AbbVie Earnings On Deck: Stock (ABBV) Takes Breather Leading Into Print

AbbVie's stock (NYSE: ABBV) has had a good year, putting up gains of 27% YTD ahead of its third-quarter 2025 earnings report, scheduled for release before market open today. ABBV has found some comfort in the $225-$233 range over the past month, with bulls taking a pause ahead of the print.

Analysts expect AbbVie to report earnings per share (EPS) of $1.78, down sharply from $3.00 a year ago, reflecting continued margin pressure and the impact of Humira’s patent expiration. However, revenue is projected to rise to about $15.59 billion, representing 7.8% year-over-year growth, driven by strong performance from newer immunology and neuroscience products such as Skyrizi and Rinvoq. Overall, analysts anticipate solid top-line growth offset by lower profitability as AbbVie transitions its portfolio toward newer therapies.

Several significant events have recently shaped market sentiment towards AbbVie. The most immediate is the termination of the ABBV-303 study. While the company has not disclosed the reasons behind this decision, the cancellation of a clinical trial can raise concerns about the strength of AbbVie's pipeline and its ability to deliver future growth.

Offsetting this setback is the FDA approval for an expanded indication of RINVOQ (upadacitinib) for adult patients with moderately to severely active ulcerative colitis. This approval represents a significant win for AbbVie, expanding the potential market for this key immunology drug and potentially driving revenue growth in the coming quarters. RINVOQ is increasingly viewed as a crucial component of AbbVie's strategy to offset the eventual biosimilar competition to Humira.

Analyst opinions on AbbVie are currently divided. Earlier in October, HSBC Global Research downgraded the stock from a “strong-buy” to a “hold” rating, followed by a similar downgrade from Wall Street Zen. These downgrades suggest a growing cautiousness among analysts regarding AbbVie's near-term prospects.

However, it's crucial to remember that analyst ratings are just one piece of the puzzle. AbbVie's recent $70 million expansion at its Worcester, Massachusetts biologics research center signals a long-term commitment to innovation and domestic manufacturing of oncology and immunology therapies. This investment, part of a broader $10+ billion commitment to U.S. manufacturing, could reduce supply chain risks and aligns with U.S. policy priorities.

Adding to the positive momentum, AbbVie recently submitted a Biologics License Application (BLA) to the FDA for Pivekimab sunirine (PVEK), an investigational antibody-drug conjugate targeting Blastic Plasmacytoid Dendritic Cell Neoplasm (BPDCN), a rare cancer with limited treatment options. This BLA submission underscores AbbVie's commitment to expanding its oncology portfolio and addressing unmet medical needs.

While the market is laser-focused on Humira's declining sales due to biosimilar competition, it's worth considering whether the impact is being overhyped. AbbVie has been proactively preparing for this eventuality for years, diversifying its portfolio with drugs like RINVOQ and Skyrizi. A significant portion of Humira's decline may already be priced into the stock.

Furthermore, AbbVie's expertise in managing complex drug development and navigating regulatory hurdles should not be underestimated. While challenges remain, the company has a track record of successfully adapting to changing market conditions. Perhaps the market is underestimating AbbVie's resilience and ability to generate value beyond Humira.

AbbVie's upcoming earnings report will provide critical insights into the company's ability to navigate a complex landscape. The markets will be closely scrutinizing the performance of RINVOQ and Skyrizi, the impact of Humira biosimilars, and the progress of AbbVie's pipeline. While challenges remain, AbbVie's strategic investments, regulatory wins, and commitment to innovation position it for long-term success. The stock's performance in the coming weeks will depend on the company's ability to deliver on these promises and reassure backers about its future prospects.