Stock Analysis on Net

AbbVie Inc. (NYSE:ABBV)

$24.99

Net Profit Margin
since 2012

Microsoft Excel

Calculation

AbbVie Inc., net profit margin, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions


The net profit margin exhibited considerable fluctuation over the observed period. Initial values were strong, followed by a significant decline, a period of recovery, and then another decline towards the end of the analyzed timeframe.

Overall Trend
From 2012 to 2025, the net profit margin demonstrated a lack of consistent direction. It began at 28.70% in 2012, decreased substantially, peaked again, and then trended downwards. The final value in 2025 was 6.91%, significantly lower than the initial value.
Initial Decline (2012-2014)
A marked decrease in net profit margin occurred between 2012 and 2014, falling from 28.70% to 8.89%. This suggests a substantial change in cost structure or revenue generation during this period. Net earnings decreased while net revenues increased modestly, contributing to the margin compression.
Recovery and Stabilization (2015-2019)
The net profit margin experienced a recovery between 2015 and 2019, rising from 8.89% to 23.69%. This indicates successful implementation of cost controls or increased pricing power. Net earnings and net revenues both increased during this period, supporting the margin expansion.
Recent Decline (2020-2025)
From 2020 onwards, the net profit margin began a downward trend, reaching 6.91% in 2025. While net revenues continued to increase, net earnings experienced significant volatility, with a substantial decrease in 2020 and 2023, and a continued decline in 2024 and 2025. This suggests increasing costs or pricing pressures are impacting profitability.
Volatility
The period between 2020 and 2025 was characterized by significant volatility in net profit margin. The margin moved from 10.08% in 2020 to 20.54% in 2021, then decreased to 8.95% in 2022, 7.59% in 2023, and finally 6.91% in 2025. This indicates inconsistent performance and potential challenges in maintaining profitability.

The observed fluctuations in net profit margin warrant further investigation into the underlying drivers of revenue and cost changes to understand the factors influencing profitability.


Comparison to Competitors

AbbVie Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

AbbVie Inc., net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Health Care)

AbbVie Inc., net profit margin, long-term trends, comparison to industry (health care)

Microsoft Excel

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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).