Will AbbVie's Oncology Franchise Weigh on Q1 Top-line Growth?
AbbVie ABBV is set to report first-quarter 2026 results on April 29, before the opening bell. While the immunology segment is expected to remain the company’s primary growth driver, the oncology franchise is likely to face headwinds, potentially weighing on overall revenue performance in the to-be-reported quarter.
The portfolio currently comprises five marketed drugs. While the majority of revenues are generated from blood cancer therapies Imbruvica and Venclexta, AbbVie has diversified its offerings with newer products — Epkinly (for lymphoma), Elahere (for ovarian cancer) and Emrelis (for lung cancer).
The company expects oncology revenues of approximately $1.6 billion in the first quarter, while the Zacks Consensus Estimate is pegged at $1.57 billion. Both estimates indicate a slight decline from the year-ago period.
Although Venclexta, Epkinly and Elahere are likely to have contributed to growth during the quarter, Imbruvica sales are expected to continue their downward trajectory. The drug’s sales have been declining over the past few years due to rising competitive pressure from novel oral therapies. This trend is expected to intensify in the first quarter as IRA-driven pricing changes, which came into effect at the start of 2026, are likely to further impact sales. The continued erosion of Imbruvica revenues is expected to remain a key headwind for AbbVie’s oncology segment in the to-be-reported quarter.
Since Emrelis was approved last year in May, we expect its sales contribution to remain modest in the quarter.
Competition in the Oncology Space
Other bigger players in the oncology space are AstraZeneca AZN, Merck MRK and Pfizer PFE.
For AstraZeneca, oncology sales now account for 44% of total revenues. Sales in its oncology segment rose 14% year over year in 2025, driven by strong performance of medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s key oncology medicines are PD-L1 inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounted for roughly 49% of MRK’s total revenues in 2025.
Pfizer’s oncology revenues grew 8% in 2025, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. The segment now accounts for nearly 27% of Pfizer’s total revenues.
ABBV’s Price Performance, Valuation and Estimates
Shares of AbbVie have underperformed the industry year to date, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie is trading at a discount to the industry. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 14.05 times forward earnings, lower than its industry’s average of 17.03.
Image Source: Zacks Investment Research
EPS estimates for 2026 and 2027 have declined over the past 30 days.
Image Source: Zacks Investment Research
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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