AbbVie (NYSE:ABBV | ABBV Price Prediction) enters its July 31 Q2 earnings report with a 2.62% dividend yield, raised earnings guidance, and two blockbuster drugs growing above 20%. Skyrizi and Rinvoq have already replaced Humira as the company’s growth engines, strengthening AbbVie’s case as a combination of income, growth, and relatively low volatility.
AbbVie Offers Growth at Just 18x Forward Earnings
ABBV changes hands at $265.52 with a forward P/E of 18x and a PEG of 0.43, with a beta of 0.28. Wall Street’s consensus target sits at $267.79 across 16 Buy and 8 Strong Buy ratings. AbbVie trades at a multiple below the S&P 500 average paired with growth prospects and roughly a quarter of the market’s volatility.
A 5.5% Dividend Increase Strengthens the Income Case
AbbVie’s annualized dividend of $6.74 per share means the stock offers a 2.62% yield. The most recent quarterly hike lifted the payout to $1.73 from $1.64, a 5.5% raise. Management raised full-year adjusted EPS guidance to $14.08 to $14.28 and pointed to Q2 EPS of $3.74 to $3.78 on roughly $16.7 billion in revenue.
Skyrizi and Rinvoq Have Become $32 Billion Growth Engines
Skyrizi hit $4.48 billion in Q1 2026 (up 30.9% YoY) and Rinvoq added $2.12 billion (up 23.3%). Management raised full-year Skyrizi guidance to $21.6 billion and Rinvoq to $10.2 billion. CEO Rob Michael said flatly, “We expect to exceed the peak consensus that’s in those models.”
AbbVie Has Already Crossed the Patent Cliff Facing Merck
Pfizer (NYSE:PFE) has returned -22.52% over five years and is up just 3.67% year-to-date, versus ABBV’s 163.87% five-year and 16.19% YTD return, with far weaker top-line momentum.
Merck (NYSE:MRK) has rallied hard (61.08% in one year), but it carries a Keytruda concentration problem and a 2028 patent cliff. ABBV has already crossed the biosimilar valley Merck is walking toward.
The Bottom Line: AbbVie Has Successfully Rebuilt Its Growth Engine
Humira revenue continues to decline as biosimilar competition intensifies, but that erosion no longer defines AbbVie’s overall trajectory. Skyrizi and Rinvoq generated a combined $6.60 billion last quarter, helping total immunology revenue grow 16.4%.
AbbVie now expects the two drugs to generate nearly $32 billion in annual sales, while its dividend continues to rise. The July 31 report will show whether those newer products can keep driving growth and support another increase to full-year guidance.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks