Abbott Laboratories’ (ABT) shares came down with a fever early Thursday after the American healthcare company posted sales growth for its fourth quarter, but saw a dip in its profit. Its earnings also fell short of Wall Street’s expectations.
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Abbott Misses Wall Street Targets in Q4
In the last three months of 2025, the Illinois-based company, which manufactures drugs, medical devices, diagnostic equipment, and nutritional products, generated $11.46 billion in sales. This is roughly a 5% rise from $10.97 billion seen a year ago, but remains below the Wall Street consensus of $11.80 billion.
In addition, the firm reported diluted earnings per share of $1.01, which marks an 81% drop from $5.27 a year earlier and missed analysts’ expectations of $1.50. Overall, Abbott’s net earnings fell by 81% from $9.2 billion in the prior-year quarter to about $1.8 billion.
For the full year, Abbott’s worldwide sales came in at $44.33 billion, about 6% higher than the roughly $42 billion generated in the prior year. Its medical device business remains the biggest revenue generator (as the image below shows), bringing in $21.4 billion. — The segment reclaimed its spot as the biggest revenue generator in 2023 after demand for Abbott’s rapid and molecular diagnostic tests fell in the post-COVID-19 era.
Why Abbott’s Profit Took a Hit
According to Abbott, its net earnings only appear to have plunged in the latest quarter because it is lapping a one‑time, $7.5 billion non‑cash tax gain recorded in 2024.
In that year, the company restructured “certain foreign affiliates” and released a large tax reserve after certain tax positions were confirmed. This inflated last year’s profit without bringing in real cash.
Abbott Sees ‘Accelerating Growth’ in 2026
Looking ahead, Abbott expressed a bullish outlook for 2026, noting that it expects its organic sales to expand by 6.5% to 7.5% at the end of this year. The company expects its adjusted EPS for 2026 to also reach between $5.55 and $5.80, with the lower range far above the analyst consensus of $5.68.
Furthermore, Abbott reiterated that it expects its $21 billion acquisition deal for Exact Sciences (EXAS), the cancer screening and treatment provider, to pull through before the end of the second quarter of this year. “We’re well-positioned for accelerating growth in 2026,” noted Robert Ford, Abbott’s chair and CEO.
Is ABT Stock a Good Buy?
On Wall Street, Abbott Laboratories’ shares continue to boast a Strong Buy consensus rating from analysts. This breaks down to 15 Buys issued over the past three months.
In addition, the average ABT price target of $150.07 implies about 41% upside. However, the consensus rating might change as more analysts reassess the stock following the latest earnings update.
