Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Abbott Laboratories delivered solid FY2025 operating performance with revenue up 5.7% to $44.3B and operating income surging 18.0% to $8.1B, though reported net income fell 51.3% to $6.5B largely due to the absence of a prior-year one-time gain from the Alinity litigation settlement.
Revenue
$44.33B
+5.67% YoY
EPS (Diluted)
$3.72
-51.31% YoY
Operating Income
$8.05B
+17.99% YoY
Source: SEC XBRL
Abbott Laboratories (ABT) reported FY2025 revenue of $44.33B, up 5.7% year over year. Operating margin was 18.2%, up 1.9 points from 16.3% a year earlier. Operating cash flow was $9.57B, up 11.8% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.31 | 1.29 | Beat +1.4% |
| Mar 2026 | 1.15 | 1.16 | Miss -0.5% |
| Dec 2025This filing | 1.50 | 1.51 | Miss -0.7% |
| Sep 2025 | 1.30 | 1.31 | Miss -1.1% |
Reported EPS of $1.50 versus the $1.51 analyst consensus — a -0.7% miss for Dec 2025.
Compiled by AI from this SEC filing
Abbott grew total revenue 5.7% year-over-year to $44.3B in FY2025, up from $42.0B in FY2024, reflecting broad-based demand across its diversified medical device, diagnostics, nutrition, and established pharmaceuticals segments.
Source: 10-K Income Statement
Operating income expanded 18.0% to $8.1B, pushing operating margin from 16.3% to 18.2%, a nearly 2 percentage point improvement, demonstrating that revenue growth outpaced cost growth and that Abbott is achieving meaningful operating leverage.
Source: 10-K Income Statement & Key Ratios
Reported net income fell 51.3% to $6.5B from $13.4B, and diluted EPS dropped to $3.72 from $7.64; this sharp decline reflects the absence of a large non-recurring gain recorded in FY2024 rather than deterioration in underlying business performance.
Source: 10-K Income Statement
Cost of revenue grew only 3.3% versus revenue growth of 5.7%, indicating improving gross efficiency; R&D spending rose modestly 3.4% to $2.9B, signaling continued investment in innovation while maintaining cost discipline.
Source: 10-K Income Statement
Operating cash flow grew 11.8% to $9.6B, and long-term debt was reduced 8.5% to $12.9B, reflecting Abbott's strong cash generation capability and commitment to balance sheet strengthening.
Source: 10-K Cash Flow Statement & Balance Sheet
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Abbott faces ongoing litigation risks, including product liability claims related to its medical devices and nutritional products. The prior year's net income included a significant litigation-related gain, highlighting how legal outcomes can materially swing reported earnings. Future adverse legal judgments could result in substantial financial charges.
Source: 10-K Risk Factors (inferred from financial data)
The 51.3% decline in net income from $13.4B to $6.5B illustrates how one-time items can create significant year-over-year earnings volatility, potentially misleading investors focused on headline net income. This makes it harder for investors to assess underlying business trends without adjusting for non-recurring items.
Source: 10-K Income Statement
Current liabilities grew 16.5% to $16.5B, outpacing current asset growth of 9.9%, causing the current ratio to sit at 1.58x. While still above 1.0x, the narrowing liquidity cushion warrants monitoring, particularly if operating cash flows were to soften.
Source: 10-K Balance Sheet & Key Ratios
Selling, general and administrative expenses rose 5.4% to $12.3B, representing a significant cost base that could pressure margins if revenue growth slows. At $12.3B, SG&A is the largest single cost line, exceeding cost of revenue on a relative basis and limiting bottom-line leverage.
Source: 10-K Income Statement
As a global healthcare company with $44.3B in revenue, Abbott is exposed to currency fluctuations across multiple geographies. Strengthening of the U.S. dollar against key currencies could reduce reported revenue and earnings from international operations, which represent a substantial portion of total sales.
Source: 10-K (inferred from company profile and financial data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 44.33 $B | 41.95 $B | +5.67% |
Cost of Revenue $B | 19.32 $B | 18.71 $B | +3.28% |
Operating Income $B | 8.05 $B | 6.83 $B | +17.99% |
Net Income $B | 6.52 $B | 13.40 $B | -51.32% |
EPS (Basic) $ | 3.73 $ | 7.67 $ | -51.37% |
EPS (Diluted) $ | 3.72 $ | 7.64 $ | -51.31% |
R&D Expense $B | 2.94 $B | 2.84 $B | +3.45% |
SG&A Expense $B | 12.33 $B | 11.70 $B | +5.43% |
Answers draw on this SEC filing and the data on this page
Abbott Laboratories reported 13.0% net sales growth to $12.6B in Q2 2026, driven primarily by the $20.6B acquisition of Exact Sciences (now reported as Cancer Diagnostics within Diagnostic Products), alongside high single-digit growth in Medical Devices and Established Pharmaceutical Products, while gross margin slightly compressed to 52.5% due to acquisition-related intangible amortization.
ABT delivered 7.8% revenue growth to $11.16B in Q1 FY2026, but net income fell 18.7% to $1.08B as a 22.2% surge in SG&A expenses and a 132.7% jump in long-term debt—likely tied to a major acquisition—weighed heavily on profitability and the balance sheet.
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