Abstract
Abbott Laboratories will report fourth-quarter 2025 results on January 22, 2026 Pre-Market; this preview summarizes consensus revenue, margins, EPS, and business segment trends alongside majority analyst views gathered since July 15, 2025.
Market Forecast
For the current quarter, market projections indicate total revenue of $11.81 billion, EBIT of $3.04 billion, and adjusted EPS of $1.50, with year-over-year growth estimated at 7.22%, 12.17%, and 11.49%, respectively; margin expectations imply stable gross profitability and improved earnings leverage, though detailed gross margin and net margin forecasts are not explicitly provided by consensus. The revenue outlook highlights strong momentum in medical devices and stable trends in diagnostics and nutrition, with total devices revenue expected to lead multi-segment growth. The most promising segment is medical devices, which generated $5.45 billion last quarter and is positioned to post continued year-over-year expansion as procedure volumes normalize and high-growth franchises sustain adoption.
Last Quarter Review
Abbott Laboratories’ last quarter delivered revenue of $11.37 billion, a gross profit margin of 55.36%, GAAP net profit attributable to the parent company of $1.64 billion, a net profit margin of 14.46%, and adjusted EPS of $1.30, with year-over-year adjusted EPS growth of 7.44%. A notable financial highlight was solid EBIT delivery of $2.61 billion against expectations, reflecting operating discipline and mix support, while quarter-on-quarter net profit dipped by 7.59%. Main business highlights feature medical devices revenue of $5.45 billion, diagnostics revenue of $2.25 billion, nutrition revenue of $2.15 billion, and established pharmaceuticals revenue of $1.51 billion, with devices showing the most durable contribution to overall growth.
Current Quarter Outlook
Medical Devices
Medical devices remain the primary growth engine. Last quarter’s $5.45 billion in devices revenue anchors confidence that procedure volumes and product adoption trends are supporting consistent expansion. Key demand drivers include cardiology portfolios, rhythm management, diabetes care technologies, and minimally invasive solutions tied to hospital backlogs clearing and clinical utilization returning to routine levels. Margin leverage within devices is expected to be favorable due to scale economies and an improving mix of higher-margin products, supporting the translation from top-line growth to EPS. The quarter’s performance will likely hinge on whether pricing remains steady and supply chains support on-time shipments, which together influence conversion from orders to revenue and the EBIT profile.
Diagnostics
Diagnostics posted $2.25 billion last quarter and is positioned for stable performance as routine testing volumes normalize and installed base utilization remains consistent. The segment’s outlook depends on the mix between lab-based immunoassay and molecular runs, with fewer transitory tailwinds compared with pandemic-era demand. Cost controls and product refreshes are expected to support gross margin stability even if revenue growth is modest. The main sensitivity this quarter is regional hospital purchasing and replenishment cycles, which affect consumable throughput and the pace at which instrument placements contribute to recurring revenue. Any incremental adoption of menu expansions could provide modest upside to segment contribution but consensus implies a steady-state quarter.
Nutrition
Nutrition revenue of $2.15 billion last quarter indicates resilience in core adult and pediatric offerings. For the current quarter, a sustained focus on product mix, brand retention, and channel execution is expected to maintain momentum, while promotional discipline anchors profitability. International market dynamics and FX can affect reported revenue, but operational efficiency programs should support margins. The quarter’s stock performance sensitivity ties to whether revenue growth maintains consistency amid competitive pressure and whether gross margin holds against input cost fluctuations.
Established Pharmaceuticals
Established pharmaceuticals contributed $1.51 billion last quarter. The segment is expected to deliver steady performance driven by branded generics and geographic reach, with the key watchpoint being pricing and competitive intensity in emerging markets. Operational execution has historically supported solid cash generation from this unit, contributing to consolidated earnings stability. The quarter’s visibility is aided by diversified product lines, although outsized growth is not implied by consensus; rather, the segment’s role is margin balance and cash flow.
Key Factors Impacting the Stock This Quarter
Revenue scale and operating leverage are central to EPS delivery, as consensus projects $11.81 billion in revenue and $3.04 billion in EBIT, implying improved profitability. Execution in devices will be the primary determinant of upside, where shipment timing and adoption of higher-margin sub-segments can shift reported margins. Investors will watch gross margin progression versus last quarter’s 55.36% and net margin versus 14.46% for signs of sustained efficiency gains, as well as the relationship between adjusted EPS of $1.50 and revenue mix quality. Any signals of stable pricing, supply chain reliability, and disciplined SG&A can bolster confidence in translating the top line into net income growth. Conversely, signs of softness in diagnostics or mixed FX could limit upside even with healthy device contributions.
Analyst Opinions
Analyst commentary over the past six months skews bullish, with multiple institutions reiterating Buy views and targets in the $145.00–$150.00 range. Bank of America Securities reaffirmed a Buy rating with a $150.00 price target, calling out strategic execution and earnings visibility into 2026. TD Cowen maintained a Buy rating and a $145.00 price target, noting strong performance and future potential supported by devices-led expansion and stable margins. RBC Capital’s coverage reiterated favorable positioning and operational momentum, aligning with the consensus that earnings leverage remains intact into the quarter. With the majority of recent notes endorsing a constructive outlook, the prevailing view emphasizes sustained revenue growth near $11.81 billion, adjusted EPS around $1.50, and improving EBIT, underpinned by the medical devices franchise. This majority perspective expects a balanced quarter where revenue mix quality translates into margin resilience and EPS support, and it focuses on execution factors such as product availability, pricing stability, and cost discipline as the main determinants of whether reported results meet or modestly exceed consensus expectations.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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