Abbott Laboratories: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 22 January 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Read the filing

Key takeaways

• Fourth-quarter sales grew 4.4 percent: Sales were $11.459 billion, up 4.4 percent reported and 3.0 percent organic. Excluding COVID-19 testing-related sales, organic growth was 3.8 percent. Source
• Quarterly adjusted EPS grew 12 percent: GAAP diluted EPS was $1.01 and adjusted diluted EPS was $1.50. Specified items reduced GAAP diluted EPS by $0.49 in the quarter. Source
• Full-year sales reached $44.3 billion: Full-year 2025 sales rose 5.7 percent reported and 5.5 percent organic. Excluding COVID-19 testing-related sales, organic growth was 6.7 percent. Source
• Medical Devices led growth: Medical Devices sales rose 12.3 percent reported and 10.4 percent organic, to $5.675 billion. U.S. sales rose 10.7 percent and international sales rose 13.7 percent reported. Source
• Nutrition sales fell nearly nine percent: Nutrition sales were $1.940 billion, down 8.9 percent reported and 9.1 percent organic. Pediatric U.S. sales fell 17.7 percent. Source
• Volt PFA approved for U.S. patients: The FDA approved the Volt PFA System in December, according to management. It is Abbott's first pulsed field ablation offering for U.S. patients. Source
• 2026 EPS midpoint implies ten percent growth: Management said the full-year 2026 adjusted EPS range reflects 10 percent growth at the midpoint, measured against the 2025 adjusted figure. Source
• Exact Sciences deal targets cancer diagnostics: Abbott agreed in November to acquire Exact Sciences, which management says will position the company to enter and lead in cancer diagnostics. Source

“In 2025, we expanded margins and achieved double-digit earnings per share growth, our new product pipeline was highly productive, and we took important strategic steps to shape the company for the future,”

Robert B. Ford, chairman and chief executive officer, Abbott

Guidance

What changed from last quarter

• New guidance: Full-year and first-quarter 2026 guidance issued. The prior release gave full-year 2025 guidance only. Source
• New: Agreement to acquire Exact Sciences announced in November, not in the prior release. Management expects the deal to enter and lead in cancer diagnostics. Source
• New: FDA approval of the Volt PFA System in December, Abbott's first pulsed field ablation offering in the United States. Not in the prior release. Source
• New: CE Mark obtained in January for the TactiFlex Duo Ablation Catheter. Not in the prior release. Source

Fourth-quarter and full-year results

• Fourth-quarter sales grew 4.4 percent: Sales were $11.459 billion, up 4.4 percent reported and 3.0 percent organic. Excluding COVID-19 testing-related sales, organic growth was 3.8 percent. Source
• Quarterly adjusted EPS grew 12 percent: GAAP diluted EPS was $1.01 and adjusted diluted EPS was $1.50. Specified items reduced GAAP diluted EPS by $0.49 in the quarter. Source
• Full-year sales reached $44.3 billion: Full-year 2025 sales rose 5.7 percent reported and 5.5 percent organic. Excluding COVID-19 testing-related sales, organic growth was 6.7 percent. Source
• Full-year adjusted EPS grew 10 percent: Full-year GAAP diluted EPS was $3.72, against $7.64 in 2024, which included non-cash valuation allowance adjustments. Adjusted EPS excludes specified items. Source

Segments and regions

• Medical Devices led growth: Medical Devices sales rose 12.3 percent reported and 10.4 percent organic, to $5.675 billion. U.S. sales rose 10.7 percent and international sales rose 13.7 percent reported. Source
• Nutrition sales fell nearly nine percent: Nutrition sales were $1.940 billion, down 8.9 percent reported and 9.1 percent organic. Pediatric U.S. sales fell 17.7 percent. Source
• Diagnostics declined on COVID testing: Diagnostics sales were $2.457 billion, down 2.5 percent reported. Rapid Diagnostics fell 17.8 percent, and Core Laboratory rose 5.3 percent reported. Source
• Established Pharmaceuticals rose nine percent: Established Pharmaceuticals sales were $1.382 billion, up 9.0 percent reported and 7.0 percent organic. Key Emerging Markets rose 10.3 percent reported. Source

“We're well positioned for accelerating growth in 2026.”

Robert B. Ford, chairman and chief executive officer, Abbott

Products and franchises

• Glucose monitor sales reached $2.0 billion: Continuous glucose monitor sales were $2.0 billion within Diabetes Care, up 15.0 percent reported and 12.2 percent organic in the quarter. Source
• Volt PFA approved for U.S. patients: The FDA approved the Volt PFA System in December, according to management. It is Abbott's first pulsed field ablation offering for U.S. patients. Source
• Electrophysiology grew double digits: Electrophysiology sales were $730 million in the quarter, up 13.5 percent reported. Management named it among the segments with double-digit growth. Source

Costs, specified items and tax

• Specified items totalled $728 million: Specified items before tax were $728 million in the quarter, mainly intangible amortization of $422 million plus restructuring, legal and acquisition-related charges. Source
• Legal reserve recorded in specified items: Specified items in the quarter included $165 million of legal reserves tied to an agreed-upon settlement, recorded within other specified items. Source
• Tax rate excluding specified items 14.8%: The fourth-quarter tax rate was 24.7 percent on a GAAP basis and 14.8 percent excluding specified items, including prior-year tax adjustments. Source

Demand and market conditions

• Nutrition volumes fell against prior year: Management attributed the Nutrition decline to lower sales volumes compared with the prior year, alongside new strategic price actions aimed at future volume growth. Source
• Emerging-market branded generics grew: Established Pharmaceuticals growth was led by double-digit gains in India and several countries across Latin America and the Middle East. Source
• COVID testing demand has declined: Management said demand for COVID-19 tests has significantly declined since the pandemic moved to endemic phase, so it also reports growth excluding these tests. Source

2026 guidance and its basis

• Adjusted guidance has no GAAP equivalent: Management did not provide GAAP equivalents for its 2026 non-GAAP guidance, citing difficulty predicting restructuring, impairment, acquisition and currency effects. Source
• 2026 EPS midpoint implies ten percent growth: Management said the full-year 2026 adjusted EPS range reflects 10 percent growth at the midpoint, measured against the 2025 adjusted figure. Source
• First-quarter 2026 EPS range set separately: Management also set first-quarter 2026 adjusted EPS guidance, separate from the full-year range. Source

Strategy and acquisitions

• Exact Sciences deal targets cancer diagnostics: Abbott agreed in November to acquire Exact Sciences, which management says will position the company to enter and lead in cancer diagnostics. Source
• TactiFlex Duo gains CE Mark: Abbott obtained CE Mark in January for TactiFlex Duo, a catheter that delivers radiofrequency and PFA energy for patients with atrial fibrillation. Source
• 2025 steps aimed at company's future: Management said 2025 included important strategic steps to shape the company for the future, alongside expanded margins and a productive pipeline. Source

Capital and dividend

• Quarterly dividend raised to $0.63: The board declared the 408th consecutive quarterly dividend of $0.63 per share, up from $0.59 in the prior release. Source
• Dividend increases now 54 years: Management cites 54 consecutive years of dividend increases and membership in the S&P 500 Dividend Aristocrats Index. Source
• Diluted share count broadly flat: Average shares outstanding plus dilutive options were 1,747 million in the quarter, against 1,746 million a year earlier. Source

Coming up, as management said on 22 January 2026

• Exact Sciences deal expected to close: Management continues to expect the Exact Sciences acquisition to close in the second quarter of 2026. Source
• Dividend payment date set: The cash dividend is payable on Feb. 13, 2026, to shareholders of record at the close of business on Jan. 15, 2026. Source
• Nutrition product launches planned for 2026: Management expects several new Nutrition products to launch in 2026, which it expects to increase volume growth in that business. Source

Figures management reported

Risks management discussed

• Demand: Management cited challenging China market conditions, including volume-based procurement programs, as offsetting part of Diagnostics growth in the quarter. Source
• Financial: Management said it cannot predict with certainty the timing and impact of certain items on GAAP results, which is why GAAP guidance was not provided. Source
• Regulatory: Management noted incremental costs to comply with EU MDR and IVDR requirements for previously approved products, included within specified items. Source

Earlier plans management reported on

• Not stated: The third-quarter release reaffirmed this range. The fourth-quarter release reports 6.7 percent on this basis without stating whether the range was met.
• Not stated: The third-quarter release narrowed the range. The fourth-quarter release reports $5.15 without stating a comparison to the range.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.