AbbVie results on deck: The stock (ABBV) is taking a breather before going to press

AbbVie (NYSE: ABBV) stock is having a good year, posting a 27% year-to-date gain ahead of its third-quarter 2025 earnings report, scheduled to be released before the market opens today. ABBV has found some comfort in the $225-$233 range over the past month, with bulls pausing before the squeeze.

Analysts expect AbbVie to report earnings per share (EPS) of $1.78, down sharply from $3.00 a year ago, reflecting continued margin pressure and the impact of Humira's patent expiration. However, revenue is expected to rise to around $15.59 billion, representing 7.8% year-over-year growth, driven by strong performance from newer immunology and neuroscience products such as Skyrizi and Rinvoq. Overall, analysts expect solid revenue growth offset by lower profitability as AbbVie shifts its portfolio to newer therapies.

Several significant events have shaped market sentiment toward AbbVie recently. The most urgent issue is to terminate the ABBV-303 trial. Although the company has not disclosed the reasons for this decision, canceling a clinical trial may raise concerns about the strength of AbbVie's pipeline and its ability to achieve future growth.

This setback is offset by FDA approval of an expanded indication of RINVOQ (upadacitinib) for adult patients with moderately to severely active ulcerative colitis. This approval represents a significant win for AbbVie as it expands the potential market for this important immunology drug and potentially drives revenue growth in the coming quarters. RINVOQ is increasingly seen as a critical part of AbbVie's strategy to offset eventual biosimilar competition to Humira.

Analysts' opinions on AbbVie are currently divided. In early October, HSBC Global Research downgraded the stock from Strong Buy to Hold, followed by a similar downgrade from Wall Street Zen. These downgrades indicate growing caution among analysts about AbbVie's near-term prospects.

However, it's important to remember that analyst ratings are only one piece of the puzzle. AbbVie's recent $70 million expansion of its biologics research center in Worcester, Massachusetts, signals a long-term commitment to innovation and domestic manufacturing of oncology and immunology therapies. This investment is part of a broader $10 billion-plus commitment to U.S. manufacturing, could reduce supply chain risks, and is consistent with U.S. policy priorities.

Adding to the positive momentum, AbbVie recently submitted a Biologics License Application (BLA) to the FDA for pivekimab sunirine (PVEK), an investigational antibody-drug conjugate targeting blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare cancer with limited treatment options. This BLA filing underscores AbbVie's commitment to expanding its oncology portfolio and addressing unmet medical needs.

While the market focuses on Humira's declining sales due to biosimilar competition, it's worth considering whether the impact is being overstated. AbbVie has been proactively preparing for this opportunity for years, diversifying its portfolio with drugs like RINVOQ and Skyrizi. A significant portion of Humira's decline may already be priced into the stock.

Additionally, AbbVie's expertise in managing complex drug developments and dealing with regulatory hurdles should not be underestimated. While challenges remain, the company has a track record of successfully adapting to changing market conditions. The market may be underestimating AbbVie's resilience and ability to generate value beyond Humira.

AbbVie's upcoming earnings report will provide key insights into the company's ability to navigate a complex landscape. Markets will closely monitor the performance of RINVOQ and Skyrizi, the impact of Humira biosimilars, and the progress of the AbbVie pipeline. While challenges remain, AbbVie's strategic investments, regulatory successes and commitment to innovation position it for long-term success. The stock's performance in the coming weeks will depend on the company's ability to deliver on these promises and reassure supporters about its future prospects.