ABBV · Q2 FY2026
AbbVie Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $16.99B | $15.42B (yr ago) | Beat |
| EPS | $2.03 | $0.52 (yr ago) | Beat |
| Free Cash Flow | $3.56B | Not disclosed (yr ago) | Miss |
| Gross Margin | 71.0% | Not disclosed (yr ago) | Miss |
| Operating Margin | 37.9% | 31.7% (yr ago) | Beat |
What changed
Revenue increased 10.2% from Q2 FY2025, while EPS rose to $2.03 from $0.52. Operating margin expanded 6.2 percentage points to 37.9%, and the supplied XBRL values imply $3.56B of free cash flow. Gross margin was 71.0%, but the year-ago comparison was not disclosed in the supplied quarterly data.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We initiate fair value at $251.6 per share, effectively in line with the $253.70 market price, because the stronger quarter is balanced by a demanding 25 times normalized free-cash-flow assumption and substantial debt.