AbbVie lifts 2025 guidance after beating Q1 estimates

Overview

AbbVie started 2025 with strong momentum, reporting revenue and adjusted earnings ahead of expectations, driven by robust growth in Immunology and Neuroscience portfolios.

CEO Robert A. Michael emphasized the company’s positive trajectory: “AbbVie’s first-quarter results were well ahead of our expectations and reflect an excellent start to the year. The fundamentals of our business are strong, and we continue to bolster our outlook with pipeline advancements and strategic investments.”

Q1 2025 vs. Q1 2024:

• Net revenues rose to $13.34bn (+8.4% reported and +9.8% operational), driven by strong performances in Immunology (Skyrizi, Rinvoq) and Neuroscience (Vraylar, Botox Therapeutic), partially offset by Humira erosion and softness in Aesthetics.
  • Immunology revenue grew to $6.26bn (+16.6% reported and +18.1% operational), led by Skyrizi (+70% YoY) and Rinvoq (+57% YoY), more than offsetting Humira’s 51% decline.
  • Neuroscience revenue also increased to $2.28bn (+16.1% reported and +17.0% operational), driven by strong Vraylar (+10% YoY), Botox Therapeutic (+16% YoY), and new launches (Qulipta, Ubrelvy).
  • Oncology revenue was $1.63bn (+5.8% reported and +7.5% operational), growth from Venclexta (+8% YoY) and Elahere launch offsetting Imbruvica declines.
  • Aesthetics revenue declined to $1.10bn (-11.7% reported and -10.2% operational), pressured by consumer softness and competitive headwinds, particularly in Juvederm.
  • Eye Care revenue was $506m (-5.7% reported and -2.2% operational), but it was a stable performance despite pricing pressure in international markets.
• GAAP net income declined to $1.29bn (-6% YoY), impacted by higher IPR&D and milestone expenses, along with higher net interest costs.
• In the same way, GAAP EPS was $0.72 (-6.5% YoY), affected by R&D-related expenses and higher other operating charges.
• Adjusted net income increased to $4.37bn (+6.1% YoY), supported by growth in high-margin portfolios and operational efficiencies.
• Adjusted EPS recorded a value of $2.46 (vs. $2.31 in Q1 2024), reflecting core operating strength across key therapeutic areas.
• On a GAAP basis, operating margin in Q1 2025 was 28.0%. The adjusted operating margin was 42.3%, aided by improved product mix and controlled SG&A and R&D expenses.
• Also, in the first-quarter the company received EU approval for Rinvoq in Giant Cell Arteritis (GCA) and it presented positive Phase 3 MIRASOL trial data for Elahere in ovarian cancer.
• The company entered obesity market with Gubra licensing deal for a novel amylin analog and received FDA approval for Emblaveo, a new antibiotic for serious Gram-negative infections.

AbbVie raised its full-year 2025 adjusted diluted EPS guidance to a range of $12.09–$12.29, up from the prior range of $11.99–$12.19. This includes a $0.13 per share negative impact from acquired IPR&D and milestone expenses recorded in Q1. The guidance excludes potential future milestones, assumes a stable trade environment, and does not yet reflect the recently signed Gubra collaboration.

After the publication of the quarterly results, ABBV’s share price ended this trading week with an appreciation of approximately +3%, thus continuing the upward trend from the penultimate week of April, having increased by approximately +7% in the last 5 days. Also, since the beginning of this year, ABBV’s stock price has increased by approximately +3.7%, but since the beginning of April, when global market volatility increased to maximum levels due to the imposition of trade tariffs, the company’s market price is still below the 50-day moving average.

Author: Ionuț-Adrian Lazar