Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $199.10B
• Dividend Yield: 1.88%
• Average Volume (3M): 11.77M
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.29
• Revenue Growth: 6.37%
• EPS Growth: 142.39%
• Country: US
• Employees: 114,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.50
• Shares Outstanding: 1,737,682,900
• 10 Day Avg. Volume: 7,518,711
• 30 Day Avg. Volume: 11,765,297
• PEG Ratio: -0.65
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 4.94
• P/FCF Ratio: 29.60
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 4.65
• Enterprise Value/Gross Profit: 8.38
• Enterprise Value/Ebitda: 17.74
• 1Y Price Target: $137.93
• Price Target Upside: 20.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 5.68
• Revenue Forecast (FY): $47.89B

• Rating: 65 Neutral
• Price Target: $123.00 ▲(7.18% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by solid financial performance (notably strong free cash flow) and a constructive earnings outlook with margin expansion and strong Devices/CGM momentum. Offsetting factors include weaker technical positioning versus longer-term moving averages, a premium valuation, and elevated uncertainty from earnings volatility and incomplete 2025 balance sheet data.

Positive Factors

Free cash flow generation

Consistent and improving free cash flow provides durable funding for R&D, capital expenditure, dividends and buybacks. Strong FCF supports reinvestment into high-growth diagnostics and devices and cushions the company against cyclical revenue swings, enhancing long-term financial flexibility.

Scale and recurring revenue in Devices/CGM

Large installed base and recurring consumable demand from CGM and procedural devices create durable, high-frequency revenue streams. Scale drives margins and R&D leverage, supporting sustained mid-single-digit to low-double-digit organic growth and predictable cash flows over multiple years.

Pipeline, regulatory wins and strategic M&A

Regulatory approvals, clinical milestones and the Exact Sciences acquisition materially expand addressable markets and diversify revenue into a higher-growth diagnostics vertical. This strengthens long-term growth optionality and creates cross-sell and scale synergies across Abbott's diagnostics and devices franchises.

Negative Factors

Nutrition volume and contract loss

Structural weakness in Nutrition—driven by contract loss and price-sensitive consumer demand—can reduce a historically stable revenue stream and compress margins. Recovery requires regaining volume through promotions, innovation, and contract wins, which can be slow and margin dilutive in the near to medium term.

China procurement (VBP) pressure in Diagnostics

Structural procurement reforms and VBP in China can permanently lower pricing and volumes for diagnostics. Given China’s scale in testing, sustained VBP pressure creates multi-year uncertainty for growth and margins in Core Lab and POC businesses unless Abbott adapts product mix or achieves offsetting volume gains elsewhere.

Large debt raise and balance sheet data gaps

A $20B notes issuance materially increases near-term leverage tied to a transformational acquisition. Coupled with incomplete 2025 balance sheet reporting (equity/assets shown as 0), there is elevated uncertainty around post‑deal leverage, interest burden, and capital flexibility, which could constrain strategic options.

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 Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The Nutritional Products segment provides pediatric and adult nutritional products. The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

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

Strong and improving free cash flow supports reinvestment and shareholder returns, and revenue has returned to growth after a 2023 dip. However, net income volatility (notably the 2024-to-2025 swing) reduces earnings consistency, and incomplete 2025 balance sheet data materially increases uncertainty around current leverage/capital strength.

Income Statement

Revenue has grown steadily over the last two years (2024 and 2025) after a decline in 2023, indicating a return to a healthier top-line trajectory. Profitability is solid for the industry with gross margin improving in 2025, but net income is volatile (very strong in 2024, then materially lower in 2025), which reduces confidence in earnings quality and consistency. Operating margins remain respectable, though slightly below the 2021–2022 peak levels.

Balance Sheet

Leverage looks manageable in 2020–2024 with debt-to-equity improving meaningfully versus 2020, supporting balance sheet flexibility. However, the 2025 balance sheet data shows stockholders’ equity and total assets as 0 (and therefore debt-to-equity and return on equity as 0), which appears incomplete and prevents a reliable current-year assessment. Based on the available prior-year trend, the balance sheet is acceptable, but data gaps materially increase uncertainty.

Cash Flow

Cash generation is a clear strength: operating cash flow has been consistently strong across the period and free cash flow rebounded in 2024 and surged in 2025. Free cash flow as a share of net income is healthy in most years and is particularly strong in 2025 (free cash flow matching reported net income), supporting dividend/buyback capacity and reinvestment. A watch item is that operating cash flow has not fully covered EBIT in recent years (coverage ~0.52–0.80), suggesting some working-capital or cash conversion friction despite strong overall free cash flow.

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

• Technical Analysis Sentiment: Negative
• Last Price: 114.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 114.76 is above the 20-day moving average (MA) of 111.18, below the 50-day MA of 117.89, and below the 200-day MA of 126.52, indicating a neutral trend. The MACD of -0.69 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABT.

Abbott Laboratories Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXCM	77 Outperform	$28.13B	34.96	34.50%	―	14.21%	5.66%
EW	75 Outperform	$47.82B	45.02	―	―	0.19%	65.58%
SYK	72 Outperform	$145.93B	45.41	15.08%	0.95%	10.95%	-18.32%
MDT	71 Outperform	$124.03B	27.01	9.38%	2.76%	5.34%	13.15%
BSX	68 Neutral	$111.51B	37.89	12.60%	―	21.62%	54.80%
ABT	65 Neutral	$199.10B	30.81	13.03%	1.88%	6.37%	142.39%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Abbott Laboratories Corporate Events

Abbott Laboratories Prices $20 Billion Senior Notes Offering

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 of the notes, offered under an effective shelf registration and detailed in a prospectus supplement filed with the SEC, is expected to close on March 9, 2026, subject to customary conditions.

Abbott plans to use the net proceeds from this large-scale debt issuance, together with cash on hand and potential additional borrowings, to fund the purchase price for its acquisition of Exact Sciences, refinance certain Exact Sciences debt, pay related fees and expenses, and for general corporate purposes. The transaction underscores Abbott’s willingness to leverage the debt markets to finance strategic expansion in diagnostics and related healthcare offerings, with implications for its capital structure and future balance sheet flexibility.

The most recent analyst rating on (ABT) stock is a Buy with a $124.00 price target. To see the full list of analyst forecasts on Abbott Laboratories stock, see the ABT Stock Forecast page.

Abbott Laboratories Streamlines Governance With Smaller Board

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 governance structure that may affect board dynamics and decision-making, though Abbott has not disclosed specific implications for leadership roles or strategic direction.

This adjustment to board composition comes as governance practices across the healthcare and broader corporate sectors increasingly emphasize board efficiency and alignment with strategic priorities. Investors and other stakeholders will likely monitor how the smaller board influences oversight, succession planning, and the company’s ability to respond to industry and regulatory developments.

The most recent analyst rating on (ABT) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Abbott Laboratories stock, see the ABT Stock Forecast page.

Abbott Laboratories Expands Board with New Appointment

On December 12, 2025, Abbott Laboratories announced the appointment of Nita Ahuja, M.D., to its Board of Directors, expanding the board from twelve to thirteen members. This strategic move is part of Abbott’s ongoing efforts to strengthen its leadership and enhance its governance structure, potentially impacting its operational strategies and stakeholder engagement.

The most recent analyst rating on (ABT) stock is a Buy with a $155.00 price target. To see the full list of analyst forecasts on Abbott Laboratories stock, see the ABT Stock Forecast page.