AbbVie Navigates Post-Earnings Volatility with Credit Boost
AbbVie shares advanced 2% on Friday, closing at $223.43, concluding a week of significant price swings as the market digested the company's latest financial results and strategic outlook. The stock remains approximately 9% below its 52-week peak, with trading activity finishing below recent averages.
Financial Performance and Forward Guidance
The pharmaceutical giant reported a 10% year-over-year increase in fourth-quarter net revenue, reaching $16.618 billion. Adjusted earnings per share came in at $2.71. For the full 2026 fiscal year, management issued adjusted EPS guidance in the range of $14.37 to $14.57, with CEO Robert Michael projecting "another year of robust growth."
Despite the positive overall results, investor sentiment was tested mid-week when Rinvoq sales figures slightly missed analyst expectations, triggering a nearly 6% single-day decline. Analysts highlighted mounting competitive threats in the immunology space, particularly from Johnson & Johnson's Tremfya for inflammatory bowel disease. AbbVie's finance chief, Scott Reents, acknowledged anticipated "low-single-digit" pricing pressures for both Skyrizi and Rinvoq.
Credit Upgrade and Regulatory Developments
In a significant vote of confidence, Moody's Ratings elevated AbbVie's credit rating to A2 from A3, revising its outlook to stable. The agency cited strong execution in core immunology and neuroscience franchises, while also noting the company's concentrated exposure to this portfolio and U.S. drug pricing reforms.
On the regulatory front, AbbVie has submitted applications to both the U.S. FDA and European EMA seeking approval for Rinvoq as a treatment for non-segmental vitiligo in adults and adolescents, supported by Phase 3 trial data. The company emphasized the high unmet need for systemic therapies in this condition.
Market Focus and Policy Risks
Analysts noted that legacy product Humira was a key contributor to the quarterly revenue beat. Looking ahead, the investment community is intently focused on the growth trajectory for Skyrizi and Rinvoq, with detailed revenue and product forecasts being closely scrutinized. Management has reiterated an aggressive competitive stance in inflammatory bowel disease.
Policy risks persist, as Botox and Botox Cosmetic were included in the third round of selected drugs for Medicare price negotiations, with any finalized prices not taking effect until January 2028. The immediate market focus shifts to post-earnings analyst commentary and the upcoming February 28 deadline related to the Medicare negotiation process.
