# AbbVie (ABBV.US)

Canonical: https://gigainvestors.com/s/ABBV

Analysis as of: 2026-10-16T07:26:07.046Z. Financial observations: FY2009–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $283.40 per share; close as of 2026-10-15.

Estimated value: low $96.72 per share, central $109.64 per share, high $126.85 per share. Buy at or below the central value $109.64 per share. Valuation as of 2026-10-16T07:26:07.046Z; scenarios are not confidence intervals.

Expected annual return: 5.6% at the stated quote. About 5.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.36×

- FY2017: 0.34×

- FY2018: 0.19×

- FY2019: 0.39×

- FY2020: 0.25×

- FY2021: 0.32×

- FY2022: 0.31×

- FY2023: 0.23×

- FY2024: 0.16×

- FY2025: 0.33×

### moat: pass

- ROIC, median of available years: 39.0%

- ROIC, second-lowest year: 29.8%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 70.1%

- Recent gross margin (lower of latest and 3-year median): 70.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.7%

- ROIC including acquisitions, ten-year median: 20.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 35.9%

- FY2017: 38.8%

- FY2018: 78.4%

- FY2019: >100%

- FY2020: 19.4%

- FY2021: 31.4%

- FY2022: 39.7%

- FY2023: 39.2%

- FY2024: 29.8%

- FY2025: 52.4%

### economics: pass

- Owner earnings / net income, 5-yr: 2.03×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $75B

- Net income, five-year total: $37B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 4.0 pp

- Working capital / revenue, final three-year average: 21.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.67×

- FY2022: 1.66×

- FY2023: 2.63×

- FY2024: 2.73×

- FY2025: 2.64×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 38.8% vs 39.2%

- Per-share earnings: 3.31 to 2.41 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.8%

- Ordinary dilution, 5-year annual growth: 1.2%

- Market cap gain: $303B

- Cumulative retained earnings: -$20B

- Diluted shares, 10-year annual growth: 0.8%

- Diluted shares, 5-year annual growth: 1.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -3.9%

- Per-share value change: -$0.90

- Per-share value, starting three-year median: $3.31

- Per-share value, ending three-year median: $2.41

- Buybacks concentrated in cheaper years (correlation): 0.10

- Average buyback yield: 1.9%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $100B

- Cumulative net income, 10 years: $66B

- ROIC, first three-year median: 38.8%

- ROIC, last three-year median: 39.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $3.65

- FY2017: $3.31

- FY2018: $3.68

- FY2019: $5.31

- FY2020: $2.76

- FY2021: $6.50

- FY2022: $6.66

- FY2023: $2.74

- FY2024: $2.41

- FY2025: $2.38

### accounting: pass

- Sloan accruals: -11.1%

- Receivables to sales index (DSRI): 1.06×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 5.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.50×

- Accounting red flags: 0

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.6%

- FY2017: -6.6%

- FY2018: -13.0%

- FY2019: -6.1%

- FY2020: -8.6%

- FY2021: -7.7%

- FY2022: -9.4%

- FY2023: -13.3%

- FY2024: -10.7%

- FY2025: -11.1%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Katz](https://gigainvestors.com/MAVFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 13.1% a year for ten years · "Ex-Humira Platform Sales Growth: 22% increase, driven by Skyrizi and Rinvoq." (finance.yahoo.com, Aug 2025) · sales +8.6%

Story as of 2026-10-16T09:58:12.731Z; price observation 2026-10-15.

Price needs cash profits to grow 13.1% a year for ten years

- 2025-08-01: AbbVie Soars On Skyrizi And Rinvoq Strength, Outpacing Humira Erosion ([finance.yahoo.com](https://finance.yahoo.com/news/abbvie-soars-skyrizi-rinvoq-strength-180450857.html))

- 2025-09-11: AbbVie stock rises after securing patent protection for RINVOQ until 2037 ([finance.yahoo.com](https://finance.yahoo.com/news/abbvie-stock-rises-securing-patent-142707645.html))

- 2025-10-31: AbbVie Lifts Outlook Even as Humira, Imbruvica Weakness Limits Quarterly Revenue Growth ([finance.yahoo.com](https://finance.yahoo.com/news/abbvie-lifts-outlook-even-humira-145707048.html))

- 2025-11-01: AbbVie (ABBV) Margin Compression Reinforces Investor Caution After $14.5 Billion One-Off Loss ([finance.yahoo.com](https://finance.yahoo.com/news/abbvie-abbv-margin-compression-reinforces-002624896.html))

- 2026-02-04: AbbVie forecasts 2026 profit above estimates on strong sales of newer immunology drugs ([finance.yahoo.com](https://finance.yahoo.com/news/abbvie-forecasts-2026-profit-above-125057274.html))

- 2026-06-23: ABBV Jumps on Deepening Immunology Portfolio With $10.9B APGE Buyout ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/abbv-jumps-deepening-immunology-portfolio-145000526.html))

### Sales · FY2024–2025

sales +8.6%; source https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm; observed 2026-02-20.

- FY2016: $26B 

- FY2017: $28B 

- FY2018: $33B 

- FY2019: $33B 

- FY2020: $46B 

- FY2021: $56B 

- FY2022: $58B 

- FY2023: $54B 

- FY2024: $56B 

- FY2025: $61B 

### Gross margin · FY2025

gross margin 70.2%; source https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm; observed 2026-02-20.

- FY2016: 77.2% 

- FY2017: 75.0% 

- FY2018: 76.4% 

- FY2019: 77.6% 

- FY2020: 66.4% 

- FY2021: 69.0% 

- FY2022: 70.0% 

- FY2023: 62.4% 

- FY2024: 70.0% 

- FY2025: 70.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers general; annual sales are USD 61.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm (filed 2026-02-20); FY2025: revenue 61160000000; grossProfit 42956000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABBV.US: AbbVie Inc., a research-based biopharmaceutical company, engages in the research and development, manufacturing, commercializing, and sale of medicines and therapies worldwide. The company offers Skyrizi to treat autoimmune diseases; Rinvoq to treat inflammatory diseases; Imbruvica for the treatment of adult patients with blood cancers; Venclexta to treat blood cancers; Elahere to treat various cancer; and Epkinly to treat lymphoma; and Emrelis for the treatment of lung cancer. It also provides facial injectables, plastics and regenerative medicine, body contouring, and skincare products; botox Cosmetic for the treatment of glabellar lines, crow's feet, forehead lines, and platysma bands; Juvederm Collection to treat volume loss in the temples, undereye, cheeks, chin, lips and lower face; Vraylar to treat schizophrenia, bipolar disorder, and depressive disorder; Duodopa to treat Parkinson's disease; Ubrelvy to treat migraine; Qulipta for episodic and chronic migraine; and Vyalev for the treatment of motor fluctuations, as well as Botox Therapeutic to treat chronic migraine, overactive bladder, spasticity, cervical dystonia, and other conditions. In addition, the company offers Ozurdex for visual impairment; Lumigan/Ganfort and Alphagan/Combigan for the reduction of elevated intraocular pressure in patients with open angle glaucoma or ocular hypertension; and other eye care products, including Refresh/Optive, Xen, Durysta, and Restasis. Further, it provides Mavyret to treat chronic hepatitis C virus genotype 1-6 infection; Creon, a pancreatic enzyme therapy; and Linzess/Constella to treat irritable bowel syndrome with constipation and chronic idiopathic constipation. The company was incorporated in 2012 and is headquartered in North Chicago, Illinois.

### Why customers stay

Margins ranged from 62.4% to 70.2% during 2023–25; it earns 39% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 62.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 70%.

- Source: https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 70.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.3591011310728926],[2017,0.38825976192467],[2018,0.7841523341523342],[2019,3.584648951592179],[2020,0.19411985786524533],[2021,0.31387897167233475],[2022,0.3974817342880833],[2023,0.39203727720625914],[2024,0.29805904420159846],[2025,0.52444279346211]]; median 0.3901485195654646. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 980 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 479000000; owner earnings 6663000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 529000000; owner earnings 6281000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 638000000; owner earnings 6814000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 552000000; owner earnings 9347000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 798000000; owner earnings 10289000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 787000000; owner earnings 19276000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 695000000; owner earnings 19608000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 777000000; owner earnings 12784000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 974000000; owner earnings 11690000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 1214000000; owner earnings 11151000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,3717000000],[2017,4107000000],[2018,5580000000],[2019,6366000000],[2020,7716000000],[2021,9261000000],[2022,10043000000],[2023,10539000000],[2024,11025000000],[2025,11657000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 980000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABBV.US SharesStats.PercentInsiders = 0.11 percentage points; cache date 2026-10-16.

### What could break it

"The expiration or loss of patent protection and licenses" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm (filed 2026-02-20); The expiration or loss of patent protection and licenses

### What the price says

The price assumes cash profits grow 13.1% yearly over ten years; actual growth was 6.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.17609055480561453. Price 283.4; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.328039095907147 → FY2025 6.289340101522843. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $55.78 per share

- 2016-11: $60.80 per share

- 2016-12: $62.62 per share

- 2017-01: $61.11 per share

- 2017-02: $61.84 per share

- 2017-03: $65.16 per share

- 2017-04: $65.94 per share

- 2017-05: $66.02 per share

- 2017-06: $72.51 per share

- 2017-07: $69.91 per share

- 2017-08: $75.30 per share

- 2017-09: $88.86 per share

- 2017-10: $90.25 per share

- 2017-11: $96.92 per share

- 2017-12: $96.71 per share

- 2018-01: $112.22 per share

- 2018-02: $115.83 per share

- 2018-03: $94.65 per share

- 2018-04: $96.55 per share

- 2018-05: $98.94 per share

- 2018-06: $92.65 per share

- 2018-07: $92.23 per share

- 2018-08: $95.98 per share

- 2018-09: $94.58 per share

- 2018-10: $77.85 per share

- 2018-11: $94.27 per share

- 2018-12: $92.19 per share

- 2019-01: $80.29 per share

- 2019-02: $79.24 per share

- 2019-03: $80.59 per share

- 2019-04: $79.39 per share

- 2019-05: $76.71 per share

- 2019-06: $72.72 per share

- 2019-07: $66.62 per share

- 2019-08: $65.74 per share

- 2019-09: $75.72 per share

- 2019-10: $79.55 per share

- 2019-11: $87.73 per share

- 2019-12: $88.54 per share

- 2020-01: $81.02 per share

- 2020-02: $85.71 per share

- 2020-03: $76.19 per share

- 2020-04: $82.20 per share

- 2020-05: $92.67 per share

- 2020-06: $98.18 per share

- 2020-07: $94.91 per share

- 2020-08: $95.77 per share

- 2020-09: $87.59 per share

- 2020-10: $85.10 per share

- 2020-11: $104.58 per share

- 2020-12: $107.15 per share

- 2021-01: $102.48 per share

- 2021-02: $107.74 per share

- 2021-03: $108.22 per share

- 2021-04: $111.50 per share

- 2021-05: $113.20 per share

- 2021-06: $112.64 per share

- 2021-07: $116.30 per share

- 2021-08: $120.78 per share

- 2021-09: $107.87 per share

- 2021-10: $114.67 per share

- 2021-11: $115.28 per share

- 2021-12: $135.40 per share

- 2022-01: $136.89 per share

- 2022-02: $147.77 per share

- 2022-03: $162.11 per share

- 2022-04: $146.88 per share

- 2022-05: $147.37 per share

- 2022-06: $153.16 per share

- 2022-07: $143.51 per share

- 2022-08: $134.46 per share

- 2022-09: $134.21 per share

- 2022-10: $146.40 per share

- 2022-11: $161.18 per share

- 2022-12: $161.61 per share

- 2023-01: $147.75 per share

- 2023-02: $153.90 per share

- 2023-03: $159.37 per share

- 2023-04: $151.12 per share

- 2023-05: $137.96 per share

- 2023-06: $134.73 per share

- 2023-07: $149.58 per share

- 2023-08: $146.96 per share

- 2023-09: $149.06 per share

- 2023-10: $141.18 per share

- 2023-11: $142.39 per share

- 2023-12: $154.97 per share

- 2024-01: $164.40 per share

- 2024-02: $176.05 per share

- 2024-03: $182.10 per share

- 2024-04: $162.64 per share

- 2024-05: $161.24 per share

- 2024-06: $171.52 per share

- 2024-07: $185.32 per share

- 2024-08: $196.31 per share

- 2024-09: $197.48 per share

- 2024-10: $203.87 per share

- 2024-11: $182.93 per share

- 2024-12: $177.70 per share

- 2025-01: $183.90 per share

- 2025-02: $209.03 per share

- 2025-03: $209.52 per share

- 2025-04: $195.10 per share

- 2025-05: $186.11 per share

- 2025-06: $185.62 per share

- 2025-07: $189.02 per share

- 2025-08: $210.40 per share

- 2025-09: $231.54 per share

- 2025-10: $218.04 per share

- 2025-11: $227.70 per share

- 2025-12: $228.49 per share

- 2026-01: $223.01 per share

- 2026-02: $232.08 per share

- 2026-03: $217.49 per share

- 2026-04: $211.32 per share

- 2026-05: $217.72 per share

- 2026-06: $251.64 per share

- 2026-07: $250.94 per share

- 2026-08: $256.42 per share

- 2026-09: $261.59 per share

- 2026-10: $274.36 per share

## Annual estimated value (USD per share)

- FY2016: low $45.08 per share, central $50.80 per share, high $58.41 per share

- FY2017: low $51.61 per share, central $57.93 per share, high $66.35 per share

- FY2018: low $56.34 per share, central $63.44 per share, high $72.91 per share

- FY2019: low $95.40 per share, central $115.75 per share, high $130.92 per share

- FY2020: low $71.74 per share, central $81.01 per share, high $93.35 per share

- FY2021: low $82.55 per share, central $93.25 per share, high $107.50 per share

- FY2022: low $104.81 per share, central $118.64 per share, high $137.05 per share

- FY2023: low $100.70 per share, central $113.68 per share, high $130.95 per share

- FY2024: low $84.23 per share, central $95.50 per share, high $110.51 per share

- FY2025: low $91.01 per share, central $103.25 per share, high $119.54 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1551152/000155115226000008/abbv-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.