Abbott Laboratories Stock Earnings Reports

Abbott reported a solid Q3 2025: organic sales rose 7.5% excluding COVID test sales and adjusted EPS was $1.30 (in line with consensus). Medical Devices led performance with 12.5% growth (notable strength in diabetes/CGM, electrophysiology, CRM/Avera leadless pacemaker, structural heart and heart failure). Continuous glucose monitor sales reached $2 billion and grew 17% in the quarter. Nutrition grew 4% (adult nutrition strength; some U.S. pediatric softness and a lost WIC contract impacting near-term pediatric sales). Diagnostics showed modest growth ex-COVID but continued headwinds in China from VBP/DRG changes; management expects those China headwinds to moderate and sees acceleration outside China (U.S. diagnostics up ~10% this quarter). Established Pharmaceuticals (EPD) grew mid-to-high single digits with progress on biosimilars and launches. New product contributions were meaningful—recent launches generated nearly $5 billion in sales this quarter and added ~100 basis points to organic growth. Key regulatory/commercial milestones included Triclip approval in Japan, expanded CE indication for Navitor TAVR, CE mark for ESPRIT stent, and continued positive rollout of Volt PFA catheter in Europe (U.S. submission/launch targeted next year). Foreign exchange had a ~+1.4% favorable impact in Q3 and is expected to be ~+1.5% for Q4. Gross margin was 55.8% (impacted by tariffs and normal Q3 plant maintenance), adjusted operating margin improved ~40 bps year-over-year; management reiterated being on track for high-single-digit organic sales growth and double-digit EPS growth for 2025 and said they are comfortable with consensus for 2026. Management emphasized continued investment in R&D (close to 200 trials planned next year), tariff mitigation efforts, selective M&A/portfolio deployment of cash, and confidence in the sustainability of the device growth trajectory.