01—Abstract
Summary
Summary of the 8-K filed July 31, 2025. Cited figures are marked; the original filing is the authoritative source.
AbbVie reported second-quarter 2025 results that beat expectations on the top line and raised full-year guidance, though GAAP earnings fell sharply.
Net revenues rose 6.6% to $15.423 billiona (6.5% on an operational basis), led by Skyrizi (+62.2%) and Rinvoq (+41.8%), which more than offset the steep decline in Humira (-58.1%). Neuroscience grew 24.2%, driven by Botox Therapeutic, Vraylar, Ubrelvy and Qulipta. Aesthetics (-8.1%) and Oncology (+2.6%, with Imbruvica down 9.5%) were weaker.
GAAP diluted EPS fell 32.5% to $0.52b, from $0.77 a year earlier. The decline reflects a $2.795 billion pre-tax charge from the change in fair value of contingent consideration, $1.864 billion of intangible asset amortization, and $823 million of acquired IPR&D and milestones expense, which cost $0.42 per share. Adjusted diluted EPS rose 12.1% to $2.97.
Management raised 2025 adjusted EPS guidance to $11.88c–$12.08 from $11.67–$11.87. That range includes a $0.55 per share year-to-date IPR&D and milestones headwind and excludes any such charges incurred after Q2. Pipeline and business development news was active.
Highlights included FDA approval of Rinvoq for giant cell arteritis, positive Phase 3 topline data for Rinvoq in severe alopecia areata, an agreement to acquire Capstan Therapeutics (in vivo CAR-T), and an FDA accelerated approval for Emrelis in previously treated NSCLC. Setbacks included the Phase 3 VERONA trial of Venclexta in higher-risk MDS, which missed its overall survival primary endpoint.
02—Key points
Key Highlights
- Q2 2025 net revenues of $15.423 billion, up 6.6% reported (6.5% operational), with Immunology at $7.631 billion (+9.5%) and Neuroscience at $2.683 billion (+24.2%).
- Skyrizi net revenues of $4.423 billion (+62.2%) and Rinvoq net revenues of $2.028 billion (+41.8%) drove growth, while Humira fell 58.1% to $1.180 billion.
- GAAP diluted EPS fell 32.5% to $0.52, pressured by a $2.795 billion pre-tax change in fair value of contingent consideration and $0.42 per share of acquired IPR&D and milestones expense.
- Adjusted diluted EPS rose 12.1% to $2.97, and the adjusted tax rate was 16.2% versus a 39.4% GAAP rate.
- 2025 adjusted diluted EPS guidance raised to $11.88–$12.08 from $11.67–$11.87, and it excludes future acquired IPR&D and milestone charges.
- Aesthetics revenues declined 8.1% to $1.279 billion, with Botox Cosmetic down 5.0% and Juvederm down 24.0%, while Imbruvica fell 9.5% to $754 million.
- Business development and pipeline activity included the agreement to acquire Capstan Therapeutics, an FDA approval for Rinvoq in GCA, positive alopecia areata data, and a VERONA trial failure.
03—Questions
Frequently Asked Questions
Why did GAAP EPS fall so much if revenue grew and adjusted EPS rose?
GAAP EPS of $0.52 includes non-cash and one-time items that adjusted EPS excludes. These include $1.864 billion of intangible asset amortization, a $2.795 billion pre-tax charge from the change in fair value of contingent consideration, and $823 million of acquired IPR&D and milestones expense. Together these reduced GAAP earnings sharply, while adjusted EPS of $2.97 rose 12.1%.
Is the Humira decline offset by the newer immunology drugs?
Largely, yes at the total level. Humira fell to $1.180 billion from about $2.8 billion a year earlier, a loss of roughly $1.6 billion. Skyrizi and Rinvoq together grew by about $1.9 billion, and total revenue still rose about $1.0 billion. Immunology overall grew 9.5%, but the mix shift toward newer products is significant.
What is driving the raised 2025 EPS guidance, and what risks remain?
The raised guidance of $11.88–$12.08 reflects the strong Q2 performance and momentum from Skyrizi, Rinvoq and Neuroscience. The guidance already absorbs $0.55 per share of year-to-date IPR&D and milestone charges. It excludes any further such charges, which management says cannot be reliably forecast, so future business development deals could reduce reported adjusted EPS.
How significant is the VERONA trial failure for AbbVie?
The Phase 3 VERONA trial of Venclexta plus azacitidine in newly diagnosed higher-risk MDS missed its overall survival primary endpoint. The filing reports no new safety signals, and full results will come at a future medical meeting or publication. The filing does not quantify the commercial impact, so the near-term financial effect appears limited, though it is a setback for the oncology pipeline.
04—Continue