Abbott Laboratories (ABT) Q1 2025 earnings summary

Executive summary

• Q1 2025 reported sales grew 4.0% year-over-year to $10.36B, with organic sales up 6.9% and adjusted EPS of $1.09, reflecting double-digit growth at the high end of guidance.

• Medical Devices, Nutrition, and Established Pharmaceuticals drove growth, while Diagnostics declined due to lower COVID-19 testing sales.

• Gross margin expanded by 140 basis points (adjusted to 57.1%), and operating margin by 130 basis points (adjusted to 21.0%) year-over-year.

• Major product milestones included CE Mark for Volt PFA System, initiation of the TECTONIC U.S. trial for IVL System, and a $500M investment in U.S. manufacturing and R&D.

• Cash flow from operations increased to $1.42B, supporting debt repayment, dividends, and share repurchases.

Financial highlights

• Net sales: $10.36B, up 4.0% year-over-year; organic sales up 6.9%, or 8.3% excluding COVID-19 testing.

• Adjusted diluted EPS: $1.09 (up 11.2%); GAAP diluted EPS: $0.76 (up 8.6%).

• Adjusted gross margin: 57.1% (up 140 bps); adjusted operating margin: 21.0% (up 130 bps).

• Cash and equivalents: $6.53B at quarter-end.

• Dividend per share: $0.59, 53rd consecutive annual increase.

Outlook and guidance

• Full-year 2025 adjusted diluted EPS guidance reaffirmed at $5.05–$5.25; Q2 adjusted EPS projected at $1.23–$1.27.

• Full-year organic sales growth projected at 7.5%–8.5%.

• Tariff impact estimated at a few hundred million dollars for 2025, mainly in Q3 and Q4, with mitigation strategies in place.

• FX expected to remain a headwind, with a 1% unfavorable impact on full-year reported sales.

• Second half of 2025 expected to show stronger growth due to new product launches and easier comps in diagnostics and nutrition.