AbbVie Inc.
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ITEM 1. BUSINESS
Overview
AbbVie or "the company" refer to AbbVie Inc., or AbbVie Inc. and its consolidated subsidiaries, as the context requires. AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, neuroscience, oncology and aesthetics. AbbVie uses its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie was incorporated in Delaware on April 10, 2012. On January 1, 2013, AbbVie became an independent, publicly-traded company as a result of the distribution by Abbott Laboratories (Abbott) of 100% of the outstanding common stock of AbbVie to Abbott's shareholders.
Segments
AbbVie operates as a single global business segment dedicated to the research and development, manufacturing, commercialization and sale of innovative medicines and therapies. This operating structure enables the Chief Executive Officer, as Chief Operating Decision Maker (CODM), to allocate resources and assess business performance on a global basis in order to achieve established long-term strategic goals. Consistent with this structure, a global research and development and supply chain organization is responsible for the discovery, development, manufacturing and supply of products. Commercial efforts that coordinate the marketing, sales and distribution of these products are organized by geographic region or therapeutic area. All of these activities are supported by a global corporate administrative staff. The determination of a single business segment is consistent with the consolidated financial information regularly reviewed by the CODM for purposes of assessing performance, allocating resources and planning and forecasting future periods. See Note 16, "Segment and Geographic Area Information" to the Consolidated Financial Statements included under Item 8, "Financial Statements and Supplementary Data" and the sales information related to AbbVie's key products and geographies included under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations."
Products
AbbVie's portfolio of products includes a broad line of therapies that address some of the world's most complex and serious diseases.
Immunology products. AbbVie maintains an extensive immunology portfolio across rheumatology, dermatology and gastroenterology. AbbVie's immunology products address unmet needs for patients with autoimmune diseases. These products are:
Skyrizi. Skyrizi (risankizumab) is an interleukin-23 (IL-23) inhibitor that selectively blocks IL-23 by binding to its p19 subunit. It is a biologic therapy approved to treat the following autoimmune diseases in the United States, Canada and Mexico (collectively, North America), the European Union and Japan:
Condition | Principal Markets | ||||||
Plaque psoriasis (moderate to severe) | North America, European Union, Japan | ||||||
Psoriatic arthritis | North America, European Union, Japan | ||||||
Crohn's disease (moderate to severe) | North America, European Union, Japan | ||||||
| Ulcerative colitis (moderate to severe) | North America, European Union, Japan | ||||||
In psoriatic disease (plaque psoriasis or psoriatic arthritis), Skyrizi is administered as a quarterly subcutaneous injection following two induction doses. When administered for Crohn’s disease and ulcerative colitis, Skyrizi is given as three induction doses via IV infusion, followed by subcutaneous injection via an on-body injector every eight weeks. Skyrizi is sold in numerous other markets worldwide.
1 | | 2025 Form 10-K | ||||||||
Rinvoq. Rinvoq (upadacitinib) is an oral, once-daily selective and reversible JAK inhibitor that is approved to treat the following inflammatory diseases in North America, the European Union and Japan:
| Condition | Principal Markets | ||||||
| Rheumatoid arthritis (moderate to severe) | North America, European Union, Japan | ||||||
| Psoriatic arthritis | North America, European Union, Japan | ||||||
| Ankylosing spondylitis | North America, European Union, Japan | ||||||
| Atopic dermatitis (moderate to severe) | North America, European Union, Japan | ||||||
| Non-radiographic axial spondyloarthritis | North America, European Union, Japan | ||||||
| Ulcerative colitis (moderate to severe) | North America, European Union, Japan | ||||||
Crohn's disease (moderate to severe) | U.S., Canada, European Union, Japan | ||||||
| Giant cell arteritis | U.S., Canada, European Union, Japan | ||||||
| Active polyarticular juvenile idiopathic arthritis | U.S. | ||||||
In the United States, Rinvoq is indicated for the treatment of moderate to severe active rheumatoid arthritis, active ankylosing spondylitis, active non-radiographic axial spondyloarthritis, moderate to severe ulcerative colitis and moderate to severe active Crohn's disease in adult patients who have an inadequate response or intolerance to one or more tumor necrosis factor (TNF) blockers. For Crohn's disease and ulcerative colitis, it is additionally approved prior to the use of TNF blockers in patients for whom the use of these treatments is clinically inadvisable and who have received at least one approved systemic therapy. It is also indicated for the treatment of adult and pediatric patients two years of age and older with active psoriatic arthritis and for the treatment of patients two years of age and older with active polyarticular juvenile idiopathic arthritis who have had an inadequate response or intolerance to one or more TNF blockers. It is also indicated for the treatment of adults and adolescents 12 years of age and older with moderate to severe atopic dermatitis whose disease is not adequately controlled with other systemic drug products, including biologics, or when use of those therapies are inadvisable.
In the European Union, Rinvoq is indicated for the treatment of moderate to severe active rheumatoid arthritis and active psoriatic arthritis in adult patients who have an inadequate response or intolerance to disease-modifying anti-rheumatic medicines (DMARDs). It is also indicated for the treatment of moderate to severe active ulcerative colitis and Crohn's disease in adult patients who have an inadequate response or were intolerant to either conventional therapy or a biologic agent. It is also indicated for the treatment of active non-radiographic axial spondyloarthritis in adult patients who have responded inadequately to nonsteroidal anti-inflammatory drugs (NSAIDs) and for ankylosing spondylitis in adult patients who have responded inadequately to conventional therapy. Additionally, it is indicated for the treatment of moderate to severe atopic dermatitis in adults and adolescents 12 years of age and older who are candidates for systemic therapy.
Rinvoq is sold in numerous other markets worldwide.
2025 Form 10-K | | 2 | ||||||||
Humira. Humira (adalimumab) is a biologic therapy administered as a subcutaneous injection. It is approved to treat the following autoimmune diseases in North America and in the European Union:
| Condition | Principal Markets | ||||||
| Rheumatoid arthritis (moderate to severe) | North America, European Union | ||||||
| Psoriatic arthritis | North America, European Union | ||||||
| Ankylosing spondylitis | North America, European Union | ||||||
| Crohn's disease (moderate to severe) | North America, European Union | ||||||
| Plaque psoriasis (moderate to severe chronic) | North America, European Union | ||||||
| Juvenile idiopathic arthritis (moderate to severe polyarticular) | North America, European Union | ||||||
| Ulcerative colitis (moderate to severe) | North America, European Union | ||||||
| Non-radiographic axial spondyloarthritis | European Union | ||||||
| Pediatric Crohn's disease (moderate to severe) | |||||||
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion and analysis of the financial condition of AbbVie Inc. (AbbVie or the company) as of March 31, 2026 and December 31, 2025 and the results of operations for the three months ended March 31, 2026 and 2025. This commentary should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes appearing in Item 1, “Financial Statements and Supplementary Data.”
EXECUTIVE OVERVIEW
Company Overview
AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, neuroscience, oncology and aesthetics. AbbVie uses its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases.
AbbVie's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses. Certain products (including aesthetic products and devices) are also sold directly to physicians and other licensed healthcare providers. In the United States (U.S.), AbbVie distributes pharmaceutical products principally through independent wholesale distributors, with some sales directly to retailers, pharmacies, patients or other customers. Outside the United States, AbbVie sells products primarily to wholesalers or through distributors, and depending on the market works through largely centralized national payers systems to agree on reimbursement terms. Certain products are co-marketed or co-promoted with other companies. AbbVie operates as a single global business segment.
2026 Strategic Objectives
AbbVie's mission is to discover and develop innovative medicines and products that solve serious health issues today and address the medical challenges of tomorrow while achieving top-tier financial performance through outstanding execution. AbbVie intends to execute its strategy and advance its mission in a number of ways, including: (i) maximizing the benefits of a diversified revenue base with multiple long-term growth drivers; (ii) leveraging AbbVie's commercial strength and international infrastructure across therapeutic areas and ensuring strong commercial execution of new product launches as well as continued investment in key on-market products; (iii) continuing to invest in and expand its pipeline in support of opportunities in immunology, neuroscience, oncology and aesthetics as well as new sources of growth such as obesity; (iv) generating substantial operating cash flows to support investments in innovative research and development and returning cash to shareholders via a strong and growing dividend while maintaining a strong investment grade credit rating. In addition, AbbVie anticipates several regulatory submissions, approvals and data readouts from key clinical trials in the next 12 months.
Financial Results
The company’s financial performance for the three months ended March 31, 2026 included delivering worldwide net revenues of $15.0 billion, operating earnings of $4.0 billion, diluted earnings per share of $0.39 and cash flows from operations of $3.8 billion. Worldwide net revenues increased 12% on a reported basis and 10% on a constant currency basis.
Financial results for the three months ended March 31, 2026 also included the following costs: (i) $1.7 billion related to the amortization of intangible assets; and (ii) $2.4 billion for the change in fair value of contingent consideration liabilities. Additionally, financial results reflected continued funding to support all stages of AbbVie’s pipeline assets and continued investment in AbbVie’s on-market brands.
2026 Form 10-Q | | 22 |
Recent Events
Regulatory Environment
In January 2026, AbbVie announced a voluntary agreement with the U.S. government to further advance access and affordability of AbbVie’s products in the U.S. while protecting and investing in U.S. pharmaceutical innovation. AbbVie will provide low prices in Medicaid and expand affordable, direct-to-patient offerings. Additionally, AbbVie pledged $100 billion in U.S.-based research and development and capital investments, including manufacturing, over the next decade. Under this voluntary agreement, the U.S. government has agreed to provide AbbVie a three-year exemption from tariffs and future price mandates.
The Inflation Reduction Act of 2022 has and will continue to have a significant impact on AbbVie’s business. In January 2026, the U.S. Department of Health and Human Services, through Centers for Medicare and Medicaid Service, selected Botox as one of 15 medicines subject to government-set prices in Medicare Parts B and D beginning in 2028.
U.S. Capital Investment
In 2026, AbbVie announced an investment to build a pharmaceutical manufacturing campus in North Carolina. The campus will integrate advanced manufacturing and laboratory technologies with artificial intelligence to support the production of immunology, neuroscience and oncology medicines. Additionally, AbbVie announced investments to add two new manufacturing facilities in Illinois to support next generation neuroscience and obesity medications as well as an agreement to acquire a device manufacturing facility in Arizona. These projects are part of AbbVie's plan to invest in the U.S. to broadly support innovation and expand critical manufacturing capabilities and capacity.
Research and Development
Research and innovation are the cornerstones of AbbVie’s business as a global biopharmaceutical company. AbbVie’s long-term success depends to a great extent on its ability to continue to discover and develop innovative products and acquire or collaborate on compounds currently in development by other biotechnology or pharmaceutical companies.
AbbVie’s pipeline currently includes approximately 90 compounds, devices or indications in development individually or under collaboration or license agreements. Of these programs, approximately 60 are in mid- and late-stage development. The company’s pipeline is focused on immunology, neuroscience, oncology and aesthetics as well as other specialties, including obesity.
The following sections summarize transitions of significant programs from mid-stage development to late-stage development as well as developments in significant late-stage and registrational programs. AbbVie expects multiple mid-stage programs to transition into late-stage programs in the next 12 months.
Significant Programs and Developments
Immunology
Skyrizi
•In February 2026, AbbVie announced positive topline results from the Phase 3 AFFIRM trial evaluating Skyrizi subcutaneous induction in adult patients with moderately to severely active Crohn’s disease (CD).
•In April 2026, AbbVie announced the submission of an application to the U.S. Food and Drug Administration (FDA) for Skyrizi for subcutaneous induction for the treatment of adult patients with moderately to severely active CD.
Rinvoq
•In February 2026, AbbVie announced the submission of applications for a new indication to the U.S. FDA and European Medicines Agency (EMA) for Rinvoq for the treatment of adult and adolescent patients with non-segmental vitiligo.
•In April 2026, AbbVie announced the submission of an application for a new indication to the U.S. FDA for Rinvoq for the treatment of adult and adolescent patients with severe alopecia areata (AA).
2026 Form 10-Q | | 23 |
Oncology
Venclexta
•In February 2026, AbbVie announced that the U.S. FDA approved the combination regimen of Venclexta with acalabrutinib for the treatment of previously untreated adult patients with chronic lymphocytic leukemia (CLL).
Epkinly
•In January 2026, AbbVie announced topline results from the Phase 3 trial evaluating Epkinly compared to investigator's choice of chemoimmunotherapy in adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL). The study demonstrated an improvement in progression free survival but did not demonstrate a statistically significant improvement in overall survival.
ABBV-706
•In April 2026, AbbVie initiated a Phase 3 trial to evaluate ABBV-706 versus standard of care in R/R small cell lung cancer (SCLC).
Aesthetics
TrenibotE
•In April 2026, AbbVie announced it received a Complete Response Letter (CRL) from the U.S. FDA regarding the Biologics License Application (BLA) for trenibotulinumtoxinE (TrenibotE) for the treatment of moderate to severe glabellar lines. In its letter, the FDA requested additional information about manufacturing processes. The CRL does not identify any safety or efficacy concerns for TrenibotE and does not request additional clinical studies.
For a more comprehensive discussion of AbbVie’s products and pipeline, see the company’s Annual Report on Form 10-K for the year ended December 31, 2025.
2026 Form 10-Q | | 24 |
RESULTS OF OPERATIONS
Net Revenues
The comparisons presented at constant currency rates reflect comparative local currency net revenues at the prior year’s foreign exchange rates. This measure provides information on the change in net revenues assuming that foreign currency exchange rates had not changed between the prior and current periods. AbbVie believes that the non-GAAP measure of change in net revenues at constant currency rates, when used in conjunction with the GAAP measure of change in net revenues at actual currency rates, may provide a more complete understanding of the company’s operations and can facilitate analysis of the company’s results of operations, particularly in evaluating performance from one period to another.
| Three months ended March 31, | Percent change | |||||||||||||||||||||
| At actual currency rates | At constant currency rates | |||||||||||||||||||||
(dollars in millions) | 2026 | 2025 | ||||||||||||||||||||
United States | $ | 10,969 | $ | 9,979 | 9.9 | % | 9.9 | % | ||||||||||||||
International | 4,033 | 3,364 | 19.9 | % | 11.4 | % | ||||||||||||||||
Net revenues | $ | 15,002 | $ | 13,343 | 12.4 | % | 10.3 | % | ||||||||||||||
2026 Form 10-Q | | 25 |
The following table details AbbVie’s worldwide net revenues:
| Three months ended March 31, | Percent change | ||||||||||||||||||||||||
| At actual currency rates | At constant currency rates | ||||||||||||||||||||||||
(dollars in millions) | 2026 | 2025 | |||||||||||||||||||||||
| Immunology | |||||||||||||||||||||||||
| Skyrizi | United States | $ | 3,775 | $ | 2,919 | 29.3 | % | 29.3 | % | ||||||||||||||||
| International | 708 | 506 | 39.8 | % | 28.0 | % | |||||||||||||||||||
| Total | $ | 4,483 | $ | 3,425 | 30.9 | % | 29.2 | % | |||||||||||||||||
| Rinvoq | United States | $ | 1,405 | $ | 1,220 | 15.1 | % | 15.1 | % | ||||||||||||||||
| International | 714 | 498 | 43.4 | % | 32.6 | % | |||||||||||||||||||
| Total | $ | 2,119 | $ | 1,718 | 23.3 | % | 20.2 | % | |||||||||||||||||
| Humira | United States | $ | 357 | $ | 744 | (52.0) | % | (52.0) | % | ||||||||||||||||
| International | 331 | 377 | (12.3) | % | (17.4) | % | |||||||||||||||||||
| Total | $ | 688 | $ | 1,121 | (38.6) | % | (40.3) | % | |||||||||||||||||
| Neuroscience | |||||||||||||||||||||||||
| Vraylar | United States | $ | 902 | $ | 763 | 18.2 | % | 18.2 | % | ||||||||||||||||
| International | 3 | 2 | 67.6 | % | 58.9 | % | |||||||||||||||||||
| Total | $ | 905 | $ | 765 | 18.4 | % | 18.4 | % | |||||||||||||||||
| Botox Therapeutic | United States | $ | 842 | $ | 723 | 16.5 | % | 16.5 | % | ||||||||||||||||
| International | 167 | 143 | 16.3 | % | 6.7 | % | |||||||||||||||||||
| Total | $ | 1,009 | $ | 866 | 16.5 | % | 14.9 | % | |||||||||||||||||
| Ubrelvy | United States | $ | 330 | $ | 233 | 41.7 | % | 41.7 | % | ||||||||||||||||
| International | 9 | 7 | 29.2 | % | 22.9 | % | |||||||||||||||||||
| Total | $ | 339 | $ | 240 | 41.4 | % | 41.2 | % | |||||||||||||||||
| Qulipta | United States | $ | 250 | $ | 172 | 45.4 | % | 45.4 | % | ||||||||||||||||
| International | 46 | 21 | >100.0 % | 99.7 | % | ||||||||||||||||||||
| Total | $ | 296 | $ | 193 | 53.6 | % | 51.3 | % | |||||||||||||||||
| Vyalev | United States | $ | 89 | $ | 6 | >100.0 % | >100.0 % | ||||||||||||||||||
| International | 112 | 57 | 98.3 | % | 76.9 | % | |||||||||||||||||||
| Total | $ | 201 | $ | 63 | >100.0 % | >100.0 % | |||||||||||||||||||
| Other Neuroscience | United States | $ | 46 | $ | 75 | (38.9) | % | (38.9) | % | ||||||||||||||||
| International | 79 | 80 | (1.5) | % | (11.7) | % | |||||||||||||||||||
| Total | $ | 125 | $ | 155 | (19.6) | % | (24.8) | % | |||||||||||||||||
| Oncology | |||||||||||||||||||||||||
| Venclexta | United States | $ | 341 | $ | 312 | 9.2 | % | 9.2 | % | ||||||||||||||||
| International | 429 | 353 | 21.4 | % | 10.1 | % | |||||||||||||||||||
| Total | $ | 770 | $ | 665 | 15.7 | % | 9.7 | % | |||||||||||||||||
| Imbruvica | United States | $ | 332 | $ | 529 | (37.4) | % | (37.4) | % | ||||||||||||||||
| Collaboration revenues | 224 | 209 | 7.2 | % | 7.2 | % | |||||||||||||||||||
| Total | $ | 556 | $ | 738 | (24.7) | % | (24.7) | % | |||||||||||||||||
Elahere | United States | $ | 160 | $ | 165 | (2.9) | % | (2.9) | % | ||||||||||||||||
| International | 38 | 14 | >100.0 % | >100.0 % | |||||||||||||||||||||
Total | $ | 198 | $ | 179 | 10.7 | % | 8.3 | % | |||||||||||||||||
| Epkinly | Collaboration revenues | $ | 51 | $ | 36 | 40.4 | % | 40.4 | % | ||||||||||||||||
| International | 32 | 15 | >100% | 99.9 | % | ||||||||||||||||||||
| Total | $ | 83 | $ | 51 | 62.0 | % | 57.6 | % | |||||||||||||||||
| Other Oncology | United States | $ | 24 | $ | — | n/m | n/m | ||||||||||||||||||
| Aesthetics | |||||||||||||||||||||||||
| Botox Cosmetic | United States | $ | 371 | $ | 295 | 25.8 | % | 25.8 | % | ||||||||||||||||
| International | 297 | 261 | 13.9 | % | 7.1 | % | |||||||||||||||||||
| Total | $ | 668 | $ | 556 | 20.2 | % | 17.0 | % | |||||||||||||||||
| Juvederm Collection | United States | $ | 85 | $ | 75 | 12.2 | % | 12.2 | % | ||||||||||||||||
| International | 147 | 156 | (5.3) | % | (10.3) | % | |||||||||||||||||||
| Total | $ | 232 | $ | 231 | 0.4 | % | (2.9) | % | |||||||||||||||||
2026 Form 10-Q | | 26 |
| Three months ended March 31, | Percent change | ||||||||||||||||||||||||
| At actual currency rates | At constant currency rates | ||||||||||||||||||||||||
(dollars in millions) | 2026 | 2025 | |||||||||||||||||||||||
| Other Aesthetics | United States | $ | 248 | $ | 270 | (8.4) | % | (8.4) | % | ||||||||||||||||
| International | 38 | 45 | (15.7) | % | (20.5) | % | |||||||||||||||||||
| Total | $ | 286 | $ | 315 | (9.4) | % | (10.1) | % | |||||||||||||||||
| Other Key Products | |||||||||||||||||||||||||
| Mavyret | United States | $ | 183 | $ | 142 | 28.3 | % | 28.3 | % | ||||||||||||||||
| International | 168 | 164 | 2.4 | % | (8.6) | % | |||||||||||||||||||
| Total | $ | 351 | $ | 306 | 14.5 | % | 8.6 | % | |||||||||||||||||
| Creon | United States | $ | 361 | $ | 355 | 1.8 | % | 1.8 | % | ||||||||||||||||
Linzess | United States | $ | 272 | $ | 139 | 96.9 | % | 96.9 | % | ||||||||||||||||
| International | 11 | 9 | 12.7 | % | 3.0 | % | |||||||||||||||||||
| Total | $ | 283 | $ | 148 | 91.5 | % | 90.9 | % | |||||||||||||||||
| All other | $ | 1,025 | $ | 1,253 | |||||||||||||||||||||
Next expected filings
- ~2026-08-04 10-Q expected by 2026-08-09 (in 50 days)
- ~2026-11-04 10-Q expected by 2026-11-09 (in 142 days)
- ~2027-02-19 10-K expected by 2027-03-03 (in 249 days)
- ~2027-05-08 10-Q expected by 2027-05-13 (in 327 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-08 10-Q Quarterly Report
- 2026-04-29 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-03 8-K Earnings Release; Financial Statements and Exhibits
- 2026-03-04 8-K Other Events; Financial Statements and Exhibits
- 2026-02-26 8-K Other Events; Financial Statements and Exhibits
- 2026-02-20 10-K Annual Report
- 2026-02-04 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-07 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-04 10-Q Quarterly Report
- 2025-10-31 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-03 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-04 10-Q Quarterly Report
- 2025-07-31 8-K Earnings Release; Financial Statements and Exhibits
- 2025-07-03 8-K Earnings Release; Financial Statements and Exhibits
- 2025-05-13 8-K Officer/Director Change; Shareholder Vote Results