AbbVie Inc. 10-Q

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Earnings (unaudited) Three months ended June 30, Six months ended June 30, (in millions, except per share data) 2026 2025 2026 2025 Net revenues $ 16,990 $ 15,423 $ 31,992 $ 28,766 Cost of products sold 4,291 4,346 8,509 8,348 Selling, general and administrative 3,632 3,253 7,210 6,546 Research and development 2,344 2,131 4,816 4,198 Acquired IPR&D and milestones 291 823 1,035 1,071 Other operating income — ( 24 ) — ( 24 ) Total operating costs and expenses 10,558 10,529 21,570 20,139 Operating earnings 6,432 4,894 10,422 8,627 Interest expense, net 679 678 1,324 1,305 Other expense, net 1,475 2,662 3,781 4,107 Earnings before income tax expense 4,278 1,554 5,317 3,215 Income tax expense 662 613 1,004 985 Net earnings 3,616 941 4,313 2,230 Net earnings attributable to noncontrolling interest 3 3 5 6 Net earnings attributable to AbbVie Inc. $ 3,613 $ 938 $ 4,308 $ 2,224 Per share data Basic earnings per share attributable to AbbVie Inc. $ 2.04 $ 0.52 $ 2.42 $ 1.25 Diluted earnings per share attributable to AbbVie Inc. $ 2.03 $ 0.52 $ 2.42 $ 1.24 Weighted-average basic shares outstanding 1,769 1,768 1,769 1,768 Weighted-average diluted shares outstanding 1,771 1,771 1,773 1,772 The accompanying notes are an integral part of these condensed consolidated financial statements. 2026 Form 10-Q | 1 AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (unaudited) Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Net earnings $ 3,616 $ 941 $ 4,313 $ 2,230 Foreign currency translation adjustments, net of tax expense (benefit) of $( 2 ) for the three months and $( 7 ) for the six months ended June 30, 2026 and $ 33 for the three months and $ 50 for the six months ended June 30, 2025 ( 144 ) 1,051 ( 348 ) 1,538 Net investment hedging activities, net of tax expense (benefit) of $ 21 for the three months and $ 64 for the six months ended June 30, 2026 and $( 192 ) for the three months and $( 269 ) for the six months ended June 30, 2025 76 ( 698 ) 232 ( 981 ) Pension and post-employment benefits, net of tax expense (benefit) of $ 2 for the three and six months ended June 30, 2026 and $ — for the three and six months ended June 30, 2025 — 4 ( 1 ) 2 Cash flow hedging activities, net of tax expense (benefit) of $ 4 for the three and six months ended June 30, 2026 and $( 16 ) for the three months and $( 20 ) for the six months ended June 30, 2025 63 ( 153 ) 103 ( 172 ) Other comprehensive income (loss) ( 5 ) 204 ( 14 ) 387 Comprehensive income 3,611 1,145 4,299 2,617 Comprehensive income attributable to noncontrolling interest 3 3 5 6 Comprehensive income attributable to AbbVie Inc. $ 3,608 $ 1,142 $ 4,294 $ 2,611 The accompanying notes are an integral part of these condensed consolidated financial statements. 2026 Form 10-Q | 2 AbbVie Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in millions, except share data) June 30, 2026 December 31, 2025 (unaudited) Assets Current assets Cash and equivalents $ 6,569 $ 5,229 Accounts receivable, net 13,824 12,589 Inventories 5,127 4,951 Prepaid expenses and other 8,149 6,293 Total current assets 33,669 29,062 Investments 266 268 Property and equipment, net 5,796 5,628 Intangible assets, net 49,139 52,641 Goodwill 35,519 35,640 Other assets 10,726 10,721 Total assets $ 135,115 $ 133,960 Liabilities and Equity (Deficit) Current liabilities Short-term borrowings $ — $ 2,499 Current portion of long-term debt 8,341 6,056 Accounts payable and accrued liabilities 33,301 34,734 Total current liabilities 41,642 43,289 Long-term debt 62,481 58,941 Deferred income taxes 2,277 2,389 Other long-term liabilities 34,603 32,569 Commitments and contingencies Stockholders' equity (deficit) Common stock, $ 0.01 par value, 4,000,000,000 shares authorized, 1,844,174,521 shares issued as of June 30, 2026 and 1,838,678,628 as of December 31, 2025 18 18 Common stock held in treasury, at cost, 77,105,240 shares as of June 30, 2026 and 70,802,593 as of December 31, 2025 ( 10,618 ) ( 9,146 ) Additional paid-in capital 23,156 22,495 Accumulated deficit ( 17,333 ) ( 15,493 ) Accumulated other comprehensive loss ( 1,158 ) ( 1,144 ) Total stockholders' deficit ( 5,935 ) ( 3,270 ) Noncontrolling interest 47 42 Total deficit ( 5,888 ) ( 3,228 ) Total liabilities and equity (deficit) $ 135,115 $ 133,960 The accompanying notes are an integral part of these condensed consolidated financial statements. 2026 Form 10-Q | 3 AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Equity (Deficit) (unaudited) (in millions) Common shares outstanding Common stock Treasury stock Additional paid-in capital Accumulated deficit Accumulated other comprehensive loss Noncontrolling interest Total Balance at March 31, 2025 1,766 $ 18 $ ( 9,137 ) $ 21,808 $ ( 9,527 ) $ ( 1,742 ) $ 42 $ 1,462 Net earnings attributable to AbbVie Inc. — — — — 938 — — 938 Other comprehensive income, net of tax — — — — — 204 — 204 Dividends declared — — — — ( 2,914 ) — — ( 2,914 ) Purchases of treasury stock — — ( 10 ) — — — — ( 10 ) Stock-based compensation plans and other — — — 179 — — — 179 Change in noncontrolling interest — — — — — — 3 3 Balance at June 30, 2025 1,766 $ 18 $ ( 9,147 ) $ 21,987 $ ( 11,503 ) $ ( 1,538 ) $ 45 $ ( 138 ) Balance at March 31, 2026 1,767 $ 18 $ ( 10,611 ) $ 22,962 $ ( 17,872 ) $ ( 1,153 ) $ 44 $ ( 6,612 ) Net earnings attributable to AbbVie Inc. — — — — 3,613 — — 3,613 Other comprehensive loss, net of tax — — — — — ( 5 ) — ( 5 ) Dividends declared — — — — ( 3,074 ) — — ( 3,074 ) Purchases of treasury stock — — ( 9 ) — — — — ( 9 ) Stock-based compensation plans and other — — 2 194 — — — 196 Change in noncontrolling interest — — — — — — 3 3 Balance at June 30, 2026 1,767 $ 18 $ ( 10,618 ) $ 23,156 $ ( 17,333 ) $ ( 1,158 ) $ 47 $ ( 5,888 ) Balance at December 31, 2024 1,765 $ 18 $ ( 8,201 ) $ 21,333 $ ( 7,900 ) $ ( 1,925 ) $ 39 $ 3,364 Net earnings attributable to AbbVie Inc. — — — — 2,224 — — 2,224 Other comprehensive income, net of tax — — — — — 387 — 387 Dividends declared — — — — ( 5,827 ) — — ( 5,827 ) Purchases of treasury stock ( 5 ) — ( 973 ) — — — — ( 973 ) Stock-based compensation plans and other 6 — 27 654 — — — 681 Change in noncontrolling interest — — — — — — 6 6 Balance at June 30, 2025 1,766 $ 18 $ ( 9,147 ) $ 21,987 $ ( 11,503 ) $ ( 1,538 ) $ 45 $ ( 138 ) Balance at December 31, 2025 1,768 $ 18 $ ( 9,146 ) $ 22,495 $ ( 15,493 ) $ ( 1,144 ) $ 42 $ ( 3,228 ) Net earnings attributable to AbbVie Inc. — — — — 4,308 — — 4,308 Other comprehensive loss, net of tax — — — — — ( 14 ) — ( 14 ) Dividends declared — — — — ( 6,148 ) — — ( 6,148 ) Purchases of treasury stock ( 6 ) — ( 1,498 ) — — — — ( 1,498 ) Stock-based compensation plans and other 5 — 26 661 — — — 687 Change in noncontrolling interest — — — — — — 5 5 Balance at June 30, 2026 1,767 $ 18 $ ( 10,618 ) $ 23,156 $ ( 17,333 ) $ ( 1,158 ) $ 47 $ ( 5,888 ) The accompanying notes are an integral part of these condensed consolidated financial statements. 2026 Form 10-Q | 4 AbbVie Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (unaudited) Six months ended June 30, (in millions) (brackets denote cash outflows) 2026 2025 Cash flows from operating activities Net earnings $ 4,313 $ 2,230 Adjustments to reconcile net earnings to net cash from operating activities: Depreciation 382 367 Amortization of intangible assets 3,437 3,722 Deferred income taxes ( 58 ) ( 300 ) Change in fair value of contingent consideration liabilities 3,905 4,313 Payments of contingent consideration liabilities ( 1,784 ) ( 1,408 ) Stock-based compensation 610 589 Acquired IPR&D and milestones 1,035 1,071 Non-cash litigation reserve adjustments, net of cash payments 86 ( 750 ) Other, net ( 18 ) 96 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable ( 1,282 ) ( 1,496 ) Inventories ( 327 ) ( 211 ) Prepaid expenses and other assets ( 338 ) ( 257 ) Accounts payable and other liabilities ( 392 ) ( 181 ) Income tax assets and liabilities, net ( 2,304 ) ( 997 ) Cash flows from operating activities 7,265 6,788 Cash flows from investing activities Acquisitions of businesses, net of cash acquired — ( 204 ) Other acquisitions and investments, net of cash acquired ( 1,090 ) ( 1,274 ) Acquisitions of property and equipment ( 587 ) ( 504 ) Other, net ( 94 ) 66 Cash flows from investing activities ( 1,771 ) ( 1,916 ) Cash flows from financing activities Net change in commercial paper borrowings with original maturities of three months or less ( 499 ) 1,549 Proceeds from issuance of other short-term borrowings — 4,007 Repayments of other short-term borrowings ( 2,000 ) — Proceeds from issuance of long-term debt 7,991 3,994 Repayments of long-term debt ( 2,000 ) ( 6,780 ) Dividends paid ( 6,156 ) ( 5,835 ) Purchases of treasury stock ( 1,498 ) ( 973 ) Other, net 27 70 Cash flows from financing activities ( 4,135 ) ( 3,968 ) Effect of exchange rate changes on cash and equivalents ( 19 ) 39 Net change in cash and equivalents 1,340 943 Cash and equivalents, beginning of period 5,229 5,524 Cash and equivalents, end of period $ 6,569 $ 6,467 The accompanying notes are an integral part of these condensed consolidated financial statements. 2026 Form 10-Q | 5 AbbVie Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (unaudited) Note 1 Basis of Presentation Basis of Historical Presentation The unaudited interim condensed consolidated financial statements of AbbVie Inc. (AbbVie or the company) have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been omitted. These unaudited interim condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements and notes included in the company’s Annual Report on Form 10-K for the year ended December 31, 2025. It is management’s opinion that these financial statements include all normal and recurring adjustments necessary for a fair presentation of the company’s financial position and operating results. Net revenues and net earnings for any interim period are not necessarily indicative of future or annual results. Certain other reclassifications were made to conform the prior period interim condensed consolidated financial statements to the current period presentation. Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted ASU No. 2024-03 In November 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40 ). The standard requires further disaggregation of relevant expense captions in a separate note to the financial statements. The standard is effective for AbbVie starting in annual periods in 2027 and interim periods beginning in 2028, with early adoption permitted. AbbVie is currently assessing the impact of adopting this guidance on its consolidated financial statements. Note 2 Supplemental Financial Information Interest Expense, Net Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Interest expense $ 746 $ 740 $ 1,463 $ 1,440 Interest income ( 67 ) ( 62 ) ( 139 ) ( 135 ) Interest expense, net $ 679 $ 678 $ 1,324 $ 1,305 Inventories (in millions) June 30, 2026 December 31, 2025 Finished goods $ 1,671 $ 1,580 Work-in-process 2,316 2,287 Raw materials 1,140 1,084 Inventories $ 5,127 $ 4,951 2026 Form 10-Q | 6 Property and Equipment, Net (in millions) June 30, 2026 December 31, 2025 Property and equipment, gross $ 13,955 $ 13,530 Accumulated depreciation ( 8,159 ) ( 7,902 ) Property and equipment, net $ 5,796 $ 5,628 Depreciation expense was $ 194 million for the three months and $ 382 million for the six months ended June 30, 2026 and $ 186 million for the three months and $ 367 million for the six months ended June 30, 2025. Note 3 Earnings Per Share AbbVie grants certain restricted stock units (RSUs) that are considered to be participating securities. Due to the presence of participating securities, AbbVie calculates earnings per share (EPS) using the more dilutive of the treasury stock or the two-class method. For all periods presented, the two-class method was more dilutive. The following table summarizes the impact of the two-class method: Three months ended June 30, Six months ended June 30, (in millions, except per share data) 2026 2025 2026 2025 Basic EPS Net earnings attributable to AbbVie Inc. $ 3,613 $ 938 $ 4,308 $ 2,224 Earnings allocated to participating securities 12 10 20 20 Earnings available to common shareholders $ 3,601 $ 928 $ 4,288 $ 2,204 Weighted-average basic shares outstanding 1,769 1,768 1,769 1,768 Basic earnings per share attributable to AbbVie Inc. $ 2.04 $ 0.52 $ 2.42 $ 1.25 Diluted EPS Net earnings attributable to AbbVie Inc. $ 3,613 $ 938 $ 4,308 $ 2,224 Earnings allocated to participating securities 12 10 20 20 Earnings available to common shareholders $ 3,601 $ 928 $ 4,288 $ 2,204 Weighted-average shares of common stock outstanding 1,769 1,768 1,769 1,768 Effect of dilutive securities 2 3 4 4 Weighted-average diluted shares outstanding 1,771 1,771 1,773 1,772 Diluted earnings per share attributable to AbbVie Inc. $ 2.03 $ 0.52 $ 2.42 $ 1.24 Certain shares issuable under stock-based compensation plans were excluded from the computation of EPS because the effect would have been antidilutive. The number of common shares excluded was insignificant for all periods presented. Note 4 Licensing, Acquisitions and Other Arrangements Proposed Acquisition of Apogee Therapeutics, Inc. In June 2026, AbbVie announced that it entered into a definitive agreement to acquire Apogee Therapeutics, Inc. (Apogee). Apogee is a clinical-stage biotechnology company advancing novel biologics with potential for differentiated efficacy and dosing for the treatment of atopic dermatitis, asthma and other inflammatory conditions. Under the terms of the agreement, AbbVie will acquire all outstanding shares of Apogee for $ 135.11 per share in cash for a total value of approximately $ 10.9 billion. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and other customary closing conditions including Apogee shareholder approval. 2026 Form 10-Q | 7 Acquisition of Nimble Therapeutics, Inc. In January 2025, AbbVie completed its acquisition of Nimble Therapeutics, Inc. (Nimble). Nimble is a biotechnology company dedicated to delivering on the promise of oral peptide therapeutics and its lead asset, an investigational oral peptide IL23R inhibitor in development for the treatment of psoriasis. The aggregate purchase price of $ 288 million was comprised of a $ 210 million upfront cash payment and $ 78 million for the acquisition date fair value of contingent consideration liabilities, for which AbbVie may owe up to $ 130 million in future payments upon achievement of certain development milestones. The transaction was accounted for as a business combination using the acquisition method of accounting. Other Licensing & Acquisitions Activity Cash outflows related to other acquisitions and investments, net of cash acquired totaled $ 1.1 billion for the six months ended June 30, 2026 and $ 1.3 billion for the six months ended June 30, 2025. The following table summarizes acquired in-process research and development (IPR&D) and milestones expense: Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Upfront charges $ 145 $ 705 $ 848 $ 951 Development milestones 146 118 187 120 Acquired IPR&D and milestones $ 291 $ 823 $ 1,035 $ 1,071 RemeGen Co., Ltd. In March 2026, AbbVie entered into a license agreement with RemeGen Co., Ltd. (RemeGen). Under the terms of the agreement, AbbVie received an exclusive global license excluding China to develop, manufacture and commercialize RC148 (ABBV-1480), a novel investigational Programmed Cell Death-1 (PD-1)/Vascular Endothelial Growth Factor (VEGF)-targeted bispecific antibody in development for the treatment of multiple advanced solid tumors. The upfront payment of $ 650 million was recorded in acquired IPR&D and milestones expense in the condensed consolidated statement of earnings in the first quarter of 2026. AbbVie could make additional payments of up to $ 5.0 billion upon achievement of certain development, regulatory and commercial milestones and pay tiered royalties. ADARx Pharmaceuticals, Inc. In May 2025, AbbVie entered into a license option agreement with ADARx Pharmaceuticals, Inc. (ADARx). Under the terms of the agreement, AbbVie received exclusive options to global license rights to develop and commercialize ADARx’s small interfering RNA (siRNA) therapeutics across multiple disease areas, including neuroscience, immunology and oncology. Under the terms of the agreement, AbbVie made an upfront payment of $ 335 million which was recognized in acquired IPR&D and milestones expense in the condensed consolidated statement of earnings in the second quarter of 2025. AbbVie could make additional payments of up to $ 385 million for option fees and option exercise payments, up to $ 7.5 billion upon achievement of certain development, regulatory and commercial milestones and pay tiered royalties. Gubra A/S In April 2025, AbbVie entered into a licensing agreement with Gubra A/S. Under the terms of the agreement, AbbVie received an exclusive global license to develop and commercialize GUB014295 (ABBV-295), a long-acting amylin analog for the treatment of obesity. Under the terms of the agreement, AbbVie made an upfront payment of $ 350 million which was recognized in acquired IPR&D and milestones expense in the condensed consolidated statement of earnings in the second quarter of 2025. AbbVie could make additional payments of up to $ 1.9 billion upon achievement of certain development, regulatory and commercial milestones and pay tiered royalties. AbbVie entered into other individually insignificant collaborations, licensing agreements or other asset acquisitions in which the related upfront payments were recorded in acquired IPR&D and milestones expense. 2026 Form 10-Q | 8 Note 5 Collaborations The company has ongoing transactions with other entities through collaboration agreements. The following represent the significant collaboration agreements impacting the periods ended June 30, 2026 and 2025. Collaboration with Genentech, Inc. AbbVie and Genentech, Inc. (Genentech), a member of the Roche Group, are parties to a collaboration and license agreement for the joint development and commercialization of Venclexta. AbbVie shares equally with Genentech all pre-tax profits and losses from the development and commercialization of Venclexta in the United States. AbbVie pays royalties on Venclexta net revenues outside the United States. AbbVie manufactures and distributes Venclexta globally and is the principal in the end-customer product sales. Sales of Venclexta are included in AbbVie’s net revenues. Genentech’s share of United States profits is included in AbbVie’s cost of products sold. AbbVie records sales and marketing costs associated with the United States collaboration as part of selling, general and administrative (SG&A) expenses and global development costs as part of research and development (R&D) expenses, net of Genentech’s share. Royalties paid for Venclexta revenues outside the United States are also included in AbbVie’s cost of products sold. Genentech’s share of profits, including royalties, was $ 298 million for the three months and $ 582 million for the six months ended June 30, 2026 and $ 262 million for the three months and $ 504 million for the six months ended June 30, 2025. Sales and marketing and development costs for the three and six months ended June 30, 2026 and 2025 were insignificant. Collaboration with Janssen Biotech, Inc. AbbVie and Janssen Biotech, Inc. and its affiliates (Janssen), one of the Janssen Pharmaceutical companies of Johnson & Johnson, are parties to a collaboration agreement for the joint development and commercialization of Imbruvica. The collaboration provides Janssen with an exclusive license to commercialize Imbruvica outside of the United States and co-exclusively with AbbVie in the United States. Both parties are responsible for the development, manufacturing and marketing of any products generated as a result of the collaboration. Except in certain cases, Janssen is responsible for approximately 60 % of collaboration development costs and AbbVie is responsible for the remaining 40 % of collaboration development costs. In the United States, both parties have co-exclusive rights to commercialize Imbruvica; however, AbbVie is the principal in the end-customer product sales. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of Imbruvica. Sales of Imbruvica are included in AbbVie's net revenues. Janssen's share of profits is included in AbbVie's cost of products sold. Other costs incurred under the collaboration are reported in their respective expense line items, net of Janssen's share. In the United States, Janssen’s share of profits was $ 157 million for the three months and $ 310 million for the six months ended June 30, 2026 and $ 253 million for the three months and $ 500 million for the six months ended June 30, 2025. Other costs for the three and six months ended June 30, 2026 and 2025 were insignificant. Outside the United States, Janssen is responsible for and has exclusive rights to commercialize Imbruvica. AbbVie and Janssen share pre-tax profits and losses equally from the commercialization of products. AbbVie's share of profits is included in AbbVie's net revenues. Other costs incurred under the collaboration are reported in their respective expense line items, net of Janssen's share. Outside the United States, AbbVie’s share of profits was $ 195 million for the three months and $ 419 million for the six months ended June 30, 2026 and $ 211 million for the three months and $ 420 million for the six months ended June 30, 2025. Other costs for the three and six months ended June 30, 2026 and 2025 were insignificant. Note 6 Goodwill and Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill: (in millions) Balance as of December 31, 2025 $ 35,640 Foreign currency translation adjustments ( 121 ) Balance as of June 30, 2026 $ 35,519 2026 Form 10-Q | 9 Intangible Assets, Net The following table summarizes intangible assets: June 30, 2026 December 31, 2025 (in millions) Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Definite-lived intangible assets Developed product rights $ 81,968 $ ( 37,891 ) $ 44,077 $ 81,239 $ ( 34,849 ) $ 46,390 License agreements 8,359 ( 7,698 ) 661 8,353 ( 7,383 ) 970 Total definite-lived intangible assets 90,327 ( 45,589 ) 44,738 89,592 ( 42,232 ) 47,360 Indefinite-lived intangible assets 4,401 — 4,401 5,281 — 5,281 Total intangible assets, net $ 94,728 $ ( 45,589 ) $ 49,139 $ 94,873 $ ( 42,232 ) $ 52,641 Amortization expense was $ 1.7 billion for the three months and $ 3.4 billion for the six months ended June 30, 2026 and $ 1.9 billion for the three months and $ 3.7 billion for the six months ended June 30, 2025. Amortization expense was included in cost of products sold in the condensed consolidated statements of earnings. Note 7 Financial Instruments and Fair Value Measures Risk Management Policy See Note 11 to the company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a summary of AbbVie’s risk management policy and use of derivative instruments. Financial Instruments Various AbbVie foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates for anticipated intercompany transactions denominated in a currency other than the functional currency of the local entity. These contracts, with notional amounts totaling $ 3.8 billion at June 30, 2026 and $ 2.5 billion at December 31, 2025, are designated as cash flow hedges and are recorded at fair value. The durations of these forward exchange contracts were generally less than 24 months. Accumulated gains and losses as of June 30, 2026 are reclassified from accumulated other comprehensive income (loss) (AOCI) and included in cost of products sold at the time the products are sold, generally not exceeding six months from the date of settlement. The company also enters into foreign currency forward exchange contracts to manage its exposure to foreign currency denominated debt, trade payables and receivables and intercompany loans. These contracts are not designated as hedges and are recorded at fair value. Resulting gains or losses are recognized in other expense, net in the condensed consolidated statements of earnings and are generally offset by losses or gains on the foreign currency exposure being managed. These contracts had notional amounts totaling $ 9.2 billion at June 30, 2026 and December 31, 2025. The company also uses foreign currency forward exchange contracts or foreign currency denominated debt to hedge its net investments in certain foreign subsidiaries and affiliates. The company had an aggregate principal amount of senior Euro notes designated as net investment hedges of € 3.1 billion at June 30, 2026 and December 31, 2025. In addition, the company had foreign currency forward exchange contracts designated as net investment hedges with notional amounts totaling € 6.7 billion, SEK 1.4 billion, CAD 800 million and CHF 80 million at June 30, 2026 and € 6.5 billion, SEK 1.4 billion, CAD 500 million and CHF 80 million at December 31, 2025. The company uses the spot method of assessing hedge effectiveness for derivative instruments designated as net investment hedges. Realized and unrealized gains and losses from these hedges are included in AOCI and the initial fair value of hedge components excluded from the assessment of effectiveness is recognized in interest expense, net over the life of the hedging instrument. The company is a party to interest rate swap contracts designated as fair value hedges with notional amounts totaling $ 3.3 billion at June 30, 2026 and $ 1.8 billion at December 31, 2025. The effect of the hedge contracts is to change a fixed-rate interest obligation to a floating rate for that portion of the debt. AbbVie records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount. The company is a party to interest rate swap contracts designated as cash flow hedges with notional amounts totaling $ 750 million at June 30, 2026. The effect of the hedge contracts is to change a floating-rate interest obligation to a fixed rate for that portion of 2026 Form 10-Q | 10 the floating-rate debt. AbbVie records the contracts at fair value and includes accumulated gains or losses in AOCI which it reclassifies to interest expense, net over the lives of the floating-rate debt. No amounts are excluded from the assessment of effectiveness for cash flow hedges or fair value hedges. The following table summarizes the amounts and location of AbbVie’s derivative instruments on the condensed consolidated balance sheets: Fair value – Derivatives in asset position Fair value – Derivatives in liability position (in millions) Balance sheet caption June 30, 2026 December 31, 2025 Balance sheet caption June 30, 2026 December 31, 2025 Foreign currency forward exchange contracts Designated as cash flow hedges Prepaid expenses and other $ 100 $ 35 Accounts payable and accrued liabilities $ 15 $ 51 Designated as cash flow hedges Other assets 12 1 Other long-term liabilities 1 — Designated as net investment hedges Prepaid expenses and other 66 — Accounts payable and accrued liabilities 54 220 Designated as net investment hedges Other assets 7 — Other long-term liabilities 92 228 Not designated as hedges Prepaid expenses and other 75 25 Accounts payable and accrued liabilities 59 20 Interest rate swap contracts Designated as fair value hedges Prepaid expenses and other — — Accounts payable and accrued liabilities 9 21 Designated as fair value hedges Other assets 10 30 Other long-term liabilities 54 — Designated as cash flow hedges Other assets 9 — Other long-term liabilities — — Total derivatives $ 279 $ 91 $ 284 $ 540 While certain derivatives are subject to netting arrangements with the company’s counterparties, the company does not offset derivative assets and liabilities within the condensed consolidated balance sheets. The following table presents the pre-tax amounts of gains (losses) from derivative instruments recognized in other comprehensive income (loss): Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Foreign currency forward exchange contracts Designated as cash flow hedges $ 62 $ ( 135 ) $ 96 $ ( 154 ) Designated as net investment hedges 90 ( 570 ) 266 ( 763 ) Interest rate swap contracts designated as cash flow hedges 5 — 10 — Assuming market rates remain constant through contract maturities, the company expects to reclassify pre-tax gains of $ 45 million into cost of products sold for foreign currency cash flow hedges and pre-tax gains of $ 23 million into interest expense, net for other cash flow hedges during the next 12 months. Related to AbbVie’s non-derivative, foreign currency denominated debt designated as net investment hedges, the company recognized in other comprehensive income (loss) pre-tax gains of $ 43 million for the three months and $ 103 million for the six months ended June 30, 2026 and pre-tax losses of $ 283 million for the three months and $ 416 million for the six months ended June 30, 2025. 2026 Form 10-Q | 11 The following table summarizes the pre-tax amounts and location of derivative instrument net gains (losses) recognized in the condensed consolidated statements of earnings, including the net gains (losses) reclassified out of AOCI into net earnings. See Note 9 for the amount of net gains (losses) reclassified out of AOCI. Three months ended June 30, Six months ended June 30, (in millions) Statement of earnings caption 2026 2025 2026 2025 Foreign currency forward exchange contracts Designated as cash flow hedges Cost of products sold $ ( 6 ) $ 29 $ ( 13 ) $ 28 Designated as net investment hedges Interest expense, net 36 37 73 71 Not designated as hedges Other expense, net 1 ( 17 ) 13 ( 46 ) Interest rate swap contracts Designated as fair value hedges Interest expense, net ( 21 ) 47 ( 62 ) 102 Debt designated as hedged item in fair value hedges Interest expense, net 21 ( 47 ) 62 ( 102 ) Other Interest expense, net 6 5 12 10 Fair Value Measures The fair value hierarchy consists of the following three levels: • Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets that the company has the ability to access; • Level 2 – Valuations based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuations in which all significant inputs are observable in the market; and • Level 3 – Valuations using significant inputs that are unobservable in the market and include the use of judgment by the company’s management about the assumptions market participants would use in pricing the asset or liability. The following table summarizes the bases used to measure certain assets and liabilities carried at fair value on a recurring basis on the condensed consolidated balance sheet as of June 30, 2026 and December 31, 2025: June 30, 2026 December 31, 2025 Basis of fair value measurement Basis of fair value measurement (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets Cash and equivalents $ 6,569 $ 6,226 $ 343 $ — $ 5,229 $ 4,868 $ 361 $ — Money market funds and time deposits 6 — 6 — 10 — 10 — Debt securities 17 — 17 — 24 — 24 — Equity securities 86 38 48 — 103 62 41 — Interest rate swap contracts 19 — 19 — 30 — 30 — Foreign currency contracts 260 — 260 — 61 — 61 — Total assets $ 6,957 $ 6,264 $ 693 $ — $ 5,457 $ 4,930 $ 527 $ — Liabilities Interest rate swap contracts $ 63 $ — $ 63 $ — $ 21 $ — $ 21 $ — Foreign currency contracts 221 — 221 — 519 — 519 — Financing liability 403 — — 403 378 — — 378 Contingent consideration 27,495 — — 27,495 25,374 — — 25,374 Total liabilities $ 28,182 $ — $ 284 $ 27,898 $ 26,292 $ — $ 540 $ 25,752 Money market funds and time deposits are valued using relevant observable market inputs including quoted prices for similar assets and interest rate curves. Equity securities primarily consist of investments for which the fair values were determined by using the published market prices per unit multiplied by the number of units held, without consideration of transaction costs. The derivatives entered into by the company were valued using observable market inputs including published interest rate curves and both forward and spot prices for foreign currencies. 2026 Form 10-Q | 12 The financing liability is related to financing arrangements which the company elected to account for in accordance with the fair value option, as permitted under ASC 825 Financial Instruments . The fair value measurement of the financing liability was determined based on significant unobservable inputs. Potential payments are estimated by applying a probability-weighted expected payment model, which are then discounted to present value. Changes to the fair value of the financing liability can result from changes to one or a number of inputs, including discount rates, estimated probabilities and timing of achieving milestones and estimated amounts of future sales. The change in fair value recognized in net earnings is recorded in other expense, net in the condensed consolidated statements of earnings and the change in fair value attributable to instrument-specific credit risk is recognized in other comprehensive income (loss). Changes in fair value recognized in other expense, net and in other comprehensive income (loss) for the three and six months ended June 30, 2026 and June 30, 2025 were insignificant. The fair value measurements of the contingent consideration liabilities were determined based on significant unobservable inputs, including the discount rate, estimated probabilities and timing of achieving specified development, regulatory and commercial milestones and the estimated amount of future sales of the acquired products. The potential contingent consideration payments are estimated by applying a probability-weighted expected payment model for contingent milestone payments and a Monte Carlo simulation model for contingent royalty payments, which are then discounted to present value. Changes to the fair value of the contingent consideration liabilities can result from changes to one or a number of inputs, including discount rates, the probabilities of achieving the milestones, the time required to achieve the milestones and estimated future sales. Significant judgment is employed in determining the appropriateness of certain of these inputs. Changes to the inputs described above could have a material impact on the company's financial position and results of operations in any given period. The fair value of the company's contingent consideration liabilities was calculated using the following significant unobservable inputs: June 30, 2026 December 31, 2025 Range Weighted average (a) Range Weighted average (a) Discount rate 4.2 % - 5.5 % 4.5 % 3.7 % - 4.8 % 4.0 % Probability of payment for royalties by indication (b) 38 % - 100 % 93 % 100 % 100 % Projected year of payments (c) 2026 - 2044 2030 2026 - 2037 2030 (a) Unobservable inputs were weighted by the relative fair value of the contingent consideration liabilities. (b) At June 30, 2026, the estimated probability of payment was 100 % for approved Skyrizi indications and 38 % for pipeline assets in combination with Skyrizi based on the weighted probabilities of achieving regulatory approval. Excludes early-stage pipeline assets with 0 % estimated probability of payment. (c) At June 30, 2026, the projected year of payments ends in 2037 for Skyrizi and in 2044 for pipeline assets in combination with Skyrizi. There have been no transfers of assets or liabilities into or out of Level 3 of the fair value hierarchy. The following table presents the changes in fair value of total contingent consideration liabilities which are measured using Level 3 inputs: Six months ended June 30, (in millions) 2026 2025 Beginning balance $ 25,374 $ 21,666 Additions (a) — 78 Change in fair value recognized in net earnings 3,905 4,313 Payments ( 1,784 ) ( 1,408 ) Ending balance $ 27,495 $ 24,649 (a) Additions during the six months ended June 30, 2025, represent contingent consideration liabilities related to the Nimble acquisition. The change in fair value is recorded in other expense, net in the condensed consolidated statements of earnings. 2026 Form 10-Q | 13 Certain financial instruments are carried at historical cost or some basis other than fair value. The book value, fair value and bases used to measure the approximate fair values of certain financial instruments as of June 30, 2026 are shown in the table below: Basis of fair value measurement (in millions) Book value Fair value Level 1 Level 2 Level 3 Liabilities Current portion of long-term debt (a) $ 8,264 $ 8,258 $ 6,239 $ 2,019 $ — Long-term debt (a) 62,238 58,500 58,086 414 — Total liabilities $ 70,502 $ 66,758 $ 64,325 $ 2,433 $ — (a) Excludes the effects of fair value hedges and financing liability. The book value, fair value and bases used to measure the approximate fair values of certain financial instruments as of December 31, 2025 are shown in the table below: Basis of fair value measurement (in millions) Book value Fair value Level 1 Level 2 Level 3 Liabilities Short-term borrowings $ 2,499 $ 2,497 $ — $ 2,497 $ — Current portion of long-term debt (a) 6,016 5,985 5,965 20 — Long-term debt (a) 58,650 55,822 53,381 2,441 — Total liabilities $ 67,165 $ 64,304 $ 59,346 $ 4,958 $ — (a) Excludes the effects of fair value hedges and financing liability. AbbVie also holds investments in equity securities that do not have readily determinable fair values. The company records these investments at cost and remeasures them to fair value based on certain observable price changes or impairment events as they occur. The carrying amount of these investments was $ 162 million as of June 30, 2026 and $ 159 million as of December 31, 2025. No significant cumulative upward or downward adjustments have been recorded for these investments as of June 30, 2026. Concentrations of Risk Of total net accounts receivable, three U.S. wholesalers accounted for 82 % as of June 30, 2026 and 84 % as of December 31, 2025, and substantially all of AbbVie’s pharmaceutical product net revenues in the United States were to these three wholesalers. 2026 Form 10-Q | 14 Debt and Credit Facilities Issuance and Repayment of Long-Term Debt In March 2026, the company issued $ 8.0 billion aggregate principal amount of unsecured senior notes. The following table summarizes the issued debt: (in millions) Senior Notes Senior Floating Rate Notes due 2028 (a) $ 750 3.775% Senior Notes due 2028 1,500 4.125% Senior Notes due 2031 1,250 4.40% Senior Notes due 2033 1,250 4.75% Senior Notes due 2036 1,500 5.55% Senior Notes due 2056 1,250 5.65% Senior Notes due 2066 500 Total debt issued $ 8,000 (a) Senior floating rate notes bear interest at adjusted Secured Overnight Financing Rate + 0.480 %. The notes are unsecured, unsubordinated obligations of AbbVie and will rank equally in right of payment with all of AbbVie’s existing and future unsecured, unsubordinated indebtedness, liabilities and other obligations. AbbVie may redeem the fixed-rate senior notes prior to maturity at a redemption price equal to the greater of the principal amount or the sum of present values of the remaining scheduled payments of principal and interest plus a make-whole premium. With exception of the fixed-rate senior notes due 2028, AbbVie may also redeem the fixed-rate senior notes at par between one and six months prior to maturity. The senior floating rate notes may not be redeemed prior to maturity. In May 2026, the company repaid $ 2.0 billion aggregate principal amount of 3.20 % senior notes at maturity. In February 2025, the company issued $ 4.0 billion aggregate principal amount of unsecured senior notes. In March 2025, the company repaid $ 3.0 billion aggregate principal amount of 3.80 % senior notes at maturity. In May 2025, the company repaid $ 3.8 billion aggregate principal amount of 3.60 % senior notes at maturity. Financing related to the proposed acquisition of Apogee Subsequent to June 30, 2026, in connection with the proposed acquisition of Apogee, AbbVie entered into a $ 10.0 billion 364-day senior unsecured term loan facility. No amounts have been drawn under the term loan facility as of the date of filing of this Quarterly Report on Form 10-Q. Short-Term Borrowings There were no commercial paper borrowings outstanding as of June 30, 2026 and $ 499 million as of December 31, 2025. The weighted-average interest rate on commercial paper borrowings was 3.85 % for the six months ended June 30, 2026 and 4.64 % for the six months ended June 30, 2025. In April 2025, the company entered into a $ 4.0 billion 364-day term loan credit agreement. In May 2025, the company borrowed $ 2.0 billion under this term loan credit agreement which was outstanding and included in short-term borrowings as of December 31, 2025. In March 2026, the company repaid the $ 2.0 billion amount outstanding under this term loan credit agreement and terminated the agreement. AbbVie has two revolving credit facilities available, including a $ 5.0 billion five-year revolving credit facility that matures in March 2028 and a $ 3.0 billion five-year revolving credit facility that matures in January 2030. The revolving credit facilities are available to support AbbVie’s commercial paper program and enable the company to borrow funds to meet liquidity requirements on an unsecured basis at variable interest rates and contain various covenants. At June 30, 2026, the company was in compliance with all covenants, and commitment fees under the revolving credit facilities were insignificant. No amounts were outstanding under the company's revolving credit facilities as of June 30, 2026 and December 31, 2025. 2026 Form 10-Q | 15 Note 8 Post-Employment Benefits The following table summarizes net periodic benefit cost relating to the company’s defined benefit and other post-employment plans: Defined benefit plans Other post-employment plans Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 2026 2025 2026 2025 Service cost $ 68 $ 68 $ 131 $ 131 $ 10 $ 10 $ 21 $ 20 Interest cost 128 124 250 241 10 11 21 22 Expected return on plan assets ( 222 ) ( 208 ) ( 446 ) ( 414 ) — — — — Amortization of prior service credit — — — — ( 9 ) ( 9 ) ( 18 ) ( 18 ) Amortization of actuarial loss 12 10 20 16 2 2 4 4 Net periodic benefit cost (credit) $ ( 14 ) $ ( 6 ) $ ( 45 ) $ ( 26 ) $ 13 $ 14 $ 28 $ 28 The components of net periodic benefit cost other than service cost are included in other expense, net in the condensed consolidated statements of earnings. Note 9 Equity Stock-Based Compensation Stock-based compensation expense is principally related to awards issued pursuant to the AbbVie 2013 Incentive Stock Program and the AbbVie Amended and Restated 2013 Incentive Stock Program and is summarized as follows: Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Cost of products sold $ 9 $ 11 $ 34 $ 33 Research and development 66 79 248 239 Selling, general and administrative 91 89 328 317 Pre-tax compensation expense 166 179 610 589 Tax benefit ( 29 ) ( 34 ) ( 104 ) ( 104 ) After-tax compensation expense $ 137 $ 145 $ 506 $ 485 Stock Options During the six months ended June 30, 2026, primarily in connection with the company's annual grant, AbbVie granted 0.4 million stock options with a weighted-average grant-date fair value of $ 48.38 . As of June 30, 2026, $ 11 million of unrecognized compensation cost related to stock options is expected to be recognized as expense over approximately the next two years . RSUs and Performance Shares During the six months ended June 30, 2026, primarily in connection with the company's annual grant, AbbVie granted 4.5 million RSUs and performance shares with a weighted-average grant-date fair value of $ 229.77 . As of June 30, 2026, $ 1.0 billion of unrecognized compensation cost related to RSUs and performance shares is expected to be recognized as expense over approximately the next two years . 2026 Form 10-Q | 16 Cash Dividends The following table summarizes quarterly cash dividends declared during 2026 and 2025: 2026 2025 Date Declared Payment Date Dividend Per Share Date Declared Payment Date Dividend Per Share 06/18/26 08/14/26 $ 1.73 10/31/25 02/17/26 $ 1.73 02/19/26 05/15/26 $ 1.73 09/05/25 11/14/25 $ 1.64 06/20/25 08/15/25 $ 1.64 02/13/25 05/15/25 $ 1.64 Stock Repurchase Program The company's stock repurchase authorization permits purchases of AbbVie shares from time to time in open-market or private transactions at management's discretion. The program has no time limit and can be discontinued at any time. Shares repurchased under this program are recorded at acquisition cost, including related expenses, and are available for general corporate purposes. AbbVie repurchased 5 million shares for $ 1.1 billion during the six months ended June 30, 2026 and 3 million shares for $ 606 million during the six months ended June 30, 2025. AbbVie's remaining stock repurchase authorization was approximately $ 1.8 billion as of June 30, 2026. Accumulated Other Comprehensive Loss The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2026: (in millions) Foreign currency translation adjustments Net investment hedging activities Pension and post-employment benefits Cash flow hedging activities Total Balance as of December 31, 2025 $ ( 633 ) $ ( 422 ) $ ( 243 ) $ 154 $ ( 1,144 ) Other comprehensive income (loss) before reclassifications ( 348 ) 290 ( 5 ) 96 33 Net losses (gains) reclassified from accumulated other comprehensive loss — ( 58 ) 4 7 ( 47 ) Net current-period other comprehensive income (loss) ( 348 ) 232 ( 1 ) 103 ( 14 ) Balance as of June 30, 2026 $ ( 981 ) $ ( 190 ) $ ( 244 ) $ 257 $ ( 1,158 ) Other comprehensive loss for the six months ended June 30, 2026 included foreign currency translation adjustments totaling a loss of $ 348 million principally due to the impact of the weakening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling a gain of $ 232 million. 2026 Form 10-Q | 17 The following table summarizes the changes in each component of accumulated other comprehensive loss, net of tax, for the six months ended June 30, 2025: (in millions) Foreign currency translation adjustments Net investment hedging activities Pension and post-employment benefits Cash flow hedging activities Total Balance as of December 31, 2024 $ ( 2,114 ) $ 549 $ ( 664 ) $ 304 $ ( 1,925 ) Other comprehensive income (loss) before reclassifications 1,538 ( 925 ) 1 ( 142 ) 472 Net losses (gains) reclassified from accumulated other comprehensive loss — ( 56 ) 1 ( 30 ) ( 85 ) Net current-period other comprehensive income (loss) 1,538 ( 981 ) 2 ( 172 ) 387 Balance as of June 30, 2025 $ ( 576 ) $ ( 432 ) $ ( 662 ) $ 132 $ ( 1,538 ) Other comprehensive income for the six months ended June 30, 2025 included foreign currency translation adjustments totaling a gain of $ 1.5 billion principally due to the impact of the strengthening of the Euro on the translation of the company’s Euro-denominated assets and the offsetting impact of net investment hedging activities totaling a loss of $ 981 million. The following table presents the impact on AbbVie’s condensed consolidated statements of earnings for significant amounts reclassified out of each component of accumulated other comprehensive loss: Three months ended June 30, Six months ended June 30, (in millions) (brackets denote gains) 2026 2025 2026 2025 Net investment hedging activities Gains on derivative amount excluded from effectiveness testing (a) $ ( 36 ) $ ( 37 ) $ ( 73 ) $ ( 71 ) Tax expense 7 8 15 15 Total reclassifications, net of tax $ ( 29 ) $ ( 29 ) $ ( 58 ) $ ( 56 ) Pension and post-employment benefits Amortization of actuarial losses and other (b) $ 5 $ 3 $ 6 $ 2 Tax benefit ( 2 ) ( 1 ) ( 2 ) ( 1 ) Total reclassifications, net of tax $ 3 $ 2 $ 4 $ 1 Cash flow hedging activities Losses (gains) on foreign currency forward exchange contracts (c) $ 6 $ ( 29 ) $ 13 $ ( 28 ) Other (a) ( 6 ) ( 5 ) ( 12 ) ( 10 ) Tax expense 3 6 6 8 Total reclassifications, net of tax $ 3 $ ( 28 ) $ 7 $ ( 30 ) (a) Amounts are included in interest expense, net (see Note 7) . (b) Amounts are included in the computation of net periodic benefit cost (see Note 8). (c) Amounts are included in cost of products sold (see Note 7). Note 10 Income Taxes The effective tax rate was 15 % for the three months and 19 % for the six months ended June 30, 2026 compared to 39 % for the three months and 31 % for the six months ended June 30, 2025. The effective tax rate in each period differed from the U.S. statutory tax rate of 21 % principally due to the impact of foreign operations which reflect lower income tax rates in locations outside the United States partially offset by changes in fair value of contingent consideration and business development activities. The decrease in the effective tax rate for the three and six months ended June 30, 2026 over the prior year was primarily due to the decreased impact of changes in fair value of contingent consideration and business development activities. The decrease in the effective tax rate for the three months ended June 30, 2026 over the prior year was partially offset by changes in the impact of foreign operations. 2026 Form 10-Q | 18 Note 11 Legal Proceedings and Contingencies AbbVie is subject to contingencies, such as various claims, legal proceedings and investigations regarding product liability, intellectual property, commercial, securities and other matters that arise in the normal course of business. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount within a probable range is recorded. The recorded accrual balance for litigation was approximately $ 1.7 billion as of June 30, 2026 and $ 1.6 billion as of December 31, 2025. For litigation matters discussed below for which a loss is probable or reasonably possible, the company is unable to estimate the possible loss or range of loss, if any, beyond the amounts accrued. Initiation of new legal proceedings or a change in the status of existing proceedings may result in a change in the estimated loss accrued by AbbVie. While it is not feasible to predict the outcome of all proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on AbbVie’s consolidated financial position, results of operations or cash flows. Antitrust Litigation Lawsuits are pending against AbbVie and others generally alleging that the 2005 patent litigation settlement involving Niaspan entered into between Kos Pharmaceuticals, Inc. (a company acquired by Abbott in 2006 and presently a subsidiary of AbbVie) and a generic company violated federal and state antitrust laws and state unfair and deceptive trade practices and unjust enrichment laws. Plaintiffs generally seek monetary damages and/or injunctive relief and attorneys' fees. The lawsuits pending in federal court consist of six individual plaintiff lawsuits and a certified class action by Niaspan direct purchasers. The cases are pending in the United States District Court for the Eastern District of Pennsylvania for coordinated or consolidated pre-trial proceedings under the federal multi-district litigation (MDL) Rules as In re: Niaspan Antitrust Litigation, MDL No. 2460. In October 2016, the Orange County, California District Attorney’s Office filed a lawsuit on behalf of the State of California regarding the Niaspan patent litigation settlement in Orange County Superior Court, asserting a claim under the unfair competition provision of the California Business and Professions Code seeking injunctive relief, restitution, civil penalties and attorneys’ fees. Government Proceedings Lawsuits are pending against Allergan and several other manufacturers generally alleging that they improperly promoted and sold prescription opioid products. Approximately 215 lawsuits are pending against Allergan in federal and state courts. Most of the federal court lawsuits are consolidated for pre-trial purposes in the United States District Court for the Northern District of Ohio under the MDL rules as In re: National Prescription Opiate Litigation, MDL No. 2804. Approximately 20 of the lawsuits are pending in various state courts. The plaintiffs in these lawsuits, which include counties, cities, other municipal entities, Native American tribes, union trust funds and other third-party payors, private hospitals and personal injury claimants, generally seek compensatory and punitive damages. Of these approximately 215 lawsuits, approximately 20 of them are brought by counties, cities and other municipal entities, approximately 5 of which are in the process of being dismissed pursuant to the previously announced settlement. Product Liability and General Litigation In April 2023, a putative class action lawsuit, Camargo v. AbbVie Inc., was filed in the United States District Court for the Northern District of Illinois on behalf of Humira patients who paid for Humira based on its list price or who, after losing insurance coverage, discontinued Humira because they could not pay based on its list price, alleging that Humira’s list price is excessive in violation of multiple states’ unfair and deceptive trade practices statutes. The plaintiff generally seeks monetary damages, injunctive relief, and attorneys’ fees. In January 2026, the court granted AbbVie’s motion to dismiss, without prejudice. In March 2026, the plaintiff filed a notice of appeal of this dismissal to the United States Court of Appeals for the Seventh Circuit. Lawsuits are pending against various Allergan entities in the United States and other countries including Australia, Brazil, Canada and South Korea, in which plaintiffs generally allege that they developed, or may develop, breast implant-associated anaplastic large cell lymphoma (ALCL) or other injuries from Allergan’s Biocell textured breast implants, which were voluntarily withdrawn from worldwide markets in 2019. In June 2026, AbbVie reached an agreement to resolve substantially all the United States-based ALCL lawsuits, which will be dismissed with prejudice. Approximately 1,300 other lawsuits are coordinated for pre-trial purposes in the United States District Court for the District of New Jersey under the MDL rules as In re: Allergan Biocell Textured Breast Implant Product Liability Litigation, MDL No. 2921; approximately 475 other lawsuits are pending in various U.S. state courts; and approximately 1,080 lawsuits are pending in other countries. In December 2025, the Amsterdam District Court dismissed all claims pending against Allergan and affiliated entities in the Netherlands. In March 2026, the plaintiffs in the Netherlands filed a notice of appeal of this dismissal to the Amsterdam Court of Appeal. Plaintiffs generally seek monetary damages, medical monitoring and attorneys’ fees. 2026 Form 10-Q | 19 In January 2025, a putative class action lawsuit, Sheet Metal Workers’ Health Plan of Southern California, Arizona and Nevada v. AbbVie Inc., was filed in the United States District Court for the Northern District of Illinois on behalf of third-party payors of Humira, alleging that AbbVie’s rebating practices are impairing biosimilar competition with Humira in violation of federal and state antitrust laws. The plaintiff generally seeks monetary damages, injunctive relief and attorneys' fees. Intellectual Property Litigation AbbVie is seeking to enforce patent rights related to ubrogepant (a drug sold under the trademark Ubrelvy). Litigation was filed in the United States District Court for the District of New Jersey in March 2024 against Aurobindo Pharma U.S.A., Inc., Aurobindo Pharma Limited, and Apitoria Pharma Private Limited; Zydus Pharmaceuticals (USA) Inc. and Zydus Lifesciences Limited; and Hetero USA Inc., Hetero Labs Limited Unit-III, and Hetero Labs Limited. AbbVie alleges defendants’ proposed generic ubrogepant products infringe certain patents and seeks declaratory and injunctive relief. Merck Sharp & Dohme LLC, which exclusively licenses certain patents to AbbVie, is a co-plaintiff in the litigation. AbbVie is seeking to enforce patent rights related to atogepant (a drug sold under the trademark Qulipta). Litigation was filed in the United States District Court for the District of New Jersey in December 2025 and January 2026 against Apotex Inc.; Macleods Pharmaceuticals Ltd. and Macleods Pharma USA, Inc.; Dr. Reddy’s Laboratories, Ltd. and Dr. Reddy’s Laboratories, Inc.; MSN Pharmaceuticals Inc., MSN Laboratories Private Limited, and MSN Life Sciences Private Limited; Hetero USA Inc., Hetero Labs Limited Unit-III, Hetero Labs Limited, and Honour Lab Limited; and Micro Labs Limited and Micro Labs USA, Inc. AbbVie alleges defendants’ proposed generic atogepant products infringe certain patents and seeks declaratory and injunctive relief. 2026 Form 10-Q | 20 Note 12 Segment Information AbbVie operates as a single global business segment dedicated to the research and development, manufacturing, commercialization and sale of innovative medicines and therapies. This operating structure enables the Chief Executive Officer, as chief operating decision maker (CODM), to allocate resources and assess business performance on a global basis in order to achieve established long-term strategic goals. Consistent with this structure, a global research and development and supply chain organization is responsible for the discovery, manufacturing and supply of products. Commercial efforts that coordinate the marketing, sales and distribution of these products are organized by geographic region or therapeutic area. All of these activities are supported by a global corporate administrative staff. The determination of a single business segment is consistent with the consolidated financial information regularly reviewed by the CODM for purposes of assessing performance, allocating resources and planning and forecasting future periods. The CODM regularly reviews net revenues, net earnings and significant segment expenses and uses net earnings as its principal measure of segment profit or loss. Net earnings and significant segment expenses reviewed by the CODM are reported on the condensed consolidated statements of earnings for the periods ended June 30, 2026 and 2025. The CODM uses net earnings as its principal measure of segment profit or loss to compare past financial performance with current performance and analyze underlying business performance and trends. The CODM does not use segment assets to make decisions regarding resources; therefore, the total asset disclosure has not been included. The following table details AbbVie’s worldwide net revenues: Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Immunology Skyrizi United States $ 4,767 $ 3,843 $ 8,542 $ 6,762 International 738 580 1,446 1,086 Total $ 5,505 $ 4,423 $ 9,988 $ 7,848 Rinvoq United States $ 1,765 $ 1,452 $ 3,170 $ 2,672 International 760 576 1,474 1,074 Total $ 2,525 $ 2,028 $ 4,644 $ 3,746 Humira United States $ 425 $ 802 $ 782 $ 1,546 International 331 378 662 755 Total $ 756 $ 1,180 $ 1,444 $ 2,301 Neuroscience Vraylar United States $ 1,068 $ 898 $ 1,970 $ 1,661 International 3 2 6 4 Total $ 1,071 $ 900 $ 1,976 $ 1,665 Botox Therapeutic United States $ 864 $ 775 $ 1,706 $ 1,498 International 178 153 345 296 Total $ 1,042 $ 928 $ 2,051 $ 1,794 Ubrelvy United States $ 379 $ 330 $ 709 $ 563 International 13 8 22 15 Total $ 392 $ 338 $ 731 $ 578 Qulipta United States $ 289 $ 237 $ 539 $ 409 International 61 30 107 51 Total $ 350 $ 267 $ 646 $ 460 Vyalev United States $ 128 $ 22 $ 217 $ 28 International 128 76 240 133 Total $ 256 $ 98 $ 457 $ 161 Other Neuroscience United States $ 43 $ 71 $ 89 $ 146 International 74 81 153 161 Total $ 117 $ 152 $ 242 $ 307 Oncology Venclexta United States $ 369 $ 321 $ 710 $ 633 International 402 370 831 723 Total $ 771 $ 691 $ 1,541 $ 1,356 2026 Form 10-Q | 21 Three months ended June 30, Six months ended June 30, (in millions) 2026 2025 2026 2025 Imbruvica United States $ 337 $ 543 $ 669 $ 1,072 Collaboration revenues 195 211 419 420 Total $ 532 $ 754 $ 1,088 $ 1,492 Elahere United States $ 161 $ 138 $ 321 $ 303 International 50 21 88 35 Total $ 211 $ 159 $ 409 $ 338 Epkinly Collaboration revenues $ 64 $ 49 $ 115 $ 85 International 39 21 71 36 Total $ 103 $ 70 $ 186 $ 121 Other Oncology United States $ 33 $ 2 $ 57 $ 2 Aesthetics Botox Cosmetic United States $ 400 $ 410 $ 771 $ 705 International 328 282 625 543 Total $ 728 $ 692 $ 1,396 $ 1,248 Juvederm Collection United States $ 103 $ 105 $ 188 $ 180 International 142 155 289 311 Total $ 245 $ 260 $ 477 $ 491 Other Aesthetics United States $ 258 $ 282 $ 506 $ 552 International 51 45 89 90 Total $ 309 $ 327 $ 595 $ 642 Other Key Products Mavyret United States $ 133 $ 184 $ 316 $ 326 International 162 191 330 355 Total $ 295 $ 375 $ 646 $ 681 Creon United States $ 345 $ 404 $ 706 $ 759 Linzess United States $ 283 $ 247 $ 555 $ 386 International 12 11 23 20 Total $ 295 $ 258 $ 578 $ 406 All other $ 1,109 $ 1,117 $ 2,134 $ 2,370 Total net revenues $ 16,990 $ 15,423 $ 31,992 $ 28,766 See the following for additional information about certain income and expenses included in net earnings: intangible assets amortization expense (Note 6), change in fair value of contingent consideration (Note 7), interest income and expense (Note 2), depreciation expense (Note 2), litigation matters (Note 11) and income tax expense (Note 10). 2026 Form 10-Q | 22