TenQ

The AbbVie story

AbbVie makes immune disease treatments, Botox and cancer drugs, with growth depending on Skyrizi and Rinvoq outpacing Humira’s decline while Apogee expands its immunology pipeline.

Written from AbbVie's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $266.28share price, last close
  • $470.5Bmarket value
  • 24/36TenQ Score checks passed
  • 12.1%growth a year the price assumes

The story in brief

  • Immunology drives growth. In the quarter to June 2026, Skyrizi revenue grew 24.4 percent and Rinvoq revenue grew 24.5 percent, helping total revenue reach $16.990 billion.
  • Apogee expands the pipeline. AbbVie completed its approximately $10.9 billion acquisition of Apogee Therapeutics in September 2026, adding experimental treatments for atopic dermatitis and asthma.
  • Cash supports substantial obligations. AbbVie generated $18.2 billion of free cash flow over the last twelve months, against reported total debt of $62.5 billion and cash and short-term investments of $6.6 billion.

What drives the business

  • AbbVie operates as a single global business segment, with an immunology portfolio spanning skin, joint and bowel diseases alongside neuroscience, oncology and aesthetics products.
  • Skyrizi and Rinvoq are central to growth beyond Humira, generating $5.505 billion and $2.525 billion respectively in the quarter to June 2026, while Humira revenue fell 35.9 percent to $756 million amid global biosimilar competition.
  • Neuroscience provides another source of growth, with revenue rising 20.3 percent to $3.228 billion in the quarter to June 2026, including Vraylar, Botox Therapeutic and migraine treatments Ubrelvy and Qulipta.
  • The completed Apogee acquisition adds zumilokibart for atopic dermatitis and APG273 for asthma to AbbVie’s development pipeline, extending its immunology work into respiratory disease.
  • McKesson, Cardinal Health and Cencora accounted for substantially all United States pharmaceutical product sales in 2025, although AbbVie says losing any single customer would not materially harm its business.

What the price assumes

At $266.28, the reverse DCF implies free cash flow after stock pay grows 12.1% a year for ten years, using a 10.2% discount rate.

AbbVie delivered 13.9% annual growth in that measure over the last 10 years, but the TenQ check sets a 9.0% bar by slowing that record halfway toward 4%.

The price therefore assumes less growth than the historical record but more than the check allows, while the free cash flow yield is 3.9% versus its historical 11.4%.

Value ABBV on your own assumptions

What could change the story

  • With Apogee acquired, integration costs, management distraction and clinical trial outcomes remain unresolved risks, including whether zumilokibart and other pipeline assets demonstrate the expected safety and efficacy.
  • Negative equity and a near-term liquidity ratio of 0.81 cause AbbVie to fail balance sheet checks despite its substantial free cash flow.
  • Growth remains uneven across the portfolio, with oncology revenue falling 1.5 percent and aesthetics revenue rising only 0.3 percent in the quarter to June 2026.
  • Revenue growth of 10.4% over the last twelve months exceeds the three-year annual pace of 1.8%, but both fall short of the respective TenQ sector growth benchmarks.

What to watch next

  • On September 3, 2026, AbbVie reaffirmed adjusted diluted EPS guidance of $13.87 to $14.07 for 2026 and $3.84 to $3.88 for the quarter to September 2026.
  • The annual guidance includes $0.14 per share of Apogee dilution but excludes acquired research and development and milestone expenses beyond the quarter to June 2026, leaving further charges an important earnings variable.
  • The next releases will show whether Skyrizi and Rinvoq maintain their growth following expanded approvals, whether neuroscience continues to broaden revenue growth, and how cash and debt change following Apogee’s completion.

Sources

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