Abbott Laboratories (ABT)
NYSE:ABT
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Abbott Laboratories
(NYSE:ABT)
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Rating:62Neutral
Price Target:
$112.00
▲(9.03% Upside)
Action:ReiteratedDate:03/23/26
ABT’s score is primarily supported by resilient cash generation and constructive 2026 growth/margin guidance, but is held back by a clearly bearish technical setup and a premium P/E multiple. Earnings volatility and incomplete 2025 balance sheet data add uncertainty to the financial profile.
Positive Factors
Cash generation
Consistent, improving free cash flow and a 2025 surge provide durable internal funding for dividends, buybacks, R&D and strategic M&A. Strong cash conversion enhances financial flexibility to invest across devices, diagnostics and nutrition without relying solely on external financing.
Negative Factors
Nutrition segment weakness
Nutrition is a consumer‑facing, volume‑driven business; sustained share loss and price‑driven volume suppression weaken a historically stable cash generator. Prolonged pediatric/WIC disruption and slower volume recovery could pressure revenue diversification and margin mix for several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent, improving free cash flow and a 2025 surge provide durable internal funding for dividends, buybacks, R&D and strategic M&A. Strong cash conversion enhances financial flexibility to invest across devices, diagnostics and nutrition without relying solely on external financing.
Read all positive factors
Abbott Laboratories (ABT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$178.90B
Dividend Yield1.88%
Average Volume (3M)11.08M
Price to Earnings (P/E)33.5
Beta (1Y)0.31
Revenue Growth6.37%
EPS Growth142.39%
CountryUS
Employees114,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.50
Shares Outstanding1,741,657,300
10 Day Avg. Volume7,996,286
30 Day Avg. Volume11,078,079
Financial Highlights & Ratios
PEG Ratio-0.65
Price to Book (P/B)4.20
Price to Sales (P/S)4.94
P/FCF Ratio29.60
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue4.08
Enterprise Value/Gross Profit7.35
Enterprise Value/Ebitda15.55
Forecast
1Y Price Target
$134.29Price Target Upside30.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)5.61
Revenue Forecast (FY)$48.54B
Abbott Laboratories Business Overview & Revenue Model
Company Description
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Med...
How the Company Makes Money
Abbott makes money primarily by selling healthcare products to hospitals, clinical laboratories, distributors, pharmacies, retailers, government and private healthcare systems, and directly or indirectly to patients depending on the product catego...
Abbott Laboratories Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAbbott Laboratories Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call balanced clear operational and pipeline strengths (double-digit EPS growth, margin expansion, robust device and CGM growth, multiple regulatory approvals, and strategic M&A to enter cancer diagnostics) against notable near-term headwinds concentrated in Nutrition and continued China/VBP and COVID testing impacts in Diagnostics. Management provided constructive 2026 guidance (midpoint ~7% organic sales, ~10% EPS growth) and detailed remediation actions for nutrition (price/promotions, innovation launches), indicating confidence in returning to growth. Overall, the positives — including strong device and CGM performance, margin expansion, productive pipeline milestones, and the Exact Sciences acquisition — materially outweigh the near-term lowlights.Positive Updates
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).
Negative Updates
Nutrition Sales Decline and Volume Weakness
Nutrition sales declined in the quarter. Management attributed weakness to market share loss in U.S. pediatric (including loss of a large WIC contract) and constrained volume growth following multi-year price increases aimed at offsetting higher manufacturing/commodity costs. The company expects nutrition performance to remain challenged in the first half of 2026 with a return to growth in the second half.
Read all updates
Q4-2025 Updates
Positive
Negative
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).
Read all positive updates
Company Guidance
Abbott guided 2026 adjusted EPS of $5.55–$5.80 (midpoint ≈ +10% year-over-year) and full‑year organic sales growth of 6.5%–7.5% (midpoint 7%), with first‑quarter adjusted EPS of $1.12–$1.18; they expect a favorable FX tailwind of ~1% on full‑year reported sales (≈+3% in Q1) and forecast an adjusted tax rate of 15%–16%. For context, Q4 adjusted EPS was $1.50 (+12%), adjusted gross margin was 57.1% of sales (up 20 bps), adjusted operating margin 25.8% (up 150 bps), with adjusted R&D at 6.2% and adjusted SG&A at 25.1% of sales; management also noted an expected COVID testing headwind of roughly $200M and that non‑GAAP forward guidance is not reconciled to GAAP.Abbott Laboratories Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
48
Neutral
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 44.33B | 41.95B | 40.11B | 43.65B | 43.08B |
| Gross Profit | 24.61B | 21.32B | 20.04B | 22.32B | 23.21B |
| EBITDA | 11.55B | 10.83B | 10.61B | 11.89B | 12.16B |
| Net Income | 6.52B | 13.40B | 5.72B | 6.93B | 7.07B |
Balance Sheet | |||||
| Total Assets | 86.71B | 81.41B | 73.21B | 74.44B | 75.20B |
| Cash, Cash Equivalents and Short-Term Investments | 8.94B | 7.97B | 7.28B | 10.17B | 10.25B |
| Total Debt | 15.07B | 15.28B | 15.87B | 17.95B | 19.25B |
| Total Liabilities | 33.94B | 33.51B | 34.39B | 37.53B | 39.17B |
| Stockholders Equity | 52.13B | 47.66B | 38.60B | 36.69B | 35.80B |
Cash Flow | |||||
| Free Cash Flow | 7.39B | 6.35B | 5.06B | 7.80B | 8.65B |
| Operating Cash Flow | 9.57B | 8.56B | 7.26B | 9.58B | 10.53B |
| Investing Cash Flow | -2.42B | -2.34B | -3.13B | -1.74B | -2.01B |
| Financing Cash Flow | -6.31B | -5.40B | -7.09B | -7.64B | -5.49B |
Abbott Laboratories Technical Analysis
Negative
102.72
Price Trends
109.03
Negative
116.40
Negative
122.95
Negative
Market Momentum
-2.35
Negative
37.20
Neutral
37.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABT, the sentiment is Negative. The current price of 102.72 is below the 20-day moving average (MA) of 105.02, below the 50-day MA of 109.03, and below the 200-day MA of 122.95, indicating a bearish trend. The MACD of -2.35 indicates Negative momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABT.
Abbott Laboratories Risk Analysis
Abbott Laboratories disclosed 19 risk factors in its most recent earnings report. Abbott Laboratories reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Abbott Laboratories Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.28B | 30.97 | 32.44% | ― | 14.21% | 5.66% | |
75 Outperform | $45.97B | 46.44 | 10.39% | ― | 0.19% | 65.58% | |
68 Neutral | $91.07B | 48.91 | 12.53% | ― | 21.62% | 54.80% | |
67 Neutral | $112.87B | 28.29 | 9.54% | 2.76% | 5.34% | 13.15% | |
66 Neutral | $129.79B | 41.38 | 15.04% | 0.95% | 10.95% | -18.32% | |
62 Neutral | $178.90B | 33.55 | 12.89% | 1.88% | 6.37% | 142.39% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ABT
Abbott Laboratories
102.72
-21.82
-17.52%
BSX
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61.28
-32.39
-34.58%
DXCM
Dexcom
65.68
-0.46
-0.70%
EW
Edwards Lifesciences
79.15
9.75
14.05%
MDT
Medtronic
87.91
7.56
9.41%
SYK
Stryker
339.14
-7.79
-2.25%
Abbott Laboratories Corporate Events
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Abbott Finalizes Exact Sciences Acquisition, Expands Cancer Diagnostics
Positive
Mar 23, 2026
Abbott Laboratories, a global healthcare leader in diagnostics, medical devices, nutritionals and branded generics, has expanded its portfolio with a strong emphasis on cancer screening and precision oncology diagnostics. By integrating Exact Scie...
M&A TransactionsPrivate Placements and Financing
Abbott Laboratories Completes Major Senior Notes Offering
Positive
Mar 9, 2026
On March 9, 2026, Abbott Laboratories completed a $20 billion multi-tranche senior notes offering, issuing floating-rate and fixed-rate debt with maturities ranging from 2029 to 2066 through a syndicate led by major global underwriters. The notes ...
Business Operations and StrategyM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
Abbott Laboratories Prices $20 Billion Senior Notes Offering
Positive
Feb 26, 2026
On February 23, 2026, Abbott Laboratories entered into a pricing agreement with a syndicate of major investment banks to issue $20 billion in senior notes across multiple floating- and fixed-rate tranches maturing between 2029 and 2066. The sale o...
Business Operations and StrategyExecutive/Board Changes
Abbott Laboratories Streamlines Governance With Smaller Board
Neutral
Feb 20, 2026
On February 20, 2026, Abbott Laboratories’ board of directors approved an amendment to the company’s by-laws to reduce the size of the board from thirteen to twelve members, effective April 24, 2026. The change signals a streamlined go...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.