Abbott Laboratories (ABT) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales reached $11.1B, up 7.4% year-over-year, with organic growth of 7.5% excluding COVID-19 testing; Medical Devices and Established Pharmaceuticals led growth, while Diagnostics declined due to lower COVID-19 testing and China procurement pressures.

• Adjusted diluted EPS was $1.26, up 10.5% year-over-year; GAAP diluted EPS was $1.01; net earnings rose to $1.78B.

• Margin profiles expanded, with adjusted gross margin at 57% and adjusted operating margin at 22.9% for Q2.

• Key product launches and pipeline advancements in diabetes care, electrophysiology, and structural heart, including FDA approval of Tendyne Mitral Replacement Valve and AVEIR leadless pacemaker clinical milestones.

• Operating cash flow for H1 2025 was $3.5B, supporting debt repayment and dividends.

Financial highlights

• Q2 2025 net sales: $11.1B (+7.4% year-over-year); H1 2025 net sales: $21.5B (+5.7% year-over-year).

• Adjusted diluted EPS was $1.26; GAAP diluted EPS was $1.01; Q2 net earnings: $1.78B.

• Adjusted gross margin: 57% (up 100 bps year-over-year); adjusted operating margin: 22.9% (up 100 bps year-over-year).

• Key business unit sales: Medical Devices $5.4B, Diagnostics $2.2B, Nutrition $2.2B, Established Pharmaceuticals $1.4B.

• Dividend declared at $0.59 per share, marking the 406th consecutive quarterly dividend and 53rd annual increase.

Outlook and guidance

• Full-year 2025 organic sales growth (excluding COVID-19 testing) projected at 7.5% to 8.0%; including COVID-19 testing, 6.0% to 7.0%.

• Full-year 2025 adjusted diluted EPS expected between $5.10 and $5.20, reflecting double-digit growth at the midpoint.

• Q3 2025 adjusted EPS guidance is $1.28 to $1.32.

• Management expects continued growth in Medical Devices and Established Pharmaceuticals, with ongoing margin improvement initiatives.

• FX expected to be neutral for full-year sales, with a 2% favorable impact in Q3.