ABT Medical Devices
Abbott Laboratories
Abbott Laboratories is an Illinois-based healthcare company, incorporated in 1900, with four reportable segments: Medical Devices (including FreeStyle Libre glucose monitors, cardiac rhythm, electrophysiology, structural heart, and vascular devices), Diagnostic Products, Nutritional Products (Similac, Ensure, PediaSure), and Established Pharmaceutical Products (branded generics sold outside the U.S.). FY2025 sales were $44.3 billion, 39% of them in the United States. Medical Devices is now about half of segment sales and over 60% of segment operating earnings. In March 2026 Abbott completed its roughly $20.6 billion acquisition of Exact Sciences, entering cancer diagnostics.
Last updated
Analysis last edited: October 2, 2026 · Financial data fetched: October 2, 2026 12:01 (SEC EDGAR) · Source 10-K filed: February 20, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- ABBOTT LABORATORIES
- Headquarters
- ABBOTT PARK, IL
- Incorporated in
- Illinois
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: ABT
- Industry
- Medical Devices
- CIK
- 1800
- Website
- https://www.abbott.com/ ↗
Workforce (as of FY2025 year-end)
Employees
115,000
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 15–18 days after quarter end (Oct 15, 2025; Oct 16, 2024; Oct 18, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 15–24 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Jul 16, 2026 (+16 days) | Jul 28, 2026 10-Q (+28 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 16, 2026 (+16 days) | Apr 29, 2026 10-Q (+29 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 22, 2026 (+22 days) | Feb 20, 2026 10-K (+51 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 15, 2025 (+15 days) | Oct 29, 2025 10-Q (+29 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 17, 2025 (+17 days) | Jul 30, 2025 10-Q (+30 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 16, 2025 (+16 days) | Apr 30, 2025 10-Q (+30 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 22, 2025 (+22 days) | Feb 21, 2025 10-K (+52 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 16, 2024 (+16 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 18, 2024 (+18 days) | Jul 31, 2024 10-Q (+31 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 17, 2024 (+17 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 24, 2024 (+24 days) | Feb 16, 2024 10-K (+47 days) |
| Q3 FY2023 | Sep 30, 2023 | Oct 18, 2023 (+18 days) | Nov 1, 2023 10-Q (+32 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Medical Devices
FreeStyle Libre and Lingo CGM
Examples: Continuous glucose monitoring sensors and software
CGM sales were $7.6B in FY2025, up from $6.4B.
Medical Devices
Electrophysiology and structural heart
Examples: Volt PFA system, TactiFlex catheters, MitraClip, TriClip, Navitor, Tendyne
Double-digit growth in FY2025; Volt and Tendyne gained FDA approval in 2025.
Medical Devices
Rhythm management, heart failure, vascular, neuromodulation
Examples: Aveir leadless pacemakers, HeartMate LVAD, XIENCE stents, Proclaim spinal cord stimulators
Part of Medical Devices, Abbott's largest and highest-margin segment.
Diagnostic Products
Core lab, molecular, point-of-care, and rapid diagnostics
Examples: Alinity, ARCHITECT, i-STAT, BinaxNOW, ID NOW
Sales fell 4.5% in FY2025 on lower COVID-19 testing and China procurement programs.
Nutritional Products
Pediatric and adult nutrition
Examples: Similac, PediaSure, Pedialyte, Ensure, Glucerna
About flat in FY2025.
Established Pharmaceutical Products
Branded generics in emerging markets
Examples: Creon, Duphaston, Synthroid, Brufen, Influvac
Up 7.4% in FY2025 excluding foreign exchange.
Products are from the FY2025 Form 10-K's Item 1 and MD&A.
04
Recent strategic focus
FY2025–2026 strategy and one-off items, from the 10-K and 2026 10-Q.
Entering cancer diagnostics
Abbott agreed in November 2025 to buy Exact Sciences for $105 per share, saying it would enable entry into the cancer diagnostics market, and completed the deal on March 23, 2026. Exact Sciences is now reported as Cancer Diagnostics, with $919M of sales in Q2 2026.
Source: Form 10-K (FY2025) Item 1; Form 10-Q (Q2 2026)
FY2024 net earnings inflated by a tax item
FY2024 net earnings of $13.4B included $7.5B of non-cash tax benefits from valuation allowance adjustments, so FY2025's $6.5B is not a like-for-like decline. FY2025 taxes included about $610M of expense related to a deferred tax asset recognized in a prior year.
Source: Form 10-K (FY2025) MD&A, Taxes on Earnings
Capex ÷ D&A (FY2025)
1.51x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$2,171M ÷ $1,434M = 1.51x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
6.6%
formularesearch & development expense ÷ revenue × 100
e.g.$2,942M ÷ $44,328M × 100 = 6.6%
Where the money goes, over time
Unit: $M. Capex went from $1.89B in FY2021 to $2.17B in FY2025
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$44.33B
As reported in the 10-K
Revenue CAGR (4 years)
+0.7%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($44,328M ÷ $43,075M) ^ (1÷4) − 1 = 0.7%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
18.2%▼caution
-1.4pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$8,053M ÷ $44,328M × 100 = 18.2%
ROE (FY2025)
13.1%▲favorable
5-year average: 19.6%
As reported in the 10-K
P/B (FY2025 end)
4.17x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.33.7x × $3.72 ÷ $30.02 = 4.17x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
23.6x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($219,728M + $12,929M − $8,522M) ÷ ($8,053M + $1,434M) = 23.6x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +0.7% a year over 4 years (modest growth)
From $43.08B in FY2021 to $44.33B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 19.6% → 18.2%
How much operating profit is left per $100 of revenue. It moved -1.4 points over 4 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 60.1% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 19.6% over 5 years (latest: 13.1%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Medical Devices
Designs, makes, and sells devices for heart rhythm management, electrophysiology, heart failure, vascular and structural heart disease, neuromodulation, and diabetes care — led by continuous glucose monitoring (FreeStyle Libre, Lingo). Sold to wholesalers, hospitals, ambulatory surgery centers, physicians' offices, consumers, and distributors.
01 what it draws on
Inputs & resources
- 33 manufacturing facilities
- Products from acquisitions such as St. Jude Medical (2017) and Cardiovascular Systems (2023)
- R&D of $1.75B in FY2025 (segment basis)
02 what it does
Activities
- Develops and gains regulatory approval for devices (e.g. Volt pulsed field ablation system and Tendyne mitral valve replacement approved in 2025)
- Manufactures implantable devices, catheters, and CGM sensors
03 who it serves
Customers
- Hospitals and ambulatory surgery centers
- Physicians
- People with diabetes (CGM sensors), through pharmacies, wholesalers, and directly
04 how money comes in
How it earns
- Device sales
- Recurring sensor sales for CGM systems
Medical Devices: how it makes money
- FY2025 segment sales were $21.4B with $7.2B operating earnings — a 33.7% margin, up from 31.4% in FY2023.
- Sales grew 11.9% in FY2025 excluding foreign exchange, with double-digit growth in Diabetes Care, Heart Failure, Electrophysiology, Structural Heart, and Rhythm Management.
- CGM sales were $7.6B in FY2025, up from $6.4B in FY2024.
Diagnostic Products
Sells diagnostic instruments and the tests that run on them — core laboratory systems (Alinity, ARCHITECT), molecular PCR systems, point-of-care (i-STAT), and rapid tests (BinaxNOW, Panbio, ID NOW) — to blood banks, hospitals, commercial labs, clinics, physicians' offices, retailers, and governments.
01 what it draws on
Inputs & resources
- 21 manufacturing facilities
- An installed base of instruments that use Abbott reagents
- Alere (acquired 2017), integrated into this segment
02 what it does
Activities
- Places instruments and sells reagents and consumables, often under contracts with minimum purchase obligations
- Expands test menus on the Alinity platform
03 who it serves
Customers
- Hospitals, commercial laboratories, and blood banks
- Clinics, physicians' offices, retailers, and governments
04 how money comes in
How it earns
- Reagent and consumable sales (recurring)
- Instrument sales and service
Diagnostic Products: how it makes money
- FY2025 segment sales were $8.9B, down from $10.0B in FY2023, as COVID-19 test demand fell and China's volume-based procurement weighed on sales.
- Operating margin fell from 24.4% (FY2023) to 19.5% (FY2025).
- Remaining performance obligations of $6.1B — mainly reagents under contracts with minimum purchase obligations — give visibility into future sales.
Nutritional Products
Sells pediatric nutrition (Similac infant formula, PediaSure, Pedialyte) and adult nutrition (Ensure, Glucerna), plus enteral feeding products for healthcare institutions, to consumers, retailers, wholesalers, institutions, and governments.
01 what it draws on
Inputs & resources
- 13 manufacturing facilities
- Consumer brands and marketing
02 what it does
Activities
- Manufactures formula and nutrition products
- Consumer marketing where permitted
03 who it serves
Customers
- Consumers through retailers
- Hospitals and healthcare institutions
- Government programs
04 how money comes in
How it earns
- Product sales, a large share of them subject to rebates
Nutritional Products: how it makes money
- FY2025 segment sales were $8.5B, about flat, with lower U.S. volumes offset by price increases.
- Operating margin rose from 16.4% (FY2023) to 18.4% (FY2025).
- U.S. infant formula sales recovered share in 2024 after a voluntary recall of certain products in 2022.
Established Pharmaceutical Products
Sells branded generic medicines (e.g. Creon, Duphaston, Synthroid, Brufen, Influvac) manufactured worldwide and sold outside the United States in emerging markets.
01 what it draws on
Inputs & resources
- 22 manufacturing facilities
02 what it does
Activities
- Builds brands with consumers, pharmacists, and physicians in emerging markets
03 who it serves
Customers
- Wholesalers, distributors, pharmacies, and governments outside the U.S.
04 how money comes in
How it earns
- Branded generic drug sales
Established Pharmaceutical Products: how it makes money
- FY2025 segment sales were $5.5B, up 7.4% excluding foreign exchange, with broad-based growth across countries.
- Operating margin was 23.3% in FY2025.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Medical Devices
21,387 (48%)profit 7,212 · margin 33.7%
Diagnostic Products
8,937 (20%)profit 1,740 · margin 19.5%
Nutritional Products
8,451 (19%)profit 1,558 · margin 18.4%
Established Pharmaceutical Products
5,536 (12%)profit 1,290 · margin 23.3%
Source: Form 10-K (FY2025) — Note 16, Segment and Geographic Area Information Segment operating earnings exclude corporate costs, intangible amortization ($1.7B in FY2025), share-based compensation, and other items, so they sum to more than consolidated earnings. From Q1 2026, Exact Sciences' sales are reported as Cancer Diagnostics.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 39% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
17,126 (39%)Germany
2,759 (6%)China
1,907 (4%)Switzerland
1,871 (4%)India
1,871 (4%)Japan
1,475 (3%)United Kingdom
1,340 (3%)All other countries
15,979 (36%)
Source: Form 10-K (FY2025) — Note 16, net sales to external customers by country China sales declined from $2,253M (FY2023) to $1,907M (FY2025).
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
The 10-K says Abbott's products "are sold under short-term receivable arrangements." In Diagnostics, many reagent and consumable sales fall under contracts with minimum purchase obligations: remaining performance obligations were $6.1B in Diagnostics and $444M in Medical Devices at FY2025 year-end. Rebates matter: 44% of FY2025 gross revenues were subject to rebates and allowances, mostly in Nutritional Products and Diabetes Care.
- Spot / one-off transaction
Product sales (devices, nutrition, branded generics)
Most of FY2025 sales
Typical term: Short-term receivable arrangements
Net prices are shaped by rebates, price controls, and inclusion of products under purchasing contracts.
- Multi-year / recurring
Diagnostic reagents under minimum-purchase contracts
$6.1B of remaining performance obligations (Diagnostics)
Typical term: About 52% expected to be recognized within 24 months, 17% over the following 12 months, the rest later
Includes extended warranty and service obligations on previously sold equipment.
09
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Abbott sells to wholesalers, distributors, hospitals, laboratories, physicians, pharmacies, retailers, consumers, and government agencies, depending on the segment.
Named by the company
None named. The 10-K says Abbott has no single customer whose loss would have a material adverse effect.
What the filings disclose
- 44% of FY2025 gross revenues were subject to rebates and allowances, mostly in Nutritional Products and Diabetes Care, paid to state agencies, wholesalers, group purchasing organizations, and others. (Form 10-K (FY2025), MD&A)
- No material portion of the business is subject to renegotiation of profits or termination of contracts at a government's election. (Form 10-K (FY2025), Item 1)
Suppliers
Abbott buys raw materials and supplies from numerous suppliers in the U.S. and around the world. It doesn't name them.
Named by the company
None named in the 10-K or the company’s press releases.
What the filings disclose
- There have been no recent significant availability problems or supply shortages for raw materials or supplies. (Form 10-K (FY2025), Item 1)
- The 10-K lists disruptions to its large and complex global supply chain, and manufacturing problems at Abbott or its suppliers or manufacturers, as risks. (Form 10-K (FY2025), Item 1A)
10
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Abbott's 10-K describes competition by segment: established pharmaceuticals compete with other healthcare and pharmaceutical companies and generics; nutrition with diversified consumer and healthcare manufacturers and private-label products; diagnostics and medical devices on technology, price, ease of use, service, and performance. No company is named.
Competitors named in the 10-K
Abbott's 10-K describes competitors by type but doesn't name them.
Peer group the company chose
Peer group for pay and company performance benchmarking, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Companies with revenue and market capitalization between roughly one-third and three times Abbott's, chosen for growth and return profiles, geographic breadth, and management structure.
- 3Msite ↗
- Becton Dickinsonsite ↗
- Boeingsite ↗
- Boston Scientificsite ↗
- Bristol-Myers Squibbsite ↗
- Cisco Systemssite ↗
- Coca-Cola Companysite ↗
- Danahersite ↗
- Honeywellsite ↗
- Johnson & Johnsonsite ↗
- Medtronicsite ↗
- Merck & Co.site ↗
- Nikesite ↗
- PepsiCosite ↗
- Pfizersite ↗
- Procter & Gamblesite ↗
- Reckitt Benckisersite ↗
- Strykersite ↗
- Thermo Fisher Scientificsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
11
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Abbott's current device and diagnostics businesses were built largely through acquisitions: St. Jude Medical and Alere in 2017, followed by smaller deals such as Cardiovascular Systems and Bigfoot in 2023. Its largest recent deal, Exact Sciences, closed in March 2026.
Mar 2026 (FY2026)
Exact Sciences
About $20.6B ($105 per share in cash)
A cancer diagnostics company.
- Stated purpose (company)
- Expected to enable Abbott to enter the cancer diagnostics market (FY2025 10-K).
Since then: Funded mainly with $20.0B of new long-term debt; Abbott also assumed about $2.8B of Exact Sciences' debt, nearly all repaid by June 30, 2026. Reported as Cancer Diagnostics, with $919M of Q2 2026 sales.
Source: Form 10-K (FY2025) — Item 1 and MD&A · Form 10-Q (Q2 2026) — Note 6, Business Acquisition
Sep 2023 (FY2023)
Bigfoot Biomedical
Not material (not disclosed)
A diabetes management company.
- Stated purpose (company)
- "Furthers Abbott's efforts to develop connected solutions for making diabetes management more personal and precise."
- What it is trying to do (this site's view)
- Complements the FreeStyle Libre CGM business.
Since then: Revenue and earnings not material.
Apr 2023 (FY2023)
Cardiovascular Systems (CSI)
$851M ($20 per share)
Maker of an atherectomy system used in treating peripheral and coronary artery disease.
- Stated purpose (company)
- "Adds complementary technologies to Abbott's portfolio of vascular device offerings."
Since then: Revenue and earnings since acquisition not material.
Oct 2017 (FY2017)
Alere
About $4.5B in cash
Older deal, core to today's businessA diagnostic device and service provider.
- Stated purpose (company)
- Integrated into the diagnostics segment, with restructuring plans to leverage economies of scale and reduce costs.
Since then: Part of today's Diagnostic Products segment.
Jan 2017 (FY2017)
St. Jude Medical
About $23.6B ($13.6B cash + ~$10B in Abbott shares)
Older deal, core to today's businessA global medical device manufacturer.
- Stated purpose (company)
- Integrated into Abbott's cardiovascular and neuromodulation segment, with restructuring plans to leverage economies of scale and reduce costs.
Since then: Part of today's Medical Devices segment, Abbott's largest ($21.4B of FY2025 sales).
Deal dates are closing dates.
12
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 43,075 | 43,653 | 40,109 | 41,950 | 44,328 |
| Operating income | 8,425 | 8,362 | 6,478 | 6,825 | 8,053 |
| Pretax income | 8,211 | 8,306 | 6,664 | 7,013 | 8,466 |
| Net income (attributable) | 7,071 | 6,933 | 5,723 | 13,402 | 6,524 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 1.3% | -8.1% | 4.6% | 5.7% |
| Operating margincalcoperating income ÷ revenue × 100 | 19.6% | 19.2% | 16.2% | 16.3% | 18.2% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 16.4% | 15.9% | 14.3% | 31.9% | 14.7% |
| Balance sheet ($M) | |||||
| Total assets | 75,196 | 74,438 | 73,214 | 81,414 | 86,713 |
| Total equity | 36,024 | 36,905 | 38,827 | 47,901 | 52,771 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 18,050 | 16,773 | 14,679 | 14,125 | 12,929 |
| Equity ratio | 47.6% | 49.3% | 52.7% | 58.5% | 60.1% |
| ROE | 19.8% | 19.1% | 15.2% | 31.1% | 13.1% |
| Cash flow ($M) | |||||
| Operating CF | 10,533 | 9,581 | 7,261 | 8,558 | 9,566 |
| Investing CF | -2,008 | -1,740 | -3,133 | -2,338 | -2,422 |
| Financing CF | -5,494 | -7,636 | -7,091 | -5,404 | -6,309 |
| Free cash flowcalccash flow from operations − capital expenditures | 8,648 | 7,804 | 5,059 | 6,351 | 7,395 |
| Cash and equivalents | 9,799 | 9,882 | 6,896 | 7,616 | 8,522 |
| Per share & other | |||||
| EPS ($) | 3.94 | 3.91 | 3.26 | 7.64 | 3.72 |
| BVPS ($) | 20.29 | 21.11 | 22.26 | 27.52 | 30.02 |
| Dividend per share ($) | — | 1.92 | 2.08 | 2.24 | 2.40 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | — | 49.1% | 63.8% | 29.3% | 64.5% |
| P/E (x) | 35.7 | 28.1 | 33.8 | 14.8 | 33.7 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 26.3 | 21.0 | 25.9 | 25.1 | 23.6 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 6.93 | 5.20 | 4.94 | 4.11 | 4.17 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
13
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
10.0%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$8,053M × (1 − 21%) ÷ $63,863M × 100 = 10.0%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.07%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $219.73B ÷ ($219.73B + $12.93B) = 94.4%
e.g.Debt weight: $12.93B ÷ ($219.73B + $12.93B) = 5.6%
e.g.WACC: 6.3% × 94.4% + 3.8% × (1 − 21%) × 5.6% = 6.07%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 6.07% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.41 (price-derived adjusted beta, but correlation with the market is low (R² 0.01), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 6.25%
- Cost of debt
- 3.81%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 94% : 6%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.07%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.41 (price-derived adjusted beta. Raw β 0.13, R² 0.01, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.125 + 0.33 = 0.413
termsβ (beta)
Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.41 × 5.5% = 6.3%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
14
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
2.8%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.1% − 3.3%
Past FCF growth (FY2021–FY2025)
-3.8%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+0.7%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $7.4B (operating CF − capex); enterprise value $223.72B = market cap $219.73B + debt $12.93B − cash and short-term investments $8.94B; r = WACC of 6.1% using this page’s default assumptions (β 0.41, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$224.09B
FCF $7.4B ÷ (6.1% − 2.8%)
Theoretical ÷ actual enterprise value
1.00x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.1% | 5.1% | 6.1% | 7.1% | 8.1% |
|---|---|---|---|---|---|
| 0% | 0.81x | 0.65x | 0.54x | 0.47x | 0.41x |
| 2% | 1.57x | 1.07x | 0.81x | 0.65x | 0.54x |
| 4% | 33.05x | 3.00x | 1.57x | 1.07x | 0.81x |
| 6% | — | — | 33.05x | 3.00x | 1.57x |
| 8% | — | — | — | — | 33.05x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
15
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.25x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -3.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 95%
Most profit comes from core operations.
- !
Days sales outstanding: 55 → 65 days
Receivables are growing faster than revenue — worth checking for looser collection terms or channel stuffing.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-20
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$9,566M ÷ $6,524M = 1.47x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$8,053M ÷ $8,466M × 100 = 95%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$7,929M ÷ $44,328M × 365 = 65 days
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Strengths & weaknesses
Strengths
1. Medical Devices is growing fast at high margins
Medical Devices sales rose from $16.9B (FY2023) to $21.4B (FY2025) while its operating margin rose from 31.4% to 33.7%; it produced $7.2B of the $11.8B total segment operating earnings in FY2025.
Evidence: Form 10-K (FY2025) Note 16 and MD&A
2. Diversified across four businesses and many countries
No single customer's loss would be material, according to the 10-K, and the business has no significant seasonality. The United States was 39% of FY2025 sales; no other country exceeded 7%.
Evidence: Form 10-K (FY2025) Item 1 and Note 16
3. Long dividend growth record and improving margins
The dividend rose 7.1% in 2025 to $2.40 per share, and was raised again to $0.63 per quarter from February 2026. Company operating margin improved from 16.3% (FY2024) to 18.2% (FY2025).
Evidence: Form 10-K (FY2025) MD&A
Weaknesses
1. Diagnostics still shrinking after COVID
Diagnostics sales fell from $10.0B (FY2023) to $8.9B (FY2025) and its operating margin from 24.4% to 19.5%, on lower COVID-19 test demand and China's volume-based procurement.
Evidence: Form 10-K (FY2025) Note 16 and MD&A
2. Nutrition growth has stalled
Nutritional Products sales were about flat in FY2025 ($8.5B), with lower U.S. volumes offset by price increases.
Evidence: Form 10-K (FY2025) MD&A
3. Much more debt after Exact Sciences
Long-term debt was $12.9B at FY2025 year-end, but Abbott issued $20.0B of long-term debt in March 2026 to fund the $20.6B Exact Sciences acquisition, so the FY2025 balance sheet on this page understates current leverage.
Evidence: Form 10-K (FY2025) MD&A; Form 10-Q (Q2 2026) Note 6
17
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
33.7x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.92%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
65%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
3.4%
(Operating CF − capex) ÷ market cap
1. A growing, high-margin device business
Medical Devices grew sales 11.9% (ex-FX) in FY2025 at a 33.7% operating margin, led by $7.6B of CGM sales, and now produces over 60% of segment operating earnings.
- What has to hold
- CGM and new cardiac devices keep winning share; patents covering products run into the 2040s (the 10-K lists patents expiring 2026 to 2046).
- The other side
- The 10-K notes that technological advantages can be reduced or eliminated as competitors introduce new products, and Diabetes Care is a business with heavy rebates.
Evidence: Form 10-K (FY2025) MD&A, Item 1, and Note 16
2. Steady, rising dividend
Dividends per share rose from $1.92 (FY2022) to $2.40 (FY2025), and the quarterly dividend rose to $0.63 from February 2026. Free cash flow (operating cash flow minus capex) was $7.4B in FY2025 against $4.1B of dividends paid.
- What has to hold
- Cash flow keeps growing while Abbott services the Exact Sciences debt.
- The other side
- The dividend yield at the FY2025 year-end price was about 1.9%, and the $20.0B of new debt raises interest costs (interest expense rose in 2026 because of it).
Evidence: Form 10-K (FY2025) MD&A; SEC EDGAR XBRL; Form 10-Q (Q2 2026)
3. A new growth leg in cancer diagnostics
Exact Sciences gives Abbott a cancer diagnostics business; its sales, reported as Cancer Diagnostics, were $919M in Q2 2026 alone.
- What has to hold
- Cancer Diagnostics grows fast enough to justify the roughly $20.6B price.
- The other side
- The 10-K warns acquired products may not succeed or may need greater investment than expected, and the deal was funded mainly with $20.0B of new long-term debt, against $12.9B of long-term debt at FY2025 year-end.
Evidence: Form 10-K (FY2025) Item 1A; Form 10-Q (Q2 2026)
Dividend yield, payout ratio, P/E, and FCF yield above use the fiscal year-end share price, not today's price, so they shift as the stock moves.
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Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.9x
$8.94B vs. $3.03B
Interest coverage (operating income ÷ interest expense)
16.3x
$8.05B vs. $493M
Free cash flow ÷ dividends paid
1.8x
$7.4B vs. $4.12B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -8.1% in FY2023 ($43.65B → $40.11B) | Yes, by FY2025 |
| Operating income | -22.5% in FY2023 ($8.36B → $6.48B) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Liquidity (as of FY2025 year-end)
Cash, cash equivalents, and short-term investments were $8.9B, and unused lines of credit allowed unsecured borrowing of up to $5B. This was before the March 2026 issuance of $20.0B of long-term debt for Exact Sciences.
Source: Form 10-K (FY2025), MD&A; Form 10-Q (Q2 2026)
Four businesses offset each other
From FY2023 to FY2025, Diagnostics sales fell by $1.1B as COVID-19 testing faded, while Medical Devices grew by $4.5B; total sales still rose.
Source: Form 10-K (FY2025), Note 16 · See Business model
Customer and country spread
No single customer's loss would be material, and the U.S. was 39% of FY2025 sales with no other country above about 6%.
Source: Form 10-K (FY2025), Item 1 and Note 16 · See Where it earns
Recurring diagnostics revenue
$6.1B of remaining performance obligations in Diagnostics, mainly reagents under minimum-purchase contracts, about half expected within 24 months.
Source: Form 10-K (FY2025), Revenue note · See Contract structure
Manufacturing footprint
89 manufacturing facilities: 33 for Medical Devices, 22 for Established Pharmaceuticals, 21 for Diagnostics, and 13 for Nutrition.
Source: Form 10-K (FY2025), Item 2
A past supply shock
The 2022 voluntary recall of certain infant formula products cost U.S. market share, which the 10-K says was recovered in 2024.
Source: Form 10-K (FY2025), MD&A
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Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Governance & quality
Exact Sciences integration and the debt behind it
- Company disclosure (summarized from the 10-K)
- The 10-K warns that Abbott would incur additional indebtedness for the Exact Sciences acquisition, which could reduce business flexibility, and that acquired products may not succeed or may need more investment than planned. The deal closed in March 2026 for about $20.6B, funded mainly with $20.0B of new debt.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact High / Likelihood Med
- 2Law & regulation
Infant formula NEC litigation
- Company disclosure (summarized from the 10-K)
- Abbott faces lawsuits alleging its preterm infant formula and human milk fortifier products cause necrotizing enterocolitis (NEC). In one Missouri state case a jury awarded $495M; in another a jury found for Abbott but a new trial was ordered; both are on appeal. The first three federal bellwether cases ended in summary judgment for Abbott. Abbott has recorded no reserve, saying a material loss isn't probable.
- Company’s stated mitigation
- Abbott says it stands by its products and is appealing adverse decisions.
- This site’s assessment
- Impact High / Likelihood Med
- 3Demand & macro
China and diagnostics pricing pressure
- Company disclosure (summarized from the 10-K)
- The 10-K cites challenging market conditions in China, including volume-based procurement programs, as a reason Diagnostics sales fell in 2024 and 2025. Sales in China fell from $2.25B (FY2023) to $1.91B (FY2025).
- Company’s stated mitigation
- Growth in routine testing volumes and Alinity deployments partly offset the decline.
- This site’s assessment
- Impact Med / Likelihood High
- 4Supply chain
Complex manufacturing and supply chain
- Company disclosure (summarized from the 10-K)
- The 10-K lists disruptions to its large global supply chain and manufacturing problems at Abbott or its suppliers as risks; a voluntary infant formula recall in 2022 cost Abbott U.S. market share that it later regained.
- Company’s stated mitigation
- 89 manufacturing facilities across four segments; the 10-K reports no recent significant availability problems for raw materials or supplies.
- This site’s assessment
- Impact Med / Likelihood Low
- 5FX & interest rates
Foreign currency
- Company disclosure (summarized from the 10-K)
- About 61% of FY2025 sales were outside the United States, and the 10-K says exchange-rate fluctuations have adversely affected and may continue to affect its results.
- Company’s stated mitigation
- Not stated in the 10-K.
- This site’s assessment
- Impact Med / Likelihood Med
- 6Law & regulation
Tax disputes and law changes
- Company disclosure (summarized from the 10-K)
- In September 2023 the IRS issued a $417M notice of deficiency for 2019, mainly reallocating income between U.S. entities and foreign affiliates, which Abbott is contesting. The 10-K also flags changes such as the OECD's global minimum tax.
- Company’s stated mitigation
- Abbott has filed a petition contesting the IRS notice.
- This site’s assessment
- Impact Low / Likelihood Med
20
What to watch going forward
- Cancer Diagnostics (Exact Sciences) growth and integration, and how fast Abbott reduces the debt taken on for it.
- Continued CGM growth (FreeStyle Libre, Lingo) and new electrophysiology products such as Volt.
- Whether Diagnostics sales stabilize as COVID-19 testing fades and China procurement pressure continues.
- Appeals and further trials in the NEC infant formula litigation.
- U.S. volumes in Nutritional Products.
21
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 2, 2026 · Financial data fetched: October 2, 2026 12:01 (SEC EDGAR) · Source 10-K filed: February 20, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Abbott Laboratories’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.