AI Takeaway
AbbVie delivered strong FY2025 revenue growth of 8.6% to $61.2B, driven by its post-Humira portfolio, while net income dipped slightly to $4.2B amid heavy SG&A and interest costs, and stockholders' equity turned deeply negative due to accumulated goodwill and debt from acquisitions.
Revenue
$61.16B
++8.57% YoY
EPS (Basic)
$2.37
-1.25% YoY
Gross Margin
19.7%
++0.72% YoY
Operating Income
$15.07B
++64.99% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue grew 8.6% year-over-year to $61.2B in FY2025 from $56.3B in FY2024, reflecting the continued ramp of key growth assets such as Skyrizi and Rinvoq as AbbVie successfully navigates the Humira biosimilar headwinds.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating income jumped 65.0% to $15.1B from $9.1B, aided by a 5.0% reduction in SG&A expenses to $14.0B, suggesting improved operational leverage and disciplined cost management in FY2025.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating cash flow remained robust at $19.0B (+1.2% YoY), enabling AbbVie to pay $11.7B in dividends (+5.7% YoY), underscoring its commitment to returning capital to shareholders even as net income remained modest.
Source: Source: 10-K Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockAbbVie's stockholders' equity turned negative at -$3.3B in FY2025, while long-term debt stands at $64.5B. This highly leveraged balance sheet increases financial risk, particularly if operating cash flows were to deteriorate or interest rates rise further.
Source: Source: 10-K Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $2.71 versus the $2.71 analyst consensus — a +0.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $61.16B | $56.33B | +8.57% |
Cost of Revenue | $18.2B | $16.9B | +7.69% |
Gross Profit | $12.07B | $10.71B | +12.70% |
Operating Income | $15.07B | $9.14B | +64.99% |
Net Income | $4.23B | $4.28B | -1.22% |
EPS (Basic) | $2.37 | $2.40 | -1.25% |
EPS (Diluted) | $2.36 | $2.39 | -1.26% |
SG&A Expense | $14.01B | $14.75B | -5.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $133.96B | $135.16B | -0.89% |
Current Assets | $29.06B | $25.58B | +13.60% |
Current Liabilities | $43.29B | $38.75B | +11.72% |
Stockholders' Equity | $-3.27B | $3.33B | -198.35% |
Cash & Equivalents | $5.23B | $5.52B | -5.34% |
Long-Term Debt | $64.5B | $66.84B | -3.50% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $19.03B | $18.81B | +1.19% |
Investing Cash Flow | $-6.64B | $-20.82B | +68.09% |
Financing Cash Flow | $-12.72B | $-5.21B | -144.18% |
Dividends Paid | $11.66B | $11.03B | +5.73% |
Share Buybacks | $980M | $1.71B | -42.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 19.7% | 19.0% | +0.72% |
Operating Margin | 24.6% | 16.2% | +8.43% |
Net Margin | 6.9% | — | — |
ROE | -129.2% | — | — |
ROA | 3.2% | — | — |
Current Ratio | $0.671 | — | — |
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AbbVie reported FY2025 revenue of $61.2B, up 8.6% year-over-year, and operating income of $15.1B, up 65%. However, net income was $4.2B, nearly flat versus the prior year, as heavy interest expense and intangible amortization weighed on the bottom line.
The key takeaways are strong revenue and operating income growth driven by post-Humira products, robust operating cash flow of $19.0B supporting a $11.7B dividend payout, and a balance sheet that turned to negative stockholders' equity of -$3.3B due to acquisition-related debt and goodwill. Operating margin expanded significantly to 24.6% from 16.2%.
AbbVie paid $11.7B in dividends in FY2025, which exceeds its net income of $4.2B, but the dividend is supported by strong operating cash flow of $19.0B. As long as operating cash flows remain robust, the dividend appears sustainable, though the high leverage of $64.5B in long-term debt is a risk to monitor.
Based on the financial data, key risks include AbbVie's highly leveraged balance sheet with $64.5B in long-term debt and negative stockholders' equity of -$3.3B, a current ratio of only 0.67 indicating short-term liquidity pressure, and ongoing Humira biosimilar competition that requires continued growth from Skyrizi and Rinvoq to offset.
AbbVie's stockholders' equity turned negative to -$3.3B in FY2025 from +$3.3B in FY2024, primarily due to the cumulative effect of large acquisitions (such as Allergan) that created significant goodwill and intangible assets funded by debt, combined with ongoing dividend payments and share buybacks that reduce retained equity over time.