Abbott Laboratories (NYSE:ABT) shares fell about 4.8% after the company reported fourth-quarter results that met earnings expectations but fell short on revenue, alongside weaker-than-expected guidance for the first quarter.
Abbott delivered adjusted earnings per share of $1.50 for the quarter, in line with analyst forecasts. Revenue totaled $11.46 billion, however, missing the $11.8 billion consensus estimate. Reported sales rose 4.4% year on year, while organic growth was 3.0%. Excluding COVID-19 testing-related revenue, organic sales growth was stronger at 3.8% compared with the same period last year.
Investor reaction was also influenced by Abbott’s first-quarter 2026 outlook, which came in below expectations. The company forecast adjusted EPS of $1.12 to $1.18, compared with a consensus estimate of $1.20.
“In 2025, we expanded margins and achieved double-digit earnings per share growth, our new product pipeline was highly productive, and we took important strategic steps to shape the company for the future,” said Robert B. Ford, chairman and chief executive officer of Abbott. “We’re well positioned for accelerating growth in 2026.”
Performance across business segments was mixed. The Medical Devices division stood out, with reported sales climbing 12.3% to $5.68 billion. Within that segment, Diabetes Care — including continuous glucose monitoring products — saw sales rise 14.5% to $2.13 billion.
By contrast, Nutrition sales fell 8.9% to $1.94 billion, which Abbott attributed to lower volumes and strategic pricing actions aimed at supporting future growth. Diagnostics revenue declined 2.5% to $2.46 billion, reflecting reduced demand for COVID-19 testing.
Looking ahead to the full year 2026, Abbott expects organic sales growth of 6.5% to 7.5% and adjusted EPS in the range of $5.55 to $5.80. The midpoint of that range implies roughly 10% growth and sits above the analyst consensus of $5.17.