AbbVie (ABBV) experienced a notable dip in its stock price, declining 3.6% despite reporting a solid earnings performance for the fourth quarter of 2025. The pharmaceutical giant announced adjusted earnings of $2.71 per share, surpassing analyst projections of $2.65 per share. Additionally, revenue for the quarter reached $16.6 billion, exceeding the anticipated $16.4 billion.
Looking ahead, AbbVie provided a promising outlook for 2026, forecasting adjusted earnings between $14.37 and $14.57 per share, which is above the consensus estimate of $14.27. However, investor sentiment was dampened by declines in specific business segments.
During the quarter, oncology revenue fell by 2.5%, totaling $1.7 billion, while the aesthetics portfolio, which includes well-known products like Botox and Juvederm, generated $1.3 billion, reflecting a 1.2% operational decline. The pressure on these segments raises concerns for investors, overshadowing the company”s overall financial strength.
A significant factor in AbbVie”s struggles remains the sales decline of Humira, which plummeted 26% to $1.2 billion. This drop follows the drug”s loss of patent exclusivity in 2023 and the subsequent rise of biosimilar competition. Interestingly, despite the decline, Humira”s sales exceeded analyst expectations of $983.8 million for the first time in almost two years.
On a more positive note, AbbVie”s immunology portfolio showed robust growth, driven primarily by the success of Skyrizi and Rinvoq. The portfolio generated $8.6 billion in revenue, marking an 18% increase year-over-year. Skyrizi alone saw sales soar to $5.01 billion, a 32.5% rise that surpassed estimates of $4.82 billion. Meanwhile, Rinvoq reported sales of $2.37 billion, growing by 29.5%, although it slightly missed expectations of $2.41 billion.
In the aesthetics division, Botox Cosmetic sales reached $717 million, outpacing estimates of $696.2 million, and indicating the first revenue growth since the third quarter of 2024. However, the overall demand for aesthetic treatments has faced challenges due to economic concerns and rising inflation.
AbbVie is actively investing for future expansion, having committed over $20 billion to acquisitions in recent years. The company plans to allocate an additional $10 billion over the next decade, which includes the establishment of four new manufacturing facilities in the United States.
The recent stock decline occurred despite a generally positive market environment, with S&P 500 futures rising by 0.1% in early trading. This suggests that investors remain cautious, focusing on revenue challenges in oncology and aesthetics even as AbbVie continues to show strong overall financial results.
In summary, AbbVie”s fourth-quarter results highlighted its financial robustness and promising future guidance, yet the stock”s decline reflects ongoing investor concerns about specific business segment weaknesses and market competition.
