3 Major Reasons for Investors to Buy AbbVie Stock Before July 31st

Thomas Richmond

Tue, July 28, 2026 at 8:09 PM GMT+3 3 min read

Quick Read

ABBV trades at a PEG of 0.43 with a beta of just 0.28, while Skyrizi and Rinvoq combined for $6.6 billion in Q1 revenue.
ABBV's 164% five-year gain dwarfs Pfizer's negative 23% return, while Merck still faces a 2028 Keytruda patent cliff ABBV already navigated.
AbbVie raised its quarterly dividend 5.5% to $1.73 and lifted full-year EPS guidance, signaling strong income coverage heading into the July 31 report.
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AbbVie (NYSE:ABBV) enters its July 31 Q2 earnings report with a 2.62% dividend yield, raised earnings guidance, and two blockbuster drugs growing above 20%. Skyrizi and Rinvoq have already replaced Humira as the company's growth engines, strengthening AbbVie's case as a combination of income, growth, and relatively low volatility.

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AbbVie Offers Growth at Just 18x Forward Earnings

ABBV changes hands at $265.52 with a forward P/E of 18x and a PEG of 0.43, with a beta of 0.28. Wall Street's consensus target sits at $267.79 across 16 Buy and 8 Strong Buy ratings. AbbVie trades at a multiple below the S&P 500 average paired with growth prospects and roughly a quarter of the market's volatility.

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A 5.5% Dividend Increase Strengthens the Income Case

AbbVie's annualized dividend of $6.74 per share means the stock offers a 2.62% yield. The most recent quarterly hike lifted the payout to $1.73 from $1.64, a 5.5% raise. Management raised full-year adjusted EPS guidance to $14.08 to $14.28 and pointed to Q2 EPS of $3.74 to $3.78 on roughly $16.7 billion in revenue.

Skyrizi and Rinvoq Have Become $32 Billion Growth Engines

Skyrizi hit $4.48 billion in Q1 2026 (up 30.9% YoY) and Rinvoq added $2.12 billion (up 23.3%). Management raised full-year Skyrizi guidance to $21.6 billion and Rinvoq to $10.2 billion. CEO Rob Michael said flatly, "We expect to exceed the peak consensus that's in those models."

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ABBV Earnings Explorer — 24/7 Wall St.

AbbVie Has Already Crossed the Patent Cliff Facing Merck

Pfizer (NYSE:PFE) has returned -22.52% over five years and is up just 3.67% year-to-date, versus ABBV's 163.87% five-year and 16.19% YTD return, with far weaker top-line momentum.

Merck (NYSE:MRK) has rallied hard (61.08% in one year), but it carries a Keytruda concentration problem and a 2028 patent cliff. ABBV has already crossed the biosimilar valley Merck is walking toward.

The Bottom Line: AbbVie Has Successfully Rebuilt Its Growth Engine

Humira revenue continues to decline as biosimilar competition intensifies, but that erosion no longer defines AbbVie's overall trajectory. Skyrizi and Rinvoq generated a combined $6.60 billion last quarter, helping total immunology revenue grow 16.4%.

AbbVie now expects the two drugs to generate nearly $32 billion in annual sales, while its dividend continues to rise. The July 31 report will show whether those newer products can keep driving growth and support another increase to full-year guidance.