ABBV AbbVie 10-Q 2026-09-30 section summaries

AbbVie — Q3 and nine months ended September 30, 2026

AbbVie reports as one global operating segment; its principal segment profit measure is net earnings. Revenue grew 10.3% in Q3 and 10.9% in the first nine months, led by Skyrizi and Rinvoq, while Humira continued to decline. The large year-over-year increase in operating earnings also reflects much lower acquired IPR&D and milestone expense than in 2025.

Consolidated results

Amounts in $ billions, except diluted EPS.

Net interest expense was $700M versus $667M in Q3 and $2.024B versus $1.972B for 9M. Other expense was $738M versus $523M in Q3 and $4.519B versus $4.630B for 9M. The effective tax rate fell to 13% from 74% in Q3 and to 16% from 39% for 9M, principally reflecting a reduced impact from business-development activities and contingent-consideration fair-value changes.

Product revenue

Amounts in $ millions; all figures are Q3 2026 versus Q3 2025. 9M values are included where year-to-date growth differed from quarterly growth by at least three percentage points.

Immunology growth from Skyrizi and Rinvoq contrasts with Humira erosion: Humira revenue fell 31.2% in Q3 and 35.4% for 9M. Neuroscience growth included Vyalev and Qulipta, while Imbruvica declined. Botox Cosmetic growth was offset by lower Juvederm and other Aesthetics revenue; Mavyret declined while Linzess increased.

Cash flow and balance sheet

Cash increased $5.545B to $10.774B. Investing cash outflow was $11.986B, including $10.594B for acquisitions, net of cash acquired. Financing cash inflow was $2.685B; it included $17.974B of long-term debt issuance and $2.000B of repayments. Dividends paid were $9.227B and treasury-stock purchases were $1.503B.

Derived tangible common equity was approximately negative $99.035B, compared with negative $91.551B. Debt liabilities had $80.407B book value and $72.930B fair value at September 30, versus $67.165B book value and $64.304B fair value at year-end 2025. No commercial paper was outstanding at September 30, compared with $499M at year-end. Two revolving facilities totaling $8.0B were undrawn, and AbbVie was compliant with covenants. Shares outstanding were 1.768B at both the start and end of the period.

Investment, financing and financial exposures

AbbVie acquired clinical-stage Apogee on September 3 for $10.6B fair-value consideration ($10.5B net of cash acquired), and recorded $318M of post-closing employee-award expense. Preliminary purchase accounting included $9.1B of acquired IPR&D and $2.284B of goodwill, which is not tax deductible. Apogee’s pipeline includes late-stage zumilokibart for atopic dermatitis and APG273 for asthma. Separately, AbbVie paid $650M upfront for global rights outside China to RemeGen’s investigational PD-1/VEGF bispecific RC148, with up to $5.0B in additional milestones and tiered royalties.

AbbVie’s 2025 pipeline investments included Capstan for $2.1B cash ($1.9B net of cash acquired), ADARx for $335M upfront plus potential option fees and milestones, and Gubra for $350M upfront plus potential milestones. These and other deals contributed to the prior-year acquired IPR&D expense comparison.

In 2026, AbbVie issued $10.0B of senior notes in August in connection with Apogee and $8.0B in March, and repaid $2.0B of 3.20% notes at maturity. It terminated the Apogee-related $10.0B, 364-day term-loan facility after the August issuance. Contingent-consideration liabilities measured using significant unobservable inputs were $27.312B, up from $25.374B at year-end. For 9M, $4.734B of fair-value expense was partly offset by $2.796B of payments; the prior-year period included $5.089B of fair-value expense and $2.184B of payments. These estimates depend on milestone probabilities, timing, discount rates and future sales; projected payments extend to 2044 for pipeline assets combined with Skyrizi.

Three U.S. wholesalers represented 82% of net accounts receivable, versus 84% at year-end, and substantially all U.S. pharmaceutical product revenue was to these wholesalers. Litigation accruals were approximately $1.3B, down from $1.6B. Around 195 opioid-related lawsuits remained pending; in Allergan Biocell implant litigation, approximately 1,300 U.S. federal, 475 U.S. state and 1,095 international lawsuits remained pending after an agreement to resolve substantially all U.S. ALCL lawsuits. AbbVie is also pursuing patent litigation against proposed generic versions of Ubrelvy and Qulipta.

AbbVie (ABBV) — Q3 and nine months ended September 30, 2026

Performance and consolidated results

AbbVie reported Q3 revenue growth of 10.3% (10.5% constant currency), led by its immunology products. The company operates as one global business segment. Its diversified product franchises and continued investment in research and development underpin its growth strategy.

Gross-profit growth reflected higher revenue against lower fixed costs, particularly lower intangible-asset amortization; the prior-year quarter included $847 million of intangible-asset impairment charges. SG&A and R&D rose with acquisition-related costs and investment in pipeline assets, respectively. Nine-month results also included $5.1 billion of intangible-asset amortization and $431 million of acquisition and integration expenses. Nine-month operating earnings were $16.7 billion and diluted EPS was $4.79.

Acquired IPR&D expense fell sharply against unusually large prior-year business-development charges. 2026 amounts included $904 million of upfront charges and $347 million of development milestones year to date, including a $650 million RemeGen license. The prior-year period included major charges for Capstan and Ichnos Glenmark, as well as Gubra and ADARx in the nine-month period.

Other expense included contingent-consideration fair-value charges of $829 million versus $776 million in Q3 and $4.7 billion versus $5.1 billion in 9M. The 2026 valuations reflected the passage of time and higher estimated Skyrizi sales, partly offset by higher discount rates; nine-month results also benefited from favorable pipeline trial results. These estimates are sensitive to clinical and regulatory probabilities, expected sales and market inputs. Effective tax rates were 13% versus 74% in Q3 and 16% versus 39% in 9M, primarily reflecting lower impacts from business-development activity and fair-value changes.

Product revenue

Figures are $ millions; 9M values are shown where the year-to-date growth rate differed from Q3 by at least three percentage points.

Skyrizi and Rinvoq growth reflected market-share gains and market growth; Humira’s decline reflected biosimilar competition following loss of exclusivity. Neuroscience growth was generally driven by demand and share gains, with pricing also supporting Vraylar and Ubrelvy and strong uptake supporting Vyalev. Imbruvica fell amid U.S. pricing and demand pressure and lower collaboration revenue; reported revenue includes AbbVie’s 50% share of Imbruvica collaboration profit. Elahere growth reflected increased demand. Botox Cosmetic benefited from international demand and, year to date, a favorable comparison with prior-year U.S. loyalty-program pricing; Juvederm declined on weaker demand and unfavorable pricing.

Cash flow, financing and liquidity

Operating cash flow increased with operating results and lower litigation payments, partly offset by working-capital timing and higher contingent-consideration payments. Investing outflows included $10.6 billion of acquisition payments, primarily for Apogee, and $1.4 billion for other acquisitions and investments. Financing included issuance of $18.0 billion aggregate principal of senior notes and repayment of $2.0 billion aggregate principal each of a 364-day term loan and 3.20% senior notes. Dividends were $9.2 billion versus $8.7 billion; repurchases were 5 million shares for $1.1 billion, compared with 3 million shares for $606 million.

There was no commercial paper outstanding at September 30, 2026, versus $499 million at December 31, 2025, and no revolving-credit borrowings at either date. Available revolving facilities totaled $8.0 billion; AbbVie was covenant-compliant. Moody’s upgraded senior unsecured ratings to A2 (stable), while S&P affirmed A- and revised its outlook to positive. Management expects to fund obligations through cash, operating cash flow or additional debt, while noting that weaker demand, credit conditions or ratings could affect access or terms.

Strategy, developments and risks

AbbVie’s pipeline comprised approximately 100 compounds, devices or indications, with approximately 60 in mid- or late-stage development. The company expects multiple mid-stage programs to advance and anticipates key submissions, approvals and clinical readouts. Developments included U.S. approval of Skyrizi subcutaneous induction for adult Crohn’s disease, EU approvals for Rinvoq in additional indications, and FDA approval of Juvmo for Parkinson’s disease. AbbVie also reported positive Epkinly Phase 3 results, though one DLBCL trial did not show a statistically significant overall-survival improvement; the FDA requested manufacturing-process information for Boey, without identifying safety, efficacy or additional-trial concerns.

A January 2026 U.S. government agreement provides for lower Medicaid prices, expanded direct-to-patient affordability offerings and $100 billion of U.S. R&D and capital investment over a decade, in exchange for a three-year exemption from tariffs and future price mandates. Botox’s selection for Medicare price negotiation beginning in 2028 was vacated by a federal court; the ruling may be appealed. AbbVie announced U.S. manufacturing investments, including a North Carolina campus and Illinois facilities. Principal risks include product competition and intellectual-property challenges, R&D uncertainty, litigation and government action, drug-pricing policy, regulatory change, and macroeconomic and geopolitical conditions.

Item 3 — Quantitative and Qualitative Disclosures About Market Risk

AbbVie provides no market-risk metrics or discussion in this section. It directs readers to Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in its 2025 Form 10-K.

Disclosure Controls and Internal Control

AbbVie’s CEO Robert A. Michael and CFO Scott T. Reents concluded that the company’s disclosure controls and procedures were effective as of September 30, 2026, the end of the period covered by the Q3 2026 Form 10-Q. No changes during the quarter materially affected, or were reasonably likely to materially affect, internal control over financial reporting.

Management cautioned that controls provide reasonable, not absolute, assurance. Errors or fraud may go undetected because of judgment errors, mistakes, collusion, management override, resource constraints, or changing conditions. This section reported no financial results or business developments.

For the three months ended September 30, 2026, no AbbVie director or officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. This section reports no financial or business developments.