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Investing.com -- AbbVie Inc (NYSE:ABBV) said Thursday that it is preparing for potential pharmaceutical sector tariffs, warning investors that trade headwinds could impact financial performance later this year. While the company raised its full-year earnings and revenue guidance, executives repeatedly highlighted tariff risk and broader U.S. government disruption as material uncertainties on its earnings call.
“Any related impact from these tariffs… have not been contemplated in our guidance,” CEO Rob Michael said. CFO Scott Runtz added that AbbVie’s exposure is in line with peers, supported by 11 U.S. manufacturing sites and more than $10 billion in planned domestic investment over the next decade.
The company said it is focused on inventory management, alternative sourcing, and internal efficiencies as potential mitigants. “To mitigate the impact as much as possible… we could take inventory management actions or secure alternate sources of API,” Michael said.
Executives also flagged risk from developments in U.S. health policy, including drug price negotiations, PBM reform, and FDA operational uncertainty. “We are very supportive of a balanced approach that addresses affordability while also encouraging innovation,” Michael said, while noting that price controls “leave less investment available… to advance new innovative medicines.”
Despite the policy risks, AbbVie delivered a strong first quarter, posting adjusted earnings per share of $2.46, $0.10 above the midpoint of its prior guidance. Revenue grew 9.8% on an operational basis to $13.3 billion.
The company raised its full-year revenue forecast to $59.7 billion, up $700 million from its previous estimate. Adjusted earnings guidance was also lifted to a range of $12.09 to $12.29.
Immunology drugs Skyrizi and Rinvoq generated $5.1 billion in combined sales, up more than 65% year-over-year, driving upward revisions to both products’ forecasts. “We’re obviously very, very pleased with the performance of Skyrizi and Rinvoq,” said Chief Commercial Officer Jeff Stewart.
Skyrizi’s forecast was raised by $600 million to $16.5 billion, with gains split across IBD and psoriatic indications. Rinvoq’s guidance was increased by $300 million to $8.2 billion, reflecting momentum in rheumatology, dermatology, and UC.
Meanwhile, U.S. Humira sales declined nearly 50%, causing a $500 million downward revision to AbbVie’s full-year forecast for the drug. Executives cited “faster share erosion… and molecule compression” amid intensifying biosimilar competition.
Rounding out its diversified portfolio, AbbVie reported strength in neuroscience and oncology, while aesthetics sales declined in line with expectations. Tariffs on selective aesthetics products, such as Juvederm, were estimated at $30 million and have been absorbed into full-year guidance.
Looking ahead, AbbVie said it remains confident in its long-term growth strategy despite near-term uncertainties tied to tariffs and U.S. policy volatility. “We have a clear runway to growth for at least the next eight years,” Michael said, pointing to continued investment in immunology, obesity, oncology, and neuroscience as key pillars of its forward trajectory.