ABBV · AbbVie · Q2 FY2026
AbbVie Widens Margins as Revenue Growth Slows
Revenue growth moderated to 10.2% from 12.4%, and operating margin widened 613 basis points to 37.9%.
- Published
- Oct 20, 2026
- Event
- Jul 31, 2026
- Quarter ended
- Jun 30, 2026
- Data as of
- Oct 15, 2026
Published becauseBlockhaven's first note on Q2 FY2026, whose results were filed Jul 31, 2026: the latest reported quarter sent mixed signals.
The Blockhaven read
AbbVie earned a wider margin on slower growth: revenue growth moderated to 10.2% from 12.4%, while operating margin widened 613 basis points to 37.9%. On the company's adjusted basis the gain was smaller, with adjusted diluted EPS up 22.9% to $3.65. One quarter cannot show whether the wider margin can last if growth slows further.
Latest reported quarter
13-week quarter · Earnings release filed Jul 31, 2026
RevenueGAAP
- Latest
- $17 billion
- Year ago
- $15.4 billion
- Change
- +10.2% (Up year over year)
Operating incomeGAAP
- Latest
- $6.43 billion
- Year ago
- $4.89 billion
- Change
- +31.4% (Up year over year)
Net incomeGAAP
- Latest
- $3.61 billion
- Year ago
- $938 million
- Change
- +285.2% (Up year over year)
Diluted EPSGAAP
- Latest
- $2.03
- Year ago
- $0.52
- Change
- +290.4% (Up year over year)
Operating margin (GAAP)Derived
- Latest
- 37.9%
- Year ago
- 31.7%
- Change
- +613 bp (Up year over year)
| Measure | Basis | Latest quarter | Year ago | Change |
|---|---|---|---|---|
| Revenue | GAAP | $17 billion | $15.4 billion | +10.2% (Up year over year) |
| Operating income | GAAP | $6.43 billion | $4.89 billion | +31.4% (Up year over year) |
| Net income | GAAP | $3.61 billion | $938 million | +285.2% (Up year over year) |
| Diluted EPS | GAAP | $2.03 | $0.52 | +290.4% (Up year over year) |
| Operating margin (GAAP) | Derived | 37.9% | 31.7% | +613 bp (Up year over year) |
Revenue growth +10.2% against +12.4% in the prior quarter (year over year, GAAP).
Trend: Mixed. Revenue growth slowed, operating margin widened and GAAP operating income improved.
GAAP unless labelled. Non-GAAP and company-defined measures are labelled.
What changed
- Revenue growth slowed to 10.2% from 12.4%.
- Operating margin widened 613 basis points year over year, to 37.9% from 31.7% (GAAP).
- GAAP operating income rose 31.4% year over year, with net income 285.2% and diluted EPS 290.4% moving the same way.
Why it matters
On AbbVie's adjusted basis, which excludes specified items, diluted EPS rose 22.9% to $3.65, against 290.4% on a GAAP basis: the excluded items were larger a year earlier (adjusted EPS $2.97 against GAAP $0.52 in Q2 2025).
In its Jul 31 earnings release AbbVie set its 2026 adjusted EPS guidance at $13.87 to $14.07, from $13.91 to $14.11, including $0.14 per share of dilution from acquiring Apogee Therapeutics (completed Sep 3), partly offset by $0.10 of overperformance. On Oct 5 it lowered the range to $13.76 to $13.96 to include $0.11 per share of third-quarter acquired IPR&D and milestones expense.
What to watch
- Operating margin at the next report against 37.9% this quarter: a further move in the same direction would confirm this reading, and a reversal would weaken it.
- Year-over-year revenue growth against 10.2% now and 12.4% before: a stabilisation would confirm a steadier pace, and a further slowdown would extend the slowdown.
Data and sources
GAAP figures come from the company's Form 10-Q for the quarter ended Jun 30, 2026; adjusted (non-GAAP) EPS and guidance come from its earnings release (Form 8-K, filed Jul 31, 2026) and its guidance update (Form 8-K, filed Oct 5, 2026). Each figure is labelled with its basis. No outside forecasts were used.
- Form 10-Q, quarter ended Jun 30, 2026
- 8-K earnings release, filed Jul 31, 2026
- 8-K guidance update, filed Oct 5, 2026
Descriptive company facts. Not investment advice, a rating or a recommendation.