AbbVie (NYSE: ABBV) beat and bought. Second-quarter adjusted EPS of $3.65 cleared the $3.60 consensus by a nickel on revenue of $16.99B, up 10.2% year over year. The real headline, however, was a $10.9 billion definitive agreement to acquire Apogee Therapeutics, a bet that its late-stage IL-13 antibody, zumilokibart (APG777), can extend AbbVie's immunology dominance beyond the current Skyrizi-Rinvoq cycle.
Revenue growth was broad but concentrated. The immunology portfolio, now the company's central narrative post-Humira, expanded 15.1% to $8.79B. Skyrizi climbed 24.4% to $5.51B, while Rinvoq rose 24.5% to $2.53B. Humira continued its structural decline, falling 35.9% to $756M. The two successors absorbed that loss and then some: combined Skyrizi and Rinvoq revenue of $8.03B now accounts for 47% of total company revenue, up from 42% a year ago.
Neuroscience was the other standout, surging 20.3% to $3.23B. Vraylar added $1.07B (+18.9%), and Botox Therapeutic contributed $1.04B (+12.2%). The migraine franchise, Ubrelvy and Qulipta, together added $742M. Vyalev, the Parkinson's therapy, contributed $256M and is scaling rapidly from a small base.
Oncology lagged, declining 1.5% to $1.65B. Imbruvica fell 29.4% to $532M, a predictable erosion as BTK inhibitors face generics and next-gen competition. Venclexta grew 11.6% to $771M, and Elahere rose 33.1% to $211M, but the portfolio lacks the growth velocity of immunology or neuroscience. Aesthetics were essentially flat at $1.28B, with Botox Cosmetic up 5.2% and Juvederm down 6.0% — a reminder that the Allergan acquisition's growth engine has yet to re-ignite.
The adjusted operating margin of 48.3% tells the real efficiency story. GAAP operating margin was 37.9%, dragged by $1.69B in intangible amortization and $1.52B in contingent consideration fair-value changes. Strip those out, and AbbVie's core business generated $8.21B in operating earnings on $16.99B of revenue. That 48.3% margin reflects the high incremental margins of Skyrizi and Rinvoq, which carry lower royalty burdens than Humira did. The adjusted tax rate of 14.7% also helped, down from 16.2% a year ago, contributing roughly $0.04 to the EPS beat.
The Apogee acquisition is the quarter's defining strategic move. AbbVie is paying $10.9B for a pipeline anchored by zumilokibart, a half-life extended anti-IL-13 antibody in Phase 3 for atopic dermatitis, and APG273, a long-acting IL-13/TSLP bispecific for asthma. The deal adds $0.14 of dilution to 2026 adjusted EPS, which management partially offset by raising the operational baseline by $0.10. The net effect: full-year adjusted EPS guidance trimmed to $13.87–$14.07 from $13.91–$14.11, a $0.04 midpoint reduction. That's a modest haircut for a $10.9B bet, signaling management's confidence that the core business can absorb the dilution quickly.
What the Apogee deal really does is hedge AbbVie's immunology timeline. Skyrizi and Rinvoq have years of patent life and expanding indications — Skyrizi just won FDA and EU approval for pediatric psoriasis and psoriatic arthritis, and Rinvoq was approved in the EU for vitiligo and alopecia areata. But no large pharma can afford to wait until those growth curves inflect. Zumilokibart targets atopic dermatitis, a $10B+ market where Dupixent (Sanofi/Regeneron) currently dominates. If zumilokibart's half-life extension translates to less frequent dosing, AbbVie has a credible challenger. The $0.14 dilution is effectively the option premium on that thesis.
Watch the third-quarter close of the Apogee deal and the subsequent pipeline readouts. The near-term risk is integration distraction; the medium-term question is whether zumilokibart can replicate Skyrizi's launch trajectory. For now, AbbVie's core business is executing well enough to fund a $10.9B bet without breaking stride.