AbbVie (ABBV) Q3 2025: SkyRizi and RINVOQ Surge 40% as Neuroscience Drives Diversified Growth
AbbVie’s third quarter demonstrated the power of its diversified growth platform, with immunology and neuroscience outpacing expectations and offsetting legacy erosion in Humira and aesthetics. Robust pipeline advancement and disciplined capital allocation signal confidence in AbbVie’s ability to sustain high single-digit growth through the decade. Management’s upward guidance revision and focus on next-generation innovation reinforce a long-term growth narrative beyond near-term market volatility.
Summary
- Immunology and Neuroscience Outperform: Growth from SkyRizi, RINVOQ, and the neuroscience franchise is driving AbbVie’s revenue mix transformation.
- Pipeline Depth Supports 2030s Growth: Broad late-stage and next-gen programs position AbbVie for post-Humira leadership.
- Capital Discipline and Dividend Commitment: Free cash flow and capital allocation priorities remain intact despite near-term market headwinds.
Performance Analysis
AbbVie delivered high single-digit operational sales growth, with total net revenues reaching nearly $15.8 billion, propelled by standout performances in immunology and neuroscience. Immunology, led by SkyRizi and RINVOQ, accounted for approximately half the company’s sales this quarter, with both products posting combined growth over 40%. Neuroscience, now AbbVie’s second-largest and fastest-growing therapeutic area, generated double-digit growth, fueled by strong demand for Vraylar, the migraine portfolio, and the accelerating launch of Vylev in Parkinson’s disease.
While Humira sales continued their anticipated decline due to biosimilar competition, management flagged that the absolute dollar erosion rate will moderate in 2026, reducing the drag on consolidated results. Oncology remained stable, as growth in newer products offset declines in Imbruvica. Aesthetics faced macro-driven headwinds, with global sales down 4.2%, but AbbVie maintained category leadership and is investing in market activation for a rebound. Adjusted operating margin was impacted by acquired R&D expense, yet free cash flow generation remained robust, supporting continued dividend growth and business development activity.
- Immunology Platform Delivers: SkyRizi and RINVOQ posted 46% and 34% operational growth, respectively, with leadership in IBD and psoriasis.
- Neuroscience Momentum: Segment revenues rose nearly 20%, with Vylev’s Parkinson’s launch exceeding expectations and migraine therapies gaining share.
- Legacy Drag Subsides: Humira’s U.S. erosion continues, but sequential declines will lessen, supporting a return to high single-digit growth.
The quarter’s results highlight AbbVie’s ability to transition from legacy blockbusters to a multi-engine growth model, with commercial execution and pipeline breadth reinforcing the investment case.
Executive Commentary
"With no significant LOE events in the near term, our growth platform provides a clear line of sight to growth into the next decade. This puts AbbVie in a strong position to fully invest for the 2030s and beyond."
Rob Michaels, Chairman and Chief Executive Officer
"Our Exumera growth platform delivered reported sales growth of more than 20%, once again, exceeding our expectations. This free cash flow fully supports a strong and growing quarterly dividend, which we are increasing 5.5% to $1.73 per share, beginning with the dividend payable in February 2026."
Scott Rents, Executive Vice President, Chief Financial Officer
Strategic Positioning
1. Immunology Franchise: Leadership and Expansion
SkyRizi and RINVOQ have become the cornerstone of AbbVie’s immunology business, driving robust growth across IBD, psoriasis, and rheumatology. The company’s “one-two punch” strategy leverages differentiated profiles and label expansions, capturing leading in-play shares in Crohn’s and ulcerative colitis. Pipeline innovation, including combination regimens and next-gen oral platforms, is designed to extend this leadership beyond current indications.
2. Neuroscience: Emerging Growth Engine
Neuroscience now represents AbbVie’s fastest-growing segment, with Vraylar, Qulipta, Ubrelvy, and Vylev delivering strong double-digit growth. The Parkinson’s portfolio is set for further expansion with the anticipated launch of Tavapidon, addressing significant unmet needs and supporting AbbVie’s goal of category leadership in neurodegenerative and psychiatric disorders.
3. Pipeline and External Innovation: Sustaining Long-Term Growth
AbbVie’s R&D pipeline spans approximately 90 programs across all stages, with late-stage assets (such as Tevapidon, PVEC, and multiple ADCs) poised to deliver new sources of growth. Recent acquisitions—including Gilgamesh’s Bredesilicin and Capstan’s in vivo CAR-T platform—augment internal capabilities, with management emphasizing the importance of both internal and external innovation for the 2030s and beyond.
4. Capital Allocation: Balancing Growth and Shareholder Returns
Management reaffirmed a disciplined capital allocation framework, prioritizing reinvestment in R&D, U.S. manufacturing expansion, and a rising dividend. AbbVie’s free cash flow and net leverage trajectory provide capacity for continued business development without compromising shareholder returns.
5. Navigating Regulatory and Market Complexity
AbbVie’s commercial model is built for adaptability, with leadership emphasizing the ability to thrive across different payer and pricing structures globally. Management remains confident in navigating PBM reform, IRA pricing headwinds, and evolving international pricing dynamics, underscoring the centrality of differentiated medicines and execution strength.
Key Considerations
This quarter underscores AbbVie’s transition from legacy Humira dependence to a diversified and innovation-driven growth model. Investors should focus on the durability of the immunology and neuroscience franchises, pipeline execution, and management’s ability to deliver margin expansion amid ongoing R&D investment.
Key Considerations:
- SkyRizi and RINVOQ Penetration: Both drugs are outpacing initial guidance, with label expansions and combination strategies supporting further share gains in IBD and dermatology.
- Neuroscience Franchise Scale: Vylev’s strong uptake in Parkinson’s and Qulipta’s leadership in migraine prevention highlight AbbVie’s growing presence in large, underpenetrated CNS markets.
- Pipeline Milestones Ahead: Key readouts for immunology combos, oncology ADCs, and obesity assets over the next 12 months could reshape AbbVie’s long-term revenue mix.
- Margin and Cash Flow Leverage: Despite acquired R&D drag, AbbVie maintains high gross margins and robust free cash flow, supporting dividend increases and external innovation.
- Resilience to Policy Change: Management’s global execution track record and product differentiation mitigate risks from U.S. PBM and IRA reforms.
Risks
AbbVie faces ongoing risks from biosimilar competition, especially as Humira’s U.S. erosion continues into 2026, though the dollar impact will moderate. Macroeconomic headwinds are pressuring aesthetics, with consumer sentiment and discretionary spending remaining weak. Regulatory changes, including further PBM reform and IRA pricing, could introduce additional pricing pressure, but management’s adaptability and pipeline depth provide partial mitigation. Delays or failures in late-stage pipeline assets remain a material risk to the long-term growth narrative.
Forward Outlook
For Q4 2025, AbbVie guided to:
- Net revenues of more than $16.3 billion
- Adjusted EPS between $3.32 and $3.36
For full-year 2025, management raised guidance:
- Total net revenues of approximately $60.9 billion
- Adjusted EPS of $10.61 to $10.65
Management highlighted continued momentum in immunology and neuroscience, a more modest decline in Humira, and further margin expansion from operating leverage. Key watchpoints include:
- Upcoming regulatory milestones for Tevapidon, PVEC, and next-gen immunology combinations
- Potential inflection in aesthetics growth as macro pressures abate
Takeaways
AbbVie’s Q3 results reinforce its emergence as a diversified biopharma leader, with multiple growth engines offsetting legacy erosion and a robust late-stage pipeline supporting high single-digit growth through the decade.
- Growth Platform Delivers: Immunology and neuroscience are now the primary drivers, with pipeline milestones set to expand the addressable market.
- Margin and Cash Flow Strength: Operating leverage and disciplined capital allocation underpin sustained dividend growth and business development capacity.
- Pipeline Execution Critical: Investors should monitor late-stage readouts and market uptake of new launches as AbbVie transitions to its next phase of growth.
Conclusion
AbbVie’s execution this quarter showcased the strength of its diversified growth platform and the strategic clarity of its leadership team. With immunology and neuroscience surging, a robust pipeline advancing, and capital allocation discipline intact, AbbVie is well positioned for durable growth beyond the Humira era.
Industry Read-Through
AbbVie’s results signal a broader biopharma industry pivot from single-product dependence to multi-engine growth models, with pipeline innovation and commercial execution as critical differentiators. The rapid expansion of IL-23 and JAK inhibitor classes in immunology highlights the potential for market growth rather than zero-sum share shifts, benefitting both incumbents and new entrants. Neuroscience’s emergence as a growth engine underscores the value of diversified portfolios in mitigating legacy product erosion. Aesthetics category softness and macro-driven volatility are likely to persist across the industry, reinforcing the need for innovation and patient activation. Finally, the ability to navigate policy and pricing headwinds will increasingly separate leaders from laggards as U.S. and global reimbursement models evolve.