North Chicago, Illinois – AbbVie Inc. (NYSE: ABBV) saw its stock climb nearly 2% in midday trading after announcing impressive second-quarter 2025 earnings that surpassed analyst expectations and led to a raised full-year forecast. The company reported global net revenues of $15.42 billion, comfortably beating the anticipated $14.93 billion. Earnings per share (EPS) also delivered a positive surprise at $2.97, exceeding the forecasted $2.91.
This strong performance has reinforced AbbVie’s position as a blue-chip stock within the biotechnology sector, demonstrating its ability to navigate the much-anticipated patent expiration of its blockbuster drug, Humira. For years, investors were concerned about the impact of Humira’s loss of exclusivity, but AbbVie’s strategic focus on its newer immunology drugs, Skyrizi and Rinvoq, is proving successful.
In the second quarter, Humira’s net revenues fell to $1.18 billion, a significant decrease from the previous year. However, this was more than offset by the remarkable growth of Skyrizi and Rinvoq. Skyrizi’s net revenues soared to $4.42 billion, a 61.8% year-over-year increase, while Rinvoq brought in $2.02 billion, up 41.8% from the same period last year. This surge in its immunology portfolio, which accounted for nearly half of the total quarterly revenue, propelled the company’s overall revenue growth of 6.8% year-over-year.
Buoyed by these results, AbbVie raised its full-year adjusted EPS guidance to a range of $11.88 to $12.08, up from the previous forecast of $11.67 to $11.87. This optimistic outlook comes even as the pharmaceutical industry faces new trade headwinds. The United States recently finalized a trade agreement with the European Union that includes a 15% tariff on all EU-produced pharmaceuticals entering the U.S. This is expected to impact AbbVie, which manufactures its Botox wrinkle treatment in Ireland.
Strategic Acquisitions to Fuel Future Growth
Beyond its strong existing portfolio, AbbVie is actively securing its future through strategic acquisitions. In a significant move to bolster its immunology pipeline, the company announced in June its acquisition of Capstan Therapeutics for $2.1 billion. Capstan is a clinical-stage biotechnology company focused on developing in-vivo CAR-T therapies, a cutting-edge approach to treating autoimmune diseases.
Furthermore, AbbVie is reportedly in discussions to acquire Gilgamesh Pharmaceuticals, a clinical-stage biotech company specializing in next-generation psychedelic treatments for mental health conditions. The potential deal is valued at approximately $1 billion and would signal a major move by a blue-chip pharmaceutical company into the controversial but promising field of psychedelic medicine.
A Fundamentally Strong Dividend King
AbbVie’s financial strength is also a key attraction for investors. The company boasts a solid balance sheet that supports its status as a “Dividend King,” having increased its dividend for 53 consecutive years. The current dividend yield stands at an attractive 3.39%. This consistent return to shareholders, combined with its growth prospects, makes AbbVie a standout in the biotechnology sector.
Market Outlook and Stock Performance
From a technical perspective, ABBV stock has been on a steady upward trend since May. Analysts will be closely watching the 200 range, which has previously acted as a resistance level. The stock’s ability to break through this barrier could signal further upward momentum, especially as analysts are likely to revise their price targets upward following the strong quarterly performance. The stock has been trading above its 50-day simple moving average, a positive technical indicator for investors.
