Abbott Laboratories reported adjusted full-year EPS of $5.15 in 2025, up 10% from the prior year, driven by margin expansion across its core businesses. Revenue for Q4 reached $11.46 billion, a 4.4% year-over-year increase, although slightly below consensus estimates. Management has guided 2026 EPS to a range of $5.55–$5.80 and sales growth of 6.5%–7.5%, expecting continued operational leverage and cost initiatives to offset ongoing headwinds in select segments. The company also raised its quarterly dividend by 7%, reinforcing its status as a Dividend King with a payout ratio near 68%.

Abbott’s Medical Devices segment delivered robust mid-teens percentage growth in Q4, led by continued traction in continuous glucose monitoring (CGM) systems, while Established Pharmaceuticals grew roughly 9%. These gains partly offset a sharp Nutrition sales decline of 8%–9% and a downturn in COVID-19 diagnostics revenue. Nutrition is expected to normalize in 2026 following one-time pandemic stocking effects, with management forecasting a modest return to growth as new product formulations are introduced.

Twenty-two brokerages covering Abbott maintain an average recommendation of Moderate Buy, with seventeen Buy and two Strong Buy ratings. The average 12-month price target stands near $140. Analysts from Citigroup, Goldman Sachs and RBC trimmed targets by up to 10% post-earnings yet largely kept Buy ratings, signaling confidence in the longer-term growth trajectory. With a P/E ratio near 29 and a PEG ratio around 1.8, Abbott trades at a premium to the healthcare sector, reflecting its diversified portfolio and dividend growth profile.

Indian authorities are investigating Abbott Healthcare’s Phensedyl cough syrup supply chain after finding that 22 million bottles, valued at approximately $55 million, were distributed in Uttar Pradesh between April 2024 and March 2025—far exceeding estimated medical demand. Despite production being halted in December 2024, regulators recovered 30,000 bottles concealed in transport vehicles, suggesting illegal diversion through unofficial channels. Abbott has not been formally accused, but state officials obtained manufacturing and distribution records during a facility inspection in mid-January.