AbbVie’s post-Humira transition is gaining traction, with 10% revenue growth, a 16.1x forward P/E, and substantial upside from pipeline execution.
Overview
AbbVie is a global research-based biopharmaceutical company with high-margin franchises in immunology, neuroscience, oncology, and aesthetics. The investment case rests on a successful post-Humira transition: Skyrizi and Rinvoq are replacing the former blockbuster, with combined 2025 sales of $26 billion and management targeting more than $31 billion by 2027. **Q2 2026 revenue rose 10.2% to $16.990 billion**, beating consensus by approximately $220 million, while adjusted EPS increased 22.9% to $3.65. Full-year 2026 revenue guidance increased by $300 million to approximately $67.6 billion, although adjusted EPS guidance declined to $13.87–$14.07 because of Apogee dilution and $0.58 of year-to-date IPR&D and milestone expense. The pending $10.9 billion Apogee acquisition provides differentiated pipeline exposure into the 2030s. At approximately 16.1x consensus 2027 adjusted EPS of $16.46, valuation is materially more attractive than the trailing 25.26x multiple suggests. Near-term catalysts include continued Skyrizi and Rinvoq growth, Apogee closing in Q3 2026, pipeline readouts, and label expansion.