AbbVie Inc. ABBV

AbbVie survived because it built the replacement before the cliff arrived. Humira fell about 79%, from a ~$21 billion peak in 2022 to $4.5 billion in 2025, yet total revenue still grew 8.6% to $61.2 billion that year and 12.4% in Q1 2026. The reason is two newer immunology drugs, Skyrizi and Rinvoq, which together sold about $25.9 billion in 2025 — already larger than Humira at its peak — and are guided toward $34.5 billion in 2026. The new engine more than replaced the revenue the old blockbuster lost.

The ~110× trailing P/E is an optical artifact, not a sign the stock is genuinely that expensive. AbbVie's GAAP earnings are crushed by non-cash acquisition amortization (Allergan, Cerevel, ImmunoGen) plus acquired IPR&D charges — about $2.76 per share of IPR&D hit 2025 alone — so GAAP diluted EPS was just $2.36 in 2025 and $0.39 in Q1 2026. The market instead values the stock on adjusted earnings of roughly $14.18 per share guided for 2026, which puts it near 16× forward — a mid-teens multiple, not a triple-digit one.

Skyrizi and Rinvoq together sold about $25.9 billion in 2025 — Skyrizi $17.6 billion (up ~50%) and Rinvoq $8.3 billion (up ~39%). That combined figure already exceeds Humira's all-time peak and cleared the company's old 'more than $31 billion by 2027' target two years early. For 2026 management guides the pair toward roughly $34.5 billion combined, about $21.6 billion for Skyrizi and $10.2 billion for Rinvoq, with both still growing more than 20% in the first quarter of 2026.

The central risk is concentration: Skyrizi and Rinvoq now carry the growth, and their own U.S. patents expire around 2033, with settlements pushing Rinvoq's core exclusivity toward 2037 — a future cliff much like Humira's. Closer in, U.S. pricing is the live wire: AbbVie has signed a most-favored-nation pricing arrangement and Rinvoq is widely expected to face Medicare price negotiation around 2029. There is also roughly $72.9 billion of debt (~$63.5 billion net) from its acquisition spree, and a wide GAAP-to-adjusted earnings gap.

AbbVie pays an annualized dividend of about $6.92 per share — recently raised 5.5% to $1.73 a quarter — for a yield near 3.0%, well above the broad market. Counting its heritage as part of Abbott before the 2013 spin-off, it carries Dividend Aristocrat status with decades of consecutive increases, and the payout kept rising every year throughout the Humira decline. The dividend is backed by roughly $18.7 billion of free cash flow in 2025, though investors weigh that against ~$72.9 billion of debt.

At roughly 16× forward adjusted earnings, the price discounts a clean, durable hand-off from Humira to Skyrizi and Rinvoq — a modest premium to deep-value pharma like Merck (~14×) but a steep discount to growth pharma like Eli Lilly (~28×). In other words, the market believes the succession worked and the new engine keeps compounding toward $34.5 billion. What the multiple leaves open is the next decade: the 2033–2037 patent expirations on the very drugs now carrying the company, and Medicare price-setting that could reach Rinvoq around 2029.