AbbVie (ABBV)
Health Care · $467B market cap · SEC CIK 0001551152
fundamentals score out of 100
Next reports on Oct 29, 2026, with analysts expecting $3.92 in earnings per share.
The case for ABBV
- Generated $17.8B of free cash flow in FY2025, 29% of revenue.
- Revenue growing 10.4% year over year.
- Earnings per share up 67.6%.
- Pays a 4.5% dividend while you wait.
- Gross margin of 73% absorbs cost shocks.
- Moves less than the market (beta 0.20).
The case against
- Very expensive at 74.1× earnings. Years of growth are already in the price.
- Owes more than it owns: shareholder equity is -$3.3B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Current liabilities exceed current assets (ratio 0.81).
- Dividend takes 190% of earnings, leaving little cushion.
- Long-term debt of $64.5B against $5.2B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 19 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 66 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 62 |
| Momentumhow the price has behaved lately | 85 |
| Stabilityhow violently it moves, what it owes and what it pays you | 57 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 74.1× |
|---|---|
| Price / book | n/m (negative equity) |
| Price / sales | 7.3× |
| Revenue growth (YoY) | +10.4% |
| EPS growth (YoY) | +67.6% |
| Gross margin | 73% |
| Operating margin | 26% |
| Net margin | 10% |
| Return on assets | 4.7% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 0.81 |
| Dividend yield | 4.47% |
| Beta | 0.20 |
| 52-week range | $190.75 – $267.47 |
| Position in that range | 97% of the way up |
| 3-month return | +22.2% |
| 1-year return | +18.9% |
Five years of financials, as filed
Pulled from AbbVie's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $61.2B | $56.3B | $54.3B | $58.1B | $56.2B |
| Operating income | $15.1B | $9.1B | $12.8B | $18.1B | $17.9B |
| Net income | $4.2B | $4.3B | $4.9B | $11.8B | $11.5B |
| Operating cash flow | $19.0B | $18.8B | $22.8B | $24.9B | $22.8B |
| Capital expenditure | $1.2B | $974M | $777M | $695M | $787M |
| Total assets | $134B | $135B | $135B | $139B | $147B |
| Shareholder equity | -$3.3B | $3.3B | $10.4B | $17.3B | $15.4B |
| Cash | $5.2B | $5.5B | $12.8B | $9.2B | $9.7B |
| Long-term debt | $64.5B | $66.8B | $59.2B | $63.1B | $76.0B |
| Free cash flow | $17.8B | $17.8B | $22.1B | $24.2B | $22.0B |
| Operating margin | 24.6% | 16.2% | 23.5% | 31.2% | 31.9% |
| Net margin | 6.9% | 7.6% | 9.0% | 20.4% | 20.5% |
| Diluted shares | 1.8B | 1.8B | 1.8B | 1.8B | 1.8B |
Share count is essentially flat over 4 years.
What AbbVie says it does
Overview AbbVie or "the company" refer to AbbVie Inc., or AbbVie Inc. and its consolidated subsidiaries, as the context requires. AbbVie is a global, diversified research-based biopharmaceutical company positioned for success with a comprehensive product portfolio that has leadership positions across immunology, neuroscience, oncology and aesthetics. AbbVie uses its expertise, dedicated people and unique approach to innovation to develop and market advanced therapies that address some of the world’s most complex and serious diseases. AbbVie was incorporated in Delaware on April 10, 2012. On January 1, 2013, AbbVie became an independent, publicly-traded company as a result of the distribution by Abbott Laboratories (Abbott) of 100% of the outstanding common stock of AbbVie to Abbott's shareholders. Segments AbbVie operates as a single global business segment dedicated to the research and development, manufacturing, commercialization and…
Risk factors ABBV lists in its 10-K
- AbbVie's major products could lose patent protection earlier than expected, which could adversely affect AbbVie's revenues and operating earnings
- A third party's intellectual property may prevent AbbVie from selling its products or have a material adverse effect on AbbVie's profitability and financial condition
- AbbVie's research and development efforts may not succeed in developing products and technologies that can be successfully commercialized, which may cause its revenues and profitability to decline
- Pharmacy benefit managers and other supply chain intermediaries exert significant influence over pricing and patient access to our products, which could adversely affect our revenues and results of operations
- A portion of AbbVie's near-term pharmaceutical pipeline relies on collaborations with third parties, which may adversely affect the development and sale of its products
- Biologics carry unique risks and uncertainties, which could have a negative impact on AbbVie's business and results of operations
- Trade restrictions, tariffs, and other changes in global trade policy could increase costs, disrupt supply chains, and adversely affect AbbVie’s business and results of operations
- New products and technological advances by AbbVie's competitors may negatively affect AbbVie's results of operations
- Certain aspects of AbbVie’s operations are highly dependent upon third party service providers
- Significant safety or efficacy issues could arise for AbbVie's products, which could have a material adverse effect on AbbVie's revenues and financial condition
- AbbVie is subject to product liability claims and other lawsuits that may adversely affect its business, results of operations and reputation
- AbbVie is subject to governmental regulations, and it can be costly to comply with these regulations and to develop compliant products and processes
- Laws and regulations affecting government benefit programs could impose new obligations on AbbVie, require it to change its business practices, and restrict its operations
- The international nature of AbbVie's business subjects it to additional business risks that may cause its revenue and profitability to decline