2Q: growth story intact despite post-print weakness

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AbbVie

2Q: growth story intact despite post-print

weakness

Reiterate Rating: BUY | PO: 276.00 USD | Price: 257.41 USD

Strong core execution, Buy thesis unchanged

31 July 2026

AbbVie reported modest revenue and EPS beats versus consensus (~+1%), with

Immunology driving upside while Neuroscience and Oncology were largely in line.

Operational EPS (FY26) increased modestly, though the benefit was largely offset by

higher IPR&D spending. With another quarter of double-digit top-line growth, AbbVie

continues to differentiate itself as one of the fastest-growing large-cap biopharmas,

supported by sustained strength across immunology and neuroscience. The quarter

offered limited pipeline news, but management commentary during the Q&A provided

several notable updates discussed below. We reiterate our Buy rating, as we believe

AbbVie's dominant position in immunology supports a sector-leading growth profile that

is not fully reflected in the stock's valuation.

Equity

CC commentary reinforces LT immunology growth outlook

Management discussion was supportive of AbbVie's immunology growth story. Rinvoq's

opportunity continues to expand, with management raising peak sales expectations for

upcoming label expansions into vitiligo and alopecia indications and highlighting a

potential first-mover advantage in vitiligo. Skyrizi remains highly resilient, with no

evidence of competitive pressure from newly launched oral IL-23 competitor and a

forthcoming subcutaneous induction regimen in Crohn's expected to meaningfully

accelerate adoption. Beyond the commercial portfolio, AbbVie reiterated potential

pathways to accelerate development of its next-gen immunology combos, including

interim analyses to expedite earlier advancement of the higher-dose Skyrizi/integrin

combo into Phase 3 for UC and Crohn's disease. See post-call feedback pg. 3.

Model updates: modest estimate tweaks

We tweak revenue and EPS estimates in our model: 2026E EPSe trimmed by -2% which

reflects EPS dilution from the Apogee deal offsetting slightly higher revenue post-2Q

beat, Our PO of $276 is based on 19.5x of our 2027E EPSe of $14.15 (adjusted for

Skyrizi royalty payout), vs.…