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New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves
Abbott Laboratories ABT reported third-quarter 2025 adjusted earnings per share (EPS) of $1.30, which came in line with the Zacks Consensus Estimate. The figure improved 7.4% from the prior-year quarter’s level.
GAAP EPS was 94 cents, the same as last year’s comparable figure.
Worldwide sales of $11.37 billion were up 6.9% year over year on a reported basis. The top line missed the Zacks Consensus Estimate by 0.24%.
Organically, sales improved 5.5% year over year. Organic sales, ex-COVID, rose 7.5% year over year.
Following the earnings announcement, ABT stock rose 1.4% in pre-market trading today.
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
Established Pharmaceuticals’ product sales increased 7.5% on a reported basis (7.1% on an organic basis) to $1.51 billion.
Organic sales in key emerging markets improved 11.1% year over year. This was led by double-digit growth in several countries, including Asia, Latin America and the Middle East.
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
In the third quarter, the Medical Devices segment’s sales rose 14.8% year over year on a reported basis (12.5% organically) to $5.45 billion.
Sales growth was led by double-digit growth in Diabetes Care, Electrophysiology, Rhythm Management, Heart Failure and Structural Heart.
The Diabetes Care division reported organic sales growth of 16.2% year over year, led by sales of continuous glucose monitors, which accounted for $2.0 billion of total sales.
Structural Heart sales rose 11.3%, and Heart Failure sales improved 12.1% year over year organically.
The Vascular division recorded organic sales growth of 4.7%. The Electrophysiology, Rhythm Management and Neuromodulation divisions recorded organic growth of 13.7%, 13% and 6.8%, respectively, in the quarter under review.
For the third quarter, Nutrition sales rose 4.2% year over year on a reported basis (up 4% organically) to $2.15 billion.
Pediatric Nutrition sales were up 2.4%, and Adult Nutrition sales improved 5.4% organically. According to the company, Adult Nutrition sales benefited from the strong global growth of its market-leading brands, Ensure and Glucerna.
For the third quarter, Diagnostics sales declined 6.6% year over year on a reported basis (down 7.8% organically) to $2.25 billion. Organic sales, ex-COVID, rose 0.4%.
Core Laboratory Diagnostics sales were up 2.2% organically. Molecular Diagnostics sales increased 0.8% on an organic basis. Rapid Diagnostics sales were down 27.7%. Point of Care Diagnostics sales increased 7.8%.
In the third quarter, the gross profit rose 6% year over year to $6.29 billion despite an 8% increase in the cost of products sold (excluding amortization expense). However, the gross margin contracted 46 basis points (bps) to 55.4%.
Selling, general and administration expenses rose 5.4% year over year to $3.05 billion. Research and development expenses rose 7.4% year over year to $766 million. The company reported an adjusted operating profit of $2.48 billion, up 6.4% year over year. The adjusted operating margin contracted 11 bps to 21.8%.
For the full year, Abbott expects adjusted diluted EPS to be in the range of $5.12 -$5.18 (earlier $5.10-$5.20). The Zacks Consensus Estimate for the metric is pegged at $5.15.
Full-year organic sales growth, excluding COVID-19 testing-related sales, is expected to be in the range of 7.5-8.0% (same as earlier). When including COVID-19 testing-related sales, organic sales growth is forecasted to be 6-7% (unchanged). The Zacks Consensus Estimate for Abbott’s sales is currently pegged at $44.66 billion.
Abbott exited the third quarter of 2025 on a mixed note, with earnings beating and revenue missing estimates. Global Core Laboratory Diagnostics sales were impacted by challenging market conditions in China, including the impact of volume-based procurement programs. The contraction of both margins in the quarter is discouraging.
On a positive note, both top and bottom lines rose on a year-over-year basis. Key highlights in the third quarter include regulatory approval in Japan for TriClip — a first-of-its-kind, minimally invasive treatment option for patients with tricuspid regurgitation, or a leaky tricuspid heart valve, and CE Mark for an expanded indication for the Navitor transcatheter aortic valve implantation (TAVI) system.
Abbott currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health PAHC, Veracyte VCYT and Insulet PODD.
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% in fiscal 2026 compared with the industry’s 12.7%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, sporting a Zacks Rank #1, reported second-quarter 2025 adjusted EPS of 44 cents, which surpassed the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 13.1%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 242.77%.
Insulet, sporting a Zacks Rank #1, reported a second-quarter 2025 adjusted EPS of $1.17, which surpassed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025, compared with the industry’s 12.7%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 19.54%.
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This article originally published on Zacks Investment Research (zacks.com).
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S&P 500 Health Giant Abbott Labs Skids On Mixed Report. But One Segment Shined.
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