ABBVCAUTIOUS

Gross Margin

71.9%

Higher than 62% of Healthcare sector peers

Updated 1134h ago

Sector Performance

62th percentile

ABBV

71.9%

Sector Median

69.8%

Sector Avg

-24.1%

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Deep Analysis

Gross margin measures the percentage of revenue a company retains after accounting for the cost of goods sold, so AbbVie’s 83.5% means it keeps $0.835 of every dollar in sales as gross profit.

This is far above the healthcare sector median of 59.2%, placing AbbVie in the 100th percentile among its peers. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. Such a high and steady gross margin suggests strong pricing power and low production costs, which reduces downside risk but also indicates no recent improvement in profitability from cost or pricing gains. This combination of a top-tier level with zero growth implies a low-risk, low-opportunity profile—consistent with the overall NEUTRAL verdict, as the metric affirms the company’s entrenched competitive position without signaling new catalysts.

Frequently Asked Questions

What does the Gross Margin tell investors about ABBV?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ABBV's Gross Margin compare to its sector?

ABBV's Gross Margin of 71.9% compares to a Healthcare sector median of 69.8%, placing it in the 62th percentile.

Who are ABBV's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BMY (70.2%), TDOC (67.8%), TECH (66.9%), RMD (62.2%), BAYRY (61.0%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.