New York, January 9, 2026, 20:18 (EST) — Market closed
AbbVie Inc. shares dropped 1.8% on Friday, closing at $220.08. The decline followed the drugmaker’s decision to lower its 2025 earnings forecast and a denial of reports suggesting it was in talks to acquire cancer-drug developer Revolution Medicines. Since 2023, AbbVie has spent over $20 billion on acquisitions, aiming to offset the impact from Humira’s patent expiration. (Reuters)
The updated forecast is crucial since AbbVie’s deals aim to replace lost growth, and this charge came late in the year when investors were already preparing for a rough transition from aging blockbusters. With U.S. markets closed until Monday, traders will be weighing whether this is an isolated event or signals a recurring trend.
A recent filing revealed AbbVie anticipates $1.265 billion in acquired in-process R&D and milestone expenses for the fourth quarter, slicing roughly $0.71 off both GAAP and adjusted earnings per share. The company now projects adjusted diluted EPS between $2.61 and $2.65 for Q4, down from the earlier $3.32 to $3.36 range. For the full year, adjusted EPS estimates have dropped to $9.90 to $9.94 from $10.61 to $10.65. (SEC)
Acquired IPR&D (in-process research and development) refers to upfront payments made for drug candidates bought or licensed before they start generating sales. Milestone expense covers payments triggered when a partner reaches set development targets; these costs can appear unexpectedly and cause sharp swings in quarterly earnings.
AbbVie issued a guidance update amid takeover rumors swirling around Revolution, a biotech focused on drugs for the RAS cancer pathway. Stifel’s Laura Prendergast noted that if Revolution were snapped up now, the price “could easily go in the $30B+ range.” She also said the firm’s $85 target and rating are currently under review. (Investing.com Nigeria)
Analyst chatter added to the mix. On Jan. 8, Wolfe Research lowered AbbVie to “Peer Perform” from “Outperform.” Meanwhile, another note argued the stock’s current valuation already factors in the anticipated success of AbbVie’s newer immunology drugs, Skyrizi and Rinvoq. (Fintel)
Technicians will spot ABBV trading below its 50-day moving average at about $226, yet it remains above the 200-day mark near $206, according to Barchart data. These thresholds frequently serve as informal support or resistance when news volume eases. (Barchart)
Tuesday brings the next major macro event: the U.S. government’s December consumer price index, due at 8:30 a.m. ET. This report often shakes up Treasury yields and defensive sectors such as pharmaceuticals. Meanwhile, the Federal Reserve is set to meet for its next rate decision on Jan. 27-28. (Bureau of Labor Statistics)
There’s a catch. AbbVie warned its fourth-quarter results are preliminary and “there can be no assurance” the final figures won’t vary from these early estimates. (SEC)
AbbVie is set to release its full-year and fourth-quarter results on Feb. 4, with the report coming before the market opens and a conference call at 8 a.m. Central. Investors will be watching closely for 2026 guidance and updates on acquisition plans, which could shape ABBV stock performance through the spring. (AbbVie News Center)
