AbbVie Inc. (ABBV) AI Stock Analysis
ABBV AI stock analysis summary
AI ResearchAbbVie Inc. (ABBV) is a global biopharmaceutical company with trailing twelve month revenue of $64.39B and an operating margin of 40.0%. In FY2025, revenue grew 8.6% to $61.16B, while free cash flow reached $17.82B. The company carries $70.82B in total debt and negative shareholders' equity of -$5.93B.
- Market cap
- $504.37B
- Revenue (TTM)
- $64.39B
- P/E
- 80.6x fwd 16.4x
- 1Y return
- 29.6% S&P 500 16.8%
- Avg. target
- $282.61 -1.0% vs last close
Bull case
- Trailing twelve month operating margin reached 40.0%, well above the S&P 500 Healthcare peer median of 18.8%.
- In the quarter ended June 30, 2026, revenue increased 10.2% and earnings surged 290.4% year-over-year.
- AbbVie demonstrated strong cash generation in FY2025, producing $17.82B in free cash flow.
Bear case
- The trailing P/E of 80.6x trades at a wide premium to the S&P 500 Healthcare peer median of 27.2x.
- AbbVie holds $70.82B in total debt and reported negative shareholders' equity of -$5.93B as of June 30, 2026.
- The mean analyst price target of $282.61 indicates 1.0% downside from the stock's last close of $285.42.
What AbbVie does
AbbVie Inc. discovers, develops, manufactures, and distributes therapies across several medical areas. Its portfolio includes treatments for autoimmune conditions like Humira, Skyrizi, and Rinvoq. In oncology, it offers therapies such as Imbruvica. The company also supplies medical aesthetics products, including facial injectables and skincare lines, alongside neuroscience therapies such as Vraylar and Ubrelvy. Additional offerings address ophthalmology with Lumigan/Ganfort and Restasis, as well as gastrointestinal conditions, hepatitis C with Mavyret, and endocrinology treatments like Linzess. AbbVie operates globally and was founded in 2012 in North Chicago, Illinois.
Growth and profitability
AbbVie generated $61.16B in revenue in FY2025, up 8.6% compared to $56.33B in FY2024 and $54.32B in FY2023, representing a 5-year revenue CAGR of 6.0% from FY2020 to FY2025. Gross margin was 70.2% in FY2025, and operating margin rose to 32.8% from 16.2% in FY2024. FY2025 net income stood at $4.23B, yielding diluted earnings per share of $10.00. Over the trailing twelve months, revenue reached $64.39B with a profit margin of 9.8% and operating margin of 40.0%. For the latest quarter ended June 30, 2026, quarterly revenue grew 10.2% year-over-year, and quarterly earnings grew 290.4%.
Balance sheet and cash flow
As of June 30, 2026, AbbVie held $6.57B in cash and short-term investments against $70.82B in total debt, resulting in net debt of $64.25B. Shareholders' equity was -$5.93B, and total assets stood at $135.13B. The current ratio was 0.81. Operating cash flow in FY2025 was $19.03B, yielding free cash flow of $17.82B after capital expenditures of $1.21B. Capital allocation in FY2025 included $11.66B in dividends paid and $980.0M used for share buybacks.
Valuation and performance
AbbVie trades at a trailing P/E of 80.6x, compared to the median of 27.2x for its S&P 500 Healthcare peers. Its forward P/E stands at 16.4x, slightly below the peer median of 16.6x. The company has an EV/EBITDA of 27.3x versus the peer median of 15.0x, and its price-to-sales ratio is 7.8x against the peer median of 3.4x. Over the past year, AbbVie produced a return of 29.6%, outpacing the S&P 500's return of 16.8%. Over five years, the stock gained 211.8% compared to 83.0% for the index.
ABBV dividend
AbbVie pays a forward annual dividend of $6.92 per share, offering a dividend yield of 2.42% with a payout ratio of 63.7%. Dividends are distributed quarterly, and the company has paid dividends for 14 consecutive years. Over the last five years, the dividend grew at an annualized rate of 6.8%. The most recent ex-dividend date was October 15, 2026.
What analysts expect
Wall Street analysts hold 16 Strong Buy, 8 Buy, 5 Hold, and 1 Sell ratings on AbbVie. The mean price target is $282.61, representing 1.0% below the last close of $285.42. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $67.62B and EPS of $13.96, an expected EPS increase of 39.6%. AbbVie beat EPS estimates in 3 of the last 4 quarters. The next earnings date is October 30, 2026.
Key risks and what to watch
- A current ratio of 0.81 highlights short-term liquidity levels that sit below total short-term obligations.
- Net debt of $64.25B creates ongoing financial leverage requirements relative to cash and short-term investments of $6.57B.
- Net margin in FY2025 was 6.9%, down from 20.5% in FY2021 and 20.4% in FY2022.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ABBV AI stock analysis
This page is an AI-written research summary of AbbVie Inc. (ABBV). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ABBV income statement, ABBV balance sheet, ABBV key metrics, ABBV analyst forecast, ABBV chart. See the ABBV stock overview for the latest quote and news.
ABBV AI stock analysis FAQ
What is AbbVie's dividend yield and payout schedule?
AbbVie offers a forward dividend yield of 2.42%, corresponding to an annual payout of $6.92 per share paid quarterly. The company has a payout ratio of 63.7% and has paid dividends for 14 consecutive years.
How much debt does AbbVie have?
As of June 30, 2026, AbbVie had $70.82B in total debt and $6.57B in cash and short-term investments, resulting in net debt of $64.25B. Shareholders' equity was -$5.93B.
When is AbbVie's next earnings report?
AbbVie's next earnings release is scheduled for October 30, 2026.
What are analysts' earnings expectations for AbbVie in FY2026?
Analysts expect AbbVie to generate $67.62B in revenue and an EPS of $13.96 for the fiscal year ending December 31, 2026, which represents projected EPS growth of 39.6%.