AbbVie (NYSE:ABBV) Shares Gap Down Following Weak Earnings

AbbVie Inc. (NYSE:ABBV) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $225.66, but opened at $209.78. AbbVie shares last traded at $209.4620, with a volume of 1,858,746 shares traded.

The company reported $2.71 EPS for the quarter, topping the consensus estimate of $2.65 by $0.06. AbbVie had a negative return on equity of 4,184.47% and a net margin of 6.91%.The firm had revenue of $16.62 billion during the quarter, compared to analysts’ expectations of $16.39 billion. During the same period in the previous year, the firm posted $2.16 EPS. AbbVie’s revenue for the quarter was up 10.0% on a year-over-year basis. AbbVie has set its FY 2026 guidance at 14.370-14.570 EPS and its Q1 2026 guidance at 2.970-3.010 EPS.

Key AbbVie News

Here are the key news stories impacting AbbVie this week:

• Positive Sentiment: Q4 beat and 2026 outlook raised — AbbVie reported Q4 revenue and adjusted EPS above estimates and issued 2026 adjusted EPS guidance that tops Street views, driven by strong immunology sales. AbbVie forecasts 2026 profit above estimates
• Positive Sentiment: Skyrizi & Rinvoq are the growth engines — Management said Skyrizi and Rinvoq grew strongly (double‑digit/30%+ rates in 2025), offsetting a smaller‑than‑expected Humira decline and driving the company’s top‑line beat. AbbVie Reports Full-Year and Fourth-Quarter 2025 Financial Results
• Positive Sentiment: Analyst/institutional support — Morgan Stanley nudged up its price target and several analysts/institutions are still accumulating shares, which supports upside case and dividend safety arguments cited by bulls. Analyst price target raise
• Positive Sentiment: Favorable real‑world Rinvoq data — New Japan real‑world data for Rinvoq could expand label/market confidence for ankylosing spondylitis and support future sales momentum. Rinvoq real-world data in Japan
• Neutral Sentiment: Market technical/positioning view — Some commentators describe the post‑earnings pullback as a buying opportunity, citing institutional accumulation and dividend support; this is sentiment/flow driven rather than new fundamental news. MarketBeat dip-is-buy analysis
• Neutral Sentiment: IPR&D / milestone accounting affects comparability — 2025 and some Q4 results include one‑time IPR&D/milestone impacts that complicate GAAP vs. adjusted comparisons; management’s 2026 guidance excludes future IPR&D burdens. PR Newswire results & IPR&D note
• Negative Sentiment: Near‑term guidance and Q1 caution — AbbVie set Q1 2026 EPS guidance below some quarterly consensus and issued a slightly softer near‑term revenue tone (market focused on the lower quarterly guide even as full‑year was raised), which contributed to short‑term selling pressure. Earnings call / transcript
• Negative Sentiment: Diversification worries — Analysts flagged weakness in oncology and aesthetics and questioned growth durability beyond immunology, fueling debate about reliance on M&A and milestones to sustain long‑term growth. Seeking Alpha downgrade on diversification
• Negative Sentiment: Rinvoq expansion/valuation questions — Strategic moves such as the Rinvoq vitiligo push raise questions about incremental costs and valuation expectations, which could pressure sentiment if approval/commercial returns are uncertain. Rinvoq vitiligo valuation questions

Wall Street Analyst Weigh In

Several research firms have recently issued reports on ABBV. BMO Capital Markets reaffirmed an “outperform” rating and set a $258.00 price objective on shares of AbbVie in a research report on Thursday, January 15th. Wall Street Zen cut AbbVie from a “strong-buy” rating to a “buy” rating in a research note on Saturday, January 3rd. HSBC raised AbbVie from a “hold” rating to a “buy” rating and upped their price objective for the stock from $225.00 to $265.00 in a research report on Wednesday, December 10th. DZ Bank lowered AbbVie from a “buy” rating to a “hold” rating and set a $237.00 target price on the stock. in a research report on Tuesday, November 4th. Finally, Citigroup decreased their target price on AbbVie from $235.00 to $230.00 and set a “neutral” rating for the company in a research note on Tuesday, January 27th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $251.00.

Institutional Trading of AbbVie

A number of large investors have recently made changes to their positions in ABBV. Brighton Jones LLC increased its stake in AbbVie by 17.4% in the fourth quarter. Brighton Jones LLC now owns 22,912 shares of the company’s stock valued at $4,072,000 after purchasing an additional 3,401 shares during the period. Revolve Wealth Partners LLC grew its holdings in shares of AbbVie by 72.7% during the fourth quarter. Revolve Wealth Partners LLC now owns 7,279 shares of the company’s stock worth $1,294,000 after buying an additional 3,064 shares during the last quarter. Sax Wealth Advisors LLC increased its position in AbbVie by 6.8% in the 2nd quarter. Sax Wealth Advisors LLC now owns 7,554 shares of the company’s stock valued at $1,402,000 after acquiring an additional 484 shares during the period. Valmark Advisers Inc. increased its position in AbbVie by 14.6% in the 2nd quarter. Valmark Advisers Inc. now owns 11,193 shares of the company’s stock valued at $2,078,000 after acquiring an additional 1,430 shares during the period. Finally, Bar Harbor Wealth Management raised its stake in AbbVie by 10.7% during the 2nd quarter. Bar Harbor Wealth Management now owns 86,302 shares of the company’s stock valued at $16,019,000 after acquiring an additional 8,338 shares during the last quarter. 70.23% of the stock is owned by institutional investors and hedge funds.

AbbVie Stock Performance

The business has a 50-day simple moving average of $223.81 and a two-hundred day simple moving average of $219.14. The company has a market capitalization of $386.06 billion, a price-to-earnings ratio of 92.56, a PEG ratio of 0.89 and a beta of 0.35.

AbbVie Company Profile

AbbVie is a global, research-driven biopharmaceutical company that was created as a spin-off from Abbott Laboratories in 2013 and is headquartered in North Chicago, Illinois. The company focuses on discovering, developing and commercializing therapies for complex and often chronic medical conditions. Its operations span research and development, manufacturing, regulatory affairs and commercialization, with an emphasis on bringing specialty medicines to market across multiple therapeutic areas.

AbbVie’s product portfolio and pipeline cover several major therapeutic categories, including immunology, oncology, neuroscience, virology and women’s health.