Abbott Reports Q4 Revenue of $11.46B, Devices Segment Up 12.3%
Abbott posted Q4 adjusted EPS of $1.50 in line with estimates but missed revenue forecasts with $11.46 billion versus an $11.8 billion consensus, sending shares down over 9%. The company projects Q1 adjusted EPS of $1.12 to $1.18 below the $1.20 consensus and expects 6.5%–7.5% organic sales growth for fiscal 2026.
1. Q4 2025 Earnings and Guidance Miss Revenue Expectations
Abbott reported fourth-quarter sales of $11.46 billion, up 4.4% year-over-year but approximately 3% below analyst consensus of $11.8 billion. Adjusted EPS of $1.50 matched street estimates, driven by a 12.3% advance in Medical Devices revenue to $5.68 billion, led by a 14.5% increase in Diabetes Care sales to $2.13 billion. However, Nutrition declined 8.9% to $1.94 billion and Diagnostics fell 2.5% to $2.46 billion on softer COVID-19 testing demand. For Q1 2026, Abbott guided adjusted EPS of $1.12–$1.18, below the $1.20 consensus, and projected full-year adjusted EPS of $5.55–$5.80 with 6.5%–7.5% organic sales growth, highlighting a cautious near-term outlook despite long-term expansion plans.
2. Top-Ranked Value Stock in Zacks Style Scores
Abbott earns high marks in the Zacks Style Scores for value investors, ranking among the top value stocks within the healthcare sector. This designation reflects a low forward P/E relative to peers, above-average dividend yield near 2%, and a Price/Book ratio in the lowest decile of MedTech companies. Over the past five years, Abbott’s dividend has grown at a compounded annual rate exceeding 8%, bolstering its appeal to income-oriented investors seeking stable cash returns and a defensive profile in a volatile market.
3. India Codeine Cough Syrup Supply Chain Under Investigation
Regulatory filings reveal that Indian authorities have opened a supply-chain investigation into Abbott’s codeine-based cough syrup, following reports of abuse and illicit diversion. The probe encompasses manufacturing, distribution and export documentation, with potential implications for product approvals and market access in India, which accounts for roughly 5% of Abbott’s global diagnostics and pharmaceuticals revenue. Any enforcement actions or compliance mandates could weigh on near-term sales in emerging markets and raise incremental legal or remediation costs.