Abbott Laboratories reported Q4 revenue of $11.46 billion, a 4.4 percent increase year-over-year, driven by a 12 percent gain in its Medical Devices segment, led by continued growth in continuous glucose monitoring systems. These gains offset an 8–9 percent decline in the Nutrition segment, as demand normalizes post-pandemic, and a pullback in COVID-19 diagnostics sales. Adjusted EPS of $1.50 matched consensus, with net margin improving to 14.7 percent due to cost efficiencies in MedTech operations.

Management projects full-year 2025 sales growth of 7 percent and EPS expansion of 10 percent, underpinned by new product launches in cardiovascular and diabetes care, margin accretion in Medical Devices and a gradual recovery in Nutrition volumes. Capital allocation priorities include a 7 percent dividend increase, continued share repurchases at an annual run rate above $4 billion and incremental R&D spending focused on next-generation diagnostics platforms.

Of 22 covering brokerages, 17 maintain a Buy rating, three hold and two Strong Buy, yielding an average recommendation of Moderate Buy. While several firms trimmed 12-month price targets by 5–10 percent following the revenue miss in Nutrition and diagnostics, most analysts cited conviction in Abbott’s long-term innovation pipeline and resilient cash flow. Market commentators highlight the recent pullback as an attractive entry point for dividend growth investors, noting a 67.7 percent payout ratio and a streak of over five decades of dividend increases.