Abbott Laboratories (NYSE:ABT) stock fell on Thursday after the company reported fourth-quarter 2025 sales and the first-quarter 2026 earnings outlook below expectations.

Earnings Snapshot

The company reported quarterly sales of $11.46 billion, slightly missing the consensus of $11.80 billion.

Sales increased 4.4% on a reported basis, 3% on an organic basis, or 3.8% when excluding COVID-19 testing-related sales.

The U.S. MedTech giant reported adjusted earnings of $1.50, in line with Wall Street estimates.

“In 2025, we expanded margins and achieved double-digit earnings per share growth, our new product pipeline was highly productive, and we took important strategic steps to shape the company for the future,” said Robert Ford, chairman and CEO, Abbott. “We’re well-positioned for accelerating growth in 2026.”

Segments

Medical Devices sales increased 12.3% on a reported basis and 10.4% on an organic basis to $5.68 billion.

Sales growth in the quarter was led by double-digit growth in electrophysiology, heart failure, diabetes care, and rhythm management.

In January, Abbott collaborated with AtaCor Medical to advance a next-generation investigational extravascular implantable cardioverter defibrillator (EV-ICD) system designed to deliver defibrillation therapy for life-threatening heart rhythms.

In December 2025, the U.S. Food and Drug Administration (FDA) approved Abbott’s Volt PFA System to treat patients battling atrial fibrillation (AFib).

In Diabetes Care, sales of continuous glucose monitors were $2.0 billion and grew 15% (+12.2% organic).

The FDA in December issued a safety alert for FreeStyle Libre 3 sensors, after the company linked the devices to seven deaths and hundreds of serious injuries.

Global Diagnostics sales decreased 2.5% (-3.6% on an organic basis) and decreased 0.2% when excluding COVID-19 testing-related sales to $2.46 billion.

COVID-19 testing-related sales were $89 million in the quarter, compared to $176 million a year ago.

Global Core Laboratory Diagnostics sales increased 5.3% on a reported basis and 3.6% organically. Growth in other geographies was partially offset by challenging market conditions in China, including the impact of volume-based procurement programs. 

Worldwide Nutrition sales decreased 8.9% (-9.1% on an organic basis) to $1.94 billion, reflecting the impact of lower sales volumes compared to the prior year and new strategic price actions targeted to increase volume growth in the future.

In addition to these strategic price actions, Abbott expects to increase volume growth with the launch of several new products in 2026.

Established Pharmaceuticals sales increased 9% (+7% on an organic basis) to $1.38 billion. 

In November 2025, Abbott announced the biggest deal of the year in the global health care sector with $21 billion buyout of cancer screening company Exact Sciences Corp (NASDAQ:EXAS).

Guidance

The global healthcare company on Thursday said it expects the first quarter of 2026 adjusted earnings of $1.12-$1.18 per share, much lower than the consensus of $1.20.

Abbott Laboratories expects fiscal 2026 adjusted earnings of $5.55-$5.80 per share compared to the Wall Street consensus of $5.67.

The company projects 2026 organic sales growth between 6.5% and 7.5%.

ABT Price Action: Abbott Laboratories shares were down 7.37% at $111.63 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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