AbbVie ABBV announced encouraging second-quarter 2026 results last month, which beat expectations for both earnings and sales. A significant portion of this growth came from the continued strength of its two blockbuster immunology medications, Skyrizi and Rinvoq, which together accounted for more than 47% of total revenues.
Skyrizi sales jumped 24% year over year on an operational basis to $5.5 billion, while Rinvoq sales rose 23.7% to more than $2.5 billion. Both drugs benefited from strong demand and market-share gains across their approved indications, especially in the popular inflammatory bowel disease (IBD) space, which includes two conditions — ulcerative colitis (UC) and Crohn’s disease (CD).
The strength of the immunology franchise also supported AbbVie’s updated 2026 outlook. The company raised its Skyrizi sales forecast by $100 million to approximately $21.7 billion, citing momentum across psoriasis and IBD. Management also highlighted continued strong momentum for Rinvoq, particularly in gastroenterology, where global sales are expected to grow 30% in 2026. Combined, Skyrizi and Rinvoq are expected to deliver more than 20% growth in 2026.
Strong immunology market growth, market-share gains and momentum from new indications are expected to drive these drugs’ growth. Rinvoq was approved for two new indications — vitiligo and alopecia areata - in the EU last month, while applications are under FDA review in the United States. AbbVie expects a U.S. decision on vitiligo later this year and on alopecia areata in early 2027. It expects the two dermatology indications to generate nearly $2 billion in combined peak sales.
Meanwhile, AbbVie is awaiting a U.S. regulatory decision on a subcutaneous induction regimen for Skyrizi in CD, expected in the fall. If approved, the regimen is expected to improve convenience and increase Skyrizi’s share of new patients in IBD, although the larger commercial impact is likely to emerge in early 2027 as insurance and reimbursement arrangements ramp up.
The strong performance of Skyrizi and Rinvoq is helping AbbVie offset continued erosion in its legacy drug Humira, whose sales declined 36.1% year over year to $756 million due to biosimilar competition. With both continuing to deliver double-digit growth and additional indications providing further runway, immunology remains one of AbbVie’s most important contributors to growth.
ABBV’s Competition in the Immunology Space
The targeted market is highly competitive. A key player in this field is Johnson & Johnson JNJ, which 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 poses 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 2023. Omvoh marked Eli Lilly’s first immunology drug approved for a type of IBD in the United States, playing a key role in expanding its portfolio in this therapeutic area. The Eli Lilly drug is approved for the CD indication.
ABBV Stock Performance, Valuation & Estimates
Shares of AbbVie have underperformed the industry year to date, as seen in the chart below.
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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 16.12 times forward earnings, lower than its industry’s average of 18.53.
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Movements in EPS estimates for 2026 and 2027 have been mixed over the past 30 days.
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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).