Abbott Laboratories (ABT) AI Stock Analysis

• Market Cap: $218.14B
• Dividend Yield: 1.88%
• Average Volume (3M): 6.22M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 0.27
• 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: 5,961,044
• 30 Day Avg. Volume: 6,224,125
• 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: 1.10
• Enterprise Value/Revenue: 5.47
• Enterprise Value/Gross Profit: 10.13
• Enterprise Value/Ebitda: 20.46
• 1Y Price Target: $147.53
• Price Target Upside: 17.60% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 5.15
• Revenue Forecast (FY): $44.67B

• Rating: 73 Outperform
• Price Target: $136.00 ▲(8.41% Upside)

Abbott Laboratories' strong financial performance and strategic acquisition of Exact Sciences are significant positives, positioning the company for future growth. However, current technical indicators suggest bearish momentum, which could pose short-term challenges. The valuation is fair, and the earnings call highlights robust growth prospects despite some headwinds in specific markets.

Positive Factors

Revenue Growth

Strong organic sales growth indicates robust demand across key segments, supporting long-term revenue expansion and market position.

Strategic Acquisition

The acquisition of Exact Sciences positions Abbott in the fast-growing cancer diagnostics market, enhancing its growth profile and market reach.

Product Expansion

Expanding Lingo's availability to Android users broadens the customer base, supporting growth in the diabetes care segment and enhancing market penetration.

Negative Factors

Challenges in China

Ongoing challenges in China could hinder growth in the diagnostics segment, affecting overall revenue and market share in a key region.

Tariff Impact

Tariffs affecting gross margins could pressure profitability, necessitating cost management strategies to maintain financial health.

U.S. Pediatric Nutrition Decline

Loss of a significant contract in U.S. Pediatric Nutrition could impact segment growth, requiring strategic adjustments to regain market share.

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

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: Negative
• Last Price: 125.45
• 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 Negative. The current price of 125.45 is below the 20-day moving average (MA) of 125.91, below the 50-day MA of 126.82, and below the 200-day MA of 129.51, indicating a bearish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 47.96 is Neutral, neither overbought nor oversold. The STOCH value of 56.60 is Neutral, 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
MDT	80 Outperform	$126.45B	26.64	9.81%	2.76%	5.34%	13.15%
BSX	79 Outperform	$141.74B	51.14	12.66%	―	21.62%	54.80%
DXCM	79 Outperform	$25.76B	36.77	30.63%	―	14.21%	5.66%
EW	79 Outperform	$49.71B	36.47	13.59%	―	0.19%	65.58%
ABT	73 Outperform	$218.14B	15.74	30.62%	1.88%	6.37%	142.39%
SYK	70 Outperform	$135.84B	46.64	14.04%	0.95%	10.95%	-18.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Abbott Laboratories Corporate Events

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.

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.