AI Takeaway
AbbVie delivered strong Q1 FY2026 revenue growth of 12.4% to $15.0B, but net income fell 46.0% to $695M, driven by elevated costs and below-the-line charges, even as operating cash flow surged 134.2% to $3.83B.
Revenue
$15B
++12.43% YoY
EPS (Basic)
$0.39
-45.83% YoY
Operating Income
$3.99B
++6.88% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue rose 12.4% year-over-year to $15.0B in Q1 FY2026, up from $13.3B in the prior-year period, reflecting continued momentum across AbbVie's diversified pharmaceutical portfolio following the Allergan integration and growth in newer immunology and oncology assets.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Despite operating income growing 6.9% to $4.0B, net income dropped sharply by 46.0% to $695M (vs. $1.29B prior year), suggesting significant below-the-line charges such as interest expense, acquired IPR&D, or tax items that weighed heavily on the bottom line.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating margin contracted modestly from 28.0% to 26.6% year-over-year, as SG&A expenses grew 8.7% to $3.58B and cost of revenue rose 5.4% to $4.22B, outpacing revenue growth on a proportional basis.
Source: Source: 10-Q Income Statement & Key Ratios (XBRL Financial Data)
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Upgrade to unlockAbbVie's stockholders' equity deteriorated to -$6.66B in Q1 FY2026 from +$1.42B a year ago, a decline of nearly 569%. This reflects the company's heavy debt load from the Allergan acquisition combined with aggressive shareholder returns, leaving the balance sheet technically insolvent on a book-value basis and vulnerable to credit market disruptions.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $2.65 versus the $2.65 analyst consensus — a +0.2% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15B | $13.34B | +12.43% |
Cost of Revenue | $4.22B | $4B | +5.40% |
Operating Income | $3.99B | $3.73B | +6.88% |
Net Income | $695M | $1.29B | -45.96% |
EPS (Basic) | $0.39 | $0.72 | -45.83% |
EPS (Diluted) | $0.39 | $0.72 | -45.83% |
SG&A Expense | $3.58B | $3.29B | +8.65% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $136.46B | $136.16B | +0.22% |
Current Assets | $33.53B | $27.68B | +21.15% |
Current Liabilities | $42.1B | $36.4B | +15.65% |
Stockholders' Equity | $-6.66B | $1.42B | -568.73% |
Cash & Equivalents | $9.39B | $5.17B | +81.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $3.83B | $1.64B | +134.19% |
Investing Cash Flow | $-574M | $-735M | +21.90% |
Financing Cash Flow | $919M | $-1.26B | +173.05% |
Dividends Paid | $3.09B | $2.92B | +5.50% |
Share Buybacks | $1.49B | $961M | +54.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 26.6% | 28.0% | -1.38% |
Net Margin | 4.6% | — | — |
ROE | -10.4% | — | — |
ROA | 0.5% | — | — |
Current Ratio | $0.796 | — | — |
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AbbVie reported Q1 FY2026 EPS of $0.39 (basic and diluted), down 45.8% from $0.72 in Q1 FY2025, and revenue of $15.0B, up 12.4% year-over-year. Whether this beat or missed Wall Street consensus estimates would depend on analyst forecasts not included in the filing, but the revenue growth was strong while net income disappointed relative to operating performance.
AbbVie's net income fell 46.0% to $695M in Q1 FY2026 despite operating income growing 6.9% to $4.0B, suggesting significant below-the-line charges such as interest expense on acquisition debt, acquired in-process R&D write-offs, or tax adjustments. The gap between operating income ($4.0B) and net income ($695M) of over $3.3B points to substantial non-operating costs that are not detailed in the available XBRL data.
AbbVie's total revenue grew 12.4% year-over-year to $15.0B in Q1 FY2026, up from $13.3B in Q1 FY2025, reflecting strong performance across its pharmaceutical portfolio. This growth outpaced cost of revenue growth of 5.4%, which is a positive indicator for gross profit expansion.
AbbVie paid $3.09B in dividends in Q1 FY2026, which is more than 4x its net income of $695M, but the dividend is covered by operating cash flow of $3.83B — a 134% surge year-over-year. While cash generation supports the dividend in the near term, the company's negative stockholders' equity of -$6.66B and current ratio below 1.0 (0.796) are factors investors should monitor.
AbbVie's financial health presents a mixed picture: revenue and operating cash flow are strong, but the balance sheet shows negative stockholders' equity of -$6.66B and a current ratio of 0.796, reflecting high leverage from the Allergan acquisition and aggressive capital returns of ~$4.6B in Q1 alone (dividends + buybacks). The company's $9.4B cash position (up 81.5% YoY) and robust operating cash flow of $3.83B provide near-term liquidity support.