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Abbott Labs
(NYSE:ABT)
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Rating:73Outperform
Price Target:
$128.00
▲(24.20% Upside)
Action:Reiterated
Date:08/21/26
ABT scores well on financial quality (steady growth and strong, growing free cash flow) and a supportive earnings update (raised EPS guidance and margin improvement). The main offsets are premium valuation (high P/E), elevated near-term technical froth (overbought indicators), and incremental legal overhang from the formula litigation settlement.
Positive Factors
Diversified Revenue Growth
Abbott’s diagnostics, devices, nutrition and pharmaceuticals portfolio supports durable growth across multiple healthcare markets. This diversification reduces reliance on any single product cycle and provides resilience as demand shifts between segments.
Negative Factors
Higher Balance-Sheet Leverage
The sharp increase in debt reduces financial flexibility compared with Abbott’s prior position. Although equity remains substantial, higher obligations make the company more dependent on sustained cash generation and could constrain investment or capital returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Revenue Growth
Abbott’s diagnostics, devices, nutrition and pharmaceuticals portfolio supports durable growth across multiple healthcare markets. This diversification reduces reliance on any single product cycle and provides resilience as demand shifts between segments.
Read all positive factors
Abbott Labs 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 Labs (ABT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$201.83B
Dividend Yield2.13%
Average Volume (3M)13.15M
Price to Earnings (P/E)37.5
Beta (1Y)0.11
Revenue Growth8.06%
EPS Growth-61.33%
CountryUS
Employees115,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)3.11
Shares Outstanding1,730,383,300
10 Day Avg. Volume14,994,333
30 Day Avg. Volume13,149,862
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$123.21Price Target Upside19.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)5.52
Revenue Forecast (FY)$50.31B
Abbott Labs 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 to institutional customers (such as hospitals, clinics, laboratories, and public health systems), distributors/retailers, and end consumers, depending on the business line.
1) Diagnostic...
Abbott Labs Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
Overall, the call conveyed constructive momentum across Abbott’s diversified portfolio with multiple product and regulatory milestones, gross margin expansion, and raised EPS guidance. Key growth engines — diagnostics (notably cancer testing), nutrition recovery, devices (EP, rhythm management, heart failure) and diabetes/CGM — provide visibility to second-half acceleration. Offsetting risks include a soft respiratory season hurting rapid/molecular diagnostics, China VBP headwinds, structural heart US commercial execution needs, and uncertainty/timing around reimbursement and regulatory approvals for some high-impact products (e.g., CGM reimbursement expansion, Libre Duo FDA clearance). On balance, highlights notably outweigh the lowlights, with achievable near-term drivers and a clear pipeline cadence underpinning positive momentum.Positive Updates
Comparable Sales Growth and EPS Beat
Comparable sales increased 4.8% in Q2 2026 and adjusted EPS was $1.31, which exceeded the midpoint of guidance and consensus. Management reaffirmed full-year comparable sales guidance of 6.5%–7.5% and raised full-year adjusted EPS guidance to $5.45–$5.60.
Negative Updates
Rapid & Molecular Diagnostics Decline
Rapid and molecular diagnostics sales declined 8% in Q2, driven by a weaker-than-normal respiratory testing season that concluded during the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Comparable Sales Growth and EPS Beat
Comparable sales increased 4.8% in Q2 2026 and adjusted EPS was $1.31, which exceeded the midpoint of guidance and consensus. Management reaffirmed full-year comparable sales guidance of 6.5%–7.5% and raised full-year adjusted EPS guidance to $5.45–$5.60.
Read all positive updates
Company Guidance
Abbott reaffirmed full‑year comparable sales guidance of 6.5%–7.5% and raised adjusted EPS guidance to $5.45–$5.60 after reporting Q2 comparable sales +4.8% and adjusted EPS $1.31 (beating midpoint and consensus); Q3 adjusted EPS is guided to $1.38–$1.46. Management said Q2 adjusted gross margin was 58.0% (+100 bps YoY), adjusted R&D was 6.9% of sales and adjusted SG&A was 28.6% of sales; FX helped Q2 sales by 0.8% and is expected to be +1% for the full year (with ~‑1% FX impact in Q3). They highlighted business trends and drivers underpinning the guidance—core lab US +7.5% (hospital lab +13%), rapid/molecular ‑8%, cancer diagnostics +13% (Cologuard mid‑teens), nutrition sequentially +$125M (international pediatric +6.5%), EPD +9%, medical devices +8.5% (rhythm management +9.5%, heart‑failure +9%, EP >20% in Europe), CGM sales >$2B (+9.5%)—and said cash generation is tracking ahead of the January plan, supporting continued capital return.Abbott Labs 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 | 9.94B | 11.55B | 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 Labs Technical Analysis
Positive
103.06
Price Trends
99.65
Positive
95.32
Positive
105.88
Positive
Market Momentum
4.25
Negative
77.94
Negative
89.51
Negative
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 103.06 is below the 20-day moving average (MA) of 109.26, above the 50-day MA of 99.65, and below the 200-day MA of 105.88, indicating a bullish trend. The MACD of 4.25 indicates Negative momentum. The RSI at 77.94 is Negative, neither overbought nor oversold. The STOCH value of 89.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ABT.
Abbott Labs Risk Analysis
Abbott Labs disclosed 19 risk factors in its most recent earnings report. Abbott Labs 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 Labs Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $51.75B | 51.60 | 9.69% | ― | 14.55% | 15.09% | |
79 Outperform | $34.85B | 35.65 | 36.19% | ― | 15.54% | 77.43% | |
73 Outperform | $201.83B | 37.50 | 10.52% | 2.41% | 8.06% | -61.33% | |
70 Outperform | $73.00B | 20.31 | 14.90% | ― | 13.53% | 46.29% | |
68 Neutral | $119.49B | 24.89 | 9.85% | 3.43% | 8.43% | 3.17% | |
65 Neutral | $33.80B | 21.50 | 15.16% | 0.23% | 6.52% | -11.06% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
ABT
Abbott Labs
116.64
-12.25
-9.50%
BSX
Boston Scientific
50.37
-54.74
-52.08%
DXCM
Dexcom
92.34
16.38
21.56%
EW
Edwards Lifesciences
89.79
8.93
11.04%
MDT
Medtronic
93.35
4.21
4.72%
GEHC
GE Healthcare Technologies Inc
74.82
0.37
0.50%
Abbott Labs Corporate Events
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.