10-QPeriod: Q3 FY2025

AbbVie Inc. Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 4, 2025For Securities:ABBV

Summary

AbbVie Inc. reported strong revenue growth driven by key immunology and neuroscience products in the third quarter of 2025. Net revenues increased by 9.1% year-over-year to $15.8 billion, with international markets showing robust performance. Despite this top-line growth, net earnings saw a significant decline to $186 million from $1.6 billion in the prior year period. This decrease is largely attributable to substantial expenses including acquired IPR&D and milestones ($2.7 billion), an increase in interest expense, and a significant unfavorable change in the fair value of contingent consideration liabilities, which amounted to $776 million in the quarter. The company continues to invest heavily in its pipeline, with R&D expenses remaining a significant cost. Strategic acquisitions and licensing agreements, such as the acquisition of Capstan Therapeutics and the license with Ichnos Glenmark Innovation, highlight AbbVie's commitment to expanding its therapeutic areas, particularly in immunology and neuroscience. While the company faces ongoing legal proceedings and pricing pressures, it maintains a strong liquidity position with substantial cash and equivalents, supported by consistent operating cash flows.

Financial Statements
Beta
Revenue$15.78B
Cost of Revenue$5.30B
Gross Profit$10.47B
SG&A Expenses$3.57B
Operating Expenses$13.87B
Operating Income$1.90B
Interest Expense$739.00M
Net Income$186.00M
EPS (Basic)$0.10
EPS (Diluted)$0.10
Shares Outstanding (Basic)1.77B
Shares Outstanding (Diluted)1.77B

Key Highlights

  • 1Net revenues grew 9.1% to $15.8 billion for Q3 2025, driven by strong performance in Immunology (Skyrizi, Rinvoq) and Neuroscience (Botox Therapeutic, Qulipta).
  • 2Net earnings significantly decreased to $186 million from $1.6 billion year-over-year, primarily due to higher acquired IPR&D and milestone expenses ($2.7 billion) and unfavorable changes in contingent consideration.
  • 3Acquired IPR&D and milestone expenses surged to $2.7 billion in Q3 2025, largely from the acquisitions of Capstan Therapeutics ($1.9 billion) and Ichnos Glenmark Innovation ($700 million).
  • 4Humira's net revenues continued to decline, falling 55.4% year-over-year, reflecting ongoing biosimilar competition.
  • 5The company continues to invest in its pipeline, with R&D expenses increasing 9% to $2.3 billion in Q3 2025.
  • 6AbbVie announced an increase in its quarterly dividend to $1.73 per share, signaling confidence in future performance and commitment to shareholder returns.
  • 7The company's financial position remains strong, with $5.6 billion in cash and equivalents and positive operating cash flows of $13.8 billion for the nine months ended September 30, 2025.

Frequently Asked Questions

The substantial decrease in net earnings from $1.6 billion in Q3 2024 to $186 million in Q3 2025 is primarily due to a significant increase in 'Acquired IPR&D and milestones' expenses, which rose to $2.7 billion from $82 million. This was largely driven by upfront payments for strategic acquisitions and licensing deals, such as Capstan Therapeutics and Ichnos Glenmark Innovation. Additionally, unfavorable changes in the fair value of contingent consideration liabilities and increased interest expenses also contributed to the lower net earnings.

AbbVie's key growth products are showing strong momentum. Skyrizi net revenues increased by 46.8% year-over-year in the third quarter, and Rinvoq net revenues grew by 35.3%. Neuroscience products like Botox Therapeutic (+16.1%) and Qulipta (+64.1%) also demonstrated robust growth, indicating successful market penetration and uptake.

AbbVie continues to prioritize R&D, with expenses increasing 9% to $2.3 billion in Q3 2025. The company is focused on expanding its pipeline in immunology, neuroscience, oncology, aesthetics, and eye care. Recent strategic moves include significant investments in acquisitions and licensing agreements to bring innovative therapies and technologies into its portfolio, aiming to diversify its revenue base and secure long-term growth drivers.

Humira's performance continues to be negatively impacted by direct biosimilar competition, with net revenues decreasing by 55.4% year-over-year in the third quarter. This trend is expected to persist as biosimilars gain market share. AbbVie is focused on mitigating this impact through its growth products like Skyrizi and Rinvoq.