Morningstar

AbbVie Earnings: Immunology Portfolio and Pipeline Look Solid

Our fair value estimate would rise significantly if we could gain confidence in AbbVie’s ability to grow in the final years of our 10-year explicit forecast.

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Securities in This Article
AbbVie Inc
(ABBV)

Key Morningstar Metrics for AbbVie

  • Fair Value Estimate
    : $184.00
  • Morningstar Rating
    : ★★★
  • Morningstar Economic Moat Rating
    : Wide
  • Morningstar Uncertainty Rating
    : High

What We Thought of AbbVie’s Earnings

AbbVie ABBV reported 12% revenue and 8% adjusted earnings per share growth in the first quarter. Management raised full-year guidance to $67.3 billion in revenue (10% growth) and adjusted EPS of $14.08-$14.28 (40%-42% growth from an acquisition-laden 2025). Shares rose more than 3% intraday on April 29.

Why it matters: Given the competitive immunology drug landscape, investors have been nervous about whether AbbVie’s dominant products can maintain strong double-digit growth. The first-quarter results and management’s guidance raise are both reassuring.

  • Skyrizi (31% growth) and Rinvoq (23% growth) are each showing strength across multiple immunology indications, with head-to-head and long-term outcome data further cementing physician comfort with prescribing these therapies.
  • Johnson & Johnson’s IL-23 antibody Tremfya is also growing impressively and stands as a similar option to Skyrizi, although it appears that both products are stealing share from other classes as well as expanding the market for patients treated with biologics.

The bottom line: We’re maintaining our $184 fair value estimate for wide-moat AbbVie. We think shares look fairly valued at recent prices.

  • Our fair value estimate would rise significantly if we could gain confidence in AbbVie’s ability to grow in the final years of our 10-year explicit forecast, as Skyrizi is likely to represent one-third of AbbVie’s revenue in 2026 and is poised to lose patent protection in the US in 2033.
  • Aside from patent extension, we’re closely watching for potential combination regimens that could lengthen AbbVie’s cash flows in Skyrizi’s main indications, such as the ABBV-382 and Skyrizi combination that management announced has generated promising early data in Crohn’s disease.

Editor’s Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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