Abbott Laboratories (ABT) Q3 2025 earnings summary

Executive summary

• Q3 2025 worldwide sales reached $11.4 billion, up 6.9% year-over-year, with 7.5% organic growth excluding COVID-19 testing, led by double-digit growth in Medical Devices and strong performance in Established Pharmaceuticals and key international markets.

• Adjusted diluted EPS was $1.30, up 7.4% year-over-year, while GAAP diluted EPS was $0.94; net earnings for Q3 were $1.64 billion.

• Recently launched products contributed nearly $500 million in sales and added over 100 basis points to organic growth.

• Regulatory milestones included approvals for TriClip in Japan, expanded Navitor TAVI indication in Europe, and CE Mark for Volt PFA System.

• The company remains confident in sustaining high single-digit organic sales growth and double-digit EPS growth into 2026, supported by innovation, a robust pipeline, and reaffirmed full-year guidance.

Financial highlights

• Q3 2025 net sales were $11.4 billion, up 6.9% year-over-year, with organic sales growth of 7.5% excluding COVID-19 testing.

• Adjusted gross margin was 55.8% of sales, with year-to-date gross margin at 52.4%, reflecting improvement initiatives and some tariff impact.

• Adjusted operating margin was 23%, up 40 basis points year-over-year; GAAP operating margin was 18.1%.

• Operating earnings for Q3 were $2.06 billion, up from $1.86 billion in Q3 2024.

• Foreign exchange had a favorable 1.4% impact on Q3 sales.

Outlook and guidance

• Reaffirmed full-year 2025 organic sales growth guidance of 7.5%–8.0% (excluding COVID-19 testing), and adjusted diluted EPS guidance of $5.12–$5.18, reflecting double-digit growth at the midpoint.

• Confident in delivering high single-digit organic sales growth and double-digit EPS growth for 2025 and 2026, supported by new product launches and easing diagnostics headwinds.

• Gross margin expansion expected to continue, targeting a 57% profile.

• Foreign exchange expected to have a 1.5% favorable impact on Q4 sales.

• COVID-19 testing sales expected to remain low, with Diagnostics facing continued headwinds in China.