AbbVie Boosts 2027 Skyrizi and Rinvoq Sales Guidance by $4B, Trades at 16.1x
In the first nine months of 2025, AbbVie’s revenue rose 8% year-over-year to $44.5 billion while adjusted EPS declined to $7.29 on acquisition charges. Management boosted 2027 sales guidance for Skyrizi and Rinvoq by $4 billion to over $31 billion, and the stock trades at 16.1x forward earnings with a 3% dividend yield.
1. AbbVie's 2025 Market Outperformance and Momentum
AbbVie has delivered a 29% total return for 2025, significantly outpacing the broader healthcare sector which has lagged behind the S&P 500. This marks the company’s strongest relative performance since its 2013 spin-off, driven by continued demand for its immunology franchises and a resilient balance sheet. Investors have rewarded AbbVie’s ability to consistently beat consensus estimates, with the stock up more than 20% since the start of Q3 despite general sector headwinds.
2. Robust Financial Results and Long-Term Guidance
Through the first nine months of 2025, AbbVie reported revenue of $44.5 billion, representing an 8% year-over-year increase, while adjusted EPS stood at $7.29. The slight decline in per-share earnings was largely attributable to one-time acquisition charges, but the underlying operating margin held steady near 69.7%. Management reaffirmed its long-term outlook, projecting high single-digit annual revenue growth through 2029 and raising its combined sales forecast for Skyrizi and Rinvoq by $4 billion, to over $31 billion by 2027.
3. Pipeline Strength and Growth Drivers
AbbVie’s growth over the next five years will be underpinned by continued momentum from Skyrizi and Rinvoq, which together generated more than $20 billion in 2025 sales. The oncology portfolio is expected to reaccelerate in 2026 following recent label expansions, while newer launches such as Qulipta for migraine prevention and Vraylar for schizophrenia are on track to contribute over $2 billion in combined revenue by 2027. Humira, though still a top three seller with $3.3 billion in year-to-date sales, continues its patent-expiry decline, freeing up capacity for higher-margin growth assets.
4. Attractive Valuation and Exceptional Dividend Record
AbbVie currently trades at roughly 16 times consensus 2026 earnings, below the 18.2x average for North American healthcare peers, implying a discount despite its superior growth profile. The company’s PEG ratio of 0.4 further highlights valuation support. As a Dividend King with 54 consecutive years of increases, AbbVie offers a forward yield near 3% and maintains a sustainable cash payout ratio of approximately 62%. This combination of reasonable valuation, durable dividend growth and strong cash flow underpins a strong buy recommendation for 2026.