TLDR
- Q4 earnings of $2.71 per share beat analyst estimates of $2.65
- Revenue of $16.6 billion topped expectations of $16.4 billion
- 2026 guidance of $14.37-$14.57 per share exceeds consensus of $14.27
- Stock fell 3.6% as oncology and aesthetics segments showed weakness
- Skyrizi sales jumped 32.5% to $5.01 billion while Humira dropped 26%
AbbVie shares tumbled 3.6% Wednesday despite delivering quarterly results that beat Wall Street expectations. The pharmaceutical company also issued 2026 guidance that topped analyst forecasts, but investors zeroed in on weakness in key business segments.
The company posted adjusted earnings of $2.71 per share for the fourth quarter. That crushed the $2.65 consensus estimate. Revenue reached $16.6 billion, outpacing the $16.4 billion analysts predicted.
Looking ahead to 2026, AbbVie expects adjusted earnings between $14.37 and $14.57 per share. That range sits well above the $14.27 Wall Street consensus.
Revenue Pressure in Key Segments
Investors focused on declining revenue in the oncology and aesthetics divisions. Oncology sales totaled $1.7 billion, dropping 2.5% on an operational basis. The aesthetics portfolio brought in $1.3 billion, falling 1.2% operationally.
Aesthetics products include popular treatments like Botox Cosmetic and Juvederm. Botox sales did hit $717 million, beating the $696.2 million estimate and marking the first growth since Q3 2024. Customer concerns about the economy and new competition from Revance and Evolus have weighed on this segment.
Immunology Portfolio Delivers Growth
The immunology business provided a bright spot with $8.6 billion in revenue, up more than 18% year-over-year. Skyrizi led the charge with sales of $5.01 billion, growing 32.5% and beating estimates of $4.82 billion. Rinvoq generated $2.37 billion in sales, up 29.5% but slightly missing the $2.41 billion estimate.
These newer drugs are compensating for Humira’s decline. The former blockbuster saw sales plunge 26% to $1.2 billion. However, this actually beat analyst expectations of $983.8 million, marking the first time in nearly two years Humira exceeded forecasts.
Biosimilar Competition Takes Toll
Humira lost patent exclusivity in 2023 and now faces intense pressure from cheaper biosimilar alternatives. The drug peaked at more than $21 billion in global sales in 2022 before the patent cliff.
AbbVie has responded with heavy investment in growth initiatives. The company has deployed over $20 billion on acquisitions and plans another $10 billion in spending over the next decade. This includes constructing four new manufacturing facilities in the United States.
The stock decline came even as the broader market showed strength. S&P 500 futures rose 0.1% Wednesday morning. Competitor Eli Lilly jumped 9% after its own earnings release.
Shares initially gained in premarket trading before reversing course. The sell-off suggests investors remain cautious about revenue headwinds despite the company’s overall financial performance and promising guidance for the year ahead.
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