AbbVie vs. Eli Lilly and: Which Healthcare Stock Is a Better Buy in 2026?

Brendan Coffey, The Motley Fool

Sat, August 29, 2026 at 10:35 PM GMT+3 6 min read

The pharmaceutical market is currently defined by a race to replace aging blockbusters with next-generation therapies. Deciding whether to buy AbbVie Inc (NYSE:ABBV) or Eli Lilly and Co (NYSE:LLY) requires weighing different growth engines.

Both companies operate in the same general space but offer distinct profiles. AbbVie relies on its deep roots in immunology and neuroscience, while Eli Lilly is experiencing massive growth driven by its metabolic and obesity platform.

The case for AbbVie

AbbVie is a giant among pharmaceutical stocks, focusing on immunology, oncology, and neuroscience therapies. Revenue is highly concentrated, with Skyrizi and Rinvoq making up roughly 42% of sales in 2025. To diversify, the company recently announced it would acquire Apogee Therapeutics (NASDAQ:APGE) for approximately $10.9 billion.

In FY 2025, revenue reached nearly $61.2 billion, reflecting growth of roughly 8.7% over the previous year. Net income for the period was close to $4.3 billion. This performance shows the ability to maintain top-line growth even as older products face competitive pressure.

As of its December 2025 balance sheet, the company reported a debt-to-equity ratio of negative 21x, meaning total liabilities exceed shareholder equity. The so-called current ratio, which measures the ability to pay short-term obligations, is approximately 0.7x. Free cash flow reached nearly $17.8 billion, providing substantial capital for dividends and further acquisitions.

The case for Eli Lilly and Co

Eli Lilly focuses its efforts on high-growth areas like diabetes, obesity, and oncology. Its GLP-1 drugs, Mounjaro and Zepbound, are major drivers, accounting for roughly 56% of total revenue in 2025. The company maintains collaborations with partners like Incyte Corp (NASDAQ:INCY) and recently entered a new agreement with OmniAb Inc (NASDAQ:OABI).

In FY 2025, revenue reached nearly $65.2 billion, which is a significant 45% increase compared to the prior year. Net income for the same period was approximately $20.6 billion. The sharp rise in both metrics highlights the rapid market adoption of its new metabolic therapies.

As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.6x. The current ratio is approximately 1.6x, indicating a solid position to meet short-term liabilities. Free cash flow for the year was close to $9.0 billion, which supports its ongoing research and development initiatives.

Risk profile comparison

AbbVie faces significant pressure from patent expirations and the rise of biosimilar competition for its primary immunology drugs. Government-mandated price reductions through the Inflation Reduction Act also threaten revenue for key products like Vraylar and Botox. This concentration in a few major therapies makes the business vulnerable to any regulatory or safety shifts.

Eli Lilly also deals with heavy revenue concentration, as a majority of its sales come from just a few cardiometabolic drugs. It faces intense competition from rivals like GSK plc (NYSE:GSK) in certain therapeutic areas. Furthermore, the complexity of manufacturing biologics creates risks for the supply chain, where any disruption could lead to significant revenue losses.

Valuation comparison

Eli Lilly and carries a higher Forward P/E and P/S ratio than AbbVie, reflecting higher future earnings estimates.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

AbbVie is buying itself growth with its recent deal to acquire Apogee Therapeutics. Its two relatively new immunology products, Skyrizi and Rinvoq, have proven to be true growth drivers for the business, and investors are hopeful that an FDA decision on a Parkinson's treatment later this year will bode well for the company. AbbVie is expected to see screaming growth in net income this year, from $4.2 billion to $14.6 billion. Sales should grow to $67.2 billion.

AbbVie has a drug pipeline that some on Wall Street believe could include blockbusters (more than $1 billion in lifetime revenue) for treating schizophrenia, Parkinson's disease, psychosis from Alzheimer's, and certain solid tumors.

Eli Lilly is riding a wave of success with its GLP-1 drugs Zepbound for weight loss and Mounjaro, which is the same drug for diabetes control. There is still plenty of growth left in the treatment, and that is expected to power revenue up as high as 30% in 2026, to $85.2 billion, with close to $31 billion in net income. Its next weight-loss drug, Retatrutide, is hotly anticipated for its triple-agonist approach, which is expected to exceed the weight-loss results of Zepbound. The company is also targeting less affluent customers with a lower-cost GLP pill called Foundayo, which it sells directly to consumers.

Besides GLP-1s, Lilly is working on a small interfering RNA therapeutic targeting lipoprotein(a) for the prevention of atherosclerotic cardiovascular disease in patients with elevated lipoprotein(a) levels. Analysts believe it will be a blockbuster ($1 billion or more lifetime revenue) if approved.

These are both good healthcare businesses, but Lilly's franchise in GLP-1s is too strong to ignore, especially given that most patients who start the treatment will stay on it for the rest of their lives to continue to keep their weight off. Long-term investors should pick Eli Lilly & Co over AbbVie in this case.

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Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Eli Lilly, and Incyte. The Motley Fool recommends GSK. The Motley Fool has a disclosure policy.

AbbVie vs. Eli Lilly and: Which Healthcare Stock Is a Better Buy in 2026? was originally published by The Motley Fool