Is the business good?
How good a business is ABBV?
AbbVie earns 23% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
23%
Return on invested capital · cost of capital 9.0% · 14 points above what the capital costs: growth creates value
- Operating margin
- 26%
Operating margin · Drug Manufacturers - General median 24% · 12 months to Q2 2026
- Cash conversion
- 2.89×
Cash conversion · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- 0.00%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 25% |
| FY2021 | 32% |
| FY2022 | 31% |
| FY2023 | 23% |
| FY2024 | 16% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q2 2026
- 71%
- Operating margin12 months to Q2 2026
- 26%
- Net margin12 months to Q2 2026
- 9.8%
- Free cash flow margin
- 28%
- R&D as % of revenue
- 15%
- Revenue, trailing twelve months
- $64.4B
- Free cash flow, trailing twelve months
- $18.2B
- Net income, trailing twelve months
- $6.31B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 23%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Drug Manufacturers - General
Ranks #15 of 16 by Smart Score