AbbVie Stock Eyes Breakout as Pipeline and Profits Grow

Key Points

• Double-digit growth in global net revenues from Skyrizi and Rinvoq helped offset Humira’s 58% YOY decline.
• New acquisitions, including Capstan Therapeutics and a potential deal for Gilgamesh, strengthen AbbVie’s next-gen immunology bets.
• ABBV stock is approaching resistance near $195, and a breakout could trigger further upside. Investors may consider buying on strength.

AbbVie Inc. NYSE: ABBV stock is up nearly 2% in midday trading after delivering a beat-and-raise in its second-quarter 2025 earnings report. The biopharmaceutical giant reported global net revenue of $15.42 billion, beating expectations for $14.93 billion. The bottom line was also a beat with the company reporting earnings per share (EPS) of $2.97, which was 2% higher than the $2.91 forecast.  

Investing in biotechnology stocks is often a choice between stagnant large-cap stocks and speculative small- and micro-cap companies. AbbVie stands out in that it’s truly one of the blue-chip names in the sector and the broader market.

AbbVie's existing portfolio helps it consistently grow revenue and earnings. Plus, the company has an expansive pipeline that keeps it on the cutting edge of the industry.

AbbVie is also a fundamentally strong company with a rock-solid balance sheet that supports its status as a Dividend King. The company has increased its dividend for 53 consecutive years, and that dividend currently has a yield of 3.39%.

AbbVie Has Successfully Threaded the Humira Needle

Over the past 18 months, investors have been significantly concerned about Humira's patent expiration. Throughout this transition, AbbVie management was confident that its new drugs, Skyrizi and Rinvoq, would pick up the slack.

This quarter’s global net revenue results cement that idea for investors. Humira's net revenues of $1.18 billion were down 58.1% year-over-year (YOY). However, Skyrizi's net revenues were $4.42 billion, which was 61.8% higher YOY, and Rinvoq delivered net revenue of $2.02 billion, a 41.8% increase.

The company's overall immunology portfolio delivered $7.63 billion in global net revenues, nearly 50% of its quarterly total of $15.42 billion, which was 6.8% higher YOY.

On the strength of those numbers, AbbVie raised its full-year EPS guidance to a range between $11.88 and $12.08. Both the low and the high end are above the company’s prior guidance of $11.67 to $11.87.

The company’s bullish outlook is particularly impressive since it came after the United States announced the framework for a trade deal with the European Union. Under the current framework, all EU-produced pharmaceuticals entering the U.S. will be subject to a 15% tariff. That will impact AbbVie, which manufactures its Botox wrinkle treatment in Ireland.

What’s Next for AbbVie?

AbbVie’s existing drug portfolio is a solid reason to own its stock. However, the company is taking steps to show how it plans to add shareholder value. One of those moves was announced in June: the company’s $2.1 billion acquisition of Capstan Therapeutics.

This is a clinical-stage company, so it won’t immediately add to the top line. But it is another addition to AbbVie’s immunology pipeline. It provides more shots on goal for AbbVie, which has a solid history of getting drugs out of clinical trials and into the market.

Continuing the growth through acquisition theme, AbbVie reported that it’s in talks to acquire Gilgamesh Pharmaceuticals. This is another clinical-stage biotech focused on next-generation psychedelic treatments.

The deal is expected to be valued at around $1 billion. The significance is that psychedelics are a controversial field that would move closer to credibility when backed by a blue-chip name like AbbVie.

ABBV: Grinding Higher With Eyes on Key $195–$200 Resistance

Slow and steady has been the theme for ABBV stock, which has been grinding higher off its May lows on steady volume. All eyes will be on a range between $195 and $200, which has acted as resistance in the last few months.

Investors may be encouraged by the stock’s move above its 50-day simple moving average (SMA).

A breakout would be a near certainty if analysts get behind a rally. ABBV stock is currently trading slightly below its consensus price target. However, those price targets will likely move higher after a solid print.