post-closing expense totaled $318 million in the quarter ($199 million in SG&A, $119 million in R&D).

Contingent consideration and tax. Other expense, net included $829 million of contingent-consideration fair-value charges in the quarter ($776 million a year earlier) and $4.7 billion for the nine months ($5.1 billion), reflecting higher estimated Skyrizi sales and the passage of time, partly offset by higher discount rates; the nine-month charge also reflected favorable clinical results for pipeline assets combined with Skyrizi. The effective tax rate was 13% for the quarter and 16% for the nine months, against 74% and 39% a year earlier, mainly because business development activity and contingent-consideration changes weighed less heavily.

Cash flow and balance sheet. Nine-month operating cash flow of $14.9 billion (against $13.8 billion) reflected higher revenues and lower litigation payments, partly offset by working-capital timing and higher contingent-consideration payments ($2.7 billion against $2.2 billion). Investing outflows of $12.0 billion included $10.6 billion for acquisitions of businesses (primarily Apogee), $1.4 billion for other acquisitions and investments and $888 million of capital expenditures, partly offset by $1.1 billion mainly from selling investment securities acquired with Apogee. Financing brought in $18.0 billion of senior notes, $8.0 billion in seven series in March and $10.0 billion in nine series in August, while AbbVie repaid the $2.0 billion 364-day term loan (terminating that agreement) and $2.0 billion of 3.20% notes at maturity, and retired all $499 million of commercial paper. Cash and equivalents were $10.8 billion at September 30, 2026 against $5.2 billion at year end; long-term debt including the current portion was $80.9 billion against $65.0 billion. Nothing was drawn on the $5.0 billion (March 2028) and $3.0 billion (January 2030) revolving credit facilities. Total stockholders' deficit was $4.6 billion against $3.3 billion at year end.

Shareholder returns. Dividends paid were $9.2 billion for the nine months against $8.7 billion. The board declared a $1.73 quarterly dividend on September 10, 2026, payable November 16, 2026. AbbVie repurchased 5 million shares for $1.1 billion in the nine months (no shares were bought under the program in the third quarter), leaving about $1.8 billion of authorization.

Credit ratings. Moody's upgraded AbbVie's senior unsecured rating to A2 (stable) from A3 (positive) and its short-term rating to Prime-1 in February 2026; S&P Global Ratings affirmed A- and revised the outlook to positive in June 2026. There were no other rating changes in the nine months.

Business development.

• Apogee Therapeutics, Inc., completed September 3, 2026. AbbVie acquired all shares for $135.11 each in cash, a total equity value of approximately $10.9 billion as announced in the Form 8-K of September 3, 2026 (SEC accession 0001104659-26-104940); the 10-Q records the fair value of consideration as $10.6 billion ($10.5 billion net of cash acquired). Apogee brings zumilokibart, a late-stage half-life-extended anti-IL-13 antibody for atopic dermatitis, and APG273, a long-acting IL-13/TSLP combination for asthma. The preliminary allocation assigns $9.1 billion to in-process R&D and $2.3 billion to goodwill, with $1.7 billion of deferred tax liabilities, and AbbVie assumed a royalty-based funding agreement for zumilokibart, carried as a $523 million financing liability. AbbVie expects the deal to reduce adjusted EPS by $0.14 in 2026 and about $0.46 in 2027, becoming accretive from 2032.
• Acquisition financing. In July 2026 AbbVie entered a $10.0 billion 364-day senior unsecured term loan facility for the deal and terminated it in August after issuing $10.0 billion of senior notes on August 18, 2026: $500 million of floating-rate notes due 2028 (SOFR + 0.42%), $1.0 billion of 4.50% notes due 2028, $1.25 billion of 4.65% notes due 2030, $1.5 billion of 4.875% notes due 2031, $1.25 billion of 5.05% notes due 2033, $1.5 billion of 5.30% notes due 2036, $1.0 billion of 5.45% notes due 2038, $1.5 billion of 6.00% notes due 2056 and $500 million of 6.10% notes due 2066, with expected net proceeds of approximately $9.93 billion (Forms 8-K, SEC accessions 0001104659-26-091269 and 0001104659-26-098367).
• Other. The $650 million RemeGen license for the PD-1/VEGF bispecific RC148 (ABBV-1480), signed in March 2026, carries up to $5.0 billion of milestones plus tiered royalties. Contingent consideration from the January 2025 Nimble Therapeutics acquisition (up to $130 million) was paid in the third quarter of 2026 when development milestones were met. The device manufacturing facility in Arizona that AbbVie agreed to buy closed in July 2026; no price was disclosed.

Policy and U.S. investment. Under the January 2026 voluntary agreement with the U.S. government, AbbVie will provide low Medicaid prices and expand direct-to-patient offerings and has pledged $100 billion of U.S. R&D and capital investment over a decade, in exchange for a three-year exemption from tariffs and future price mandates. Its U.S. projects include a pharmaceutical manufacturing campus in North Carolina and two new manufacturing facilities in Illinois for next-generation neuroscience and obesity medicines.

Pipeline in the quarter. The pipeline has grown to approximately 100 compounds, devices or indications, about 60 of them in mid- and late-stage development. Third-quarter milestones:

• Approvals: U.S. FDA approval of Juvmo (tavapadon) for Parkinson's disease (September); European Commission approvals of Rinvoq in non-segmental vitiligo and severe alopecia areata (July) and in polyarticular juvenile idiopathic arthritis from age two (September), of Boey (trenibotulinumtoxinE) for glabellar lines (July), and of Tepkinly with lenalidomide and rituximab in relapsed or refractory follicular lymphoma (July).
• Submissions: an EMA application for Skyrizi subcutaneous induction in Crohn's disease (August), and FDA acceptance for review of a supplemental application for Botox Cosmetic in masseter muscle prominence (August).
• Data and trial starts: positive Phase 3 LUNA results for Qulipta in menstrual migraine and positive Phase 3 CERVINO results for etentamig in relapsed/refractory multiple myeloma (both September); a Phase 3 trial of ABBV-1480 with chemotherapy against pembrolizumab with chemotherapy in first-line non-small cell lung cancer (September).

Earlier in 2026, Skyrizi won U.S. and EU approval in pediatric plaque psoriasis, Venclexta was approved with acalabrutinib in untreated chronic lymphocytic leukemia, Decnupaz was approved for BPDCN, and Skinvive was approved for neck lines; Epkinly failed its EPCORE DLBCL-1 overall-survival endpoint but met the EPCORE DLBCL-4 progression-free-survival endpoint; and the FDA issued a Complete Response Letter for trenibotulinumtoxinE asking only for manufacturing information.

Litigation. The recorded litigation accrual was approximately $1.3 billion at September 30, 2026, against $1.6 billion at December 31, 2025. Following the June 2026 agreement resolving substantially all U.S.-based Biocell breast implant lymphoma lawsuits, approximately 1,300 other lawsuits remain in the New Jersey federal MDL, about 475 in U.S. state courts and about 1,095 in other countries, and a Dutch dismissal is on appeal. About 195 opioid lawsuits remain pending against Allergan. In September 2026 the court in the Sheet Metal Workers' Health Plan class action, which alleges that Humira rebating practices impaired biosimilar competition, dismissed seven of the plaintiff's nine claims, including all claims for monetary damages, without prejudice. The Camargo Humira list-price case is on appeal to the Seventh Circuit after its dismissal; Niaspan antitrust cases continue; and AbbVie is pursuing patent suits against proposed generics of Ubrelvy and Qulipta.

Guidance. Full-year 2026 adjusted diluted EPS guidance moved several times around the quarter. The second-quarter release (Form 8-K, SEC accession 0001551152-26-000023) cut the range from $13.91–$14.11 to $13.87–$14.07, absorbing $0.14 of Apogee dilution partly offset by $0.10 of overperformance. When Apogee closed on September 3, a Form 8-K (SEC accession 0001104659-26-104940) reaffirmed that full-year range and previously issued third-quarter guidance of $3.84–$3.88. On October 5, AbbVie lowered the full-year range to $13.76–$13.96 for third-quarter acquired IPR&D and milestones expense (Form 8-K, SEC accession 0001551152-26-000030; see Subsequent events). The October 30 release raised the full-year range to $13.95–$13.99, including an unfavorable $0.69 per share from acquired IPR&D and milestones expense incurred through the third quarter. Guidance excludes any such expense incurred after the third quarter, which AbbVie says cannot be reliably forecast.

Subsequent events

Developments after September 30, 2026, from the Form 10-Q for the quarter ended September 30, 2026 (SEC accession 0001551152-26-000037, filed November 3, 2026) and the Forms 8-K noted. The 10-Q discloses no acquisitions, divestitures or new borrowings after the quarter end.

• Third-quarter IPR&D charge and guidance adjustment (October 5, 2026). AbbVie disclosed that third-quarter results would include $216 million of pre-tax acquired IPR&D and milestones expense, an unfavorable $0.11 per share, and lowered its guidance accordingly: full-year 2026 adjusted diluted EPS to $13.76–$13.96 and third-quarter to $3.73–$3.77 (Form 8-K, SEC accession 0001551152-26-000030). Reported third-quarter adjusted EPS of $3.82 came in above that range, and the full-year range was raised on October 30 as described under Guidance above.
• Skyrizi subcutaneous induction approved (October 2026). The FDA approved Skyrizi for subcutaneous induction in adults with moderately to severely active Crohn's disease, supported by the Phase 3 AFFIRM study. The third-quarter earnings release reports that the FDA also updated the Skyrizi label, across all indications, to let physicians use clinical judgment on whether tuberculosis testing is needed.
• Late-stage data (October 2026). Lutikizumab, an IL-1α/1β antagonist, met its primary endpoint in the Phase 3 INTREPID study in moderate to severe hidradenitis suppurativa, with regulatory submissions planned for the second half of 2027. Epkinly plus R-CHOP met its progression-free-survival endpoint in the Phase 3 EPCORE DLBCL-2 trial in newly diagnosed diffuse large B-cell lymphoma, reducing the risk of progression or death by 51%.
• Oncology filings and designations (October 2026). AbbVie submitted a Biologics License Application to the FDA for etentamig in relapsed/refractory multiple myeloma and started two further Phase 3 etentamig trials (in newly diagnosed light-chain amyloidosis and, with pomalidomide, in relapsed/refractory myeloma). The FDA granted Temab-A two Breakthrough Therapy Designations, in colorectal cancer and non-small cell lung cancer.
• Botox price-negotiation selection vacated (October 29, 2026). The U.S. District Court for the District of Columbia vacated CMS's selection of Botox for the Medicare Drug Price Negotiation Program and barred CMS from publishing a maximum fair price for Botox. The government may appeal.
• Dividend increase (October 2026). The board declared an increase in the quarterly dividend from $1.73 to $1.82 per share, about 5.2%, beginning with the dividend payable February 16, 2027 to holders of record on January 15, 2027.
• Board changes. On October 14, 2026 the board expanded from twelve to thirteen members and appointed Dr. John M. Carethers, Vice Chancellor for Health Sciences at the University of California San Diego, as a Class II director (Form 8-K, SEC accession 0001104659-26-116227). On October 28, 2026 director Jennifer L. Davis gave notice that she would resign effective November 2, 2026, following her appointment as Chief Executive Officer of Align Technology, Inc.; the company states the resignation did not result from any disagreement (Form 8-K, SEC accession 0001104659-26-121322).

Filings that contain financial statements

• Form 8-K filed October 30, 2026 (accession 0001551152-26-000033), Exhibit 99.1: third-quarter 2026 earnings release for the quarter and nine months ended September 30, 2026. It holds the consolidated statements of earnings (with prior-year comparatives), a non-GAAP reconciliation and net revenues by product and region. It does not include a balance sheet or cash flow statement.
• Form 8-K filed July 31, 2026 (accession 0001551152-26-000023), Exhibit 99.1: second-quarter 2026 earnings release (quarter and six months ended June 30, 2026), with the consolidated statements of earnings.
• Form 8-K filed April 29, 2026 (accession 0001551152-26-000013), Exhibit 99.1: first-quarter 2026 earnings release (quarter ended March 31, 2026), with the consolidated statements of earnings.

Acquisition of Apogee Therapeutics (signed June 22, closed September 3, 2026)

• June 22, 2026, signed (8-K, accession 0001104659-26-076067). AbbVie and Apogee Therapeutics announced a definitive agreement for AbbVie to acquire Apogee for $135.11 per share in cash, about $10.9 billion of equity value. Apogee's lead asset is zumilokibart, a late-stage IL-13 antibody for atopic dermatitis. Its pipeline also includes APG273, an IL-13/TSLP combination for asthma.
• July 2026, bridge financing. AbbVie entered a $10.0 billion 364-day term loan facility for the deal. It later terminated the facility in August 2026 after issuing $10.0 billion of senior notes (Form 10-Q, accession 0001551152-26-000037).
• August 4 and 18, 2026, funding. AbbVie priced and then closed (August 18) a nine-tranche senior notes offering (8-Ks, accessions 0001104659-26-091269 and 0001104659-26-098367). Net proceeds were about $9.93 billion, for the cash portion of the Apogee deal and general corporate purposes. Maturities run from 2028 to 2066, with fixed coupons from 4.500% to 6.100% plus a floating-rate 2028 tranche. Tranches due 2028 through 2038 carry a special mandatory redemption at 101% if the deal were terminated; the 2056 and 2066 tranches do not.
• September 3, 2026, closed (8-K, accession 0001104659-26-104940). AbbVie announced it "completed its acquisition" of Apogee, which is now part of AbbVie. The same release reaffirmed 2026 adjusted diluted EPS guidance of $13.87 to $14.07. The Form 10-Q (accession 0001551152-26-000037) says the deal is accounted for as a business combination, with fair value of consideration transferred of about $10.6 billion and a preliminary purchase price allocation that is not final. The Form 10-Q also records a funding agreement liability assumed with Apogee (fair value $523 million at acquisition) and says Apogee's results since closing were insignificant.

Earnings and guidance

• October 30, 2026, Q3 results (accession 0001551152-26-000033). Net revenues were $17.404 billion, up 10.3% (10.5% operational). GAAP diluted EPS was $2.37 versus $0.10 a year earlier. Adjusted diluted EPS was $3.82 versus $1.86; the prior-year quarter carried $2.68 billion of acquired IPR&D and milestones expense, against $216 million in Q3 2026. Immunology revenue was $9.165 billion (Skyrizi $5.776 billion, Rinvoq $2.706 billion, Humira $683 million). Neuroscience revenue was $3.389 billion, oncology $1.696 billion and aesthetics $1.176 billion (down 1.4%). GAAP operating earnings were $6.267 billion and net earnings attributable to AbbVie were $4.218 billion.
• 2026 guidance raised. Adjusted diluted EPS guidance moved from $13.76-$13.96 to $13.95-$13.99, including a $0.69 per share unfavorable impact from acquired IPR&D and milestones expense incurred through Q3 (accession 0001551152-26-000033).
• Guidance path during 2026. Guidance was restated from $14.37-$14.57 to $13.96-$14.16 on April 3 to absorb the $744 million ($0.41 per share) Q1 charge, and to $14.08-$14.28 with Q1 results (April 29). It was then set at $13.91-$14.11 on July 6 and updated to $13.87-$14.07 with Q2 results (July 31), which absorbed $0.14 of dilution from the then-pending Apogee deal. It was reduced to $13.76-$13.96 on October 5, then raised to the current range on October 30. Sources: accessions 0001551152-26-000011, 0001551152-26-000013, 0001551152-26-000021, 0001551152-26-000023, 0001551152-26-000030 and 0001551152-26-000033.
• Pre-announced acquired IPR&D and milestones charges (each in an Item 2.02 8-K ahead of the quarterly release): $744 million pre-tax in Q1 ($0.41 per share, accession 0001551152-26-000011), $291 million in Q2 ($0.17, accession 0001551152-26-000021) and $216 million in Q3 ($0.11, accession 0001551152-26-000030).
• Q2 results, July 31, 2026 (accession 0001551152-26-000023): net revenues $16.990 billion, up 10.2%; GAAP diluted EPS $2.03; adjusted diluted EPS $3.65.
• Q1 results, April 29, 2026 (accession 0001551152-26-000013): net revenues $15.002 billion, up 12.4%; GAAP diluted EPS $0.39; adjusted diluted EPS $2.65.

Capital actions

• Dividend increase. On October 30, 2026 the board raised the quarterly dividend 5.2%, from $1.73 to $1.82 per share, beginning with the payment on February 16, 2027 to holders of record January 15, 2027 (accession 0001551152-26-000033). The $1.73 dividend is payable November 16, 2026 (Form 10-Q, accession 0001551152-26-000037).
• February-March 2026 notes offering. AbbVie priced (February 24-26) and closed (March 4) seven tranches of senior notes totaling $8.0 billion in principal (floating and fixed, 2028 to 2066). Expected net proceeds of about $7.95 billion were to repay the $2.0 billion outstanding 364-day term loan due May 2026 and fund general corporate purposes (accessions 0001104659-26-020643 and 0001104659-26-023534). The Form 10-Q confirms the $2.0 billion term loan was repaid in March 2026.
• Share repurchases. Per the Form 10-Q, AbbVie bought back 5 million shares for $1.1 billion in the first nine months of 2026, with about $1.8 billion of authorization remaining at September 30, 2026 (accession 0001551152-26-000037).

Business development (as disclosed in the Q3 release and 10-Q)

• The nine-month acquired IPR&D and milestones expense includes a $650 million upfront charge for a license agreement with RemeGen Co., Ltd. (Form 10-Q, accession 0001551152-26-000037).
• The Q3 release reports FDA approval of Skyrizi subcutaneous induction for Crohn's disease and of Juvmo (tavapadon) for Parkinson's disease. It also reports positive Phase 3 topline data for Qulipta in menstrual migraine (accession 0001551152-26-000033).

Government pricing and policy (as disclosed in the 10-Q)

• October 29, 2026 Botox ruling. The U.S. District Court for the District of Columbia vacated and set aside CMS's January 2026 selection of Botox (one of 15 medicines subject to government-set Medicare Parts B and D prices from 2028) for the Medicare Drug Price Negotiation Program and enjoined CMS from publishing a maximum fair price for Botox. The ruling is subject to appeal by the government (Form 10-Q, accession 0001551152-26-000037).
• January 2026 voluntary agreement with the U.S. government. AbbVie will provide low Medicaid prices and expand direct-to-patient offerings, and pledged $100 billion of U.S. research and development and capital investment over the next decade, in exchange for a three-year exemption from tariffs and future price mandates (Form 10-Q, accession 0001551152-26-000037).

Board and governance

• October 14, 2026: the board expanded from twelve to thirteen directors and appointed Dr. John M. Carethers as a Class II independent director (accession 0001104659-26-116227).
• Director resignation: Class II director Jennifer L. Davis notified the board on October 28 that she would resign effective November 2, 2026 after being named CEO of Align Technology. The filing states it was not the result of any disagreement with AbbVie (accession 0001104659-26-121322).
• May 8, 2026 annual meeting: stockholders elected Class II directors (accession 0001104659-26-059484).

About this file

ABBV annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

ABBV quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

ABBV year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

ABBV trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

• Derivation. Full-year 2025 from the FY2025 10-K (accession 0001551152-26-000008) plus the nine months ended September 30, 2026 less the nine months ended September 30, 2025, both from the Q3 2026 10-Q (accession 0001551152-26-000037).

Adjustments

Notes

• Figures come from two filings: AbbVie's FY2025 Form 10-K (accession 0001551152-26-000008, filed February 20, 2026), which prints the years 2025, 2024 and 2023 on its statements of earnings and cash flows and December 31, 2025 and 2024 on its balance sheet; and the Form 10-Q for the quarter ended September 30, 2026 (accession 0001551152-26-000037, filed November 3, 2026), which prints the three and nine months ended September 30, 2026 and 2025 on its statement of earnings, the nine months ended September 30, 2026 and 2025 on its statement of cash flows, and a balance sheet as of September 30, 2026 and December 31, 2025.
• Those two filings are the whole of this record. FY2023 carries no balance sheet because the 10-K's balance sheet shows only December 31, 2025 and 2024, and the quarter ended September 30, 2025 carries no balance sheet because the 10-Q shows no September 30, 2025 column.
• All amounts are stated in actual U.S. dollars. The statements themselves are printed in millions (per-share amounts in dollars, weighted-average share counts in millions), and each figure has been scaled accordingly.
• Cash flow figures keep the sign the statement shows: outflows are negative. Capital expenditures are AbbVie's 'Acquisitions of property and equipment' line, and free cash flow is operating cash flow less that line. AbbVie does not itself publish a free cash flow figure on the face of its statements.
• Gross profit is not a line AbbVie prints; it is net revenues less cost of products sold, computed here for each period.
• AbbVie's balance sheet does not print a total liabilities subtotal. Total liabilities here is the sum of total current liabilities, long-term debt, deferred income taxes and other long-term liabilities, and it ties to total assets less total equity in every period shown. Total debt is short-term borrowings plus the current portion of long-term debt plus long-term debt. The 10-K's captions for the two long-term debt lines read 'and finance lease obligations'; the 10-Q's do not, but the lines are the same ones.
• AbbVie's total equity is negative in the most recent periods: a deficit of $3.2 billion at December 31, 2025 and $4.5 billion at September 30, 2026. Dividends declared have run well ahead of reported net earnings (in 2025, $11.8 billion declared against $4.2 billion earned), which is what drives the accumulated deficit, and treasury stock held at cost reduces equity further. The balance sheet still ties: assets equal liabilities plus that negative equity.
• Total debt rose from $67.5 billion at December 31, 2025 to $80.9 billion at September 30, 2026. The 10-Q's cash flow statement shows $18.0 billion of long-term debt issued in the first nine months of 2026, and $10.6 billion paid for acquisitions of businesses, net of cash acquired.
• The quarterly entries carry no cash flow statement. The 10-Q presents cash flows for the nine months ended September 30 only, so no discrete three-month cash flow figure is published; the nine-month figures are in the year-to-date block instead.
• The trailing-twelve-month block is derived, not filed: it is full-year 2025 plus the nine months ended September 30, 2026 less the nine months ended September 30, 2025. Its diluted earnings per share is the sum of the published per-share amounts on that same basis, and its diluted share count is the 10-Q's weighted-average diluted count for the nine months ended September 30, 2026.
• AbbVie computes earnings per share under the two-class method, because certain restricted stock units are participating securities; earnings allocated to those securities ($13 million in the third quarter of 2026 and $29 million in the first nine months) are deducted before dividing by the share count. Net earnings attributable to AbbVie divided by diluted shares therefore runs slightly above the published diluted earnings per share.
• Revenue by product is AbbVie's own worldwide net revenues table from the segment note of each filing, at the total (United States plus international or collaboration) level; where the table prints a United States line only (Creon, Other Oncology), that line is the total. The annual breakdown lists more brands than the quarterly one: the 10-K names Duodopa and the eye care products separately, while the 10-Q folds them into 'all other', so 'all other' is not the same collection of products in the annual and the quarterly tables. In each table the listed products and 'all other' sum to total net revenues. The 10-K labels one product 'Linzess/Constella'; the 10-Q labels it 'Linzess'.
• Revenue by geographic area is presented annually only; the 10-Q's segment note does not repeat it.
• AbbVie operates as a single global business segment, so there is no segment profit breakdown to report: the company states that net earnings on the face of the consolidated statement of earnings is its measure of segment profit.
• The 10-Q's December 31, 2025 balance sheet column folds short-term investments into 'prepaid expenses and other' ($6,293 million); the December 31, 2025 figures here follow the 10-K's own presentation, which shows short-term investments of $28 million and prepaid expenses and other of $6,265 million separately. Total assets are identical in both ($133,960 million).
• The 10-K's statement of earnings shows 'Net foreign exchange loss' as its own line; the 10-Q includes foreign exchange within 'other expense, net'. That line therefore appears on the annual periods only.

Uncertainties

• No discrete three-month cash flow, capital expenditure or free cash flow figure exists for the September 2026 or September 2025 quarters. AbbVie publishes cash flows for the nine-month period only, and differencing was not possible because the six-month cash flow statement is not in either of these two filings.
• The trailing-twelve-month diluted earnings per share of $5.81 is the sum of the published per-share amounts (full-year 2025 of $2.36, plus $4.79 for the first nine months of 2026, less $1.34 for the first nine months of 2025). Dividing trailing-twelve-month net earnings attributable to AbbVie by the weighted-average diluted share count gives about $5.84 instead; the difference reflects the two-class earnings allocation and the different weighting of shares across the periods being combined, and neither figure is a number AbbVie itself reports.
• The trailing-twelve-month block omits 'other expense, net'. The 10-K reports a separate foreign exchange loss line that the 10-Q folds into other expense, so combining the two filings' columns for that line would not produce a consistent twelve-month figure. Earnings before income tax expense, which is the same total in both presentations, is included.
• The September 30, 2025 quarter is reported from the comparative columns of the September 2026 10-Q, which is the filing that presents them; it is not taken from the 2025 Form 10-Q.

Company details

Fiscal period

Source filings