Morningstar

AbbVie Earnings: Maintaining Our Fair Value Estimate Following a Steady Second Quarter

We’re closely watching data from early-stage pipeline programs that might warrant inclusion in our model.

A general view of the AbbVie logo on a sign.
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Securities in This Article
AbbVie Inc
(ABBV)

Key Morningstar Metrics for AbbVie

  • Fair Value Estimate
    : $200.00
  • Morningstar Rating
    : ★★
  • Morningstar Economic Moat Rating
    : Wide
  • Morningstar Uncertainty Rating
    : High

What We Thought of AbbVie’s Earnings

AbbVie ABBV reported 10.2% top-line growth and 22.9% adjusted diluted EPS growth in the second quarter. Management raised 2026 revenue guidance by $300 million to $67.6 billion but slightly lowered its adjusted diluted EPS guidance range to $13.87-$14.07 due to the pending Apogee acquisition.

Why it matters: AbbVie’s immunology portfolio continues to support strong double-digit growth, despite continuing competition from J&J’s IL23 antibody Tremfya and new oral IL23 drug Icotyde, but expectations are high, with shares falling 2.5% on July 31.

  • Skyrizi sales grew 24% as it continues to gain share in dermatology indications despite Icotyde’s psoriasis launch, and Rinvoq grew 25% as alopecia and vitiligo approvals (recently in Europe and pending in the US) are likely to continue to support strong growth.
  • Beyond immunology, AbbVie’s neuroscience business had broad double-digit growth across migraine, Parkinson’s disease, and antipsychotic therapies, helping to counter weaker performance in oncology (down 2%) and esthetics (flat).

The bottom line: We’re maintaining our $200 fair value estimate for wide-moat AbbVie following another strong quarter. We continue to see shares as overvalued, although we’re closely watching data from early-stage pipeline programs that might warrant inclusion in our model.

  • We’re particularly interested in Skyrizi combination data with novel pipeline drugs in gastrointestinal indications, and progress with oncology antibody-drug conjugates, including next-generation cMET ADC Temab-A that could be combined with PD-1/VEGF bispecific ABBV-1480.
  • Conversely, we’re also watching for data from competitors in immunology, including Icotyde data in psoriatic arthritis later this year.

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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