01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
AbbVie Inc. reported its first-quarter 2026 financial results, demonstrating robust revenue growth and strategic advancements.
Net revenues increased by 12.4% to $15.0 billiona compared to the prior year period, driven by strong performance in key therapeutic areas including Immunology and Neuroscience. Despite a notable increase in Research & Development (R&D) expenses, up 20%, the company achieved operating earnings of $4.0 billion and diluted earnings per share (EPS) of $0.39. The company also highlighted significant R&D pipeline progress and strategic investments in manufacturing capabilities.
Financially, AbbVie reported $9.4 billionb in cash and equivalents, a substantial increase from the prior year-end, supported by strong operating cash flows of $3.8 billion. The company continued its commitment to shareholder returns, declaring a quarterly dividend of $1.73 per share and repurchasing $1.1 billion in stock. Management remains confident in the company's diversified portfolio and pipeline, positioning AbbVie for continued growth and long-term value creation.
02—Key points
Key Highlights
- AbbVie reported a 12.4% year-over-year increase in net revenues, reaching $15.0 billion for the first quarter of 2026.
- Strong performance in Immunology, with Skyrizi and Rinvoq revenues up 30.9% and 23.3% respectively, and Neuroscience, with Vraylar and Botox Therapeutic showing double-digit growth.
- Research and Development (R&D) expenses increased by 20% to $2.5 billion, reflecting continued investment in the company's pipeline.
- Diluted EPS decreased to $0.39 from $0.72 in the prior year period, primarily impacted by higher operating costs and R&D investments.
- The company's cash and equivalents significantly increased to $9.4 billion as of March 31, 2026, driven by robust operating cash flows of $3.8 billion.
- AbbVie declared a quarterly dividend of $1.73 per share and repurchased $1.1 billion of its stock during the quarter, demonstrating a commitment to shareholder returns.
- Acquired IPR&D and milestones expense increased substantially to $744 million, largely due to an upfront payment for a license agreement with RemeGen.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, AbbVie Inc. kept $0.05.
- Revenue$15.00B100.0%
- Cost of revenue−$4.22B28.1%
- Gross profit$10.78B71.9%
- Operating costs−$6.79B45.3%
- Operating income$3.99B26.6%
- Interest, other & tax−$3.29B22.0%
- Net income$695.0M4.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $15.00B$13.34B | +12.4% |
| Cost of Revenue | $4.22B$4.00B | +5.4% |
| Gross Profit | $10.78B$9.34B | +15.4% |
| SG&A Expenses | $3.58B$3.29B | +8.7% |
| Operating Expenses | $11.01B$9.61B | +14.6% |
| Operating Income | $3.99B$3.73B | +6.9% |
| Interest Expense | $717.00M$700.00M | +2.4% |
| Net Income | $695.00M$1.29B | −46.0% |
| EPS (Basic) | $0.39$0.72 | −45.8% |
| EPS (Diluted) | $0.39$0.72 | −45.8% |
| Shares Outstanding (Basic) | 1.77B1.77B | +0.1% |
| Shares Outstanding (Diluted) | 1.77B1.77B | +0.1% |
05—Questions
Frequently Asked Questions
What was the primary driver of AbbVie's revenue growth in Q1 2026?
AbbVie's revenue growth was primarily driven by strong performance in its Immunology portfolio, with significant increases in sales for Skyrizi and Rinvoq. Neuroscience products like Vraylar and Botox Therapeutic also contributed positively.
Why did AbbVie's net earnings per share (EPS) decrease year-over-year?
Diluted EPS decreased to $0.39 in Q1 2026 from $0.72 in Q1 2025. This decline was influenced by a substantial increase in R&D expenses, higher acquired IPR&D and milestones costs, and increased expenses related to changes in the fair value of contingent consideration liabilities, partially offset by revenue growth.
What is the company's outlook on its product pipeline and future growth drivers?
AbbVie maintains a strong focus on its pipeline with approximately 90 compounds in development, with about 60 in mid- to late-stage development. Key areas of focus include immunology, neuroscience, oncology, and aesthetics. The company anticipates several regulatory submissions and data readouts in the next 12 months, positioning it for continued growth.
How is AbbVie managing its debt and capital structure?
AbbVie issued $8.0 billion in senior notes in March 2026 and repaid $2.0 billion under a term loan. The company has access to significant revolving credit facilities and a strong cash position, indicating robust liquidity. Credit ratings were also upgraded by Moody's in February 2026.
06—Continue