I have been holding AbbVie (ABBV) as a core dividend growth stock for a long time. While the stock price movement hasn’t been dramatic since the Humira patent expiration, it remains a highly attractive pick for dividend investors. The key to this earnings report was how effectively new drugs are filling the void left by Humira.
Q1 2026 Earnings Summary
| Metric | Result (Current) | Vs. Prior Quarter | Vs. Estimates |
|---|---|---|---|
| Revenue | $ 15.0 B | -9.7% | +1.9% |
| Net Income | $ 4.71 B | -2.5% | -1.1% |
| EPS | $ 2.65 | -2.2% | +2.2% |
Both Revenue and EPS slightly exceeded market expectations, showing a solid performance. Adjusted EPS increased by 7.7% year-over-year, while total revenue grew by 12.8%. However, net income was slightly impacted by acquired IPR&D (In-Process Research and Development) costs.
The New Pillars: Skyrizi and Rinvoq
The most critical observation is the explosive growth of the immunology duo: Skyrizi and Rinvoq. Their combined revenue is rapidly scaling to offset the decline of Humira, which faced a sharp revenue drop due to biosimilar competition in the U.S.
- Skyrizi: Continues to dominate the psoriasis market with exceptional growth rates.
- Rinvoq: Successfully expanding its reach into multiple indications including arthritis and IBD.
Leo’s Dividend Strategy Insight
AbbVie has successfully navigated the most dangerous part of the ‘Humira Patent Cliff.’ For dividend growth investors, the increased guidance for the full year and the steady growth of the new portfolio provide strong confidence. I plan to maintain my position and reinvest dividends into this resilient cash-flow machine.