Abbott Laboratories (NYSE:ABT) Issues Earnings Results, Meets Expectations

Abbott Laboratories (NYSE:ABT) posted its earnings results on Wednesday. The healthcare product maker reported $1.42 earnings per share for the quarter, meeting the consensus estimate of $1.42, FiscalAI reports. Abbott Laboratories had a net margin of 11.65% and a return on equity of 17.69%. The firm had revenue of $13.01 billion during the quarter, compared to the consensus estimate of $12.99 billion. During the same period last year, the firm posted $1.30 EPS. The firm’s revenue for the quarter was up 14.5% on a year-over-year basis.

Here are the key takeaways from Abbott Laboratories’ conference call:

• Abbott plans to spin off its nutrition business into a separately traded company by the end of 2027, with shareholders receiving shares in both entities. Management expects the separation to sharpen strategic focus and improve Abbott’s growth and margin profile.
• Abbott reported third-quarter comparable sales growth of 7% and adjusted EPS of $1.42, with operating margin expanding 40 basis points to 23.4%. Growth was broad-based, led by diagnostics, Established Pharmaceutical Products, and medical devices.
• Medical devices showed strong momentum, particularly electrophysiology and rhythm management, supported by adoption of Volt PFA, the upcoming TactiFlex Duo launch, and AVEIR pacemakers. Abbott also received approvals for Libre Duo and Amulet 360, adding to its product pipeline.
• Management lowered its near-term outlook amid headwinds in diabetes care and electrophysiology, including international CGM pricing pressure, slower penetration of non-insulin-using patients, and temporary weakness in the left atrial appendage market. Fourth-quarter adjusted EPS is expected at $1.62–$1.67, while 2027 guidance will initially be set conservatively.
• The planned separation will involve transaction costs and new debt raised by the nutrition company, while Abbott continues to address litigation related to infant nutrition products. Management said both companies should be well capitalized, but additional details on liability allocation and capital structures are still forthcoming.

Abbott Laboratories Stock Performance

Shares of NYSE ABT opened at $100.59 on Thursday. The company has a quick ratio of 0.97, a current ratio of 1.38 and a debt-to-equity ratio of 0.57. The firm’s 50-day moving average price is $105.47 and its two-hundred day moving average price is $98.28. Abbott Laboratories has a 52-week low of $81.97 and a 52-week high of $132.02. The stock has a market capitalization of $174.06 billion, a P/E ratio of 32.55, a P/E/G ratio of 1.90 and a beta of 0.59.

Abbott Laboratories Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Thursday, October 15th will be issued a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Thursday, October 15th. Abbott Laboratories’s dividend payout ratio is 81.55%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on ABT shares. Robert W. Baird increased their target price on Abbott Laboratories from $121.00 to $123.00 and gave the stock an “outperform” rating in a research report on Thursday. Citigroup upped their price target on Abbott Laboratories from $108.00 to $112.00 and gave the stock a “buy” rating in a research note on Friday, July 17th. Weiss Ratings upgraded Abbott Laboratories from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, September 18th. TD Cowen reaffirmed a “buy” rating and issued a $135.00 price objective on shares of Abbott Laboratories in a research note on Friday, October 16th. Finally, Wolfe Research upgraded Abbott Laboratories from a “peer perform” rating to an “outperform” rating and set a $130.00 target price for the company in a report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $118.60.

Abbott Laboratories News Summary

Here are the key news stories impacting Abbott Laboratories this week:

• Positive Sentiment: Abbott reported third-quarter adjusted earnings of $1.42 per share, matching the consensus estimate, while revenue increased 14.5% year over year to $13.01 billion, slightly above the $12.99 billion forecast. Comparable sales grew 7%, and the company reaffirmed its full-year adjusted EPS guidance. Abbott Reports Third-Quarter 2026 Results and Reaffirms Full-Year EPS Guidance
• Positive Sentiment: Management announced a tax-free spin-off of its global Nutrition business, which includes brands such as Ensure, Similac, PediaSure, Glucerna and Pedialyte. Abbott expects the transaction to create two more focused companies, potentially accelerating Abbott’s sales growth and expanding its margin profile. Completion is targeted for the end of 2027. Abbott Nutrition Spin-Off Announcement
• Positive Sentiment: New product approvals and the European CE Mark for Abbott’s Cologuard Plus colorectal cancer test broaden the company’s diagnostics opportunity and could support longer-term growth. Abbott Secures Europe CE Mark for Colorectal Cancer Test
• Neutral Sentiment: The planned separation involves a nutrition operation generating approximately $8.5 billion in annual sales. While it may unlock value, investors will need to assess the eventual ownership structure, costs, tax implications and execution risks before determining whether the move improves shareholder returns. Abbott to Carve Out Nutrition Business
• Negative Sentiment: Abbott lowered its 2026 sales-growth outlook, citing weakness in medical devices. That guidance reduction overshadowed revenue growth and the reaffirmed EPS outlook, raising concerns about near-term demand and the company’s valuation. Abbott Lowers 2026 Sales Growth Forecast
• Negative Sentiment: Although adjusted EPS met the broad consensus, it was below the $1.43 estimate tracked by Zacks. The modest earnings shortfall, combined with the lower sales outlook, contributed to the stock’s decline despite higher revenue and expanding margins. Abbott Misses Q3 Earnings Estimates

About Abbott Laboratories

Abbott Laboratories is a global healthcare company that develops, manufactures and markets a broad range of medical products and services. Founded in 1888 by Wallace C. Abbott, the company is headquartered in Abbott Park, Illinois, and serves patients, healthcare providers and consumers in markets around the world.

Abbott operates across four principal businesses: medical devices, diagnostics, nutrition and established pharmaceutical products. Its offerings include glucose-monitoring systems such as FreeStyle Libre; cardiovascular devices, including stents and structural heart products; laboratory and point-of-care diagnostic systems; and branded generic medicines in areas such as gastroenterology, women’s health and cardiometabolic care.

The company’s nutrition portfolio includes infant and pediatric products such as Similac and PediaSure, adult nutritional products such as Ensure, and rehydration products such as Pedialyte.