AbbVie Inc. (ABBV.US) announced better-than-expected fourth-quarter results on Wednesday, as a series of initiatives to revive its struggling aesthetics business began to yield positive outcomes, concurrently raising its profit guidance for 2026. The financial report revealed that AbbVie's Q4 sales reached $16.6 billion, surpassing market expectations of $16.4 billion; the company's Chief Executive Officer, Rob Michael, also stated that the full-year net sales for 2025 hit a record high of $61.2 billion. Adjusted earnings per share for the quarter were $2.71, also exceeding analysts' average forecast of $2.65. Notably, the company's aesthetics business showed signs of recovery: although sales of Juvederm products fell short of expectations, Botox generated $717 million in revenue, marking its first growth since the third quarter of 2024 and exceeding the average analyst estimate of $683.9 million. In the neuroscience product portfolio, sales of the schizophrenia treatment drug Vraylar surpassed $1 billion, outperforming the market's expectation of $985.3 million.

Looking ahead, the company anticipates its adjusted earnings per share for 2026 to be in the range of $14.37 to $14.57, while analysts' average projection was $14.22. Following the earnings release, AbbVie's pre-market stock price initially rose by 1.75% but subsequently reversed to a decline of nearly 3%. As of Tuesday's market close, the North Chicago, Illinois-based pharmaceutical company's stock had accumulated a 1.2% loss year-to-date. For AbbVie, 2025 represents the second full year following the loss of market exclusivity for its arthritis drug Humira (once the world's best-selling drug); in the fourth quarter, Humira's global sales declined by 25.9% to $1.25 billion. However, bolstered by robust demand for its newer anti-inflammatory drugs Rinvoq and Skyrizi, the company successfully mitigated the impact of the patent expiration.

Additionally, a recent agreement with the Trump administration has temporarily exempted it from U.S. drug tariffs. In 2025, AbbVie's global net revenue from its immunology business reached $30.4 billion, a 14% increase year-over-year. During the fourth quarter, sales of Rinvoq and Skyrizi were $2.4 billion and $5 billion, respectively, largely aligning with market forecasts. The immunology segment's strong performance has provided investors with a buffer against the recent difficulties faced by the company's aesthetics division. Previously, AbbVie's aesthetics business encountered headwinds due to competitors like Galderma Group (which markets Dysport, a rival product to Botox) persistently eroding its market share, coupled with consumers reducing their consumption of filler products over concerns about unnatural aesthetic outcomes.

The better-than-expected Q4 sales of Botox are attributed to AbbVie's comprehensive efforts to win back aesthetics consumers. A revamped marketing strategy served as a core initiative, including the launch of a filler product campaign titled "Naturally You," alongside Botox advertisements featuring participation from members of the general public. In 2025, annual sales of Botox for cosmetic use experienced a decline, the first such occurrence since AbbVie's acquisition of Allergan in 2019. This business segment faces further challenges ahead: under the Inflation Reduction Act, Botox has been included in the list for Medicare price negotiations in the United States, indicating that the product will undergo price reductions starting in 2028.

Beyond its immunology and aesthetics businesses, AbbVie is also intensifying its focus on building its neuropsychiatric drug pipeline. Previously, the company acquired Cerevel Therapeutics for $8.7 billion, gaining a schizophrenia drug that subsequently failed in its Phase II clinical trials. In 2025, AbbVie again invested up to $1.2 billion to acquire an experimental depression treatment drug from Gilgamesh Pharmaceuticals. Gilgamesh has been developing what are termed "neuroplasticity modulators," a new generation of psychedelic drugs that do not induce hallucinations. In May 2025, the company announced that its drug candidate, bretisilocin, had achieved positive results in a clinical trial for major depressive disorder.