AbbVie — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported third-quarter net revenues of $17.404 billion, an increase of 10.3% on a reported basis and 10.5% on an operational basis compared to the prior year.
• Diluted EPS was $2.37 on a GAAP basis and $3.82 on an adjusted basis, both representing increases of over 100.0% year-over-year.
• Adjusted diluted EPS results included an unfavorable impact of $0.11 per share related to acquired IPR&D and milestones expense.
• GAAP gross margin ratio was 75.4%, while the adjusted gross margin ratio was 85.1%.
• GAAP operating margin ratio was 36.0%, while the adjusted operating margin ratio was 48.7%.
• GAAP net interest expense was $700 million; adjusted net interest expense was $688 million.
• GAAP tax rate was 12.6%; adjusted tax rate was 13.6%.
• Acquired IPR&D and milestones expense totaled $216 million (1.2% of net revenues) for the quarter.

Guidance and Future Outlook:

• Raised full-year 2026 adjusted diluted EPS guidance range from $13.76–$13.96 to $13.95–$13.99.
• The updated 2026 guidance includes an unfavorable impact of $0.69 per share related to acquired IPR&D and milestones expense incurred year-to-date through the third quarter.
• Guidance excludes the impact of any acquired IPR&D and milestones expenses that may be incurred beyond the third quarter of 2026.
• Management indicated significant momentum and a strong outlook, citing key regulatory approvals and differentiated clinical data.

Business Segments and Product Lines:

• Immunology: Net revenues of $9.165 billion, up 16.3% reported (16.6% operational).
  • Skyrizi: $5.776 billion, up 22.7% reported (22.9% operational).
  • Rinvoq: $2.706 billion, up 23.9% reported (24.3% operational).
  • Humira: $683 million, down 31.2% reported (30.6% operational).
• Neuroscience: Net revenues of $3.389 billion, up 19.4% reported (19.5% operational).
  • Vraylar: $1.068 billion, up 14.3%.
  • Botox Therapeutic: $1.080 billion, up 9.8%.
  • Combined Ubrelvy and Qulipta: $847 million.
  • Vyalev: $286 million.
• Oncology: Net revenues of $1.696 billion, up 0.8% reported (0.9% operational).
  • Venclexta: $803 million, up 10.7%.
  • Imbruvica: $522 million, down 26.1%.
  • Elahere: $224 million, up 31.0% reported (31.2% operational).
• Aesthetics: Net revenues of $1.176 billion, down 1.4% reported (1.8% operational).
  • Botox Cosmetic: $669 million, up 4.9% reported (4.1% operational).
  • Juvederm: $222 million, down 11.9% reported (11.8% operational).

Market and Competitive Landscape:

• Skyrizi received FDA approval for subcutaneous induction in moderately to severely active Crohn's disease.
• FDA approved Juvmo (tavapadon) as the only selective D1/D5 receptor agonist for Parkinson's disease.
• FDA accepted for review a supplemental BLA for Botox Cosmetic for masseter muscle prominence.
• Lutikizumab met primary endpoints in the Phase 3 INTREPID study for hidradenitis suppurativa.
• Qulipta met primary and secondary endpoints in the Phase 3 LUNA study for menstrual migraine prevention.
• Epkinly (epcoritamab) demonstrated a 51% reduction in risk of disease progression or death in the Phase 3 EPCORE DLBCL-2 trial when combined with R-CHOP.
• Telisotuzumab adizutecan received Breakthrough Therapy Designations for colorectal cancer and non-small cell lung cancer.
• Etentamig submission to the FDA for relapsed/refractory multiple myeloma supported by Phase 3 CERVINO study results showing 74% overall response rate and 60% progression-free survival.

Risks and Challenges:

• Acquired IPR&D and milestones expense creates unfavorable impacts on reported and adjusted EPS.
• Forward-looking non-GAAP financial measures cannot be reconciled to GAAP due to uncertainty regarding contingent consideration, intangible asset impairments, acquisition costs, litigation, and tax items.
• Risks include challenges to intellectual property, competition, R&D process difficulties, adverse litigation, regulatory changes, drug pricing reform, and global macroeconomic factors.

Management Commentary and Tone:

• Robert A. Michael, Chairman and CEO, stated the company continues to deliver outstanding results reflecting solid execution across a diverse portfolio.
• Management highlighted enhanced long-term growth potential through key regulatory approvals, differentiated clinical data, and the completion of the Apogee Therapeutics acquisition.
• The tone was confident, citing strong momentum and the decision to increase full-year guidance and the quarterly dividend.

Other Key Points:

• Completed the acquisition of Apogee Therapeutics, adding zumilokibart and APG273 to the immunology pipeline.
• Announced a 5.2% increase in the quarterly cash dividend to $1.82 per share, payable February 16, 2027.
• Established a strategic relationship with Valkai to apply advanced AI in clinical development.
• Entered a multi-year strategic relationship with Iambic to accelerate small molecule discovery in immunology, neuroscience, and oncology.
• Submitted a BLA for etentamig for multiple myeloma.
• AbbVie is a member of the S&P Dividend Aristocrats Index, having increased its quarterly dividend by 355% since inception in 2013.