Will Immunology Franchise Aid AbbVie's Upcoming Q2 Results?

AbbVie ABBV remains a dominant force in the immunology segment, from where it generates nearly half of its top line. This growth is mainly driven by the continued uptake of its two blockbuster medications, Skyrizi and Rinvoq, which have helped the company return to top-line growth despite the U.S. loss of exclusivity for its legacy drug, Humira, in 2023. Investors’ focus will primarily be on the sales performance of these two drugs when AbbVie reports its second-quarter 2026 results on July 31.

The Zacks Consensus Estimate for Skyrizi sales is pegged at $5.49 billion, while the same for Rinvoq stands at $2.47 billion. Continued momentum from these therapies, supported by market share gains, is expected to drive immunology sales in the quarter. Meanwhile, Humira sales are expected to continue their downward trajectory, with the Zacks Consensus Estimate pegged at $744 million for the quarter.

AbbVie successfully launched Skyrizi and Rinvoq across Humira's major indications, as well as a distinct new indication, atopic dermatitis. Both drugs have delivered strong performance across approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes ulcerative colitis (UC) and Crohn’s disease (CD).

The company has also been expanding its presence beyond immunology into oncology and neuroscience. In recent years, ABBV has added Elahere, Emrelis and, most recently, Decnupaz, bringing its total number of oncology therapies to six. Growth in its neuroscience segment has also been supported by the increasing uptake of its migraine drugs, Ubrelvy and Qulipta, as well as the Parkinson’s disease drug Vyalev.

ABBV’s Competition in the Immunology Space

The immunology market is highly competitive. A key player in this area is Johnson & Johnson JNJ, which already markets two blockbuster drugs — Stelara and Tremfya. These medications are approved across multiple immunology indications, including UC and CD. Since Stelara lost U.S. patent exclusivity last year, J&J has shifted its focus to Tremfya. It recently secured approval for a new immunology drug, Icotyde, to treat moderate-to-severe plaque psoriasis. While still in the early stages of launch, the drug could pose a competitive threat to Skyrizi.

Another pharma giant expanding its presence in immunology is Eli Lilly LLY, following the FDA approval of Omvoh for the UC indication in late 2023. Omvoh marked LLY’s first immunology drug approved for a type of IBD in the United States, playing a key role in expanding its immunology portfolio. The Eli Lilly drug is approved for the CD indication.

ABBV’s Price Performance, Valuation and Estimates

Shares of AbbVie have outperformed the industry year to date, as seen 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 17.2 times forward earnings, lower than its industry’s average of 19.1.

Image Source: Zacks Investment Research

The bottom-line estimate per share for 2026 has declined from $14.30 to $14.28, while the 2027 estimate has fallen from $16.30 to $16.03 over the past 30 days.

Image Source: Zacks Investment Research

AbbVie currently carries a Zacks Rank #3 (Hold). 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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