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Abbott Laboratories
(NYSE:ABT)
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Rating:70Outperform
Price Target:
$113.00
▼(-2.70% Downside)
Action:Reiterated
Date:10/21/26
ABT scores well on financial performance—especially strong, growing free cash flow and steady revenue momentum—supported by a constructive earnings outlook and margin-expansion narrative tied to the planned nutrition separation. The score is held back by higher leverage and some margin compression, plus a relatively expensive valuation and only neutral technical momentum.
Positive Factors
Diversified Healthcare Portfolio
Abbott’s presence across four healthcare segments diversifies revenue sources and reduces reliance on any single product category. Recurring demand for diagnostics consumables, diabetes sensors, nutrition products, and medicines supports a broad, durable operating base over the next several quarters.
Negative Factors
Higher Leverage
The sharp increase in debt reduces financial flexibility relative to prior periods and makes Abbott more dependent on sustained operating cash generation. Higher leverage can constrain capital allocation and increase sensitivity to refinancing costs or weaker operating conditions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Healthcare Portfolio
Abbott’s presence across four healthcare segments diversifies revenue sources and reduces reliance on any single product category. Recurring demand for diagnostics consumables, diabetes sensors, nutrition products, and medicines supports a broad, durable operating base over the next several quarters.
Read all positive factors
Abbott Laboratories Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows how much revenue Abbott generates in different regions (U.S., Europe, Asia, emerging markets), revealing which markets drive sales and where the company is most exposed to economic slowdowns, currency swings, or regulatory changes. Useful for spotting geographic growth opportunities—such as rising demand for diagnostics or nutrition in developing markets—and risks if a large share of sales concentrates in one region.
Shows how much revenue Abbott generates in different regions (U.S., Europe, Asia, emerging markets), revealing which markets drive sales and where the company is most exposed to economic slowdowns, currency swings, or regulatory changes. Useful for spotting geographic growth opportunities—such as rising demand for diagnostics or nutrition in developing markets—and risks if a large share of sales concentrates in one region.
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The Fly
The FlyAbbott Laboratories (ABT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$179.44B
Dividend Yield2.43%
Average Volume (3M)9.98M
Price to Earnings (P/E)38.4
Beta (1Y)0.09
Revenue Growth10.00%
EPS GrowthN/A
CountryUS
Employees115,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.11
Shares Outstanding1,730,383,300
10 Day Avg. Volume11,103,787
30 Day Avg. Volume9,979,796
Financial Highlights & Ratios
PEG Ratio-0.65
Price to Book (P/B)4.20
Price to Sales (P/S)4.94
P/FCF Ratio29.60
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit7.02
Enterprise Value/Ebitda16.41
Forecast
1Y Price Target
$122.12Price Target Upside5.16% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)5.52
Revenue Forecast (FY)$50.06B
Abbott Laboratories Business Overview & Revenue Model
Company Description
Abbott Laboratories, along with its affiliated entities, is a global healthcare enterprise dedicated to the research, development, manufacturing, and worldwide distribution of a diverse portfolio of health solutions. The company operates through f...
How the Company Makes Money
Abbott makes money primarily by selling healthcare products across four major operating segments: Medical Devices, Diagnostics, Nutrition, and Established Pharmaceuticals. In Medical Devices, revenue is generated from sales of implantable and inte...
Abbott Laboratories Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2027
Earnings Call Sentiment Positive
The call was strongly constructive: Abbott delivered 7% sales growth, 9% EPS growth, margin expansion, broad segment growth, multiple product approvals and launches, and announced a strategic nutrition separation intended to improve the growth and margin profile of the remaining company. The main negatives were a reduced full-year revenue outlook, short-term electrophysiology and diabetes headwinds, cybersecurity-related disruption in cancer diagnostics, foreign-exchange pressure, and uncertainty around 2027 guidance and CMS reimbursement timing. Highlights significantly outweighed the lowlights.Positive Updates
Third-Quarter Revenue and EPS Growth Accelerated
Third-quarter sales grew 7% and earnings per share grew 9%, representing an acceleration in both the top and bottom lines compared with the first half of the year. Adjusted EPS was $1.42, in line with guidance and the consensus estimate.
Negative Updates
Foreign Exchange Was a Sales Headwind
Foreign exchange had an unfavorable year-over-year impact of 0.4% on third-quarter sales. Based on current rates, Abbott expects exchange to have a negative impact of approximately 1% on fourth-quarter sales.
Read all updates
Q3-2026 Updates
Positive
Negative
Third-Quarter Revenue and EPS Growth Accelerated
Third-quarter sales grew 7% and earnings per share grew 9%, representing an acceleration in both the top and bottom lines compared with the first half of the year. Adjusted EPS was $1.42, in line with guidance and the consensus estimate.
Read all positive updates
Company Guidance
Abbott anticipates completing the nutrition separation by the end of next year, subject to the required approvals; following separation, sales growth is expected to accelerate by 50 to 100 basis points, gross margin as a percent of sales to increase by more than 200 basis points, and operating margin as a percent of sales to increase by approximately 100 basis points. For the fourth quarter, exchange is expected to have a negative impact of approximately 1% on sales, and adjusted earnings per share is forecast at $1.62 to $1.67; full-year sales growth around 6% implies just north of 8% in the fourth quarter. EP growth is expected to be around 20% in Q4 versus around 25% previously, while diabetes growth is expected to be in the low to mid-single range for Q4 and probably for the next few quarters. For 2027, sales are expected to be, as Abbott comes out of the gate, pretty similar to this year, with EPS growth, gross margin expansion, and earnings growth expected, but specific guidance ranges will be provided in January.Abbott Laboratories Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.59B | 44.33B | 41.95B | 40.11B | 43.65B | 43.08B |
| Gross Profit | 26.46B | 24.61B | 21.32B | 20.04B | 22.32B | 23.21B |
| EBITDA | 11.33B | 11.92B | 10.83B | 10.61B | 11.89B | 12.16B |
| Net Income | 5.42B | 6.52B | 13.40B | 5.72B | 6.93B | 7.07B |
Balance Sheet | ||||||
| Total Assets | 109.22B | 86.71B | 81.41B | 73.21B | 74.44B | 75.20B |
| Cash, Cash Equivalents and Short-Term Investments | 5.60B | 8.94B | 7.97B | 7.28B | 10.17B | 10.25B |
| Total Debt | 32.61B | 15.07B | 15.28B | 15.87B | 17.95B | 19.25B |
| Total Liabilities | 57.45B | 33.94B | 33.51B | 34.39B | 37.53B | 39.17B |
| Stockholders Equity | 51.11B | 52.13B | 47.66B | 38.60B | 36.69B | 35.80B |
Cash Flow | ||||||
| Free Cash Flow | 8.72B | 7.39B | 6.35B | 5.06B | 7.80B | 8.65B |
| Operating Cash Flow | 9.90B | 9.57B | 8.56B | 7.26B | 9.58B | 10.53B |
| Investing Cash Flow | -22.37B | -2.42B | -2.34B | -3.13B | -1.74B | -2.01B |
| Financing Cash Flow | 10.64B | -6.31B | -5.40B | -7.09B | -7.64B | -5.49B |
Abbott Laboratories Technical Analysis
Positive
116.13
Price Trends
104.61
Negative
100.40
Positive
100.92
Positive
Market Momentum
0.11
Negative
55.03
Neutral
52.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABT, the sentiment is Positive. The current price of 116.13 is above the 20-day moving average (MA) of 100.61, above the 50-day MA of 104.61, and above the 200-day MA of 100.92, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 55.03 is Neutral, neither overbought nor oversold. The STOCH value of 52.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.
Abbott Laboratories Risk Analysis
Abbott Laboratories disclosed 19 risk factors in its most recent earnings report. Abbott Laboratories reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Abbott Laboratories Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $51.34B | 51.19 | 9.69% | ― | 14.55% | 15.09% | |
80 Outperform | $122.05B | 23.33 | 10.60% | 3.00% | 9.77% | 12.28% | |
76 Outperform | $29.41B | 30.09 | 36.19% | ― | 15.54% | 77.43% | |
70 Outperform | $179.44B | 38.41 | 9.12% | 2.43% | 10.00% | ― | |
66 Neutral | $66.22B | 18.42 | 14.90% | ― | 13.53% | 46.29% | |
60 Neutral | $32.27B | 20.53 | 15.16% | 0.20% | 6.52% | -11.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ABT
Abbott Laboratories
103.70
-20.39
-16.43%
BSX
Boston Scientific
45.69
-56.74
-55.39%
DXCM
Dexcom
77.94
7.31
10.35%
EW
Edwards Lifesciences
89.07
8.25
10.21%
MDT
Medtronic
95.41
4.30
4.72%
GEHC
GE Healthcare Technologies Inc
71.45
-6.74
-8.62%
Abbott Laboratories Corporate Events
Business Operations and StrategyM&A Transactions
Abbott to Spin Off Global Nutrition Business Unit
Positive
Oct 21, 2026
On Oct. 21, 2026, Abbott announced plans to spin off its global nutrition division into an independent, publicly traded company via a tax‑free share distribution to existing shareholders, aiming to complete the separation by the end of 2027....
Business Operations and StrategyLegal Proceedings
Abbott settles major preterm formula litigation claims
Negative
Aug 20, 2026
On August 20, 2026, Abbott announced agreements with three law firms to settle the Gill case and necrotizing enterocolitis claims involving about 2,000 infants tied to its preterm specialty formulas, for an aggregate payment of approximately $670 ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.