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ABT FY2025 Q4 LOWERED

Abbott Laboratories earnings call

Jan 22, 2026 · 09:00 ET Mike CamillaPhil BoudreauRobert Ford
Buzzberg read

Nutrition expected to stay challenged in H1, return to growth in H2

Abbott's Q4 2025 earnings call highlighted a strong quarter with 12% organic EPS growth, but management guided 2026 slightly below consensus on the top line, primarily due to a deliberate strategic pivot in the nutrition business to reignite volume growth after years of price-driven growth. Despite this near-term drag, the company maintained its double-digit EPS growth target for 2026, buoyed by robust growth in medtech devices, strong pipeline execution, and the pending Exact Sciences acquisition, which management expects to close soon and add a new cancer diagnostics vertical. Q4 2025 adjusted EPS was $1.50, up 12% YoY, with sales (ex-COVID) up 3.8%.

Buzzberg read Nutrition expected to stay challenged in H1, return to growth in H2 Abbott's Q4 2025 earnings call highlighted a strong quarter with 12% organic EPS growth, but management guided 2026 slightly below consensus on the top line, primarily due to a deliberate strategic pivot in the nutrition business to reignite volume growth after years of price-driven growth. Despite this near-term drag, the company maintained its double-digit EPS growth target for 2026, buoyed by robust growth in medtech devices, strong pipeline execution, and the pending Exact Sciences acquisition, which management expects to close soon and add a new cancer diagnostics vertical. Q4 2025 adjusted EPS was $1.50, up 12% YoY, with sales (ex-COVID) up 3.8%. Read full analysisCollapse analysis

Abbott's Q4 2025 earnings call highlighted a strong quarter with 12% organic EPS growth, but management guided 2026 slightly below consensus on the top line, primarily due to a deliberate strategic pivot in the nutrition business to reignite volume growth after years of price-driven growth. Despite this near-term drag, the company maintained its double-digit EPS growth target for 2026, buoyed by robust growth in medtech devices, strong pipeline execution, and the pending Exact Sciences acquisition, which management expects to close soon and add a new cancer diagnostics vertical. Q4 2025 adjusted EPS was $1.50, up 12% YoY, with sales (ex-COVID) up 3.8%.

  • 2026 guidance calls for EPS of $5.55-$5.80 (10% growth at midpoint) and organic sales growth of 6.5%-7.5%, with the top line midpoint slightly below consensus due to nutrition transition.
  • Nutrition is the key negative: management intentionally shifted from price-led growth to volume-driven strategy, with price reductions and promotions initiated in Q4, expecting recovery in H2 2026.
  • Strong growth in medical devices: CGM sales exceeded $7.5B for 2025 (+17% FY), EP growth double-digit, rhythm management +12% led by Avera, and vascular +6.5%.
Revenue $11.459B reported
EPS $1.50 reported
Gross margin 57.05% reported
Op margin 19.64% reported

What changed this quarter

01
Nutrition/Guidance

Nutrition expected to stay challenged in H1, return to growth in H2

Abbott's Q4 2025 earnings call highlighted a strong quarter with 12% organic EPS growth, but management guided 2026 slightly below consensus on the top line, primarily due to a deliberate strategic pivot in the nutrition business to reignite volume growth after years of…

02
Guidance

2026 guidance midpoint: 7% organic sales growth, 10% EPS growth

Guidance · revenue to 7%

03
M&A/Strategy

Exact Sciences acquisition positions Abbott in cancer diagnostics

2026 guidance calls for EPS of $5.55-$5.80 (10% growth at midpoint) and organic sales growth of 6.5%-7.5%, with the top line midpoint slightly below consensus due to nutrition transition.

04
Diabetes/CGM

CGM growth seen as adding $1B annually, not slowing

Nutrition is the key negative: management intentionally shifted from price-led growth to volume-driven strategy, with price reductions and promotions initiated in Q4, expecting recovery in H2 2026.

AI, capex & demand read

AI

Platform & monetization

AI is minimally discussed — management noted the bolt-on acquisition of Lara Lab, an AI-powered imaging company, and said it is being integrated into structural heart pre-procedure planning.

Demand

Bookings & conversion

Management projected accelerating growth and improved performance for 2026, driven by new product launches and strategic initiatives, despite short-term expected weakness in nutrition. The tone is confident about long-term sustainability and margin expansion.

Tone · Confident

Management acknowledged near-term nutrition headwinds but repeatedly emphasized pipeline momentum, 2026 acceleration, and confidence in the portfolio's growth positioning.

Supply-chain alpha

A1

Nutrition business is transitioning from a price-increase strategy to a volume-driven one, with price reductions and promotions implemented in Q4 to reignite volume growth.

“The higher prices, though, have resulted now in what I see as kind of suppressing demand and lowering the volume growth. So we could have gone a couple more quarters, maybe nine more months doing this, but it would not be sustainable. So w…”
Robert Ford
A2

Abbott's continuous glucose monitoring (CGM) growth is slowing in percentage terms but maintaining a billion-dollar annual increase, with management citing SGLT2 crossover (only 1 million out of 6 million users on CGM) as a significant untapped market expansion opportunity.

“You got about 6 million SGLT2 users in the U.S. And if you cross-reference their usage of CGM through all the databases, only about a million of those six are on CGMs. So I think there's going to be an opportunity here also to kind of crea…”
Robert Ford
A3

The electrophysiology (EP) market is shifting towards a 'toolbox' approach where physicians will use both balloon/basket and dual-energy catheters depending on patient profiles, with Abbott positioning its Volt and TactiFlex Duo as complementary rather than competing.

“I think it comes down to we always wanted to make sure that we had a toolbox approach here for the physicians. so they can have choice and they can have greater flexibility about how they use these products. I'm sure that there will be cas…”
Robert Ford
A4

China's volume-based procurement (VBP) impact on Abbott's diagnostics has largely passed, with the next big wave focused on core lab oncology testing where Abbott has minimal market share, suggesting the VBP headwind is now a tailwind.

“I think the next big area VVP is going to be in the on the just your regular kind of core lab oncology testing. And, you know, we have very little, very little market share over there. So, listen, we put out, we put a new management team i…”
Robert Ford

Forward guidance

LoweredGuidance · revenue to 7%
Forward guidance
MetricPeriodRangeMidpointStatus
EPSFY2026$5.55–$5.80inline vs consensus$5.67MAINTAINED
EPSFY2026 Q1$1.12–$1.18$1.15GUIDED
RevenueFY20266.5%–7.5%below vs consensus7%LOWERED

Guidance credibility

100%historical hit rate
100%
Phil Boudreau

1 of 1 · +0.0% average bias

Company read-throughs

since call
$102.45
Supply chain

The statement references the integration of Lara Lab AI technology into Abbott's structural heart business, which highlights the continued tech-driven approach in device innovation that competes with Exact Sciences' digital tools.

“Our announced acquisition of Exact Sciences will allow Abbott to enter and lead in the fast-growing cancer diagnostics market”
Robert Ford
-17.0%
since call
$244.00$202.50
+1.1%
since call
$75.19$76.01
Supply chainSupply-chain alpha

Abbott's continuous glucose monitoring (CGM) growth is slowing in percentage terms but maintaining a billion-dollar annual increase, with management citing SGLT2 crossover (only 1 million out of 6 million users on CGM) as a significant untapped market expansion opportunity. — This highlights a major growth segment for CGM that competitors like Dexcom (DXCM) and Medtronic (MDT) are also chasing, but Abbott's dominant market position and new dual-glucose ketone sensor could give it a decisive edge.

“You got about 6 million SGLT2 users in the U.S. And if you cross-reference their usage of CGM through all the databases, only about a million of those six are on CGMs. So I think there's going to be an opportunity here also to kind of”
Robert Ford
-42.8%
since call
$91.38$52.30
-8.7%
since call
$100.01$91.27
Supply chainSupply-chain alpha

The electrophysiology (EP) market is shifting towards a 'toolbox' approach where physicians will use both balloon/basket and dual-energy catheters depending on patient profiles, with Abbott positioning its Volt and TactiFlex Duo as complementary rather than competing. — This implies that the competitive battleground will be about portfolio breadth and physician preference, not just who has the fastest single catheter, potentially mitigating the impact of Boston Scientific's (BSX) earlier PFA launches.

“I think it comes down to we always wanted to make sure that we had a toolbox approach here for the physicians. so they can have choice and they can have greater flexibility about how they use these products. I'm sure that there will be”
Robert Ford
since call
Supply chainSupply-chain alpha

China's volume-based procurement (VBP) impact on Abbott's diagnostics has largely passed, with the next big wave focused on core lab oncology testing where Abbott has minimal market share, suggesting the VBP headwind is now a tailwind.