Overview
- Abbott reported fourth-quarter 2025 revenue of $11.5 billion versus $11.8 billion expected, while adjusted EPS rose 12% year over year and met estimates.
- Shares fell sharply after the report, and Evercore ISI cut its price target to $138 from $144 but maintained an Outperform rating, citing intact long-term growth drivers.
- Management issued 2026 guidance for 6.5% to 7.5% organic sales growth and projected adjusted EPS of $5.55 to $5.80.
- Nutrition sales declined 8.9% to $1.94 billion and diagnostics revenue fell 2.5% to $2.46 billion, with CEO Robert Ford pointing to higher manufacturing costs driving price increases that weighed on demand.
- The company has begun changes to stabilize nutrition with a recovery expected in the second half of 2026, and it reiterated plans to close a large, strategic acquisition in the second quarter.