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AbbVie (NYSE:ABBV) is set to report its Q2 earnings on Thursday, July 31, before the market opens. Analysts are expecting earnings per share of $2.91, reflecting a 9.8% year-over-year increase, with revenue projected at $15.03 billion, up 3.9% from last year.
Earlier this month, AbbVie (NYSE:ABBV) revised its earnings outlook for full-year 2025, expecting adjusted diluted earnings per share of $11.67-$11.87, compared to $12.09 – $12.29 previously, to account for the second quarter 2025 acquired IPR&D and milestone expenses. AbbVie has been on a M&A spree to reduce reliance on its immunology division, which has ultimately driven up its IPR&D costs.
The company said that it expects to incur a negative impact of $0.42 to GAAP and non-GAAP diluted earnings per share in Q2 due to acquired IPR&D and milestone expenses of $823M. As a result, it sees Q2 adjusted diluted earnings per share of $2.84-$2.88.
“Although AbbVie may disappoint a few analysts when it releases its Q2 earnings later this month, and while it has had a relatively poor 12 months or so on the R&D front, leading to some hefty write-downs, and while its debt is becoming dangerously high, I’d still expect the Pharma to pull through, thanks to the strength of is immunology department, and supporting acts provided by Aesthetics / oncology,” said Edmund Ingham, Investing Group Leader for Haggerston BioHealth.
Historically, AbbVie has outperformed revenue expectations consistently, beating estimates 100% of the time over the past two years, while surpassing EPS estimates in 63% of quarters.
Recent estimate trends are mixed. EPS projections have seen one upward revision and 14 downward revisions over the last three months, while revenue estimates have been more optimistic, with 11 upward revisions and just two downward.
Investors will be watching for performance updates across AbbVie’s immunology and oncology portfolio, as well as any forward-looking guidance.