Abbott Laboratories (ABT) Q4 2025 earnings summary

Executive summary

• Achieved double-digit adjusted EPS growth in 2025, with Q4 adjusted EPS up 12% to $1.50 and full-year adjusted EPS up 10% to $5.15, despite challenges in nutrition and China.

• Worldwide sales reached $11.5B in Q4 and $44.3B for the full year, with organic sales growth of 3.8% in Q4 and 16.7% for the year, excluding COVID-19 testing.

• Announced acquisition of Exact Sciences to enter the cancer diagnostics market, expected to close soon, adding a high-growth vertical.

• Innovation and disciplined execution drove performance, with multiple regulatory approvals and new product launches across segments, including FDA and CE Mark approvals for new ablation systems.

Financial highlights

• Q4 organic sales increased 3.8% excluding COVID testing; adjusted EPS of $1.50, up 12% year-over-year; Q4 GAAP diluted EPS was $1.01.

• Full-year 2025 sales reached $44.3B, up 5.7% reported and 5.5% organic; excluding COVID-19 testing, organic growth was 6.7%.

• Adjusted gross margin was 57.1% of sales, up 20 basis points; adjusted operating margin rose to 25.8%, up 150 basis points.

• Q4 operating earnings rose 17.8% to $2.251B; adjusted net earnings were $2.63B, up 11.9%.

• Foreign exchange had a favorable 1.4% impact on Q4 sales.

Outlook and guidance

• 2026 guidance: adjusted EPS of $5.55–$5.80 (10% growth at midpoint); organic sales growth of 6.5%–7.5%.

• Q1 2026 adjusted EPS forecasted at $1.12–$1.18.

• Expect margin expansion of 50–70 basis points in 2026.

• Anticipate return to growth in nutrition in the second half of 2026 after near-term challenges.