Why did GAAP EPS decline while adjusted EPS increased?

GAAP diluted EPS of $0.72 includes $1.858 billion of intangible asset amortization and a $1.518 billion pre-tax change in the fair value of contingent consideration, both of which AbbVie excludes from adjusted results. Adjusted EPS of $2.46 strips out these items, which is why it rose 6.5% while GAAP EPS fell 6.5%.

Did AbbVie raise its full-year outlook?

Yes. Adjusted diluted EPS guidance was raised to $12.09-$12.29 from $11.99-$12.19, an increase of $0.10 at both ends. The new range already reflects the $0.13 per share of acquired IPR&D and milestones expense incurred in Q1, and excludes any future IPR&D charges, the Gubra obesity license, and potential pharmaceutical tariffs.

How is the Humira decline affecting AbbVie's growth?

Humira revenues fell 50.6% to $1.121 billion as biosimilar competition continued. Growth from Skyrizi and Rinvoq more than offset this decline, lifting total immunology revenue 16.6% to $6.264 billion and driving overall company revenue growth.

What does the Gubra agreement mean for AbbVie?

AbbVie licensed GUB014295 (ABBV-295), a long-acting amylin analog for obesity, from Gubra, marking its entry into the obesity field. AbbVie will lead global development and commercialization. The filing notes the deal closed after Q1, so its acquired IPR&D impact is not included in the current guidance.

What are the main risks for investors from this report?

Key risks include continued Humira erosion, weakness in aesthetics (down 11.7%), large non-cash charges that depress GAAP earnings, possible future IPR&D and milestone expenses that are not included in guidance, and potential pharmaceutical sector tariffs, which the outlook does not reflect.

ABBV 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 25, 2025. Cited figures are marked; the original filing is the authoritative source.

AbbVie reported first-quarter 2025 net revenues of $13.343 billion^a, up 8.4% on a reported basis and 9.8% on an operational (constant-currency) basis.

Growth was led by immunology, where Skyrizi (+70.5%) and Rinvoq (+57.2%) more than offset a 50.6% decline in Humira. Neuroscience (+16.1%) and oncology (+5.8%) also grew, while aesthetics fell 11.7%, with Botox Cosmetic and Juvederm both declining. GAAP diluted EPS was $0.72^b, down 6.5% from $0.77 a year earlier, while adjusted diluted EPS rose 6.5% to $2.46 from $2.31.

The gap is driven mainly by non-cash items excluded from adjusted results: $1.858 billion^c of intangible asset amortization and a $1.518 billion pre-tax change in the fair value of contingent consideration, which sits in other expense. Acquired IPR&D and milestones cost $0.13 per share in the quarter. GAAP gross margin was 70.0% versus 84.1% adjusted.

Management raised full-year 2025 adjusted diluted EPS guidance to $12.09^d-$12.29 from $11.99-$12.19, a $0.10 increase at both ends of the range. The raised figure already includes the $0.13 year-to-date IPR&D headwind and excludes any future acquired IPR&D, the recently closed Gubra obesity license, and potential pharmaceutical tariffs. Investors should also note that CEO Robert A.

Michael will become chairman on July 1, 2025, succeeding Richard A. Gonzalez.

02—Key points

Key Highlights

Q1 2025 net revenues of $13.343B, up 8.4% reported (9.8% operational), with immunology up 16.6% to $6.264B
Skyrizi net revenues of $3.425B (+70.5%) and Rinvoq of $1.718B (+57.2%) more than offset a 50.6% decline in Humira to $1.121B
GAAP diluted EPS fell 6.5% to $0.72, while adjusted diluted EPS rose 6.5% to $2.46; IPR&D and milestones expense cost $0.13 per share
GAAP results were weighed down by $1.858B of intangible amortization and a $1.518B pre-tax change in fair value of contingent consideration, both excluded from adjusted results
2025 adjusted EPS guidance raised to $12.09-$12.29 from $11.99-$12.19, excluding future IPR&D, the Gubra deal, and tariff impacts
Aesthetics revenues declined 11.7% to $1.102B, with Botox Cosmetic down 12.3% and Juvederm down 22.2%
Robert A. Michael to become board chairman effective July 1, 2025, succeeding Richard A. Gonzalez, who has chaired the board since 2013

03—Questions

Frequently Asked Questions

Why did GAAP EPS decline while adjusted EPS increased?
GAAP diluted EPS of $0.72 includes $1.858 billion of intangible asset amortization and a $1.518 billion pre-tax change in the fair value of contingent consideration, both of which AbbVie excludes from adjusted results. Adjusted EPS of $2.46 strips out these items, which is why it rose 6.5% while GAAP EPS fell 6.5%.
Did AbbVie raise its full-year outlook?
Yes. Adjusted diluted EPS guidance was raised to $12.09-$12.29 from $11.99-$12.19, an increase of $0.10 at both ends. The new range already reflects the $0.13 per share of acquired IPR&D and milestones expense incurred in Q1, and excludes any future IPR&D charges, the Gubra obesity license, and potential pharmaceutical tariffs.
How is the Humira decline affecting AbbVie's growth?
Humira revenues fell 50.6% to $1.121 billion as biosimilar competition continued. Growth from Skyrizi and Rinvoq more than offset this decline, lifting total immunology revenue 16.6% to $6.264 billion and driving overall company revenue growth.
What does the Gubra agreement mean for AbbVie?
AbbVie licensed GUB014295 (ABBV-295), a long-acting amylin analog for obesity, from Gubra, marking its entry into the obesity field. AbbVie will lead global development and commercialization. The filing notes the deal closed after Q1, so its acquired IPR&D impact is not included in the current guidance.
What are the main risks for investors from this report?
Key risks include continued Humira erosion, weakness in aesthetics (down 11.7%), large non-cash charges that depress GAAP earnings, possible future IPR&D and milestone expenses that are not included in guidance, and potential pharmaceutical sector tariffs, which the outlook does not reflect.

04—Continue

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