Why Is Abbott (ABT) Up 1.3% Since Last Earnings Report?

It has been about a month since the last earnings report for Abbott (ABT). Shares have added about 1.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Abbott due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Abbott Reports Q3 Earnings Meet and Sales Miss

Abbott reported third-quarter 2025 adjusted earnings per share 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 earnings per share was 94 cents, the same as last year’s comparable figure.

Q3 Revenues

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.

Segmental Results in Detail

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.

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%.

Margin Details

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%.

2025 Financial Guidance

For the full year, Abbott expects adjusted diluted earnings per share 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.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Abbott has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Abbott has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Abbott belongs to the Zacks Medical - Products industry. Another stock from the same industry, Neogen (NEOG), has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended August 2025.

Neogen reported revenues of $209.19 million in the last reported quarter, representing a year-over-year change of -3.6%. EPS of $0.04 for the same period compares with $0.07 a year ago.

For the current quarter, Neogen is expected to post earnings of $0.08 per share, indicating a change of -27.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Neogen. Also, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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