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AbbVie Inc. (NYSE:ABBV)

Common-Size Income Statement
Quarterly Data

AbbVie Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021
Net revenues 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of products sold -25.26 -28.12 -27.39 -33.62 -28.18 -29.99 -29.11 -29.13 -29.06 -33.26 -39.89 -46.56 -30.58 -32.61 -27.58 -33.90 -28.59 -29.93 -29.02 -30.61 -32.40 -32.38
Gross margin 74.74% 71.88% 72.61% 66.38% 71.82% 70.01% 70.89% 70.87% 70.94% 66.74% 60.11% 53.44% 69.42% 67.39% 72.42% 66.10% 71.41% 70.07% 70.98% 69.39% 67.60% 67.62%
Selling, general and administrative -21.38 -23.85 -23.44 -22.62 -21.09 -24.68 -25.53 -29.08 -23.35 -26.93 -22.33 -24.21 -23.57 -24.86 -22.60 -22.31 -37.11 -23.10 -21.90 -21.50 -22.67 -21.84
Research and development -13.80 -16.48 -15.52 -14.70 -13.82 -15.49 -44.85 -14.73 -13.47 -15.75 -13.47 -12.37 -12.50 -18.75 -11.84 -10.90 -11.03 -11.06 -12.27 -11.67 -12.91 -13.70
Acquired IPR&D and milestones -1.71 -4.96 -7.61 -16.99 -5.34 -1.86 -10.42 -0.57 -6.48 -1.33 -1.97 -0.47 -2.02 -1.23 -1.61 -0.27 -1.84 -1.07 -2.72 -2.72 -0.69 -0.54
Other operating income (expense), net 0.00 0.00 1.31 0.00 0.16 0.00 0.05 0.00 0.00 0.00 0.00 0.00 1.22 0.08 0.01 -1.55 1.18 0.00 0.00 -3.49 0.49 0.00
Operating earnings 37.86% 26.60% 27.34% 12.07% 31.73% 27.98% -9.87% 26.49% 27.64% 22.73% 22.34% 16.38% 32.55% 22.64% 36.39% 31.08% 22.59% 34.84% 34.09% 30.02% 31.81% 31.54%
Interest expense, net -4.00 -4.30 -3.94 -4.23 -4.40 -4.70 -4.04 -4.09 -3.50 -3.68 -2.64 -2.86 -3.27 -3.71 -3.15 -3.36 -3.65 -3.98 -3.84 -4.08 -4.34 -4.78
Net foreign exchange gain (loss) 0.00 0.00 -0.07 -0.13 -0.15 -0.03 -0.13 0.02 -0.01 -0.03 -0.34 -0.18 -0.27 -0.29 -0.26 -0.24 -0.32 -0.18 -0.11 -0.08 -0.10 -0.07
Other income (expense), net -8.68 -15.37 -7.28 -3.19 -17.11 -10.80 -0.99 -8.02 -9.30 -4.76 -10.88 0.68 -10.18 -14.76 -13.37 2.23 -10.51 5.73 -1.45 -0.15 -19.04 3.04
Earnings before income tax (expense) benefit 25.18% 6.93% 16.05% 4.53% 10.08% 12.45% -15.02% 14.41% 14.84% 14.26% 8.47% 14.02% 18.82% 3.89% 19.61% 29.71% 8.11% 36.41% 28.69% 25.71% 8.33% 29.72%
Income tax (expense) benefit -3.90 -2.28 -5.13 -3.33 -3.97 -2.79 14.87 -3.60 -5.35 -3.11 -2.71 -1.24 -4.20 -1.91 -3.26 -3.02 -1.75 -3.22 -1.52 -3.54 -2.82 -2.40
Net earnings 21.28% 4.65% 10.92% 1.19% 6.10% 9.66% -0.15% 10.82% 9.49% 11.15% 5.76% 12.79% 14.62% 1.97% 16.35% 26.68% 6.36% 33.19% 27.17% 22.17% 5.51% 27.33%
Net earnings attributable to noncontrolling interest -0.02 -0.01 0.01 -0.01 -0.02 -0.02 0.01 -0.02 -0.02 -0.02 -0.01 -0.02 -0.02 -0.02 0.01 -0.02 -0.03 -0.02 -0.01 -0.01 -0.02 -0.02
Net earnings attributable to AbbVie Inc. 21.27% 4.63% 10.93% 1.18% 6.08% 9.64% -0.15% 10.80% 9.47% 11.12% 5.75% 12.77% 14.60% 1.96% 16.35% 26.66% 6.34% 33.17% 27.17% 22.17% 5.49% 27.31%

Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).

An analysis of the common-size income statement reveals a company with strong fundamental gross profitability but significant volatility in operating and net margins due to periodic spikes in research, development, and non-operating expenses.

Gross Profitability and Cost of Sales
Gross margins remained predominantly strong, generally fluctuating between 66% and 73%. A notable contraction occurred on September 30, 2023, where the gross margin fell to 53.44% due to a spike in the cost of products sold to 46.56% of net revenues. Following this trough, a consistent upward trend was observed, culminating in a period high of 74.74% by June 30, 2026, indicating improved production efficiency or favorable pricing power over the long term.
Operating Expense Patterns
Selling, general, and administrative (SG&A) expenses typically ranged between 21% and 26% of net revenues, with a significant outlier on June 30, 2022, reaching 37.11%. Research and development (R&D) expenditures were generally stable between 11% and 18% for most of the period, with one extreme anomaly on December 31, 2024, where R&D costs surged to 44.85% of net revenues. This singular event heavily distorted operating results for that quarter.
Acquisitions and Strategic Investments
Spending on acquired in-process research and development (IPR&D) and milestones remained low for most quarters, typically under 3% of revenues. However, strategic investment spikes are evident, most notably on December 31, 2024 (10.42%) and September 30, 2025 (16.99%), suggesting periods of aggressive portfolio expansion or the triggering of significant milestone payments.
Operating and Net Earnings Volatility
Operating earnings exhibited wide swings, ranging from a peak of 37.86% in June 2026 to a deficit of -9.87% in December 2024. The net earnings attributable to AbbVie Inc. mirrored this volatility, characterized by a general downward trend in the mid-period before recovering toward the end. The sharpest decline in net earnings occurred between March 2022 (33.17%) and December 2024 (-0.15%), driven by the simultaneous surge in R&D and IPR&D expenses.
Non-Operating Items and Bottom-Line Impact
The "Other income (expense), net" line item introduced substantial variance into the pre-tax earnings. Frequent negative swings, such as the -19.04% on June 30, 2021, and -17.11% on June 30, 2024, often offset operating gains. Interest expenses remained relatively stable as a percentage of revenue, typically hovering between 3% and 4.7%, indicating a consistent debt service burden relative to top-line growth.

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