AbbVie's Latest Results Reveal a Trend Investors Shouldn't Overlook

AbbVie (NYSE: ABBV) has not performed well this year, but the company's recent first-quarter update, released on April 29, helped breathe new life into the stock, which jumped by more than 3% post-earnings. Could this be the start of a sustained rally? It's hard to say. However, AbbVie's financial results once again highlighted one of the company's strengths that investors should pay attention to. Let's look into it and consider what it means for AbbVie's prospects.

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AbbVie's growth pillars are unstoppable

AbbVie's revenue for the first quarter came in at $15 billion, 12.4% higher than the year-ago period. The company had projected sales of $14.7 billion for the period, so this is a nice surprise. The pharmaceutical leader singled out several areas that drove the revenue beat, including its immunology business. That's the trend investors shouldn't miss. AbbVie has been a leader in immunology for a while, dating back to the days when Humira -- once the world's best-selling drug -- was its biggest growth driver.

Now, it is Skyrizi and Rinvoq, two immunosuppressants that continue to outpace AbbVie's (and the market's) expectations. Management said during the company's earnings conference call that both Skyrizi and Rinvoq posted sales that were higher than what it anticipated, but it's worth taking a stroll further down memory lane. For some time, AbbVie projected that Skyrizi and Rinvoq would exceed $27 billion in combined sales by 2027.

Then, it raised that guidance by $4 billion to $31 billion. AbbVie made yet another change at the beginning of this year. The company announced that it now expects Skyrizi and Rinvoq to generate over $31 billion in revenue this year, rather than in 2027.

Here's more good news. Skyrizi and Rinvoq still have label expansions on the horizon that could further boost their sales. Rinvoq is awaiting approval as a treatment for alopecia areata, while a subcutaneous formulation of Skyrizi could earn a new indication as an induction treatment for Crohn's disease. Right now, Skyrizi patients have to start therapy with intravenous infusions, which limits its market potential compared to some competitors in this area.

There is even more good news beyond potential new indications for Skyrizi and Rinvoq: neither will lose patent exclusivity until well into the 2030s. Here's the bottom line: AbbVie's most important growth drivers are performing extremely well and should continue doing so for a while. AbbVie increased its earnings per share guidance for the fiscal year 2026 partly for that reason.

That alone doesn't make the stock a buy. But when we consider other factors, including the rest of AbbVie's lineup that features several more growth drivers, the company's deep pipeline, and its robust dividend program (the company is a Dividend King, or a corporation with more than 50 consecutive annual payout increases), AbbVie looks like an attractive stock to buy and hold onto, especially as it is still down 10% year to date.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.