Why AbbVie Stock Slumped Today
Key Points
-
It posted a second-quarter earnings report that raised some concerns.
-
One was a miss on the consensus bottom-line estimate.
High-flying pharmaceutical company AbbVie(NYSE: ABBV) has seen its stock rise in many recent sessions. Yet Friday’s wasn’t one of them, as the company’s shares took a nearly 3% loss on the back of a second-quarter earnings report that investors found uninspiring.
Another double-digit quarter
AbbVie unveiled that quarter’s figures before market open. Its revenue came in at just under $17 billion for the period, which was more than 10% higher year over year. It also managed to boost its net income not under generally accepted accounting principles (non-GAAP, or adjusted) by 23% to almost $6.5 billion, or $3.65 per share.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
&&
Image source: Getty Images.
But investors aren’t impressed by robust growth rates alone; they like to see their stocks beat expectations, too. Unfortunately, despite the improvement, AbbVie’s adjusted profitability was under the $3.71 average analyst estimates. On a brighter note, it topped the consensus revenue projection of $16.77 billion.
AbbVie is a company with many approved goods on the market. Its largest product category, immunology, delivered a 15% increase in global revenue to $8.79 billion, led by the sturdy blockbuster Skyrizi. Neuroscience did better in terms of growth, with a 20% rise to $3.2 billion. On the other hand, oncology dipped by nearly 2% to $1.65 billion.
Mistreated by the miss
That bottom-line miss wasn’t drastic, and AbbVie posted growth where it matters. However, investors can be unforgiving when a company cuts its guidance, and this was a deciding factor in the Friday sell-off.
Given the major impact of AbbVie’s big-ticket acquisition of Apogee Therapeutics, it modified its profitability outlook. It now expects to earn $13.87 to $14.07 per share for the entirety of 2026, down from the previous range of $13.91 to $14.11. That sits below the consensus analyst estimate of $14.12.
I’ve been an AbbVie bull for a while, as I think it’s got one of the best portfolios in the U.S. pharmaceutical space. I don’t think investors should be spooked by a slight earnings miss or a modest guidance cut made for justifiable reasons. I still think this stock is a buy.
Should you buy stock in AbbVie right now?
Before you buy stock in AbbVie, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $394,601!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,197,093!*
Now, it’s worth noting Stock Advisor’s total average return is 895% — a market-crushing outperformance compared to 206% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 31, 2026.
&&
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie. The Motley Fool has a disclosure policy.
