Abbott Laboratories (ABT)

Health Care · $189B market cap · SEC CIK 0000001800

Next reports on Jan 20, 2027, after the close, with analysts expecting $1.65 in earnings per share.

52-week range $81.97 to $132.03. 16% below its 52-week high and 35% above its low.

The case for ABT

• Generated $7.4B of free cash flow in FY2025, 17% of revenue.
• Revenue growing 10.0% year over year.
• Gross margin of 57% absorbs cost shocks.
• Moves less than the market (beta 0.50).
• Pays a modest 2.0% dividend.

The case against

• Expensive for its growth: 40.1× earnings, where 8% a year of growth plus a 2.0% dividend would justify about 23×.
• Earnings per share down 66.3%.
• Dividend takes 92% of earnings, leaving little cushion.
• Trailed the S&P 500 by 25 points over the past year.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.

The financials

The financials, five years deep

Pulled from Abbott Laboratories's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Abbott Laboratories says it does

DEVELOPMENT OF BUSINESS Abbott Laboratories is an Illinois corporation, incorporated in 1900. Abbott’s* principal business is the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products. On November 19, 2025, Abbott entered into a definitive agreement to acquire Exact Sciences Corporation (Exact Sciences), which is expected to enable Abbott to enter the cancer diagnostics market. The acquisition is subject to customary closing conditions, including the approval of Exact Sciences shareholders and obtaining the required regulatory clearances. NARRATIVE DESCRIPTION OF BUSINESS Abbott has four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Established Pharmaceutical Products These products include a broad line of branded generic pharmaceuticals manufactured worldwide and marketed and sold outside the United States in…

Risk factors ABT lists in its 10-K

• Disruptions to Abbott’s global supply chain, which is large and complex, could negatively affect Abbott’s results of operations
• Abbott may acquire other businesses, license rights to technologies or products, form alliances, or dispose of or spin-off businesses, which could cause it to incur significant expenses and could negatively affect profitability
• The manufacture of many of Abbott's products is a highly exacting and complex process, and if Abbott or one of its suppliers or manufacturers encounters problems manufacturing products, Abbott’s business could suffer
• Abbott will incur additional indebtedness in connection with the Exact Sciences acquisition, which could adversely affect its business, including decreasing its business flexibility
• Changes in the healthcare regulatory environment may adversely impact the demand for and price of Abbott’s products
• The expiration or loss of intellectual property protection and licenses may affect Abbott’s future revenues and operating earnings
• Significant safety concerns could arise for Abbott’s products, which could have a material adverse effect on Abbott’s revenues and financial condition
• Changes in geopolitical and macroeconomic conditions could negatively affect Abbott’s business, financial condition, and results of operations
• Abbott is subject to cost containment efforts that could cause a reduction in future revenues and operating earnings
• Competitors’ intellectual property may prevent Abbott from selling its products or have a material adverse effect on Abbott’s future profitability and financial condition
• Fluctuation in foreign currency exchange rates has adversely affected and may continue to adversely affect Abbott’s financial statements and its ability to realize projected sales and earnings
• Adverse changes in tax laws, regulations or interpretations, both in the U.S. and internationally, could have a material adverse effect on Abbott’s effective tax rate, financial condition and results of operations
• Deterioration in the economic condition and credit quality of certain countries may negatively affect Abbott’s results of operations
• Other factors can have a material adverse effect on Abbott’s future profitability and financial condition

Filings

Other Health Care companies