Will AbbVie's Neuroscience Franchise Deliver Another Strong Quarter?

AbbVie ABBV is scheduled to report second-quarter 2026 results on July 31, before the opening bell. While investor focus will primarily remain on the continued strength of the company’s blockbuster immunology franchise, the performance of its neuroscience portfolio is also expected to be closely watched. In the first quarter, neuroscience revenues rose 26% year over year to nearly $2.88 billion, reflecting broad-based momentum across its key brands.

The Zacks Consensus Estimate for second-quarter 2026 neuroscience revenues is pegged at $3.09 billion, indicating 15% year-over-year growth. Higher sales of Botox Therapeutic and depression drug Vraylar are likely to have contributed to growth during the quarter. Sales of the oral migraine drugs Ubrelvy and Qulipta likely benefited from continued market share gains across their approved indications.

Vyalev is also expected to be a key contributor to the neuroscience franchise, having demonstrated strong commercial momentum since its U.S. launch last year. After generating $201 million from the drug’s sales in first-quarter 2026, the Zacks Consensus Estimate projects second-quarter sales of $238 million. Management had previously reiterated that Vyalev is on track to achieve blockbuster status this year. Another quarter of strong uptake would further strengthen the drug's position as an important long-term growth driver for AbbVie's neuroscience business.

Other Players in the Neuroscience Space

AbbVie faces competition from large-cap biotech/pharmaceutical companies in the market, which include Biogen BIIB and Johnson & Johnson JNJ.

As revenues from its legacy multiple sclerosis portfolio continue to decline, Biogen is increasingly focused on expanding its neuroscience business through newer therapies. Along with partner Eisai, Biogen markets Leqembi, one of the two FDA-approved treatments for Alzheimer's disease. The company also markets Zurzuvae, the first FDA-approved oral treatment for postpartum depression.

J&J's neuroscience business is anchored by the blockbuster depression therapy Spravato and long-acting antipsychotic Invega Sustenna. The company's acquisition of Intra-Cellular Therapies last year further strengthened its portfolio by adding Caplyta, an approved treatment for schizophrenia and bipolar depression.

ABBV’s Price Performance, Valuation and Estimates

Shares of AbbVie have underperformed the industry year to date, as shown in the chart below.

Image Source: Zacks Investment Research

From a valuation standpoint, AbbVie is trading at a discount to the industry. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 16.02 times forward earnings, lower than its industry’s average of 18.23.

Image Source: Zacks Investment Research

The bottom-line estimate per share for 2026 has declined from $14.30 to $14.23, while the 2027 estimate has fallen from $16.30 to $16.12 over the past 30 days.

Image Source: Zacks Investment Research

AbbVie currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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