Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
AbbVie Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The income statement reveals a period of fluctuating performance between 2021 and 2025. Net revenues initially increased from 2021 to 2022, experienced a decline in 2023, followed by moderate growth in 2024, and a more substantial increase in 2025. However, profitability metrics demonstrate a more pronounced volatility over the same period.
- Revenue and Gross Profit
- Net revenues grew from $56.197 billion in 2021 to $58.054 billion in 2022, representing a 3.3% increase. A decrease was then observed in 2023, with revenues falling to $54.318 billion. Revenues partially recovered in 2024 to $56.334 billion before increasing to $61.160 billion in 2025. Correspondingly, gross margin mirrored this trend, peaking at $40.640 billion in 2022, declining to $33.903 billion in 2023, and then rising to $42.956 billion in 2025. The gross margin percentage remained relatively stable, fluctuating between approximately 65% and 68% throughout the period.
- Operating Expenses
- Selling, general and administrative expenses increased significantly from 2021 to 2022, rising from $12.349 billion to $15.260 billion, before decreasing to $12.872 billion in 2023. These expenses increased again in 2024 to $14.752 billion and decreased slightly in 2025 to $14.010 billion. Research and development expenses remained relatively stable between 2021 and 2022, but increased substantially in 2024 to $12.791 billion, before decreasing to $9.096 billion in 2025. Acquired IPR&D and milestones also showed a consistent increase throughout the period, rising from $962 million in 2021 to $5.016 billion in 2025.
- Operating and Net Earnings
- Operating earnings followed the trend of gross margin, peaking at $18.117 billion in 2022, declining to $12.757 billion in 2023, and then recovering to $15.075 billion in 2025. Net earnings exhibited a more dramatic decline, falling from $11.549 billion in 2021 and $11.845 billion in 2022 to $4.873 billion in 2023, and $4.286 billion in 2024, before a slight increase to $4.233 billion in 2025. This decline was influenced by increases in other expenses and a shift in income tax expense.
- Interest and Other Expenses
- Interest expense remained relatively consistent between 2021 and 2023, but increased in 2024 and 2025. Interest income increased significantly from 2021 to 2024, but decreased in 2025. Net foreign exchange loss remained relatively stable, with minor fluctuations. Other expense, net, increased substantially from $2.500 billion in 2021 to $5.793 billion in 2025, contributing to the decline in earnings before income tax expense.
- Income Tax
- The income tax expense fluctuated considerably. A benefit was recorded in 2024, significantly impacting net earnings. The expense returned in 2025, further affecting net earnings.
In summary, while revenue demonstrated overall growth over the five-year period, profitability faced significant headwinds, particularly in 2023 and 2024, due to increased operating expenses, notably in research and development and acquired IPR&D, and a substantial rise in other expenses. The fluctuating income tax expense also contributed to the volatility in net earnings.
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