AbbVie Raises 2025 Outlook After Q2 Beat

AbbVie(NYSE:ABBV) reported second quarter 2025 results on July 31, 2025, delivering adjusted EPS of $2.97 (up $0.11 from guidance midpoint) and net revenues of $15.4 billion (up $400 million from expectations).

Management raised full-year revenue guidance by $800 million, to $60.5 billion, and adjusted EPS (non-GAAP) guidance by $0.21 to a range of $11.88-$12.08, fueled by robust growth in immunology (SKYRIZI, RINVOQ) and neuroscience portfolios.

The following insights detail pivotal drivers of performance, R&D pipeline expansion, and revenue diversification critical to AbbVie’s long-term thesis.

SKYRIZI and RINVOQ power AbbVie revenue outperformance

SKYRIZI delivered global revenue of $4.4 billion, up 61.8% year-over-year on an operational basis, while RINVOQ global sales reached $2 billion, up 41.2%, supported by strong share gains across dermatology, rheumatology, and inflammatory bowel disease (IBD) indications.

Combined, these flagship immunology products are on track for over $25 billion in sales this year, with SKYRIZI’s psoriasis franchise achieving global market leadership and RINVOQ expanding rapidly in IBD and new rheumatology indications.

"This overachievement includes sales growth of 22% from our ex-HUMIRA platform with continued robust performance from SKYRIZI and RINVOQ, which are now on pace to deliver more than $25 billion in sales for full-year 2025 (non-GAAP), well above our initial expectation. We also delivered strong"
— Rob Michael, President & COO

AbbVie’s migration to a diversified growth platform unanchored from legacy biologics is accelerating.

Drug pipeline and deals reshape future growth profile

Since early 2024, AbbVie has executed over 30 business development transactions, including entering obesity via Gubra’s long-acting amylin analog, acquiring Capstan Therapeutics’ in vivo CAR-T platform, and in-licensing novel immunology and oncology assets such as ISB 2001 and next-generation siRNA candidates through 8Rx.

Recent late-stage R&D wins also include FDA approval of EMERALIS (nonsquamous non-small cell lung cancer) and RINVOQ (giant cell arteritis), and pivotal RINVOQ phase 3 data in alopecia areata.

AbbVie’s aggressive redeployment of capital toward high-impact external innovation and next-wave immunology and oncology mechanisms positions the company for sustained revenue growth even as legacy exclusivity periods end.

Neuroscience emerges as second growth engine

The neuroscience franchise posted $2.7 billion in revenue, up 24% year-over-year on an operational basis, powered by increased global sales of Vraylar, Botox Therapeutic, Ubrelvy, and Qlipta. Vraylar posted a 16.3% growth, to $900 million in global sales, while Botox Therapeutic generated global revenues of $928 million, up 14.2%. Ubrelvy posted global sales of $338 million, up 47.2%, and QULIPTA posted global revenues of $267 million, up 76.9%.

Positve Phase III results from the TEMPLE study demonstrated QULIPTA's superiority over topiramate in migraine prevention. The VYALEV launch generated $98 million in sequential quarterly revenue, with international demand driving a $100 million upward revision in full-year guidance.

"In neuroscience, we now expect global sales of $10.5 billion, an increase of $300 million. This includes a $100 million increase for Vylev, reflecting strong international uptake, with the remaining $200 million increase split relatively evenly across Vraylar, Botox Therapeutic, and the total oral CGRP portfolio."
— Scott Reents, CFO

The neuroscience portfolio is on track to drive near-term leadership in psych, migraine, and Parkinson’s, with continued R&D and commercial investment reinforcing its status as the company’s fastest-growing therapeutic area.

Looking ahead

Management set net revenue guidance at approximately $15.5 billion, with adjusted EPS of $3.24 to $3.28, and expects full-year net revenues of $60.5 billion.

Updated product-level guidance includes: SKYRIZI global revenues of $17.1 billion (up $600 million) (non-GAAP), U.S. HUMIRA revenues of $3 billion (down $500 million) expected for the full year, and neuroscience global sales of $10.5 billion (up $300 million) expected for the full year (guidance).

Adjusted operating margin is targeted at 45% of sales (full-year, non-GAAP), with ongoing focus on pipeline expansion through both internal R&D milestones and continued external business development.

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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.