Pharmaceutical company AbbVie (NYSE: ABBV) announced better-than-expected revenue in Q2 CY2025, with sales up 6.6% year on year to $15.42 billion. Its non-GAAP profit of $2.97 per share was 2.1% above analysts’ consensus estimates.

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Company Overview

Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.

Revenue Growth

A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, AbbVie’s 3.5% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the healthcare sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. AbbVie’s recent performance shows its demand has slowed as its annualized revenue growth of 1.9% over the last two years was below its five-year trend.

We can better understand the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 4.4% year-on-year growth. Because this number is better than its normal revenue growth, we can see that foreign exchange rates have been a headwind for AbbVie.

This quarter, AbbVie reported year-on-year revenue growth of 6.6%, and its $15.42 billion of revenue exceeded Wall Street’s estimates by 2.6%.

Looking ahead, sell-side analysts expect revenue to grow 6.3% over the next 12 months, an improvement versus the last two years. This projection is above average for the sector and implies its newer products and services will spur better top-line performance.

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Operating Margin

AbbVie has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average operating margin of 26.2%.

Looking at the trend in its profitability, AbbVie’s operating margin decreased by 10.2 percentage points over the last five years. This performance was caused by more recent speed bumps as the company’s margin fell by 12.2 percentage points on a two-year basis. We’re disappointed in these results because it shows its expenses were rising and it couldn’t pass those costs onto its customers.

This quarter, AbbVie generated an operating margin profit margin of 31.7%, up 4.1 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

AbbVie’s unimpressive 2.6% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.

In Q2, AbbVie reported adjusted EPS at $2.97, up from $2.66 in the same quarter last year. This print beat analysts’ estimates by 2.1%. Over the next 12 months, Wall Street expects AbbVie’s full-year EPS of $10.61 to grow 24.3%.

Key Takeaways from AbbVie’s Q2 Results

We enjoyed seeing AbbVie beat analysts’ constant currency revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, it lowered its full-year EPS guidance. Still, we think this was still a solid quarter with some key areas of upside. The stock traded up 4.4% to $197.70 immediately after reporting.

AbbVie may have had a good quarter, but does that mean you should invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.