AbbVie (ABBV) Q1 2026 earnings review
Growth Engine Overpowers the Humira Cliff
AbbVie delivered a decisive Q1 beat, driving 12.4% YoY revenue growth despite its legacy blockbuster Humira plummeting below $700M for the quarter. The company's 'growth platform'—specifically Immunology (Skyrizi and Rinvoq) and Neuroscience—is firing on all cylinders, completely overpowering the patent cliff. Adjusted EPS rose 7.7% to $2.65, successfully absorbing a $0.41 hit from acquired R&D expenses. Management confidently raised FY26 EPS guidance, proving to investors that the most dangerous phase of the post-Humira transition is officially derisked.
🐂 Bull Case
Skyrizi (+30.9%) and Rinvoq (+23.3%) generated a combined $6.6B in the quarter. Their market share capture in Inflammatory Bowel Disease and Psoriasis continues unabated.
The Neuroscience division surged 26% YoY, driven by Vraylar, Botox Therapeutic, and a massive ramp in the new Parkinson's drug Vyalev, which hit $201M in the quarter.
🐻 Bear Case
Oncology was the only major segment to miss the growth narrative, shrinking 0.2% YoY as Imbruvica's structural decline (-24.7%) fully offset Venclexta's gains.
AbbVie's aggressive pipeline acquisition strategy continues to generate heavy acquired R&D charges ($744M this quarter), persistently dragging down GAAP profitability.
⚖️ Verdict: 🟢
Bullish. The structural transition is essentially over. Total company revenue growth is accelerating into double digits while Humira shrinks to a manageable minority of sales.
Key Themes
The Immunology Duo's Unstoppable Ramp
Skyrizi and Rinvoq remain the primary growth engines, generating $6.6B combined. Skyrizi's 30.9% YoY growth to $4.48B shows stable, accelerating momentum. With an upcoming FDA decision for Skyrizi subcutaneous induction in Crohn's disease, the runway for market share capture remains highly visible.
Neuroscience Becomes a Core Pillar
Neuroscience is accelerating, up 26.0% YoY to $2.87B. The segment is no longer just reliant on Vraylar ($905M, +18.4%) and Botox Therapeutic ($1.0B, +16.5%). The oral migraine portfolio (Ubrelvy and Qulipta) generated $635M, and Vyalev is showing an explosive launch, reaching $201M compared to just $63M a year ago.
Aesthetics Show Signs of Life
Reversing quarters of macroeconomic pressure and flat/negative growth, the Aesthetics portfolio rebounded with 7.6% YoY growth. This was heavily driven by a 20.2% surge in Botox Cosmetic ($668M), indicating that consumer demand in the injectables market may be stabilizing.
Oncology Portfolio is Stalling
Decelerating. Oncology was the only segment to contract (-0.2% YoY). While Venclexta grew a healthy 15.7% to $770M, it was completely wiped out by Imbruvica's structural decline (-24.7% to $556M) due to fierce competition in the CLL market. The segment desperately needs its mid-stage pipeline, including next-generation ADCs, to hit.
Manufacturing Setback for Next-Gen Toxin
The FDA issued a Complete Response Letter (CRL) for trenibotE, AbbVie's highly anticipated fast-acting Botox successor. While the FDA did not flag safety or efficacy issues—citing only manufacturing processes—this pushes out a key catalyst meant to stimulate the aesthetics market.
The Perpetual IPR&D 'One-Time' Drag
AbbVie's strategy to build its 2030 pipeline via heavy external business development resulted in another $744M acquired R&D and milestones charge (5.0% of net revenues). While management excludes this from 'Adjusted' EPS, these expenses are a persistent structural drain on real cash and GAAP earnings, driving GAAP EPS down 45.8% to $0.39.
Other KPIs
Decelerating. The patent cliff is steepening. Sales dropped 38.6% YoY, falling below $700M for the first time. The erosion is faster than historical quarters (Q125 was $1.12B), reflecting the harsh reality of insurance exclusions in the US market.
Stable. Down slightly from 42.3% in 25Q1, reflecting heavy R&D (15.1% of sales) and SG&A (22.7% of sales) investments to support the massive Vyalev and Skyrizi/Rinvoq commercial launches, yet still maintaining an elite profitability profile.
Guidance
Accelerating. Management raised the midpoint by $0.12 from previous guidance. This implies massive structural earnings growth compared to FY25 ($10.00), demonstrating strong confidence in the ex-Humira portfolio's ability to absorb ongoing IPR&D hits.
Key Questions
Oncology Growth Trajectory
With Imbruvica acting as a heavy anchor, what is the realistic timeline for the next-gen ADCs or Elahere label expansions to return the total Oncology segment to meaningful, durable growth?
Aesthetics Rebound
Aesthetics reversed to positive growth this quarter. How much of the 20% Botox Cosmetic jump is distributor restocking versus a structural rebound in end-consumer demand?
TrenibotE CRL Impact
The CRL for trenibotE cited manufacturing processes. What specific timeline do you foresee for resubmission, and does this impact the broader timeline for your planned US manufacturing expansion?