Strong Adjusted EPS Growth and Margin Expansion
Adjusted EPS for Q4 was $1.50, up 12% year-over-year. For fiscal 2026 the company guided adjusted EPS to $5.55–$5.80 (midpoint reflecting ~10% growth). Adjusted gross margin was 57.1% of sales (up ~20 basis points year-over-year) and adjusted operating margin was 25.8% of sales (up ~150 basis points year-over-year).
Top-Line Momentum and 2026 Sales Guidance
Organic sales growth guidance for 2026 is 6.5%–7.5% (midpoint ~7%). Q4 organic sales (excluding COVID testing) increased 3.8% year-over-year. Company expects favorable FX impact of ~1% on full-year reported sales (approximately 3% favorable in Q1).
Medical Devices and EPD Strength
Medical Devices sales grew 10.5% in the quarter. Established businesses showing strong growth: EPD (emerging markets/pharma) sales increased 7% in the quarter and delivered its fifth consecutive year >7% growth; Rhythm Management grew 12% in the quarter and 10% for the year; Vascular grew 6.5% in Q4 (5% for full year).
Diabetes/CGM Growth and Scale
Continuous glucose monitor (CGM) sales grew 12% in Q4 and 17% for the full year, with 2025 CGM sales exceeding $7.5 billion. Management highlighted ~+$1 billion annual incremental growth in CGM for multiple consecutive years and expects continued low‑teens percentage growth next year (driven by penetration and new product opportunities).
Diagnostics Momentum (Core Lab & Point-of-Care)
Diagnostics sales increased 3.5% in the quarter (driven by anticipated decline in COVID testing). Core Lab Diagnostics grew 3.5% in the quarter and grew 7% for the full year when excluding China, showing accelerating momentum. Point-of-care diagnostics grew 7% in the quarter (driven by uptake of high-sensitivity troponin).
Product and Pipeline Milestones
Multiple regulatory and clinical milestones in 2025 and early 2026: approvals/launches for Volt and Tactiflex Duo PFA products, new indication for Navitor TAVR, CMS national coverage for Triclip and CardioMEMS, completed enrollment in pivotal LAA trial (CATALYST), filed for FDA approval of dual glucose‑ketone sensor, initiated pivotal coronary IVL trial, and planned launches of biosimilars and nutrition innovations (including at least eight new nutrition products in next 12 months).
Strategic M&A to Add High-Growth Vertical
Announced acquisition of Exact Sciences to enter cancer diagnostics — management expects this to add a ~$3B+ business growing at an attractive rate (~15% cited) and to create a new high-growth vertical for Abbott.
Execution Despite External Headwinds
Management emphasized achievement of original target of double-digit EPS growth for 2025 and top-tier margin expansion despite new tariffs, COVID testing declines and heightened challenges in China, demonstrating operational discipline and cost/margin management.