Download PDF

1. Company Snapshot

1.a. Company Description

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide.It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon.


The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories.The Nutritional Products segment provides pediatric and adult nutritional products.The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders.


Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

Show Full description

1.b. Last Insights on ABT

Abbott Laboratories faced challenges due to weakness in its Nutrition segment and a sizable revenue miss, leading to a post-earnings sell-off. Despite this, the company delivered double-digit bottom-line growth and margin expansion. A 7% dividend increase reinforced its Dividend King status. Management guides for 2026 EPS of $5.55-$5.80 and 6.5%-7.5% sales growth. Brokerages have a consensus rating of "Moderate Buy" on the stock. The company previously faced reduced holdings from various investment firms.

1.c. Company Highlights

2. Abbott Laboratories' 2025 Earnings: A Strong Performance

Abbott Laboratories reported a 3.8% sales increase, excluding COVID testing sales, with adjusted earnings per share (EPS) of $1.50, reflecting 12% growth. The actual EPS came out at $1.5, in line with estimates. The company's financial performance was characterized by mixed sales results, with declines in nutrition due to market share loss and price sensitivity, while diagnostics, electrophysiology, and medical devices saw growth.

Publication Date: Jan -23

📋 Highlights
  • Strong EPS Growth:: Adjusted EPS reached $1.50, reflecting 12% growth, with 2026 guidance projecting $5.55–$5.80 (10% growth at midpoint).
  • Diabetes Care Expansion:: Continuous glucose monitors (CGM) drove diabetes care sales exceeding $7.5 billion in 2025, with $1 billion annual growth expected in CGM market.
  • Strategic Acquisition:: Announced acquisition of Exact Sciences to enter the fast-growing cancer diagnostics market, with debt-to-EBITDA of ~2.7x post-close.
  • Cardiovascular Momentum:: Medical devices grew 10.5% in 2025, led by structural heart, EP, and heart failure, with 7–9% organic sales growth expected in 2026.
  • Margin Expansion:: Operating margin to improve 50–70 bps annually through gross margin growth and P&L leverage, supporting double-digit EPS growth in 2026.

Segment Performance

The company's diabetes care sales grew, driven by continuous glucose monitors, which exceeded $7.5 billion in 2025. Medical devices grew 10.5%, with double-digit growth in structural heart, electrophysiology, and heart failure. The diagnostics business faced headwinds in China due to VBP, but the outlook is for single-digit growth this year, with stability expected in China.

Guidance and Outlook

The company issued guidance for full-year 2026 adjusted EPS of $5.55 to $5.80, reflecting 10% growth at the midpoint. Organic sales growth is forecasted to be 6.5% to 7.5%, with a favorable impact of around 1% from exchange rates. Robert Ford noted that 2026 is expected to be another year powered by innovation, operational excellence, and strategic execution.

Growth Drivers

Abbott's growth is expected to accelerate in 2026, driven by its cardiovascular franchise, diabetes products, and the addition of Exact Sciences. The electrophysiology (EP) business is expected to grow at least in line with the market, which is forecasted to be in the mid-to-high teens. The portfolio includes RF and PFA products, such as Volt, Tactiflex Duo, and Tactiflex VT, which are expected to drive growth.

Valuation

With a P/E Ratio of 13.59 and an EV/EBITDA of 16.59, Abbott Laboratories' valuation appears reasonable. The company's ROE is 28.24%, indicating strong profitability. Analysts estimate next year's revenue growth at 7.5%, which is in line with the company's guidance. The dividend yield is 2.21%, providing a relatively stable return for investors.

Capital Allocation

The company is focused on integrating Exact Sciences, which is expected to close soon, with a gross debt to EBITDA ratio of around 2.7 times post-close. Abbott still has capacity for M&A and is considering tuck-in type deals, indicating a continued focus on strategic growth initiatives.

3. NewsRoom

Card image cap

S&CO Inc. Sells 16,992 Shares of Abbott Laboratories $ABT

Feb -10

Source: defenseworld.net

Card image cap

Abbott Laboratories $ABT Shares Acquired by Rockland Trust Co.

Feb -10

Source: defenseworld.net

Card image cap

Financial Contrast: Glucose Health (OTCMKTS:GLUC) vs. Abbott Laboratories (NYSE:ABT)

Feb -09

Source: defenseworld.net

Card image cap

Diamond Hill Capital's Strategic Moves: HCA Healthcare Inc. Reduced by 1.25%

Feb -06

Source: gurufocus.com

Card image cap

Late-breaking data presentations showcase the safety and efficacy of Abbott's ablation catheters to treat people with atrial fibrillation

Feb -06

Source: prnewswire.com

Card image cap

American Bio Medica (OTCMKTS:ABMC) & Abbott Laboratories (NYSE:ABT) Head-To-Head Contrast

Feb -06

Source: defenseworld.net

Card image cap

Abbott recalls glucose sensors after seven deaths linked to faulty readings

Feb -04

Source: reuters.com

Card image cap

5 Goldman Sachs Top Stock Picks Have Huge Upside Potential and Pay Dividends

Feb -04

Source: 247wallst.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.19%)

6. Segments

Medical Devices

Expected Growth: 5.5%

Abbott Laboratories' Medical Devices segment growth is fueled by its innovative, life-changing technologies for cardiovascular and neuromodulation markets, driving demand for minimally invasive treatments and neurostimulation therapies.

Diagnostics

Expected Growth: 4.2%

Increasing demand for diagnostic testing, advancements in technology, and aging population drive growth in Abbott Laboratories' Diagnostics division.

Nutrition

Expected Growth: 4.4%

Increasing demand for pediatric and adult nutritional products, driven by a growing global population, rising healthcare expenditure and an increasing awareness of nutrition's role in preventative healthcare, will fuel growth in this segment.

Established Pharmaceutical

Expected Growth: 7.1%

Abbott's Established Pharmaceutical segment is driven by its diversified portfolio of branded generics and drugs, strong presence in emerging markets, and increasing demand for affordable and accessible healthcare solutions.

Other

Expected Growth: 4.5%

Abbott Laboratories' Other segment growth is driven by increasing demand for certain products and royalties from licensing agreements, contributing to the company's overall revenue growth.

7. Detailed Products

Nutritionals

Abbott's nutrition business provides a range of science-based nutrition products to support healthy growth and development, from infancy to adulthood.

Diabetes Care

Abbott's diabetes care business provides a range of glucose monitoring systems and other products to help people with diabetes manage their condition.

Established Pharmaceuticals

Abbott's established pharmaceuticals business provides a range of branded generic pharmaceuticals to treat a variety of conditions, including pain, fever, and inflammation.

Cardiovascular and Neuromodulation

Abbott's cardiovascular and neuromodulation business provides a range of products to treat cardiovascular and neurological conditions, including heart failure, atrial fibrillation, and chronic pain.

Electrophysiology

Abbott's electrophysiology business provides a range of products to diagnose and treat heart rhythm disorders, including atrial fibrillation and ventricular tachycardia.

Structural Heart

Abbott's structural heart business provides a range of products to treat structural heart conditions, including mitral regurgitation and aortic stenosis.

Vascular

Abbott's vascular business provides a range of products to treat vascular conditions, including peripheral artery disease and carotid artery disease.

Point of Care

Abbott's point of care business provides a range of diagnostic testing products to help healthcare professionals make informed decisions at the point of care.

Molecular Diagnostics

Abbott's molecular diagnostics business provides a range of molecular diagnostic tests to help diagnose and monitor infectious diseases, including HIV, hepatitis, and influenza.

Informatics

Abbott's informatics business provides a range of data management and analytics solutions to help healthcare professionals make informed decisions.

8. Abbott Laboratories's Porter Forces

Forces Ranking

Threat Of Substitutes

Abbott Laboratories operates in a highly competitive industry, and there are many substitutes available for its products. However, the company's strong brand reputation and high-quality products help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Abbott Laboratories has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often critical to patient care, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Abbott Laboratories relies on a network of suppliers for raw materials and components. While the company has some bargaining power due to its size, suppliers may still have some negotiating power, particularly if they provide specialized or high-quality materials.

Threat Of New Entrants

The pharmaceutical and medical device industries are heavily regulated, and new entrants face significant barriers to entry, including high research and development costs and stringent regulatory requirements.

Intensity Of Rivalry

The pharmaceutical and medical device industries are highly competitive, with many established players competing for market share. Abbott Laboratories faces intense competition from companies such as Johnson & Johnson, Medtronic, and Pfizer.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.88%
Debt Cost 4.67%
Equity Weight 72.12%
Equity Cost 7.60%
WACC 6.78%
Leverage 38.66%

11. Quality Control: Abbott Laboratories passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
J&J

A-Score: 6.9/10

Value: 3.1

Growth: 4.0

Quality: 8.8

Yield: 6.0

Momentum: 9.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Abbott

A-Score: 6.3/10

Value: 2.8

Growth: 5.9

Quality: 7.8

Yield: 4.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Stryker

A-Score: 5.3/10

Value: 1.4

Growth: 6.4

Quality: 6.6

Yield: 2.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Boston Scientific

A-Score: 5.2/10

Value: 1.2

Growth: 6.6

Quality: 6.8

Yield: 0.0

Momentum: 7.5

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Regeneron Pharmaceuticals

A-Score: 4.9/10

Value: 4.0

Growth: 6.4

Quality: 8.8

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
DexCom

A-Score: 4.3/10

Value: 1.5

Growth: 9.1

Quality: 6.8

Yield: 0.0

Momentum: 3.5

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

112.28$

Current Price

112.28$

Potential

-0.00%

Expected Cash-Flows