Abbott Laboratories (NYSE:ABT) reported second-quarter earnings that modestly beat analyst forecasts, yet the company’s shares dropped 2.5% following the announcement.
The healthcare leader posted adjusted earnings per share of $1.26 for the quarter, slightly above the consensus estimate of $1.25. Revenue reached $11.42 billion, well ahead of the $11.07 billion anticipated by analysts, marking a 7.4% increase on a reported basis and 6.9% organically. Excluding sales related to COVID-19 testing, organic growth rose to 7.5%.
Abbott’s guidance for full-year 2025 projects EPS between $5.10 and $5.20, compared to the analyst consensus of $5.16.
Growth was led by the Medical Devices segment, which saw revenue climb 13.4%, fueled by strong sales in Diabetes Care, where continuous glucose monitors—including the FreeStyle Libre system—posted a 21.4% increase. The Established Pharmaceuticals division grew 6.9%, while Nutrition sales advanced 2.9%.
“Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, significantly expanded our margin profiles, and continued to advance key programs through our new product pipeline,” said Robert B. Ford, chairman and chief executive officer. “We see this momentum carrying into 2026.”
Profitability improved, with an adjusted gross margin of 57.0% of sales, up 100 basis points, and an adjusted operating margin rising by 100 basis points to 22.9%.
For the full year 2025, Abbott forecasts organic sales growth of 7.5% to 8.0% excluding COVID-19 testing sales, or 6.0% to 7.0% including them. The company also expects an adjusted operating margin near 23.5% of sales.
Abbott Laboratories stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.