filings.toolsAbbVie 10-Q 2026-03-31
Filed 2026-05-08. 7 sections, 150K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-35565
AbbVie Inc.
| (Exact name of registrant as specified in its charter) | ||||||||
| Delaware | 32-0375147 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification number) |
1 North Waukegan Road
North Chicago, Illinois 60064-6400
Telephone: (847) 932-7900
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | ||||||||
| Non-Accelerated Filer | ☐ | Smaller reporting company | ☐ | ||||||||
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
| Common Stock, par value $0.01 per share | ABBV | New York Stock Exchange | ||||||||||||
| NYSE Texas | ||||||||||||||
| 0.750% Senior Notes due 2027 | ABBV27 | New York Stock Exchange | ||||||||||||
| 2.125% Senior Notes due 2028 | ABBV28 | New York Stock Exchange | ||||||||||||
| 2.625% Senior Notes due 2028 | ABBV28B | New York Stock Exchange | ||||||||||||
| 2.125% Senior Notes due 2029 | ABBV29 | New York Stock Exchange | ||||||||||||
| 1.250% Senior Notes due 2031 | ABBV31 | New York Stock Exchange |
As of April 28, 2026, AbbVie Inc. had 1,766,792,821 shares of common stock at $0.01 par value outstanding.
AbbVie Inc. and Subsidiaries
Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
AbbVie Inc. and Subsidiaries
Condensed Consolidated Statements of Earnings (unaudited)
| Three months ended March 31, | |||||||||||
| (in millions, except per share data) | 2026 | 2025 | |||||||||
| Net revenues | $ | 15,002 | $ | 13,343 | |||||||
| Cost of products sold | 4,218 | 4,002 | |||||||||
| Selling, general and administrative | 3,578 | 3,293 | |||||||||
| Research and development | 2,472 | 2,067 | |||||||||
| Acquired IPR&D and milestones | 744 | 248 | |||||||||
| Total operating costs and expenses | 11,012 | 9,610 | |||||||||
| Operating earnings | 3,990 | 3,733 | |||||||||
| Interest expense, net | 645 | 627 | |||||||||
| Other expense, net | 2,306 | 1,445 | |||||||||
| Earnings before income tax expense | 1,039 | 1,661 | |||||||||
| Income tax expense | 342 | 372 | |||||||||
| Net earnings | 697 | 1,289 | |||||||||
| Net earnings attributable to noncontrolling interest | 2 | 3 | |||||||||
| Net earnings attributable to AbbVie Inc. | $ | 695 | $ | 1,286 | |||||||
| Per share data | |||||||||||
| Basic earnings per share attributable to AbbVie Inc. | $ | 0.39 | $ | 0.72 | |||||||
| Diluted earnings per share attributable to AbbVie Inc. | $ | 0.39 | $ | 0.72 | |||||||
| Weighted-average basic shares outstanding | 1,770 | 1,768 | |||||||||
| Weighted-average diluted shares outstanding | 1,774 | 1,772 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
2026 Form 10-Q |  | 1 |
AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (unaudited)
| Three months ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Net earnings | $ | 697 | $ | 1,289 | |||||||
| Foreign currency translation adjustments, net of tax expense (benefit) of $(5) for the three months ended March 31, 2026 and $17 for the three months ended March 31, 2025 | (204) | 487 | |||||||||
| Net investment hedging activities, net of tax expense (benefit) of $43 for the three months ended March 31, 2026 and $(77) for the three months ended March 31, 2025 | 156 | (283) | |||||||||
| Pension and post-employment benefits, net of tax expense (benefit) of $— for the three months ended March 31, 2026 and $— for the three months ended March 31, 2025 | (1) | (2) | |||||||||
| Cash flow hedging activities, net of tax expense (benefit) of $— for the three months ended March 31, 2026 and $(4) for the three months ended March 31, 2025 | 40 | (19) | |||||||||
| Other comprehensive income (loss) | (9) | 183 | |||||||||
| Comprehensive income | 688 | 1,472 | |||||||||
| Comprehensive income attributable to noncontrolling interest | 2 | 3 | |||||||||
| Comprehensive income attributable to AbbVie Inc. | $ | 686 | $ | 1,469 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| 2026 Form 10-Q | | 2 |
AbbVie Inc. and Subsidiaries Condensed Consolidated Balance Sheets
| (in millions, except share data) | March 31, 2026 | December 31, 2025 | |||||||||
| (unaudited) | |||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and equivalents | $ | 9,391 | $ | 5,229 | |||||||
| Accounts receivable, net | 12,479 | 12,589 | |||||||||
| Inventories | 5,049 | 4,951 | |||||||||
| Prepaid expenses and other | 6,610 | 6,293 | |||||||||
| Total current assets | 33,529 | 29,062 | |||||||||
| Investments | 268 | 268 | |||||||||
| Property and equipment, net | 5,687 | 5,628 | |||||||||
| Intangible assets, net | 50,873 | 52,641 | |||||||||
| Goodwill | 35,570 | 35,640 | |||||||||
| Other assets | 10,536 | 10,721 | |||||||||
| Total assets | $ | 136,463 | $ | 133,960 | |||||||
| Liabilities and Equity (Deficit) | |||||||||||
| Current liabilities | |||||||||||
| Short-term borrowings | $ | — | $ | 2,499 | |||||||
| Current portion of long-term debt | 8,326 | 6,056 | |||||||||
| Accounts payable and accrued liabilities | 33,774 | 34,734 | |||||||||
| Total current liabilities | 42,100 | 43,289 | |||||||||
| Long-term debt | 64,532 | 58,941 | |||||||||
| Deferred income taxes | 2,332 | 2,389 | |||||||||
| Other long-term liabilities | 34,111 | 32,569 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity (deficit) | |||||||||||
| Common stock, $0.01 par value, 4,000,000,000 shares authorized, 1,843,809,386 shares issued as of March 31, 2026 and 1,838,678,628 as of December 31, 2025 | 18 | 18 | |||||||||
| Common stock held in treasury, at cost, 77,077,199 shares as of March 31, 2026 and 70,802,593 as of December 31, 2025 | (10,611) | (9,146) | |||||||||
| Additional paid-in capital | 22,962 | 22,495 | |||||||||
| Accumulated deficit | (17,872) | (15,493) | |||||||||
| Accumulated other comprehensive loss | (1,153) | (1,144) | |||||||||
| Total stockholders' deficit | (6,656) | (3,270) | |||||||||
| Noncontrolling interest | 44 | 42 | |||||||||
| Total deficit | (6,612) | (3,228) | |||||||||
| Total liabilities and equity (deficit) | $ | 136,463 | $ | 133,960 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
| 2026 Form 10-Q | | 3 |
AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Equity (Deficit) (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | |
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion and analysis of the financial condition of AbbVie Inc. (AbbVie or the company) as of March 31, 2026 and December 31, 2025 and the results of operations for the three months ended March 31, 2026 and 2025. This commentary should be read in conjunction with the Condensed Consolidated Financial Statements and accompanying notes appearing in Item 1, “Financial Statements and Supplementary Data.”
EXECUTIVE OVERVIEW
Company Overview
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's products are generally sold worldwide directly to wholesalers, distributors, government agencies, health care facilities, specialty pharmacies and independent retailers from AbbVie-owned distribution centers and public warehouses. Certain products (including aesthetic products and devices) are also sold directly to physicians and other licensed healthcare providers. In the United States (U.S.), AbbVie distributes pharmaceutical products principally through independent wholesale distributors, with some sales directly to retailers, pharmacies, patients or other customers. Outside the United States, AbbVie sells products primarily to wholesalers or through distributors, and depending on the market works through largely centralized national payers systems to agree on reimbursement terms. Certain products are co-marketed or co-promoted with other companies. AbbVie operates as a single global business segment.
2026 Strategic Objectives
AbbVie's mission is to discover and develop innovative medicines and products that solve serious health issues today and address the medical challenges of tomorrow while achieving top-tier financial performance through outstanding execution. AbbVie intends to execute its strategy and advance its mission in a number of ways, including: (i) maximizing the benefits of a diversified revenue base with multiple long-term growth drivers; (ii) leveraging AbbVie's commercial strength and international infrastructure across therapeutic areas and ensuring strong commercial execution of new product launches as well as continued investment in key on-market products; (iii) continuing to invest in and expand its pipeline in support of opportunities in immunology, neuroscience, oncology and aesthetics as well as new sources of growth such as obesity; (iv) generating substantial operating cash flows to support investments in innovative research and development and returning cash to shareholders via a strong and growing dividend while maintaining a strong investment grade credit rating. In addition, AbbVie anticipates several regulatory submissions, approvals and data readouts from key clinical trials in the next 12 months.
Financial Results
The company’s financial performance for the three months ended March 31, 2026 included delivering worldwide net revenues of $15.0 billion, operating earnings of $4.0 billion, diluted earnings per share of $0.39 and cash flows from operations of $3.8 billion. Worldwide net revenues increased 12% on a reported basis and 10% on a constant currency basis.
Financial results for the three months ended March 31, 2026 also included the following costs: (i) $1.7 billion related to the amortization of intangible assets; and (ii) $2.4 billion for the change in fair value of contingent consideration liabilities. Additionally, financial results reflected continued funding to support all stages of AbbVie’s pipeline assets and continued investment in AbbVie’s on-market brands.
| 2026 Form 10-Q | | 22 |
Recent Events
Regulatory Environment
In January 2026, AbbVie announced a voluntary agreement with the U.S. government to further advance access and affordability of AbbVie’s products in the U.S. while protecting and investing in U.S. pharmaceutical innovation. AbbVie will provide low prices in Medicaid and expand affordable, direct-to-patient offerings. Additionally, AbbVie pledged $100 billion in U.S.-based research and development and capital investments, including manufacturing, over the next decade. Under this voluntary agreement, the U.S. government has agreed to provide AbbVie a three-year exemption from tariffs and future price mandates.
The Inflation Reduction Act of 2022 has and will continue to have a significant impact on AbbVie’s business. In January 2026, the U.S. Department of Health and Human Services, through Centers for Medicare and Medicaid Service, selected Botox as one of 15 medicines subject to government-set prices in Medicare Parts B and D beginning in 2028.
U.S. Capital Investment
In 2026, AbbVie announced an investment to build a pharmaceutical manufacturing campus in North Carolina. The campus will integrate advanced manufacturing and laboratory technologies with artificial intelligence to support the production of immunology, neuroscience and oncology medicines. Additionally, AbbVie announced investments to add two new manufacturing facilities in Illinois to support next generation neuroscience and obesity medications as well as an agreement to acquire a device manufacturing facility in Arizona. These projects are part of AbbVie's plan to invest in the U.S. to broadly support innovation and expand critical manufacturing capabilities and capacity.
Research and Development
Research and innovation are the cornerstones of AbbVie’s business as a global biopharmaceutical company. AbbVie’s long-term success depends to a great extent on its ability to continue to discover and develop innovative products and acquire or collaborate on compounds currently in development by other biotechnology or pharmaceutical companies.
AbbVie’s pipeline currently includes approximately 90 compounds, devices or indications in development individually or under collaboration or license agreements. Of these programs, approximately 60 are in mid- and late-stage development. The company’s pipeline is focused on immunology, neuroscience, oncology and aesthetics as well as other specialties, including obesity.
The following sections summarize transitions of significant programs from mid-stage development to late-stage development as well as developments in significant late-stage and registrational programs. AbbVie expects multiple mid-stage programs to transition into late-stage programs in the next 12 months.
Significant Programs and Developments
Immunology
Skyrizi
-
In February 2026, AbbVie announced positive topline results from the Phase 3 AFFIRM trial evaluating Skyrizi subcutaneous induction in adult patients with moderately to severely active Crohn’s disease (CD).
-
In April 2026, AbbVie announced the submission of an application to the U.S. Food and Drug Administration (FDA) for Skyrizi for subcutaneous induction for the treatment of adult patients with moderately to severely active CD.
Rinvoq
-
In February 2026, AbbVie announced the submission of applications for a new indication to the U.S. FDA and European Medicines Agency (EMA) for Rinvoq for the treatment of adult and adolescent patients with non-segmental vitiligo.
-
In April 2026, AbbVie announced the submission of an application for a new indication to the U.S. FDA for Rinvoq for the treatment of adult and adolescent patients with severe alopecia areata (AA).
| 2026 Form 10-Q | | 23 |
Oncology
Venclexta
- In February 2026, AbbVie announced that the U.S. FDA approved the combination regimen of Venclexta with acalabrutinib for the treatment of previously untreated adult patients with chronic lymphocytic leukemia (CLL).
Epkinly
- In January 2026, AbbVie announced topline results from the Phase 3 trial evaluating Epkinly compared to investigator's choice of chemoimmunotherapy in adult patients with relapsed/refractory (R/R) diffuse large B-cell lymphoma (DLBCL). The study demonstrated an improvement in progression free survival but did not demonstrate a statistically significant improvement in overall survival.
ABBV-706
- In April 2026, AbbVie initiated a Phase 3 trial to evaluate ABBV-706 versus standard of care in R/R small cell lung cancer (SCLC).
Aesthetics
TrenibotE
- In April 2026, AbbVie announced it received a Complete Response Letter (CRL) from the U.S. FDA regarding the Biologics License Application (BLA) for trenibotulinumtoxinE (TrenibotE) for the treatment of moderate to severe glabellar lines. In its letter, the FDA requested additional information about manufacturing processes. The CRL does not identify any safety or efficacy concerns for TrenibotE and does not request additional clinical studies.
For a more comprehensive discussion of AbbVie’s products and pipeline, see the company’s Annual Report on Form 10-K for the year ended December 31, 2025.
| 2026 Form 10-Q | | 24 |
RESULTS OF OPERATIONS
Net Revenues
The comparisons presented at constant currency rates reflect comparative local currency net revenues at the prior year’s foreign exchange rates. This measure provides information on the change in net revenues assuming that foreign currency exchange rates had not changed between the prior and current periods. AbbVie believes that the non-GAAP measure of change in net revenues at constant currency rates, when used in conjunction with the GAAP measure of change in net revenues at actual currency rates, may provide a more complete understanding of the company’s operations and can facilitate analysis of the company’s results of operations, particularly in evaluating performance from one period to another.
| Three months ended March 31, | Percent change | ||||||||||||||||||||||
| At actual currency rates | At constant currency rates | ||||||||||||||||||||||
| (dollars in millions) | 2026 | 2025 | |||||||||||||||||||||
| United States | $ | 10,969 | $ | 9,979 | 9.9 | % | 9.9 | % | |||||||||||||||
| International | 4,033 | 3,364 | 19.9 | % | 11.4 | % | |||||||||||||||||
| Net revenues | $ | 15,002 | $ | 13,343 | 12.4 | % | 10.3 | % |
| 2026 Form 10-Q | | 25 |
The following table details AbbVie’s worldwide net revenues:
| Three months ended March 31, | Percent change | |||||||||||||||||||||||||
| At actual currency rates | At constant currency rates | |||||||||||||||||||||||||
| (dollars in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Immunology | ||||||||||||||||||||||||||
| Skyrizi | United States | $ | 3,775 | $ | 2,919 | 29.3 | % | 29.3 | % | |||||||||||||||||
| International | 708 | 506 | 39.8 | % | 28.0 | % | ||||||||||||||||||||
| Total | $ | 4,483 | $ | 3,425 | 30.9 | % | 29.2 | % | ||||||||||||||||||
| Rinvoq | United States | $ | 1,405 | $ | 1,220 | 15.1 | % | 15.1 | % | |||||||||||||||||
| International | 714 | 498 | 43.4 | % | 32.6 | % | ||||||||||||||||||||
| Total | $ | 2,119 | $ | 1,718 | 23.3 | % | 20.2 | % | ||||||||||||||||||
| Humira | United States | $ | 357 | $ | 744 | (52.0) | % | (52.0) | % | |||||||||||||||||
| International | 331 | 377 | (12.3) | % | (17.4) | % | ||||||||||||||||||||
| Total | $ | 688 | $ | 1,121 | (38.6) | % | (40.3) | % | ||||||||||||||||||
| Neuroscience | ||||||||||||||||||||||||||
| Vraylar | United States | $ | 902 | $ | 763 | 18.2 | % | 18.2 | % | |||||||||||||||||
| International | 3 | 2 | 67.6 | % | 58.9 | % | ||||||||||||||||||||
| Total | $ | 905 | $ | 765 | 18.4 | % | 18.4 | % | ||||||||||||||||||
| Botox Therapeutic | United States | $ | 842 | $ | 723 | 16.5 | % | 16.5 | % | |||||||||||||||||
| International | 167 | 143 | 16.3 | % | 6.7 | % | ||||||||||||||||||||
| Total | $ | 1,009 | $ | 866 | 16.5 | % | 14.9 | % | ||||||||||||||||||
| Ubrelvy | United States | $ | 330 | $ | 233 | 41.7 | % | 41.7 | % | |||||||||||||||||
| International | 9 | 7 | 29.2 | % | 22.9 | % | ||||||||||||||||||||
| Total | $ | 339 | $ | 240 | 41.4 | % | 41.2 | % | ||||||||||||||||||
| Qulipta | United States | $ | 250 | $ | 172 | 45.4 | % | 45.4 | % | |||||||||||||||||
| International | 46 | 21 | >100.0 % | 99.7 | % | |||||||||||||||||||||
| Total | $ | 296 | $ | 193 | 53.6 | % | 51.3 | % | ||||||||||||||||||
| Vyalev | United States | $ | 89 | $ | 6 | >100.0 % | >100.0 % | |||||||||||||||||||
| International | 112 | 57 | 98.3 | % | 76.9 | % | ||||||||||||||||||||
| Total | $ | 201 | $ | 63 | >100.0 % | >100.0 % | ||||||||||||||||||||
| Other Neuroscience | United States | $ | 46 | $ | 75 | (38.9) | % | (38.9) | % | |||||||||||||||||
| International | 79 | 80 | (1.5) | % | (11.7) | % | ||||||||||||||||||||
| Total | $ | 125 | $ | 155 | (19.6) | % | (24.8) | % | ||||||||||||||||||
| Oncology | ||||||||||||||||||||||||||
| Venclexta | United States | $ | 341 | $ | 312 | 9.2 | % | 9.2 | % | |||||||||||||||||
| International | 429 | 353 | 21.4 | % | 10.1 | % | ||||||||||||||||||||
| Total | $ | 770 | $ | 665 | 15.7 | % | 9.7 | % | ||||||||||||||||||
| Imbruvica | United States | $ | 332 | $ | 529 | (37.4) | % | (37.4) | % | |||||||||||||||||
| Collaboration revenues | 224 | 209 | 7.2 | % | 7.2 | % | ||||||||||||||||||||
| Total | $ | 556 | $ | 738 | (24.7) | % | (24.7) | % | ||||||||||||||||||
| Elahere | United States | $ | 160 | $ | 165 | (2.9) | % | (2.9) | % | |||||||||||||||||
| International | 38 | 14 | >100.0 % | >100.0 % | ||||||||||||||||||||||
| Total | $ | 198 | $ | 179 | 10.7 | % | 8.3 | % | ||||||||||||||||||
| Epkinly | Collaboration revenues | $ | 51 | $ | 36 | 40.4 | % | 40.4 | % | |||||||||||||||||
| International | 32 | 15 | >100% | 99.9 | % | |||||||||||||||||||||
| Total | $ | 83 | $ | 51 | 62.0 | % | 57.6 | % | ||||||||||||||||||
| Other Oncology | United States | $ | 24 | $ | — | n/m | n/m | |||||||||||||||||||
| Aesthetics | ||||||||||||||||||||||||||
| Botox Cosmetic | United States | $ | 371 | $ | 295 | 25.8 | % | 25.8 | % | |||||||||||||||||
| International | 297 | 261 | 13.9 | % | 7.1 | % | ||||||||||||||||||||
| Total | $ | 668 | $ | 556 | 20.2 | % | 17.0 | % | ||||||||||||||||||
| Juvederm Collection | United States | $ | 85 | $ | 75 | 12.2 | % | 12.2 | % | |||||||||||||||||
| International | 147 | 156 | (5.3) | % | (10.3) | % | ||||||||||||||||||||
| Total | $ | 232 | $ | 231 | 0.4 | % | (2.9) | % |
| 2026 Form 10-Q | | 26 |
| Three months ended March 31, | Percent change | |||||||||||||||||||||||||
| At actual currency rates | At constant currency rates | |||||||||||||||||||||||||
| (dollars in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Other Aesthetics | United States | $ | 248 | $ | 270 | (8.4) | % | (8.4) | % | |||||||||||||||||
| International | 38 | 45 | (15.7) | % | (20.5) | % | ||||||||||||||||||||
| Total | $ | 286 | $ | 315 | (9.4) | % | (10.1) | % | ||||||||||||||||||
| Other Key Products | ||||||||||||||||||||||||||
| Mavyret | United States | $ | 183 | $ | 142 | 28.3 | % | 28.3 | % | |||||||||||||||||
| International | 168 | 164 | 2.4 | % | (8.6) | % | ||||||||||||||||||||
| Total | $ | 351 | $ | 306 | 14.5 | % | 8.6 | % | ||||||||||||||||||
| Creon | United States | $ | 361 | $ | 355 | 1.8 | % | 1.8 | % | |||||||||||||||||
| Linzess | United States | $ | 272 | $ | 139 | 96.9 | % | 96.9 | % | |||||||||||||||||
| International | 11 | 9 | 12.7 | % | 3.0 | % | ||||||||||||||||||||
| Total | $ | 283 | $ | 148 | 91.5 | % | 90.9 | % | ||||||||||||||||||
| All other | $ | 1,025 | $ | 1,253 | (18.1) | % | (19.9) | % | ||||||||||||||||||
| Total net revenues | $ | 15,002 | $ | 13,343 | 12.4 | % | 10.3 | % |
n/m – Not meaningful
The following discussion and analysis of AbbVie’s net revenues by product is presented on a constant currency basis.
Net revenues for Skyrizi increased 29% for the three months ended March 31, 2026 primarily driven by continued strong market share uptake as well as market growth across all indications.
Net revenues for Rinvoq increased 20% for the three months ended March 31, 2026 primarily driven by continued strong market share uptake as well as market growth across all indications.
Net revenues for Humira decreased 40% for the three months ended March 31, 2026 primarily driven by continued impact of direct biosimilar competition following the loss of exclusivity.
Net revenues for Vraylar increased 18% for the three months ended March 31, 2026 primarily driven by continued market share uptake as well as market growth.
Net revenues for Botox Therapeutic increased 15% for the three months ended March 31, 2026 primarily driven by market growth as well as continued market share uptake.
Net revenues for Ubrelvy increased 41% for the three months ended March 31, 2026 primarily driven by favorable pricing, continued market share uptake as well as market growth.
Net revenues for Qulipta increased 51% for the three months ended March 31, 2026 primarily driven by continued strong market share uptake as well as market growth.
Net revenues for Vyalev increased greater than 100% for the three months ended March 31, 2026 primarily driven by strong market share uptake.
Net revenues for Venclexta increased 10% for the three months ended March 31, 2026 primarily driven by increased demand.
Net revenues for Imbruvica represent product revenues in the United States and collaboration revenues outside of the United States related to AbbVie’s 50% share of Imbruvica profit. AbbVie's global Imbruvica revenues decreased 25% for the three months ended March 31, 2026 primarily driven by unfavorable pricing and decreased demand in the United States, partially offset by increased collaboration revenues.
Net revenues for Elahere increased 8% for the three months ended March 31, 2026 primarily driven by increased demand.
Net revenues for Botox Cosmetic increased 17% for the three months ended March 31, 2026 primarily driven by favorable pricing due to customer loyalty program changes in the United States in the prior year and the timing of customer inventory stocking.
Net revenues for Juvederm Collection decreased 3% for the three months ended March 31, 2026 primarily driven by decreased consumer demand, partially offset by favorable pricing due to customer loyalty program changes in the United States in the prior year and the timing of customer inventory stocking.
| 2026 Form 10-Q | | 27 |
Gross Margin
| Three months ended March 31, | |||||||||||||||||
| (dollars in millions) | 2026 | 2025 | % change | ||||||||||||||
| Gross margin | $ | 10,784 | $ | 9,341 | 15 | % | |||||||||||
| as a % of net revenues | 72 | % | 70 | % |
Gross margin as a percentage of net revenues increased for the three months ended March 31, 2026 compared to the prior year primarily due to higher net revenues and lower amortization of intangible assets.
Selling, General and Administrative
| Three months ended March 31, | |||||||||||||||||
| (dollars in millions) | 2026 | 2025 | % change | ||||||||||||||
| Selling, general and administrative | $ | 3,578 | $ | 3,293 | 9 | % | |||||||||||
| as a % of net revenues | 24 | % | 25 | % |
Selling, general and administrative (SG&A) expenses as a percentage of net revenues decreased for the three months ended March 31, 2026 compared to the prior year primarily due to leverage from net revenues growth partially offset by higher litigation reserve charges.
Research and Development
| Three months ended March 31, | |||||||||||||||||
| (dollars in millions) | 2026 | 2025 | % change | ||||||||||||||
| Research and development | $ | 2,472 | $ | 2,067 | 20 | % | |||||||||||
| as a % of net revenues | 16 | % | 15 | % |
Research and development (R&D) expenses as a percentage of net revenues increased for the three months ended March 31, 2026 compared to the prior year primarily due to increased funding to support all stages of the company’s pipeline assets.
Acquired IPR&D and Milestones
| Three months ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Upfront charges | $ | 703 | $ | 246 | |||||||
| Development milestones | 41 | 2 | |||||||||
| Acquired IPR&D and milestones | $ | 744 | $ | 248 |
Acquired IPR&D and milestones expense for the three months ended March 31, 2026 included an upfront charge of $650 million related to a license agreement with RemeGen Co, Ltd. See Note 4 to the Condensed Consolidated Financial Statements for additional information.
Other Non-Operating Expenses (Income)
| Three months ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Interest expense | $ | 717 | $ | 700 | |||||||
| Interest income | (72) | (73) | |||||||||
| Interest expense, net | $ | 645 | $ | 627 | |||||||
| Other expense, net | $ | 2,306 | $ | 1,445 |
Other expense, net included charges related to changes in fair value of contingent consideration liabilities of $2.4 billion for the three months ended March 31, 2026 and $1.5 billion for the three months ended March 31, 2025. The fair value of contingent consideration liabilities is impacted by the passage of time and multiple other inputs, including discount rates, the estimated amount
| 2026 Form 10-Q | | 28 |
of future sales of the acquired products and other market-based factors. For the three months ended March 31, 2026, the change in fair value reflected higher estimated Skyrizi sales and the passage of time, partially offset by higher discount rates. For the three months ended March 31, 2025, the change in fair value reflected higher estimated Skyrizi sales, the passage of time and lower discount rates.
Income Tax Expense
The effective tax rate was 33% for the three months ended March 31, 2026 compared to 22% for the three months ended March 31, 2025. The effective tax rate in each period differed from the U.S. statutory tax rate of 21% principally due to changes in fair value of contingent consideration and business development activities partially offset by the impact of foreign operations which reflect lower income tax rates in locations outside the United States. The increase in the effective tax rate for the three months ended March 31, 2026 over the prior year was primarily due to the increased impact of changes in fair value of contingent consideration and business development activities partially offset by changes in the impact of foreign operations.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
| Three months ended March 31, | |||||||||||
| (in millions) | 2026 | 2025 | |||||||||
| Cash flows provided by (used in): | |||||||||||
| Operating activities | $ | 3,829 | $ | 1,635 | |||||||
| Investing activities | (574) | (735) | |||||||||
| Financing activities | 919 | (1,258) |
Operating cash flows for the three months ended March 31, 2026 increased compared to the prior year primarily due to increased results from operations driven by higher net revenues, timing of working capital and lower payments related to litigation matters.
Investing cash flows for the three months ended March 31, 2026 included payments made for other acquisitions and investments, net of cash acquired of $266 million and capital expenditures of $265 million. Investing cash flows for the three months ended March 31, 2025 included $210 million cash consideration paid to acquire Nimble Therapeutics, Inc. offset by cash acquired of $6 million, payments made for other acquisitions and investments, net of cash acquired of $334 million and capital expenditures of $235 million.
Financing cash flows for the three months ended March 31, 2026 included the issuance of unsecured senior notes totaling $8.0 billion aggregate principal and the repayment of $2.0 billion aggregate principal of the 364-day term loan credit agreement. Financing cash flows for the three months ended March 31, 2025 included the issuance of unsecured senior notes totaling $4.0 billion aggregate principal and the repayment of $3.0 billion aggregate principal of the 3.80% senior notes.
Financing cash flows also included cash dividend payments of $3.1 billion for the three months ended March 31, 2026 and $2.9 billion for the three months ended March 31, 2025. The increase in cash dividend payments was primarily driven by the increase in the quarterly dividend rate.
On February 19, 2026, the company announced that its board of directors declared a quarterly dividend of $1.73 per share beginning with the dividend payable on May 15, 2026 to stockholders of record as of April 15, 2026. The timing, declaration, amount of and payment of any dividends by AbbVie in the future is within the discretion of its board of directors and will depend upon many factors, including AbbVie’s financial condition, earnings, capital requirements of its operating subsidiaries, covenants associated with certain of AbbVie’s debt service obligations, legal requirements, regulatory constraints, industry practice, ability to access capital markets and other factors deemed relevant by its board of directors.
The company's stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions at management's discretion. The program has no time limit and can be discontinued at any time. AbbVie repurchased 5 million shares for $1.1 billion during the three months ended March 31, 2026 and 3 million shares for $606 million during the three months ended March 31, 2025.
The company redeemed commercial paper during the three months ended March 31, 2026 and 2025, and issued commercial paper during the three months ended March 31, 2025. There were no commercial paper borrowings outstanding as of March 31, 2026 and commercial paper borrowings outstanding totaled $499 million as of December 31, 2025. AbbVie may issue additional commercial paper or redeem commercial paper to meet liquidity requirements as needed.
| 2026 Form 10-Q | | 29 |
Credit Risk
AbbVie monitors economic conditions, the creditworthiness of customers and government regulations and funding, both domestically and abroad. AbbVie regularly communicates with its customers regarding the status of receivable balances, including their payment plans and obtains positive confirmation of the validity of the receivables. AbbVie establishes an allowance for credit losses equal to the estimate of future losses over the contractual life of outstanding accounts receivable. AbbVie may also utilize factoring arrangements to mitigate credit risk, although the receivables included in such arrangements have historically not been a significant amount of total outstanding receivables.
Credit Facilities, Access to Capital and Credit Ratings
Credit Facilities
AbbVie has two revolving credit facilities available, including a $5.0 billion five-year revolving credit facility that matures in March 2028 and a $3.0 billion five-year revolving credit facility that matures in January 2030. The revolving credit facilities are available to support AbbVie’s commercial paper program and enable the company to borrow funds to meet liquidity requirements on an unsecured basis at variable interest rates and contain various covenants. At March 31, 2026, the company was in compliance with all covenants, and commitment fees under the revolving credit facilities were insignificant. No amounts were outstanding under the company's revolving credit facilities as of March 31, 2026 and December 31, 2025.
Access to Capital
The company intends to fund short-term and long-term financial obligations as they mature through cash on hand, future cash flows from operations or has the ability to issue additional debt. The company’s ability to generate cash flows from operations, issue debt or enter into financing arrangements on acceptable terms could be adversely affected if there is a material decline in the demand for the company’s products or in the solvency of its customers or suppliers, deterioration in the company’s key financial ratios or credit ratings or other material unfavorable changes in business conditions. At the current time, the company believes it has sufficient financial flexibility to issue debt, enter into other financing arrangements and attract long-term capital on acceptable terms to support the company’s growth objectives.
Credit Ratings
In February 2026, Moody’s Investors Service upgraded AbbVie’s senior unsecured long-term credit rating to A2 with a stable outlook from A3 with a positive outlook and upgraded AbbVie’s short-term credit rating to Prime-1 from Prime-2. There were no other changes in the company’s credit ratings during the three months ended March 31, 2026. Unfavorable changes to the ratings may have an adverse impact on future financing arrangements; however, they would not affect the company’s ability to draw on its credit facility and would not result in an acceleration of scheduled maturities of any of the company’s outstanding debt.
CRITICAL ACCOUNTING POLICIES
A summary of the company’s significant accounting policies is included in Note 2, “Summary of Significant Accounting Policies” in AbbVie's Annual Report on Form 10-K for the year ended December 31, 2025. There have been no significant changes in the company’s application of its critical accounting policies during the three months ended March 31, 2026.
FORWARD-LOOKING STATEMENTS
Some statements in this quarterly report on Form 10-Q are, or may be considered, forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “project,” and similar expressions and uses of future or conditional verbs, generally identify forward-looking statements. AbbVie cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Such risks and uncertainties include, but are not limited to challenges to intellectual property, competition from other products, difficulties inherent in the research and development process, adverse litigation or government action, changes to laws and regulations applicable to AbbVie’s industry, the impact of global macroeconomic factors, such as economic downturns or uncertainty, international conflict, trade disputes, tariffs and other uncertainties and risks associated with global business operations. Additional information about the economic, competitive, governmental, technological and other factors that may affect AbbVie’s operations is set forth in Item 1A, “Risk Factors,” in AbbVie’s Annual Report on Form 10-K for the year ended December 31, 2025, which has been filed with the Securities and Exchange Commission. AbbVie notes these factors for investors as permitted by the Private Securities Litigation Reform Act of 1995. AbbVie undertakes no obligation, and specifically declines, to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
| 2026 Form 10-Q | | 30 |
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
For a discussion of the company's market risk, see Item 7A, "Quantitative and Qualitative Disclosures About Market Risk" in AbbVie's Annual Report on Form 10-K for the year ended December 31, 2025.
Item 4. CONTROLS AND PROCEDURES
DISCLOSURE CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures. The Chairman of the Board and Chief Executive Officer, Robert A. Michael, and the Chief Financial Officer, Scott T. Reents, evaluated the effectiveness of AbbVie's disclosure controls and procedures as of the end of the period covered by this report, and concluded that AbbVie's disclosure controls and procedures were effective to ensure that information AbbVie is required to disclose in the reports that it files or submits with the Securities and Exchange Commission under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms, and to ensure that information required to be disclosed by AbbVie in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to AbbVie's management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
INTERNAL CONTROL OVER FINANCIAL REPORTING
Changes in internal control over financial reporting. There were no changes in AbbVie's internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that have materially affected, or are reasonably likely to materially affect, AbbVie's internal control over financial reporting during the quarter ended March 31, 2026.
Inherent Limitations on Effectiveness of Controls. AbbVie’s management, including its Chief Executive Officer and its Chief Financial Officer, do not expect that AbbVie’s disclosure controls or internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Further, because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls.
The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Information pertaining to legal proceedings is provided in Note 11 to the Condensed Consolidated Financial Statements and is incorporated by reference herein.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(c) Issuer Purchases of Equity Securities
| Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
| January 1, 2026 - January 31, 2026 | 976 | (1) | $222.49 | (1) | — | $2,896,110,760 | ||||||||||||||||||||
| February 1, 2026 - February 28, 2026 | 909 | (1) | $223.56 | (1) | — | $2,896,110,760 | ||||||||||||||||||||
| March 1, 2026 - March 31, 2026 | 4,621,835 | (1) | $230.40 | (1) | 4,621,000 | $1,831,437,567 | ||||||||||||||||||||
| Total | 4,623,720 | (1) | $230.40 | (1) | 4,621,000 | $1,831,437,567 |
1.In addition to AbbVie shares repurchased on the open market under a publicly announced program, these shares also included the shares purchased on the open market for the benefit of participants in the AbbVie Employee Stock Purchase Plan – 976 in January; 909 in February; and 835 in March.
These shares do not include the shares surrendered to AbbVie to satisfy minimum tax withholding obligations in connection with the vesting or exercise of stock-based awards.
Item 5. OTHER ITEMS
(c) Director and Officer Trading Arrangements
During the three months ended March 31, 2026, no director or officer of the company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
| 2026 Form 10-Q | | 32 |
Item 6. EXHIBITS
Exhibits 32.1 and 32.2 are furnished herewith and should not be deemed to be “filed” under the Securities Exchange Act of 1934.
| Exhibit No. | Exhibit Description | ||||||||||
| 10.1 | Form of AbbVie Inc. Performance-Vested Restricted Stock Unit Agreement* | ||||||||||
| 10.2 | Form of AbbVie Inc. Performance Share Award Agreement* | ||||||||||
| 10.3 | Form of AbbVie Inc. Non-Qualified Stock Option Agreement.* | ||||||||||
| 31.1 | Certification of Chief Executive Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)). | ||||||||||
| 31.2 | Certification of Chief Financial Officer Required by Rule 13a-14(a) (17 CFR 240.13a-14(a)). | ||||||||||
| 32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
| 32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||||||
| 101 | The following financial statements and notes from the AbbVie Inc. Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed on May 8, 2026, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Earnings; (ii) Condensed Consolidated Statements of Comprehensive Income; (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Equity (Deficit); (v) Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements. | ||||||||||
| 104 | Cover Page Interactive Data File (the cover page from the AbbVie Inc. Quarterly Report on Form 10-Q formatted as Inline XBRL and contained in Exhibit 101). |
- Denotes management contract or compensatory plan or arrangement required to be filed as an exhibit hereto.
| 2026 Form 10-Q | | 33 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ABBVIE INC. | ||||||||
| By: | /s/ Scott T. Reents | |||||||
| Scott T. Reents | ||||||||
| Executive Vice President, | ||||||||
| Chief Financial Officer (Principal Financial Officer) |
Date: May 8, 2026
| 2026 Form 10-Q | | 34 |