In the fourth quarter, Abbott Laboratories reported revenue of $11.2 billion, falling short of the consensus estimate of $11.8 billion. The company’s diagnostics division saw a 40% year-over-year decline in sales, primarily due to the collapse in COVID-19 testing volumes and the impact of a U.S. suspension of foreign aid for pandemic testing. This diagnostic weakness more than offset 8% growth in medical devices and 6% growth in nutritionals, leading to an overall revenue miss of 5% against Wall Street targets.

Abbott posted adjusted earnings per share of $1.45 for the quarter, below the analyst consensus of $1.49 and down from $1.50 in the prior quarter. The EPS shortfall reflects both lower diagnostics margins—gross profit in the segment contracted by 15 percentage points year-over-year—and elevated SG&A expenses associated with new product launches in electrophysiology and continuous glucose monitoring.

Despite the recent top‐line challenges, Abbott’s dividend track record remains robust. The company has increased its dividend for 54 consecutive years, yielding approximately 2.0% at current levels. Management reiterated its commitment to maintaining and gradually growing the payout, supported by a strong free cash flow conversion rate of 85% over the past twelve months and a net debt to EBITDA ratio of 1.5x.

On January 20, Abbott received CE Mark approval in Europe for its dual-energy TactiFlex™ Duo Ablation Catheter. A global FOCALFLEX clinical trial across the EU, U.K. and Australia demonstrated a 92% success rate in isolating pulmonary veins and a 2.1% major complication rate. The new catheter, which combines radiofrequency and pulsed field ablation, adds to Abbott’s Volt PFA System approvals and is expected to drive mid‐single-digit percentage revenue growth in the electrophysiology segment starting in the second half of the year.