ABT · Q4 2025 Earnings

Cautious

Abbott Laboratories

Reported January 22, 2026

30-second summary

30-second take: Abbott closed FY2025 with Q4 FY2025 revenue of $11.46B (+4.4% YoY) and adjusted EPS of $1.50, landing FY EPS at $5.15 — the midpoint of the narrowed $5.12–$5.18 guide, not the high end. The 2026 setup looks clean at the EPS line (10% growth at midpoint) but the organic sales guide of 6.5–7.5% is broadly comparable to FY2025's 7.5–8.0% ex-COVID guide (vs. 6.7% ex-COVID actual), so the framing is more "modest underperformance vs. prior ex-COVID range" than a clean step-down — COVID is no longer a meaningful drag. Management openly conceded the nutrition business model needs a reset with H1 FY2026 still challenged. Devices (+12.3%) carry the print, with CGM crossing $2.0B in the quarter (+15% reported); the quieter story is that EPS growth is increasingly being underwritten by Exact Sciences M&A and margin work rather than organic momentum.

Headline numbers

EPS

Q4 FY2025

$1.50

Revenue

Q4 FY2025

$11.46B

+4.4% YoY

Gross margin

Q4 FY2025

53.4%

Operating margin

Q4 FY2025

19.6%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$11.46B	+4.4%	$11.37B	+0.8%
EPS	$1.50	—	$1.30	+15.4%
Gross margin	53.4%	—	51.6%	+180bps
Operating margin	19.6%	—	18.1%	+150bps

Guidance

Abbott issues FY2026 guidance projecting 10% EPS growth at midpoint ($5.675) with 6.5–7.5% organic sales growth, while FY2025 actual EPS of $5.15 fell at the midpoint of narrowed guidance issued last quarter.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Adjusted Diluted EPS	Q4 FY2025	Not explicitly guided	$1.50	in-line	Met
Revenue	Q4 FY2025	Not explicitly guided	$11.459 billion	in-line	Met
Adjusted Diluted EPS	FY2025	$5.12 to $5.18	$5.15	-0.03 to -0.03 below midpoint (within range but below high end)	Missed

New guidance

Metric	Period	Guide	YoY
Organic Sales Growth	FY2026	6.5% to 7.5%	—
Adjusted Diluted EPS	FY2026	$5.55 to $5.80	+7.8% to +12.6% YoY
Adjusted Tax Rate	FY2026	15% to 16%	—
Foreign Exchange Impact on Reported Sales	FY2026	Approximately 1% favorable full-year; approximately 3% favorable Q1	—
Adjusted Diluted EPS	Q1 FY2026	$1.12 to $1.18	—

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Nutrition	$1.94B	-8.9%
Diagnostics	$2.457B	-2.5%
Established Pharmaceuticals	$1.382B	+9.0%
Medical Devices	$5.675B	+12.3%
Diabetes Care	$2.133B	+14.5%
Electrophysiology	$0.73B	+13.5%
Core Laboratory Diagnostics	$1.461B	+5.3%
Heart Failure	$0.375B	+13.2%

Other KPIs

Q4 FY2025

Segment	Q4 FY2025
Diabetes Care CGM Sales	$2.0 billion
Diabetes Care CGM Growth	15.0% reported, 12.2% organic
Organic Sales Growth (excl. COVID-19)	3.8%
Adjusted EPS Growth	12% YoY
Medical Devices Organic Growth	10.4%
Key Emerging Markets Growth	10.3% reported, 8.7% organic
Quarterly Dividend per Share	$0.63
COVID-19 Testing Sales	$89 million

Management tone

Narrative arc: prior-quarter device-and-margin confidence → cautious execution → Q4 FY2025 nutrition reset and growth-narrative pivot.

Nutrition went from "stable contributor" to "path is not sustainable long term" this quarter — a structural admission, not a soft patch. With nutrition down 8.9%, management said directly: "Path is not sustainable long term, so we began to make changes in the fourth quarter." That is a much harder admission — the pricing-led strategy of the prior two years is now framed as having structurally suppressed volume. The H2 FY2026 recovery timeline ("performance...to remain challenged in the first half...with a return to growth in the second half") is a longer fix than the prior quarter's framing implied.

The pricing-as-strength narrative collapsed. Across 2024 and early 2025, management framed nutrition price increases as successful inflation mitigation. This quarter: "We have increased prices to help mitigate the impact of higher manufacturing costs, but those price increases in the current economic environment have become a factor in constraining volume growth." The reframe — pricing as the problem, not the solution — is the most important tonal shift on this call and reveals weaker pricing power than prior commentary suggested.

FY2026 framing pivoted to forward-leaning "accelerating growth" — but the organic guide sits in line with the prior year's ex-COVID range. Management said "we're well positioned for accelerating growth in 2026" and described 2026 as "powered by innovation, operational excellence, and strategic execution." The 6.5–7.5% organic guide is broadly comparable to FY2025's 7.5–8.0% ex-COVID guide (6.7% actual ex-COVID). The "acceleration" appears to mean the EPS line (10% growth) more than a clean top-line step-up, with the gap filled by Exact Sciences closing in Q2 FY2026, margin work, and a moderating FX tailwind.

Diagnostics rhetoric finally caught up to results. Diagnostics narrowed to -2.5% in Q4 FY2025 with Core Lab back to +5.3% growth. Management now flags the next VBP wave (core lab oncology testing) as a low-exposure category. The narrative is now self-consistent: the visible drag is largely behind, but the new VBP cycle is being pre-positioned as a non-event rather than an unknown.

Recurring themes management leaned on this quarter:

Nutrition business model reset and volume growth recoveryMedical devices strong momentum, particularly CGM and structural heartInnovation pipeline productivity as core strategic leverMargin expansion despite tariffs and FX headwindsStrategic M&A (Exact Sciences) entering new growth marketsFoundational business segments (rhythm management, vascular) outperforming historical benchmarks

Risks management surfaced:

Nutrition market share loss and volume constraints from pricing-driven demand suppressionTariff implementation impact on cost structureChina market challenges and heightened competitive dynamicsCommodity cost inflation persisting in cost baseConsumer price sensitivity constraining demand in nutrition

Q&A highlights

Larry Beagleson · Wells Fargo

Why did guidance for revenue growth decrease from consensus expectations, and is the change related to nutrition? How should investors think about growth cadence through 2026?

Guidance decreased only 50 basis points from October consensus (7.5% to 7%). The change is driven by near-term nutrition business challenges due to price increases that suppressed volume growth. Management is implementing price promotion initiatives with early encouraging signs. Growth is expected to be challenged for a couple of quarters before returning to positive growth in H2. The company is reallocating R&D within existing budget for new product launches without additional resource requirements.

Guidance midpoint: 7% revenue, 10% EPS for 2026October consensus was 7.5% revenue, 10% EPSNutrition will have challenged growth for 'a couple of quarters' then return to positiveExpects 6-month process to reshifted volume growth, similar to 2022 supply disruption recovery timeframe

David Roman · Goldman Sachs

Can you frame the AVID EP portfolio positioning—specifically Volt, TactiFlex Duo, and next-generation products—relative to competition and within the context of the overall strategy? Also, how was risk adjusting incorporated into 2026 guidance?

AVID sustained double-digit growth even before PFA product launches, validating the 3-year strategy presented to the board. Volt launch in Europe exceeded expectations with positive feedback on mapping integration, visualization, and potential for sedation vs. general anesthesia. TactiFlex Duo launching internationally this year. Management emphasized a 'toolbox approach' with both balloon and dual-energy options. Portfolio is comprehensive with RF and PFA products, diagnostics (catheters, patches, introducers), and LAA device. Expects to grow at least in line with mid-to-high teens market growth. Risk adjustment involves sustaining high single-digit to low-teens growth in large portions of company, acceleration from lapping diagnostic headwinds, and short-term nutrition transition.

AVID represents ~10% of $5B global low-voltage pacing market25% of LAA procedures done concomitantlyU.S. single-chamber pacing ~50% penetrated of ~15% of total marketEP expected to grow at least in line with mid-to-high teens market growth

Robbie Marcus · J.P. Morgan

With CGM adding ~$1B annually for four consecutive years, is low-to-mid teens growth the right expectation for 2026? What is management's outlook on market growth and Abbott's competitive positioning in CGM?

Management views $1B annual growth additions over four years as acceleration, not slowing. Expects low teens growth in 2026, with significant penetration opportunities across all three patient groups (intensive insulin users, basal insulin users, non-insulin users). Non-insulin user reimbursement opportunity progressing well with three published studies supporting benefits. Ketone-sensing capability (GKS sensor) provides differentiated market share opportunity on pump side, potentially enabling market share shift. SGLT2 analysis shows only 1M of 6M users in U.S. on CGM, indicating market expansion opportunity. Management positions CGM as still in early innings, far from 'seventh inning.'

CGM growing ~$1B per year for four consecutive yearsExpected 2026 CGM growth: low-to-mid teens~50% penetration of intensive insulin user segment internationally~1M of 6M SGLT2 users in U.S. on CGMs (17% penetration)

Danielle Antolfi · UBS

What validates the pricing strategy for nutrition to drive volume increases, and how does nutrition's profitability profile affect its strategic fit within Abbott's portfolio?

Pricing work was conducted pre-Thanksgiving with testing in U.S. and international markets. Results came back quickly with 'encouraging' early signs, though management emphasized need for continued monitoring of consumer response and competitive activity. Profitability profile expected to remain in line with 2025 levels. Management shifting spend allocation from marketing/brand to price/promotion for next six months. Different businesses receive different resource allocation approaches based on momentum and opportunity balance.

Pricing work conducted pre-Thanksgiving 2025 with positive early signalsNutrition profitability expected in line with 2025 profileShifting spend from marketing/brand to price/promotion for next six monthsNo cookie-cutter approach to resource allocation across businesses

Matt Taylor · Jefferies

What are the dynamics in diagnostics China market? Are there specific VBP programs to watch? Also, what is the outlook for non-insulin type 2 CGM coverage expansion and timing?

Management expects to have gone through bulk of VBP impact on high market-share categories (oncology testing had 40-45% share in affected categories). Next major VBP will be core lab oncology testing where Abbott has very little market share. New management team in place to stabilize that business; expectation is stability, not growth. Rest of world (U.S., Latin America, Europe) capturing market share and growing. Full-year diagnostics China guidance mid-single digits; excluding China would be 7-8%. For CGM non-insulin user coverage: expecting language in first half 2026, followed by 90-day and 60-day comment/evaluation periods. Support from ADA, physician groups, CMS observed. Three published studies demonstrating A1C and time-in-range benefits. Rollout expected primarily through primary care. Not baking into guidance but team fully prepared for rapid deployment if approved.

Diagnostics China 2026 guidance: mid-single digit growth (7-8% excluding China)Next major VBP: core lab oncology with very low Abbott market shareNon-insulin CGM coverage: expecting language H1 2026, followed by comment periodsThree published studies supporting non-insulin user benefit claims

Answers to last quarter's watch list

Q4 FY2025 adjusted operating margin print — Q4 FY2025 adjusted operating margin came in at 25.8% (+150bps YoY), and adjusted gross margin at 57.1% (+20bps YoY despite tariffs and China). Management held the 10% midpoint EPS algorithm for FY2026 and committed to another 50–70bps of operating margin expansion, suggesting the operating-leverage story remains intact.

Resolved positively

Diagnostics sequential trajectory — Reported Diagnostics narrowed to -2.5% in Q4 FY2025, with Core Lab back to +5.3% growth. The "FY2026 recovery year" framing is now supported by data.

Resolved positively

Q4 FY2025 EPS landing within the narrowed range — Q4 FY2025 adjusted EPS of $1.50 landed squarely in the implied $1.47–$1.53 corridor, delivering FY at the $5.15 midpoint exactly. Status: Resolved positively (technically met, though without upside)

Pediatric nutrition recovery from new WIC contracts — Nutrition declined 8.9% in Q4 FY2025. Management is now explicit that the issue is broader than WIC — pricing-driven volume suppression is systemic.

Resolved negatively

FY2026 framing tone — Tone leaned forward to "accelerating growth" language, but the organic guide of 6.5–7.5% sits in line with FY2025's 7.5–8.0% ex-COVID range rather than clearly above it. The acceleration narrative applies primarily to EPS (10%). Status: Mixed (forward-leaning language with an organic guide that's comparable, not accelerating, vs. prior ex-COVID framing)

What to watch into next quarter

Nutrition Q1 FY2026 volume response to promotional spend — Management committed to a six-month rebuild and "encouraging" early pricing test signals. Watch Q1 FY2026 nutrition YoY: anything worse than Q4 FY2025's -8.9% means the pricing/promotion shift is failing; a narrowing to mid-single-digit decline would validate the H2 FY2026 recovery thesis.

Organic sales growth pacing toward 6.5–7.5% FY guide — Q4 FY2025 ex-COVID organic was 3.8%. Watch whether Q1 FY2026 (with ~3% FX tailwind) shows organic growth above 5% to demonstrate the implied H2 acceleration is mechanically achievable.

CGM growth rate in Q1 FY2026 — Watch whether Q1 FY2026 CGM holds low-to-mid-teens; sub-12% would call into question the "early innings" framing and management's $1B annual add framing.

Exact Sciences deal close and FY2026 EPS bridge disclosure — Management has hung a meaningful portion of the 10% EPS midpoint on the Q2 FY2026 close. Watch for explicit accretion sizing or any closing-timeline slippage on the Q1 FY2026 print.

Non-insulin CGM coverage language from CMS — Not in guidance but flagged as an H1 FY2026 catalyst. Coverage language emergence in Q1 FY2026 would be a clean upside lever for both CGM growth and the FY2026 organic guide trajectory.

Q1 FY2026 adjusted operating margin trajectory — With management guiding to another 50–70bps of operating margin expansion in FY2026, Q1 FY2026 is the first disclosure where investors can recalibrate the margin trajectory underlying the 10% EPS growth math.

Sources

Abbott Laboratories Q4 FY2025 Earnings Press Release, Exhibit 99.1 — https://www.sec.gov/Archives/edgar/data/1800/000162828026002982/abt-2025q4xexhibitx991.htm
Abbott Laboratories Q4 FY2025 earnings call commentary and Q&A (prepared remarks and analyst exchanges)
Tapebrief Q3 FY2025 ABT brief (for prior guidance baseline and watch-list context)
Tapebrief Q2 FY2025 ABT brief (for multi-quarter tone arc context)

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