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Abbott's Q3 Earnings Meet Estimates, Revenues Up Y/Y, Stock Climbs
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Key Takeaways
Abbott posted Q3 adjusted EPS of $1.30, matching estimates and rising 7.4% year over year.
ABT's Q3 sales grew 6.9% to $11.37B, led by strong growth in the Medical Devices and Nutrition units.
Abbott's full-year EPS guidance was reaffirmed at $5.12$5.18, with organic sales growth of 7.5%8%.
Abbott Laboratories (ABT - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.30, which came in line with the Zacks Consensus Estimate. The figure improved 7.4% from the prior-year quarter’s level.
GAAP EPS was 94 cents, the same as last year’s comparable figure.
ABT’s Q3 Revenues
Worldwide sales of $11.37 billion were up 6.9% year over year on a reported basis. The top line missed the Zacks Consensus Estimate by 0.24%.
Organically, sales improved 5.5% year over year. Organic sales, ex-COVID, rose 7.5% year over year.
Following the earnings announcement, ABT stock rose 1.4% in pre-market trading today.
ABT’s Q3 Results in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
Established Pharmaceuticals’ product sales increased 7.5% on a reported basis (7.1% on an organic basis) to $1.51 billion.
Organic sales in key emerging markets improved 11.1% year over year. This was led by double-digit growth in several countries, including Asia, Latin America and the Middle East.
Abbott Laboratories Price, Consensus and EPS Surprise
In the third quarter, the Medical Devices segment’s sales rose 14.8% year over year on a reported basis (12.5% organically) to $5.45 billion.
Sales growth was led by double-digit growth in Diabetes Care, Electrophysiology, Rhythm Management, Heart Failure and Structural Heart.
The Diabetes Care division reported organic sales growth of 16.2% year over year, led by sales of continuous glucose monitors, which accounted for $2.0 billion of total sales.
Structural Heart sales rose 11.3%, and Heart Failure sales improved 12.1% year over year organically.
The Vascular division recorded organic sales growth of 4.7%. The Electrophysiology, Rhythm Management and Neuromodulation divisions recorded organic growth of 13.7%, 13% and 6.8%, respectively, in the quarter under review.
For the third quarter, Nutrition sales rose 4.2% year over year on a reported basis (up 4% organically) to $2.15 billion.
Pediatric Nutrition sales were up 2.4%, and Adult Nutrition sales improved 5.4% organically. According to the company, Adult Nutrition sales benefited from the strong global growth of its market-leading brands, Ensure and Glucerna.
For the third quarter, Diagnostics sales declined 6.6% year over year on a reported basis (down 7.8% organically) to $2.25 billion. Organic sales, ex-COVID, rose 0.4%.
Core Laboratory Diagnostics sales were up 2.2% organically. Molecular Diagnostics sales increased 0.8% on an organic basis. Rapid Diagnostics sales were down 27.7%. Point of Care Diagnostics sales increased 7.8%.
Margin Details of ABT
In the third quarter, the gross profit rose 6% year over year to $6.29 billion despite an 8% increase in the cost of products sold (excluding amortization expense). However, the gross margin contracted 46 basis points (bps) to 55.4%.
Selling, general and administration expenses rose 5.4% year over year to $3.05 billion. Research and development expenses rose 7.4% year over year to $766 million. The company reported an adjusted operating profit of $2.48 billion, up 6.4% year over year. The adjusted operating margin contracted 11 bps to 21.8%.
ABT’s 2025 Financial Guidance
For the full year, Abbott expects adjusted diluted EPS to be in the range of $5.12 -$5.18 (earlier $5.10-$5.20). The Zacks Consensus Estimate for the metric is pegged at $5.15.
Full-year organic sales growth, excluding COVID-19 testing-related sales, is expected to be in the range of 7.5-8.0% (same as earlier). When including COVID-19 testing-related sales, organic sales growth is forecasted to be 6-7% (unchanged). The Zacks Consensus Estimate for Abbott’s sales is currently pegged at $44.66 billion.
Our Take on ABT Stock
Abbott exited the third quarter of 2025 on a mixed note, with earnings beating and revenue missing estimates. Global Core Laboratory Diagnostics sales were impacted by challenging market conditions in China, including the impact of volume-based procurement programs. The contraction of both margins in the quarter is discouraging.
On a positive note, both top and bottom lines rose on a year-over-year basis. Key highlights in the third quarter include regulatory approval in Japan for TriClip — a first-of-its-kind, minimally invasive treatment option for patients with tricuspid regurgitation, or a leaky tricuspid heart valve, and CE Mark for an expanded indication for the Navitor transcatheter aortic valve implantation (TAVI) system.
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% in fiscal 2026 compared with the industry’s 12.7%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, sporting a Zacks Rank #1, reported second-quarter 2025 adjusted EPS of 44 cents, which surpassed the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 13.1%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 242.77%.
Insulet, sporting a Zacks Rank #1, reported a second-quarter 2025 adjusted EPS of $1.17, which surpassed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025, compared with the industry’s 12.7%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 19.54%.
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Abbott's Q3 Earnings Meet Estimates, Revenues Up Y/Y, Stock Climbs
Key Takeaways
Abbott Laboratories (ABT - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.30, which came in line with the Zacks Consensus Estimate. The figure improved 7.4% from the prior-year quarter’s level.
GAAP EPS was 94 cents, the same as last year’s comparable figure.
ABT’s Q3 Revenues
Worldwide sales of $11.37 billion were up 6.9% year over year on a reported basis. The top line missed the Zacks Consensus Estimate by 0.24%.
Organically, sales improved 5.5% year over year. Organic sales, ex-COVID, rose 7.5% year over year.
Following the earnings announcement, ABT stock rose 1.4% in pre-market trading today.
ABT’s Q3 Results in Detail
Abbott operates through four segments — Established Pharmaceuticals, Medical Devices, Nutrition and Diagnostics.
Established Pharmaceuticals’ product sales increased 7.5% on a reported basis (7.1% on an organic basis) to $1.51 billion.
Organic sales in key emerging markets improved 11.1% year over year. This was led by double-digit growth in several countries, including Asia, Latin America and the Middle East.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
In the third quarter, the Medical Devices segment’s sales rose 14.8% year over year on a reported basis (12.5% organically) to $5.45 billion.
Sales growth was led by double-digit growth in Diabetes Care, Electrophysiology, Rhythm Management, Heart Failure and Structural Heart.
The Diabetes Care division reported organic sales growth of 16.2% year over year, led by sales of continuous glucose monitors, which accounted for $2.0 billion of total sales.
Structural Heart sales rose 11.3%, and Heart Failure sales improved 12.1% year over year organically.
The Vascular division recorded organic sales growth of 4.7%. The Electrophysiology, Rhythm Management and Neuromodulation divisions recorded organic growth of 13.7%, 13% and 6.8%, respectively, in the quarter under review.
For the third quarter, Nutrition sales rose 4.2% year over year on a reported basis (up 4% organically) to $2.15 billion.
Pediatric Nutrition sales were up 2.4%, and Adult Nutrition sales improved 5.4% organically. According to the company, Adult Nutrition sales benefited from the strong global growth of its market-leading brands, Ensure and Glucerna.
For the third quarter, Diagnostics sales declined 6.6% year over year on a reported basis (down 7.8% organically) to $2.25 billion. Organic sales, ex-COVID, rose 0.4%.
Core Laboratory Diagnostics sales were up 2.2% organically. Molecular Diagnostics sales increased 0.8% on an organic basis. Rapid Diagnostics sales were down 27.7%. Point of Care Diagnostics sales increased 7.8%.
Margin Details of ABT
In the third quarter, the gross profit rose 6% year over year to $6.29 billion despite an 8% increase in the cost of products sold (excluding amortization expense). However, the gross margin contracted 46 basis points (bps) to 55.4%.
Selling, general and administration expenses rose 5.4% year over year to $3.05 billion. Research and development expenses rose 7.4% year over year to $766 million. The company reported an adjusted operating profit of $2.48 billion, up 6.4% year over year. The adjusted operating margin contracted 11 bps to 21.8%.
ABT’s 2025 Financial Guidance
For the full year, Abbott expects adjusted diluted EPS to be in the range of $5.12 -$5.18 (earlier $5.10-$5.20). The Zacks Consensus Estimate for the metric is pegged at $5.15.
Full-year organic sales growth, excluding COVID-19 testing-related sales, is expected to be in the range of 7.5-8.0% (same as earlier). When including COVID-19 testing-related sales, organic sales growth is forecasted to be 6-7% (unchanged). The Zacks Consensus Estimate for Abbott’s sales is currently pegged at $44.66 billion.
Our Take on ABT Stock
Abbott exited the third quarter of 2025 on a mixed note, with earnings beating and revenue missing estimates. Global Core Laboratory Diagnostics sales were impacted by challenging market conditions in China, including the impact of volume-based procurement programs. The contraction of both margins in the quarter is discouraging.
On a positive note, both top and bottom lines rose on a year-over-year basis. Key highlights in the third quarter include regulatory approval in Japan for TriClip — a first-of-its-kind, minimally invasive treatment option for patients with tricuspid regurgitation, or a leaky tricuspid heart valve, and CE Mark for an expanded indication for the Navitor transcatheter aortic valve implantation (TAVI) system.
ABT's Zacks Rank and Key Picks
Abbott currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Veracyte (VCYT - Free Report) and Insulet (PODD - Free Report) .
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% in fiscal 2026 compared with the industry’s 12.7%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, sporting a Zacks Rank #1, reported second-quarter 2025 adjusted EPS of 44 cents, which surpassed the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 13.1%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 242.77%.
Insulet, sporting a Zacks Rank #1, reported a second-quarter 2025 adjusted EPS of $1.17, which surpassed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025, compared with the industry’s 12.7%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 19.54%.