AbbVie Inc. (ABBV)

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AI: Fair-priced

Price checkAt today’s price, AbbVie looks fairly valued rather than clearly cheap or expensive.

The August 14 close of $249.46 equals 17.9 times the $13.97 midpoint of management’s 2026 adjusted profit-per-share forecast; adjusted profit excludes selected acquisition and other costs. The $6.92 annualized dividend yields 2.8%. Against 2025 free cash flow—cash left after running and investing in the business—of $17.8 billion, the $441 billion market value implies a 4.0% cash yield. Those are reasonable figures for growing medicines, but not a bargain given debt and acquisition risk, supporting a fair-priced verdict.

Big pictureNew medicines have restored growth, but replacing Humira remains the central test.

Revenue rose 8.6% to $61.2 billion in 2025, then 10.2% year over year to $17.0 billion in 2026’s second quarter. Skyrizi and Rinvoq each grew about 24%, reaching $5.5 billion and $2.5 billion for the quarter, while Humira fell 36% to $756 million. Demand for major prescription drugs is usually less tied to economic cycles; aesthetics was only $1.3 billion and flat. The bull case is durable replacement growth. The bear case is future patent loss or pipeline setbacks exposing concentration again.

Business strengthCash covers shareholder payments, while leverage and weak book equity limit protection.

2025 operating cash flow was $19.0 billion; after $1.2 billion of capital spending, free cash flow was $17.8 billion. Dividends and buybacks used $12.6 billion, while $1.0 billion of buybacks roughly matched $1.0 billion of stock compensation, so dilution control was modest. At June 2026, debt was $62.5 billion and cash was $6.6 billion, leaving $55.9 billion of net debt—about 2.4 times 2025 operating profit before interest, tax, depreciation, and amortization. Current liabilities exceeded current assets by $8.0 billion, and book equity was negative $5.9 billion.

What could change the storyFaster drug growth could justify the price, while costly pipeline failures could break it.

With a 2.8% dividend yield, an unchanged valuation would require roughly 5% yearly profit growth to reach an 8% annual return; this is an inference, not company guidance. Skyrizi, Rinvoq, and neuroscience sales growing above 20% would strengthen that case. Conversely, the proposed $10.9 billion Apogee purchase would raise the economic net-debt burden near $66.8 billion before future cash generation, while its lead drug remains experimental. Slower launches, failed trials, or earlier patent erosion would make 17.9 times guided adjusted earnings look demanding.

$249.46 price considered

AI: News

Strong quarter, lower outlookSales beat expectations, but acquisition costs lowered the profit outlook and shares fell.

On July 31, 2026, AbbVie reported quarterly revenue of $17.0 billion, up 10.2%, and adjusted profit of $3.65 per share, up 22.9%. The 2026 profit forecast midpoint fell four cents to $13.97 because expected Apogee dilution of $0.14 outweighed $0.10 of operating outperformance. Shares closed 2.5% lower, while Reuters reported a greater than 4% premarket decline. The timing suggests guidance concerns mattered, but does not prove they caused the entire move.

Large Apogee acquisitionAbbVie made a large pipeline bet that adds growth options and balance-sheet risk.

On June 22, 2026, AbbVie agreed to buy Apogee Therapeutics for $10.9 billion in cash, or $135.11 per share, about 49.5% above Apogee’s June 18 close. The deal adds late-stage eczema candidate zumilokibart and an asthma pipeline, but its price equals roughly 61% of AbbVie’s 2025 free cash flow. AbbVie shares closed 6.2% higher that day. That timing is supportive, but does not establish that the acquisition alone caused the gain.

Lymphoma trial setbackA key lymphoma study missed its main United States goal, narrowing expansion hopes.

On July 23, 2026, AbbVie and Genmab clarified that their Phase 3 epcoritamab study did not produce a statistically reliable improvement in overall survival, the sole main United States goal. The medicine already has accelerated approval for certain patients after at least two earlier treatments. The result could complicate broader use or conversion to standard approval, although regulatory next steps remain uncertain. No reliable AbbVie-specific share-price reaction could be attributed to this clarification.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011
Revenue	$61.16B	$56.33B	$54.32B	$58.05B	$56.20B	$45.80B	$33.27B	$32.75B	$28.22B	$25.64B	$22.86B	$19.96B	$18.79B	$18.38B	$17.44B
Research & development	$9.10B	$12.79B	$7.67B	$6.51B	$6.92B	$6.38B	$6.41B	$10.33B	$5.01B	$4.38B	$4.29B	$3.30B	$2.85B	$2.78B	$2.62B
Operating income	$15.07B	$9.14B	$12.76B	$18.12B	$17.92B	$11.36B	$12.98B	$6.38B	$9.54B	$9.34B	$7.54B	$3.41B	$5.66B	$5.82B	$3.62B
EBITDAderived	$23.21B	$17.52B	$21.45B	$26.58B	$26.45B	$17.83B	$15.00B	$8.15B	$11.05B	$10.53B	$8.37B	$4.20B	$6.56B	$6.97B	$4.89B
Net income	$4.23B	$4.28B	$4.86B	$11.84B	$11.54B	$4.62B	$7.88B	$5.69B	$5.31B	$5.95B	$5.14B	$1.77B	—	—	—
Basic EPSper diluted share	$2.37	$2.40	$2.73	$6.65	$6.48	$2.73	$5.30	$3.67	$3.31	$3.65	$3.15	$1.11	$2.58	$3.35	$2.18
Diluted EPSper diluted share	$2.36	$2.39	$2.72	$6.63	$6.45	$2.72	$5.28	$3.66	$3.30	$3.63	$3.13	$1.10	$2.56	$3.35	$2.18

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)33$141.73M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 4, 2026Form 4	Purdue David RyanSVP, Controller	SellCommon Stock, $0.01 par value	5.2K	$233.56	$1.22M	2.7K
Mar 2, 2026Form 4 · 10b5-1	Siatis Perry CEVP, GC AND SECRETARY	SellCommon Stock, $0.01 par value	2.6K	$235.26	$611.7K	4.6K
Mar 2, 2026Form 4 · 10b5-1	Siatis Perry CEVP, GC AND SECRETARY	SellCommon Stock, $0.01 par value	10.3K	$234.66	$2.41M	7.2K
Mar 2, 2026Form 4 · 10b5-1	Siatis Perry CEVP, GC AND SECRETARY	SellCommon Stock, $0.01 par value	5.8K	$233.51	$1.35M	17.5K
Feb 25, 2026Form 4 · 10b5-1	Siatis Perry CEVP, GC AND SECRETARY	SellCommon Stock, $0.01 par value	22.4K	$230.00	$5.15M	38.1K

Review ownership filings at SEC.gov ↗

AbbVie Inc. (ABBV)

Financial charts

Financial statements

Insider buys & sells