Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $223.51B
• Dividend Yield: 1.84%
• Average Volume (3M): 6.59M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.28
• Revenue Growth: 6.37%
• EPS Growth: 142.39%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.30
• Shares Outstanding: 1,738,872,000
• 10 Day Avg. Volume: 8,367,570
• 30 Day Avg. Volume: 6,591,995
• PEG Ratio: 0.11
• Price to Book (P/B): 4.11
• Price to Sales (P/S): 4.67
• P/FCF Ratio: 30.84
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 5.47
• Enterprise Value/Gross Profit: 10.13
• Enterprise Value/Ebitda: 20.46
• 1Y Price Target: $147.24
• Price Target Upside: 14.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 5.15
• Revenue Forecast (FY): $44.67B

• Rating: 78 Outperform
• Price Target: $146.00 ▲(13.58% Upside)

Abbott Laboratories' strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust growth in medical devices and international markets, along with effective cost management, supports a favorable outlook. Technical analysis and valuation provide a balanced view, with some caution due to market resistance and external challenges.

Positive Factors

Revenue Growth

Abbott's strong organic sales growth, driven by medical devices and pharmaceuticals, indicates robust market demand and product innovation.

Strategic Acquisition

The acquisition of Exact Sciences will expand Abbott's diagnostics segment, enhancing its market position in the high-growth cancer diagnostics field.

Cash Flow Management

Efficient cash flow management supports Abbott's ability to invest in growth opportunities and maintain financial stability.

Negative Factors

Challenges in China

Persistent challenges in China could hinder Abbott's growth in the diagnostics segment, affecting overall revenue and market expansion.

Impact of Tariffs

Tariff impacts on gross margins may pressure profitability, necessitating strategic adjustments to maintain cost efficiency.

U.S. Pediatric Nutrition Decline

Loss of significant contracts in the U.S. pediatric nutrition segment could impact Abbott's market share and revenue in this category.

Abbott Laboratories Business Overview & Revenue Model

Company Description

Abbott Laboratories (ABT) is a global healthcare company that operates in various sectors, including diagnostics, medical devices, nutrition, and pharmaceuticals. Founded in 1888, Abbott is dedicated to advancing human health through the development of innovative products that address the needs of patients and healthcare providers. The company’s core products include diagnostic tests and systems, cardiac devices, diabetes care products, nutritional supplements, and branded pharmaceuticals.

How the Company Makes Money

Abbott Laboratories generates revenue through multiple key streams. The Diagnostics segment, which includes a range of laboratory instruments and tests, contributes significantly to the company's earnings by providing essential tools for disease detection and management. The Medical Devices sector offers advanced products such as cardiac devices and diabetes management solutions, driving revenue through both direct sales and partnerships with healthcare providers. The Nutrition segment, which includes infant formulas and adult nutritional products, also plays a crucial role in revenue generation, particularly in emerging markets. Additionally, Abbott's Pharmaceuticals division markets a portfolio of branded drugs, providing a steady income stream. Strategic partnerships with healthcare organizations and investments in research and development further enhance Abbott's ability to innovate and capture market share, thus contributing to its overall financial success.

Abbott Laboratories Financial Statement Overview

Summary

Abbott Laboratories demonstrates strong financial health with robust profitability, a solid balance sheet, and efficient cash flow management. The company shows consistent revenue growth and effective cost management, although operational margins face slight pressure.

Income Statement

Abbott Laboratories demonstrates strong profitability with a high net profit margin of 31.88% TTM, supported by consistent revenue growth. The gross profit margin has improved to 53.98% TTM, indicating efficient cost management. However, the EBIT margin slightly decreased from previous years, suggesting potential operational cost pressures.

Balance Sheet

The company's balance sheet is robust with a low debt-to-equity ratio of 0.25 TTM, reflecting prudent financial leverage. Return on equity remains strong at 28.24% TTM, showcasing effective utilization of shareholder funds. The equity ratio indicates a solid capital structure, though slightly lower than previous years.

Cash Flow

Abbott's cash flow position is healthy, with a free cash flow growth rate of 2.10% TTM and a strong free cash flow to net income ratio of 0.76. The operating cash flow to net income ratio of 0.63 indicates efficient cash generation relative to earnings, although there is room for improvement in cash flow conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.84B	41.95B	40.11B	43.65B	43.08B	34.61B
Gross Profit	23.67B	21.32B	20.04B	22.32B	23.21B	17.38B
EBITDA	11.72B	10.83B	10.61B	11.89B	12.16B	9.00B
Net Income	13.98B	13.40B	5.72B	6.93B	7.07B	4.50B
Balance Sheet
Total Assets	84.18B	81.41B	73.21B	74.44B	75.20B	72.55B
Cash, Cash Equivalents and Short-Term Investments	7.73B	7.97B	7.28B	10.17B	10.25B	7.15B
Total Debt	12.94B	15.28B	15.87B	17.95B	19.25B	19.89B
Total Liabilities	32.92B	33.51B	34.39B	37.53B	39.17B	39.55B
Stockholders Equity	50.95B	47.66B	38.60B	36.69B	35.80B	32.78B
Cash Flow
Free Cash Flow	6.92B	6.35B	5.06B	7.80B	8.65B	5.72B
Operating Cash Flow	9.12B	8.56B	7.26B	9.58B	10.53B	7.90B
Investing Cash Flow	-2.38B	-2.34B	-3.13B	-1.74B	-2.01B	-2.21B
Financing Cash Flow	-6.77B	-5.40B	-7.09B	-7.64B	-5.49B	-2.78B

Abbott Laboratories Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABT, the sentiment is Positive. The current price of 128.54 is above the 20-day moving average (MA) of 126.87, below the 50-day MA of 129.43, and below the 200-day MA of 130.10, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.

Abbott Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSX	79 Outperform	$149.67B	54.00	12.66%	―	21.62%	54.80%
EW	79 Outperform	$50.34B	36.93	13.59%	―	0.19%	65.58%
ABT	78 Outperform	$223.51B	16.12	30.62%	1.84%	6.37%	142.39%
MDT	74 Outperform	$134.64B	28.37	9.81%	2.69%	5.34%	13.15%
SYK	70 Outperform	$142.37B	48.88	14.04%	0.90%	10.95%	-18.32%
DXCM	69 Neutral	$24.39B	34.80	30.63%	―	14.21%	5.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Abbott Laboratories Corporate Events

Abbott Laboratories to Acquire Exact Sciences for $21B

On November 19, 2025, Abbott Laboratories announced a definitive agreement to acquire Exact Sciences Corporation, a leader in cancer screening and precision oncology diagnostics, for approximately $21 billion. This acquisition will allow Abbott to enter the fast-growing cancer diagnostics market, enhancing its growth profile and positioning it to transform cancer care through earlier detection and optimized treatment. The merger is expected to be immediately accretive to Abbott’s revenue growth and gross margin, with Exact Sciences becoming a wholly owned subsidiary. The transaction is anticipated to close in the second quarter of 2026, pending regulatory approvals and shareholder consent.

The most recent analyst rating on (ABT) stock is a Buy with a $162.00 price target. To see the full list of analyst forecasts on Abbott Laboratories stock, see the ABT Stock Forecast page.

Abbott’s New Study on Dydrogesterone: A Potential Game-Changer for Endometriosis Pain

Abbott Laboratories is conducting a study titled ‘Study of the Effectiveness of Dydrogesterone in the Treatment of Endometriosis-related Pain.’ This observational study aims to evaluate the efficacy of dydrogesterone, a drug intended to alleviate pain associated with endometriosis. The significance of this study lies in its potential to offer a new therapeutic option for individuals suffering from this chronic condition.

Abbott Laboratories Reports Strong Q3 2025 Earnings

Abbott Laboratories is a global healthcare company that specializes in diagnostics, medical devices, nutritionals, and branded generic medicines, serving over 160 countries worldwide.

Abbott Laboratories’ Earnings Call Highlights Strong Growth

Abbott Laboratories’ recent earnings call conveyed a generally positive sentiment, highlighting robust growth across most segments, especially in medical devices and international markets. Despite these successes, the company faces ongoing challenges in the diagnostics market in China and the impact of tariffs on its financial performance.