Abbott's Q4 Earnings Meet Estimates, Revenues Miss, Stock Falls

Abbott Laboratories ABT reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.50, which came in line with the Zacks Consensus Estimate. The figure improved 11.9% from the prior-year quarter’s level.

GAAP EPS was $1.01 compared with $5.27 in the comparable period of 2024.

The company reported full-year 2025 adjusted EPS of $5.15, up 10.3% year over year. The figure came in line with the Zacks Consensus Estimate.

ABT’s Q4 Revenues

In the fourth quarter, Worldwide sales of $11.46 billion were up 4.4% year over year on a reported basis. The top line missed the Zacks Consensus Estimate by 2.8%.

Organically, sales improved 3% year over year. Organic sales, ex-COVID, rose 3.8% year over year.

Full-year 2025 Worldwide sales of $44.33 billion were up 5.7% year over year on a reported basis. The top line missed the Zacks Consensus Estimate by 0.6%.

Following the earnings announcement, ABT stock fell 5.4% in pre-market trading today. 

ABT’s Q4 Results in Detail

Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.

Established Pharmaceuticals’ product sales increased 9% on a reported basis (7.1% on an organic basis) to $1.38 billion.

Organic sales in key emerging markets improved 8.7% year over year. This was led by double-digit growth in India and several countries across Latin America and the Middle East.

In the fourth quarter, the Medical Devices segment’s sales rose 12.3% year over year on a reported basis (10.4% organically) to $5.68 billion.

Sales growth in the quarter was led by double-digit growth in Electrophysiology, Heart Failure, Diabetes Care and Rhythm Management.

The Diabetes Care division reported organic sales growth of 11.7% year over year, led by sales of continuous glucose monitors, which accounted for $2.0 billion of total sales.

Structural Heart sales rose 8.7%, and Heart Failure sales improved 12.1% year over year organically.

The Vascular division recorded organic sales growth of 6.5%. The Electrophysiology, Rhythm Management and Neuromodulation divisions recorded organic growth of 12.5%, 11.5% and 5.6%, respectively, in the quarter under review.

For the fourth quarter, Nutrition sales declined 8.9% year over year on a reported basis (down 9.1% organically) to $1.94 billion.

Pediatric Nutrition sales were down 10.1%, and Adult Nutrition sales declined 8.2% organically. 

Abbott Laboratories Price, Consensus and EPS Surprise

Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote

For the fourth quarter, Diagnostics sales declined 2.5% year over year on a reported basis (down 3.6% organically) to $2.46 billion. 

Core Laboratory Diagnostics sales were up 3.6% organically. Molecular Diagnostics sales increased 1.1% on an organic basis. Rapid Diagnostics sales were down 18.1%. Point of Care Diagnostics sales increased 7.1%.

Margin Details of ABT

In the fourth quarter, the gross profit rose 8.4% year over year to $6.54 billion due to a 0.4% decrease in the cost of products sold (excluding amortization expense). The gross margin expanded 208 basis points (bps) to 57%.

Selling, general and administration expenses rose 7.6% year over year to $3.13 billion. Research and development expenses declined 1.9% year over year to $735 million. The company reported an adjusted operating profit of $2.67 billion, up 12.5% year over year. The adjusted operating margin expanded 167bps to 23.3%.

ABT’s 2026 & Q1 Financial Guidance

Abbott projects full-year 2026 adjusted EPS to be between $5.55 and $5.80. The Zacks Consensus Estimate for the metric is pegged at $5.67.

Abbott projects full-year 2026 organic sales growth to be in the range of 6.5-7.5%. The Zacks Consensus Estimate for Abbott’s sales is currently pegged at $48.01 billion.

For the first quarter of 2026, the company expects EPS to be between $1.12 and $1.18. The Zacks Consensus Estimate for the metric is pegged at $1.19.

Our Take on ABT Stock

Abbott exited the fourth quarter of 2025 with earnings meeting estimates and revenues missing the same. Nutrition sales decline in the quarter reflected the impact of lower sales volumes compared to the prior year and new strategic price actions aimed at increasing volume growth in the future. Additionally, market conditions in China remain challenging.

On a positive note, both top and bottom lines rose on a year-over-year basis. Also, the expansion of both margins in the quarter is encouraging.

Key highlights in the fourth quarter include regulatory approval for its Volt PFA System, bringing Abbott's first pulsed field ablation (PFA) offering to patients in the United States. 

ABT's Zacks Rank and Other Key Picks

Abbott currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are National Vision EYE, Fresenius Medical Care FMS and Prestige Consumer Healthcare PBH.

National Vision, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2025 adjusted EPS of 13 cents, topping the Zacks Consensus Estimate by 8.3%. Revenues of $487.3 million beat the Zacks Consensus Estimate by 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MDT’s earnings yield of 5.8% compares favorably with the industry’s 2.8% yield. The company beat on earnings in each of the trailing four quarters, with the average surprise being 2.75%.

Fresenius Medical Care, carrying a Zacks Rank #2 at present, posted third-quarter 2025 adjusted EPS of 64 cents, which exceeded the Zacks Consensus Estimate by 8.47%. Revenues of $5.71 billion surpassed the Zacks Consensus Estimate by 4.3%.

FMS has an earnings yield of 10.7% compared with the industry’s 0.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 7.8%.

Prestige Consumer Healthcare, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 EPS of $1.07, which surpassed the Zacks Consensus Estimate by 10.3%. Revenues of $274.1 topped the Zacks Consensus Estimate by 6.9%.

PBH has an earnings yield of 7.1% compared with the industry’s 2.8% yield. The company’s earnings outperformed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

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

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