AbbVie: 3 Key Takeaways for Long-Term Investors

Source Motley_fool

Key Points

  • AbbVie raised full-year net revenue guidance to $67.8 billion.

  • Skyrizi and Rinvoq delivered $6 billion in combined growth this year.

  • Free cash flow reached $14 billion in the first 9 months.

  • 10 stocks we like better than AbbVie ›

On its third quarter of 2026 earnings call, held on Oct. 30, 2026, AbbVie (NYSE:ABBV) raised its full-year revenue guidance to $67.8 billion following higher sales across its immunology and neuroscience portfolios. The drugmaker is expanding sales of newer treatments to offset patent-expiry headwinds on its legacy blockbuster medication, Humira. Long-term investors need to see whether these newer therapies can sustain double-digit growth into the next decade. Three things management said stand out.

1. Subcutaneous Options Drive Skyrizi Expansion in Inflammatory Bowel Disease

Skyrizi now captures half of all new patients starting therapy for inflammatory bowel disease, or IBD. Food and Drug Administration approval of a subcutaneous (under-the-skin) induction option for Crohn's disease simplifies administration and strengthens its position relative to competing treatments.

In IBD, Skyrizi is growing very robustly as well and continues to capture half of the new patient starts in the class. And we are very excited to be launching the subcutaneous induction dosing for Crohn's disease, which further strengthens our competitive position.
-- Jeffrey Stewart, Executive Vice President, Chief Commercial Officer

2. Neuroscience and Oncology Pipelines Target Peak Sales Beyond $5 Billion

The approval of Juvmo for Parkinson's disease expands the neuroscience division alongside Vyalev and Duopa. Management expects its Parkinson's franchise to surpass $5 billion in peak revenue as Medicare coverage expands by 2028.

Along with Vyalev/Duopa, we expect our Parkinson's therapies to collectively deliver peak sales of more than $5 billion.
-- Robert Michael, Chairman and Chief Executive Officer

3. Robust Free Cash Flow Supports Dividend Growth and Balance Sheet Deleveraging

The company generated $14 billion of free cash flow during the first nine months of the year. This cash generation supported a 5.2% quarterly dividend increase to $1.82 per share and keeps the business on track to reach a net leverage ratio of two times within two to three years.

Our cash balance at the end of September was $10.8 billion, and we generated approximately $14 billion of free cash flow in the first 9 months of the year, which includes nearly $2.7 billion of Skyrizi royalty payments.
-- Scott Reents, Executive Vice President, Chief Financial Officer

Looking Ahead

Sales momentum spans core immunology drugs and emerging neuroscience therapies, positioning the business for top-tier growth.

Clearly, I mean, we have a lot of momentum across our business to drive strong top-tier growth again next year.
-- Robert Michael, Chairman and Chief Executive Officer

High patient retention, commercial scale, and expanding label indications protect long-term margins as management navigates Inflation Reduction Act price adjustments and payer rebate negotiations.

In closing, AbbVie has once again delivered outstanding top and bottom line results and our financial outlook remains very strong.
-- Scott Reents, Executive Vice President, Chief Financial Officer

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The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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