Stock Analysis on Net
Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

Common-Size Income Statement
Quarterly Data

AbbVie Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Net revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -28.12 -27.39 -33.62 -28.18 -29.99 -29.11 -29.13 -29.06 -33.26 -39.89 -46.56 -30.58 -32.61 -27.58 -33.90 -28.59 -29.93 -29.02 -30.61 -32.40 -32.38
Gross margin 71.88% 72.61% 66.38% 71.82% 70.01% 70.89% 70.87% 70.94% 66.74% 60.11% 53.44% 69.42% 67.39% 72.42% 66.10% 71.41% 70.07% 70.98% 69.39% 67.60% 67.62%
Selling, general and administrative -23.85 -23.44 -22.62 -21.09 -24.68 -25.53 -29.08 -23.35 -26.93 -22.33 -24.21 -23.57 -24.86 -22.60 -22.31 -37.11 -23.10 -21.90 -21.50 -22.67 -21.84
Research and development -16.48 -15.52 -14.70 -13.82 -15.49 -44.85 -14.73 -13.47 -15.75 -13.47 -12.37 -12.50 -18.75 -11.84 -10.90 -11.03 -11.06 -12.27 -11.67 -12.91 -13.70
Acquired IPR&D and milestones -4.96 -7.61 -16.99 -5.34 -1.86 -10.42 -0.57 -6.48 -1.33 -1.97 -0.47 -2.02 -1.23 -1.61 -0.27 -1.84 -1.07 -2.72 -2.72 -0.69 -0.54
Other operating income (expense), net 0.00 1.31 0.00 0.16 0.00 0.05 0.00 0.00 0.00 0.00 0.00 1.22 0.08 0.01 -1.55 1.18 0.00 0.00 -3.49 0.49 0.00
Operating earnings 26.60% 27.34% 12.07% 31.73% 27.98% -9.87% 26.49% 27.64% 22.73% 22.34% 16.38% 32.55% 22.64% 36.39% 31.08% 22.59% 34.84% 34.09% 30.02% 31.81% 31.54%
Interest expense, net -4.30 -3.94 -4.23 -4.40 -4.70 -4.04 -4.09 -3.50 -3.68 -2.64 -2.86 -3.27 -3.71 -3.15 -3.36 -3.65 -3.98 -3.84 -4.08 -4.34 -4.78
Net foreign exchange gain (loss) 0.00 -0.07 -0.13 -0.15 -0.03 -0.13 0.02 -0.01 -0.03 -0.34 -0.18 -0.27 -0.29 -0.26 -0.24 -0.32 -0.18 -0.11 -0.08 -0.10 -0.07
Other income (expense), net -15.37 -7.28 -3.19 -17.11 -10.80 -0.99 -8.02 -9.30 -4.76 -10.88 0.68 -10.18 -14.76 -13.37 2.23 -10.51 5.73 -1.45 -0.15 -19.04 3.04
Earnings before income tax (expense) benefit 6.93% 16.05% 4.53% 10.08% 12.45% -15.02% 14.41% 14.84% 14.26% 8.47% 14.02% 18.82% 3.89% 19.61% 29.71% 8.11% 36.41% 28.69% 25.71% 8.33% 29.72%
Income tax (expense) benefit -2.28 -5.13 -3.33 -3.97 -2.79 14.87 -3.60 -5.35 -3.11 -2.71 -1.24 -4.20 -1.91 -3.26 -3.02 -1.75 -3.22 -1.52 -3.54 -2.82 -2.40
Net earnings 4.65% 10.92% 1.19% 6.10% 9.66% -0.15% 10.82% 9.49% 11.15% 5.76% 12.79% 14.62% 1.97% 16.35% 26.68% 6.36% 33.19% 27.17% 22.17% 5.51% 27.33%
Net earnings attributable to noncontrolling interest -0.01 0.01 -0.01 -0.02 -0.02 0.01 -0.02 -0.02 -0.02 -0.01 -0.02 -0.02 -0.02 0.01 -0.02 -0.03 -0.02 -0.01 -0.01 -0.02 -0.02
Net earnings attributable to AbbVie Inc. 4.63% 10.93% 1.18% 6.08% 9.64% -0.15% 10.80% 9.47% 11.12% 5.75% 12.77% 14.60% 1.96% 16.35% 26.66% 6.34% 33.17% 27.17% 22.17% 5.49% 27.31%

Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

Analysis of the quarterly common-size income statements reveals a general trend of margin compression and increased volatility in operational expenditures over the period from March 2021 to March 2026. While the company maintains a strong baseline for gross profitability, net earnings as a percentage of revenue have declined significantly from peaks exceeding 33% to below 5%.

Gross Margin Stability and Volatility
Gross margins remained consistently high, generally fluctuating between 66% and 72%. A notable outlier occurred in September 2023, where the margin dropped to 53.44% due to a spike in the cost of products sold to 46.56%. Following this decline, the margin recovered and stabilized above 70% for most of 2024 and 2025, indicating a resilient core pricing and production structure.
Operational Expense Patterns
Selling, general, and administrative (SG&A) expenses typically ranged between 21% and 26% of net revenues, though a sharp increase to 37.11% was recorded in June 2022. Research and development (R&D) costs showed more significant variance, typically residing between 11% and 18% before an exceptional surge to 44.85% in December 2024. This spike, combined with a 10.42% expenditure on acquired IPR&D and milestones in the same period, suggests a substantial one-time strategic investment or impairment charge.
Operating and Net Earnings Performance
Operating earnings exhibited extreme fluctuations, reaching a peak of 36.39% in December 2022 and dropping to a deficit of -9.87% in December 2024. This volatility is primarily attributed to the irregular spikes in R&D and SG&A. The compression of net earnings is further exacerbated by "Other income (expense), net," which has frequently acted as a significant drag on profitability, often recording negative values between 7% and 19% of net revenues.
Financial and Tax Obligations
Interest expenses have remained relatively stable, consistently oscillating between 2.64% and 4.78% of net revenues, suggesting a controlled debt-servicing cost relative to revenue growth. Income tax expenses as a percentage of revenue have remained low and stable, typically between 1% and 5%, with a significant tax benefit of 14.87% appearing in December 2024, which partially offset the operating losses of that quarter.

The overall trajectory indicates that while the company possesses strong gross margins, the bottom-line profitability is increasingly susceptible to high-impact, non-recurring operational expenses and volatile non-operating items. The transition from net earnings of 27.31% in March 2021 to 4.63% in March 2026 highlights a systemic reduction in the conversion of revenue to net profit.

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