Pharmaceutical company AbbVie (NYSE: ABBV) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 6.6% year on year to $15.42 billion. Its non-GAAP profit of $2.97 per share was 2.1% above analysts’ consensus estimates.

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StockStory’s Take

AbbVie’s second quarter saw a significant positive market response, driven by robust sales from its immunology and neuroscience portfolios. Management emphasized that continued uptake in Skyrizi and Rinvoq, along with strength in the neuroscience franchise (particularly Vraylar, Vyalev, and migraine therapies), fueled the quarter’s revenue and margin expansion. CEO Robert Michael cited “continued robust performance from Skyrizi and Rinvoq” and called out “strong double-digit growth from neuroscience,” highlighting how these products are offsetting ongoing declines in the legacy Humira franchise as biosimilar competition intensifies.

Looking ahead, management’s reduced guidance for adjusted EPS reflects a more cautious stance on near-term profitability, citing persistent economic headwinds in the aesthetics segment and evolving payer dynamics for Humira. CFO Scott Reents noted that pricing pressure and formulary shifts in the U.S. will weigh on Humira, while CEO Robert Michael pointed to continued investment in the immunology pipeline and manufacturing expansion as key to supporting future growth. Management pointed to ongoing R&D milestones and the ramp of next-generation therapies as critical to delivering on its long-term strategy.

Key Insights from Management’s Remarks

Management attributed second quarter outperformance to the continued momentum behind Skyrizi and Rinvoq, strong volume growth in neuroscience, and progress in pipeline development, while acknowledging persistent challenges in aesthetics and the impact of biosimilar competition on Humira.

• Immunology franchise momentum: Skyrizi and Rinvoq delivered substantial sales growth across both established and newer indications, with Skyrizi’s strength in psoriatic disease and inflammatory bowel disease (IBD) driving broad-based gains. Management noted that Skyrizi’s “leadership in psoriasis” and rapid adoption in Crohn’s disease and ulcerative colitis reflect ongoing share gains versus competitors. Rinvoq’s expansion into new indications such as giant cell arteritis and anticipated launches in alopecia areata and vitiligo were highlighted as future growth opportunities.

• Neuroscience portfolio expansion: The neuroscience business posted double-digit growth, led by increased demand for Vraylar, Vyalev, and migraine products such as Ubrelvy and Qulipta. Management credited the successful international launch of Vyalev for advanced Parkinson’s disease and positive results from head-to-head studies for Qulipta in migraine prevention as contributors to segment momentum.

• Aesthetics headwinds persist: The aesthetics segment, including Botox Cosmetic and Juvéderm, continued to face pressure from weaker consumer sentiment and economic uncertainty, with management indicating that “economic challenges and lower overall consumer sentiment have impacted the aesthetics market.” Despite these challenges, AbbVie maintains market leadership in facial injectables and is preparing new product launches, such as the fast-acting toxin TrenibotE, to support future recovery.

• Oncology portfolio evolution: While legacy oncology products like Imbruvica faced continued competitive pressures, new launches such as Emrelis for non-small cell lung cancer and pipeline advances in antibody drug conjugates (ADCs) and T-cell engagers are expected to broaden AbbVie’s oncology revenue base over time. Management also highlighted the potential for off-the-shelf immunotherapies to improve patient access, especially in community settings.

• Business development and pipeline investments: AbbVie executed multiple business development transactions, including the acquisition of Capstan Therapeutics (bringing in vivo CAR-T capabilities) and partnerships in next-generation antibody and small RNA therapies. Management emphasized that these moves are designed to “drive growth for AbbVie in the next decade,” particularly as the company prepares for eventual revenue transitions beyond current blockbusters.

Drivers of Future Performance

AbbVie’s outlook is shaped by ongoing strength in immunology and neuroscience, offset by persistent headwinds in aesthetics and ongoing competitive pressures in key legacy products.

• Immunology and neuroscience as growth engines: Management expects continued volume-driven gains from Skyrizi and Rinvoq, as well as additional launches and label expansions for Rinvoq in new autoimmune indications. The neuroscience portfolio is set to benefit from broader uptake of Vyalev in the U.S. and the ramp-up of migraine therapies, with increased commercial investment planned to solidify leadership in these categories.

• Aesthetics market remains challenged: Persistent macroeconomic weakness and changing consumer preferences are expected to keep aesthetics growth subdued in the near term. Management is focusing on loyalty programs, new consumer campaigns, and the launch of innovative products like TrenibotE to reaccelerate segment growth as conditions improve.

• Pipeline milestones and external innovation: Management highlighted a robust late-stage pipeline with upcoming data readouts in alopecia areata, vitiligo, and oncology. Strategic acquisitions and partnerships are expected to augment the pipeline, positioning AbbVie for growth beyond the current decade and mitigating risks from biosimilar competition.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be watching (1) the continued pace of share gains for Skyrizi and Rinvoq in immunology, (2) the trajectory of Vyalev and Qulipta in the neuroscience segment, and (3) stabilization and potential recovery in aesthetics amid macroeconomic headwinds. Progress on late-stage pipeline milestones and successful integration of recent acquisitions will also be important indicators of AbbVie’s ability to sustain its growth strategy.

AbbVie currently trades at $198.99, up from $189.37 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

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