Abbott Laboratories reported fourth‑quarter 2025 results with net sales of $11.5 billion, a 4.4% year‑over‑year increase that fell short of the consensus estimate of $11.8 billion. Adjusted diluted earnings per share rose to $1.50, matching analyst expectations, while GAAP diluted EPS declined to $1.01, missing the consensus estimate of $1.51 and representing an 81% year‑over‑year drop.
The diagnostics segment delivered $2.46 billion in sales, a 2.5% decline driven by a slump in COVID‑19 testing and headwinds in China’s volume‑based procurement programs. Nutrition sales fell 8.9% to $1.73 billion as lower volumes and price‑initiatives weighed on demand. In contrast, medical devices grew 10.4% organically, led by strong performance in electrophysiology, heart failure, diabetes care, and rhythm management, while the established pharmaceuticals division added 7% in sales, buoyed by double‑digit growth in India, Latin America, and the Middle East.
Gross margin expanded to 57.1% from 56.9% in the prior year, a 20‑basis‑point lift attributed to higher mix of high‑margin products and disciplined cost management. Operating margin increased to 25.8% from 25.6%, reflecting the margin expansion in medical devices and the offsetting impact of lower nutrition sales. The company’s adjusted operating margin grew 150 basis points year‑over‑year, underscoring effective leverage and pricing power in its core growth areas.
Abbott’s full‑year 2026 guidance remains unchanged: adjusted diluted EPS of $5.55 to $5.80 and organic sales growth of 6.5% to 7.5%. The guidance signals confidence in continued double‑digit EPS growth, with the midpoint representing a 10% increase over the prior year. However, the company projected Q1 2026 adjusted EPS of $1.12 to $1.18, below the consensus estimate of $1.20, indicating a modest near‑term earnings dip amid ongoing nutrition and diagnostics challenges.
CEO Robert Ford highlighted the nutrition segment’s difficulties, noting that “higher prices have suppressed demand and volume growth.” He added that China diagnostics would remain “stable but not a major growth engine.” Ford also praised the company’s 2025 achievements, citing margin expansion, double‑digit EPS growth, and strategic moves such as the planned $21 billion acquisition of Exact Sciences, expected to close in Q2 2026 and position Abbott as a leader in cancer diagnostics.
The company also announced the launch of new medical devices, including the Volt™ PFA System and the TactiFlex™ Duo Ablation Catheter, and reaffirmed its commitment to dividend growth, marking the 53rd consecutive year of increases. These developments reinforce Abbott’s focus on high‑margin growth areas while navigating headwinds in legacy nutrition and diagnostics businesses.
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