U.S. stock futures were mostly lower this morning, with the Dow futures falling around 0.2% on Thursday.Shares of Abbott Laboratories ABT fell sharply in pre-market trading after the company issued third-quarter adjusted EPS guidance below estimates.Abbott posted adjusted earnings of $1.26 per share, beating market estimates of $1.25 per share. The company's sales came in at $11.142 billion versus expectations of $11.068 billion.Abbott Laboratories said it sees third-quarter adjusted EPS of $1.28 to $1.32, ...

Financial Performance - Abbott Laboratories lowered the top end of its full-year guidance [1] Market Reaction - Abbott Laboratories' stock price dropped in early trading [1]

Core Insights - Abbott's adjusted earnings per share for Q2 were $1.26, up from $1.14 in the same period last year, and slightly above market expectations of $1.25 [1] - The company's net sales for Q2 reached $11.14 billion, representing a year-over-year growth of 7.4%, exceeding market expectations of $11.06 billion [1] - For Q3, Abbott expects adjusted earnings per share to be between $1.28 and $1.32, while market expectations are at $1.34 [1] - Following the earnings report, Abbott's stock price declined by 2.8% [1]

[Abbott Q2 2025 Financial Highlights & Outlook](index=1&type=section&id=Abbott%20Reports%20Second-Quarter%202025%20Results) Abbott delivered strong Q2 2025 results with high single-digit organic sales growth, double-digit EPS growth, and raised full-year guidance [Second-Quarter 2025 Performance Summary](index=1&type=section&id=Second-Quarter%202025%20Performance%20Summary) Abbott achieved strong Q2 results with high single-digit organic sales growth, double-digit EPS growth, and significant margin expansion Q2 2025 Key Financial Metrics | Metric | Value | Growth vs. Prior Year | | :--- | :--- | :--- | | Reported Sales Growth | 7.4% | - | | Organic Sales Growth | 6.9% | - | | Organic Sales Growth (Ex-COVID) | 7.5% | - | | GAAP Diluted EPS | $1.01 | - | | Adjusted Diluted EPS | $1.26 | Double-digit growth | Q2 2025 Margin Performance | Margin Type | Reported | Adjusted | Basis Point Increase (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Margin | 52.7% | 57.0% | 100 bps | | Operating Margin | 18.4% | 22.9% | 100 bps | - Key strategic advancements in the quarter include: - Completed enrollment ahead of schedule for the FlexPulse U.S. IDE trial for treating atrial fibrillation (AFib) - Announced positive late-breaking data from the AVEIR Conduction System Pacing (CSP) clinical feasibility study for a leadless pacemaker - Received FDA approval for the Tendyne transcatheter mitral valve replacement (TMVR) system - Initiated plans to develop a new cardiovascular device manufacturing facility in Georgia, to be completed by 2028[3](index=3&type=chunk) [Full-Year 2025 Financial Guidance](index=7&type=section&id=ABBOTT%27S%20FINANCIAL%20GUIDANCE) Abbott raised its full-year 2025 guidance, projecting strong organic sales growth and double-digit adjusted diluted EPS Full-Year 2025 Projections | Metric | Projected Range | | :--- | :--- | | Organic Sales Growth (Ex-COVID) | 7.5% to 8.0% | | Organic Sales Growth (Incl. COVID) | 6.0% to 7.0% | | Adjusted Operating Margin | ~23.5% of sales | | Adjusted Diluted EPS | $5.10 to $5.20 | - The company projects third-quarter 2025 adjusted diluted earnings per share to be in the range of **$1.28 to $1.32**[20](index=20&type=chunk) [Quarterly Dividend Announcement](index=7&type=section&id=ABBOTT%20DECLARES%20406%20CONSECUTIVE%20QUARTERLY%20DIVIDEND) Abbott declared its 406th consecutive quarterly dividend, extending its 53-year track record of dividend increases - A quarterly dividend of **$0.59 per share** was declared, payable on August 15, 2025, to shareholders of record on July 15, 2025[22](index=22&type=chunk) - Abbott has increased its dividend for **53 consecutive years** and is a member of the S&P 500 Dividend Aristocrats Index[22](index=22&type=chunk) [Business Segment Performance](index=2&type=section&id=SECOND-QUARTER%20BUSINESS%20OVERVIEW) This section details Q2 2025 performance across Abbott's Nutrition, Diagnostics, Established Pharmaceuticals, and Medical Devices segments [Nutrition](index=3&type=section&id=Nutrition) The Nutrition segment reported Q2 sales growth driven by strong Adult Nutrition performance, particularly Ensure and Glucerna brands Nutrition Sales Performance (Q2 2025 vs. Q2 2024) | Category | Total Reported Sales ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | **Total Nutrition** | **$2,212** | **2.9%** | **3.4%** | | Pediatric | $1,054 | (0.4%) | 0.2% | | Adult | $1,158 | 6.1% | 6.6% | - Growth was led by the Adult Nutrition portfolio, particularly the **Ensure** and **Glucerna** brands[10](index=10&type=chunk) [Diagnostics](index=4&type=section&id=Diagnostics) The Diagnostics segment experienced a Q2 sales decrease primarily due to declining COVID-19 testing sales, despite slight organic growth excluding these tests Diagnostics Sales Performance (Q2 2025 vs. Q2 2024) | Category | Total Reported Sales ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | **Total Diagnostics** | **$2,173** | **(1.0%)** | **(1.4%)** | | Core Laboratory | $1,358 | 2.2% | 1.6% | | Molecular | $123 | (2.7%) | (3.4%) | | Point of Care | $148 | (5.1%) | (5.2%) | | Rapid Diagnostics | $544 | (6.7%) | (6.8%) | - COVID-19 testing-related sales were **$55 million** in Q2 2025, compared to **$102 million** in Q2 2024[12](index=12&type=chunk) - Excluding COVID-19 testing sales, global Diagnostics organic sales increased by **0.8%**[11](index=11&type=chunk) [Established Pharmaceuticals](index=5&type=section&id=Established%20Pharmaceuticals) The Established Pharmaceuticals segment achieved strong Q2 growth, primarily driven by double-digit organic sales increases in Key Emerging Markets Established Pharmaceuticals Sales Performance (Q2 2025 vs. Q2 2024) | Category | Total Reported Sales ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | **Total** | **$1,383** | **6.9%** | **7.7%** | | Key Emerging Markets | $1,059 | 7.3% | 8.7% | | Other | $324 | 5.9% | 4.5% | - Sales in Key Emerging Markets were led by double-digit growth in several countries across Asia, Latin America and the Middle East[15](index=15&type=chunk) [Medical Devices](index=6&type=section&id=Medical%20Devices) The Medical Devices segment delivered outstanding Q2 performance with broad-based double-digit organic sales growth, led by Diabetes Care Medical Devices Sales Performance (Q2 2025 vs. Q2 2024) | Category | Total Reported Sales ($M) | Reported Growth | Organic Growth | | :--- | :--- | :--- | :--- | | **Total Medical Devices** | **$5,369** | **13.4%** | **12.2%** | | Diabetes Care | $1,981 | 20.2% | 18.5% | | Electrophysiology | $700 | 11.5% | 10.3% | | Heart Failure | $368 | 14.7% | 14.0% | | Structural Heart | $636 | 13.0% | 11.7% | | Rhythm Management | $673 | 10.9% | 9.8% | - Sales of continuous glucose monitors (including FreeStyle Libre) were **$1.9 billion**, growing **21.4%** reported and **19.6%** organically[18](index=18&type=chunk) - Strong performance was driven by several products, including **FreeStyle Libre**, **Navitor**, **TriClip**, and **AVEIR**[18](index=18&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Earnings) This section presents Abbott's condensed consolidated statements of earnings for Q2 and the first half of 2025 [Condensed Consolidated Statement of Earnings (Q2 2025)](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Earnings%20Q2) Abbott reported Q2 2025 net sales of **$11.142 billion**, with significant increases in operating earnings and net earnings Q2 2025 Statement of Earnings Highlights (in millions, except per share data) | Metric | 2Q25 | 2Q24 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $11,142 | $10,377 | 7.4% | | Operating Earnings | $2,052 | $1,669 | 23.0% | | Net Earnings | $1,779 | $1,302 | 36.7% | | Diluted EPS | $1.01 | $0.74 | 36.5% | | Adjusted Net Earnings | $2,213 | $2,003 | 10.5% | | Adjusted Diluted EPS | $1.26 | $1.14 | 10.5% | [Condensed Consolidated Statement of Earnings (First Half 2025)](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Earnings%201H) For the first half of 2025, net sales reached **$21.500 billion**, with strong growth in operating and net earnings First Half 2025 Statement of Earnings Highlights (in millions, except per share data) | Metric | 1H25 | 1H24 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $21,500 | $20,341 | 5.7% | | Operating Earnings | $3,745 | $3,055 | 22.6% | | Net Earnings | $3,104 | $2,527 | 22.9% | | Diluted EPS | $1.77 | $1.44 | 22.9% | | Adjusted Net Earnings | $4,132 | $3,732 | 10.7% | | Adjusted Diluted EPS | $2.35 | $2.12 | 10.8% | [Non-GAAP Reconciliations](index=13&type=section&id=Non-GAAP%20Reconciliation%20of%20Financial%20Information) This section provides reconciliations from GAAP to non-GAAP financial measures, including earnings, tax rates, and revenue adjustments [Reconciliation of Financial Information](index=13&type=section&id=Reconciliation%20of%20Financial%20Information) This section reconciles GAAP to non-GAAP financial measures for Q2 and H1 2025, detailing the impact of specified item exclusions Q2 2025 GAAP to Non-GAAP Reconciliation (in millions, except per share) | Metric | As Reported (GAAP) | Specified Items | As Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Net Earnings | $1,779 | $434 | $2,213 | | Diluted EPS | $1.01 | $0.25 | $1.26 | H1 2025 GAAP to Non-GAAP Reconciliation (in millions, except per share) | Metric | As Reported (GAAP) | Specified Items | As Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Net Earnings | $3,104 | $1,028 | $4,132 | | Diluted EPS | $1.77 | $0.58 | $2.35 | [Reconciliation of Tax Rates](index=15&type=section&id=Reconciliation%20of%20Tax%20Rates) This section reconciles GAAP to non-GAAP tax rates for Q2 and H1 2025, showing adjustments after excluding specified items Q2 2025 Tax Rate Reconciliation | Basis | Pre-Tax Income ($M) | Taxes on Earnings ($M) | Tax Rate | | :--- | :--- | :--- | :--- | | As reported (GAAP) | $2,150 | $371 | 17.3% | | Excluding specified items | $2,650 | $437 | 16.5% | H1 2025 Tax Rate Reconciliation | Basis | Pre-Tax Income ($M) | Taxes on Earnings ($M) | Tax Rate | | :--- | :--- | :--- | :--- | | As reported (GAAP) | $3,928 | $824 | 21.0% | | Excluding specified items | $4,948 | $816 | 16.5% | [Non-GAAP Revenue Reconciliation](index=16&type=section&id=Non-GAAP%20Revenue%20Reconciliation) This reconciliation adjusts H1 2024 revenue for the ZonePerfect discontinuation, providing a comparable organic growth rate for H1 2025 - The reconciliation adjusts for the impact of discontinuing the **ZonePerfect** product line in the Nutrition business in March 2024[50](index=50&type=chunk) H1 2025 Total Company Revenue Reconciliation | Metric | Value | | :--- | :--- | | Reported Growth | 5.7% | | Adjusted Growth | 5.8% | | Organic Growth | 6.9% | [Details of Specified Items](index=17&type=section&id=Details%20of%20Specified%20Items) This section details the specified items excluded from non-GAAP results, primarily intangible amortization and restructuring costs Details of Specified Items - Q2 2025 (in millions) | Category | Gross Margin | R&D | SG&A | Total Before Tax | | :--- | :--- | :--- | :--- | :--- | | Intangible Amortization | $420 | - | - | $420 | | Restructuring & Cost Reduction | $55 | $(7) | $1 | $61 | | Acquisition-related | $1 | - | $(3) | $5 | | Other | $2 | $(13) | $1 | $14 | | **Total** | **$478** | **$(20)** | **$(1)** | **$500** | - Specified items for Q2 2025 include costs for restructuring, acquisitions, and compliance with European medical device regulations (MDR/IVDR)[52](index=52&type=chunk)[53](index=53&type=chunk)

Second-quarter reported sales growth of 7.4 percent; organic sales growth of 6.9 percent or 7.5 percent excluding COVID-19 testing-related sales1 Second-quarter GAAP diluted EPS of $1.01; adjusted diluted EPS of $1.26 Reported gross margin of 52.7 percent of sales; adjusted gross margin of 57.0 percent, which reflects a 100 basis point increase Reported operating margin of 18.4 percent of sales; adjusted operating margin of 22.9 percent, which reflects a 100 basis point increaseABBOTT PARK, Ill., July 17, ...

Core Insights - Abbott Laboratories is set to release its second-quarter earnings results on July 17, with expected earnings of $1.25 per share, an increase from $1.14 per share in the same period last year [1] - The company anticipates quarterly revenue of $11.02 billion, up from $10.38 billion a year earlier [1] - Abbott received FDA approval for its Tendyne™ transcatheter mitral valve replacement system, which positively impacted its stock price [2] Analyst Ratings - Morgan Stanley analyst David Lewis maintained an Equal-Weight rating and raised the price target from $127 to $137 [5] - Raymond James analyst Jayson Bedford maintained an Outperform rating and increased the price target from $132 to $142 [5] - Barclays analyst Matt Miksic maintained an Overweight rating and slightly raised the price target from $158 to $159 [5] - Stifel analyst Rick Wise maintained a Buy rating and increased the price target from $135 to $145 [5] - Jefferies analyst Matthew Taylor maintained a Hold rating and raised the price target from $135 to $137 [5]

Core Viewpoint - Strong Q2 results from banks and financial firms highlight the importance of monitoring upcoming earnings reports from medical companies, which can serve as a hedge against market volatility [1][2]. Group 1: Johnson & Johnson (JNJ) - Johnson & Johnson is a leader in the Zacks Large Cap Pharmaceuticals Industry, which ranks in the top 29% of over 240 Zacks industries [3]. - The company is expected to report Q2 results on July 16, with EPS projected to dip 5% to $2.66, but shares trade at a reasonable forward earnings multiple of 14.7X [4]. - JNJ has a 3.32% annual dividend yield, above the industry average of 2.57% and the S&P 500's 1.18% [4]. - The bottom line is projected to expand 6% this year, with FY26 EPS forecasted to rise 4% to $11.09 per share [5]. - The Most Accurate estimate for Q2 EPS is $2.72, which is 2% above the Zacks Consensus [5][6]. Group 2: Novartis (NVS) - Novartis is also part of the top-rated Zacks Large Cap Pharmaceuticals Industry and will report Q2 results on July 17 [6]. - Q2 sales are expected to rise 9% year-over-year to $14.04 billion, with EPS projected to increase 21% to $2.38 [8]. - FY25 EPS estimates have slightly increased, with FY26 EPS estimates rising from $9.14 to $9.35 per share [8]. - NVS trades at an attractive forward earnings multiple of 13.5X and offers a 2.14% annual dividend yield [8]. Group 3: Abbott Laboratories (ABT) - Abbott Laboratories will report Q2 results on July 17, with a diversified line of healthcare products [10]. - Q2 earnings are expected to rise 9% to $1.25 per share, with the Most Accurate estimate at $1.27, slightly above the Zacks Consensus [10][12]. - Sales for Q2 are projected to increase nearly 7% to $11.07 billion, with mid to high single-digit growth expected for the annual outlook [10]. - ABT has a forward earnings multiple of 25.6X, near the industry average, and a 1.79% annual dividend yield [11]. Conclusion - The outlook for Johnson & Johnson, Novartis, and Abbott Laboratories suggests these stocks are worthy of consideration, especially in the context of potential market volatility [13].

CHONGQING, CHINA - JULY 13: In this photo illustration, a hand holds a smartphone displaying the ... More logo of Abbott Laboratories (NYSE: ABT) in front of a blurred Abbott brand background on July 13, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)Getty ImagesAbbott Laboratories (NYSE:ABT) is scheduled to announce its second-quarter earnings on Thursday, July 17, 2025. For traders who focus on events, examining the historical reactions of the stock to earnings announcements can o ...

Core Viewpoint - Abbott (ABT) is expected to report quarterly earnings of $1.25 per share, reflecting a 9.7% increase year-over-year, with revenues projected at $11.07 billion, a 6.7% increase compared to the previous year [1]. Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2]. Key Metrics Forecast - Analysts predict 'Net sales- Nutrition' to reach $2.24 billion, indicating a 4.3% increase from the prior year [4]. - The consensus for 'Net sales- Medical Devices- Diabetes Care' is $1.94 billion, reflecting a 17.5% year-over-year change [4]. - 'Net sales- Diagnostics' is expected to reach $2.22 billion, showing a 1% increase from the previous year [4]. - 'Net sales- Established Pharmaceuticals' is forecasted at $1.37 billion, a 6.1% increase year-over-year [5]. - 'Net sales- Diagnostics- U.S.' is estimated at $832.19 million, indicating a 2.5% increase [5]. - 'Net sales- Diagnostics- International' is projected to be $1.38 billion, reflecting a 0.1% increase [5]. - 'Net sales- Nutrition- International' is expected to reach $1.26 billion, a 3.5% year-over-year change [6]. - 'Net sales- Nutrition- U.S.' is forecasted at $985.20 million, indicating a 5.6% increase [6]. - 'Net sales- Medical Devices- Neuromodulation- International' is estimated at $53.47 million, reflecting a 4.8% increase [7]. - 'Net sales- Medical Devices- Rhythm Management- U.S.' is projected at $312.05 million, indicating a 6.9% increase [7]. - 'Net sales- Medical Devices- Rhythm Management- International' is expected to reach $334.64 million, reflecting a 6.2% year-over-year change [8]. - 'Net sales- Medical Devices- Structural Heart- U.S.' is forecasted at $304.28 million, indicating a 17.9% increase [8]. Stock Performance - Abbott shares have decreased by 2.7% over the past month, contrasting with the Zacks S&P 500 composite's 4% increase, but the company holds a Zacks Rank 2 (Buy), suggesting expected outperformance in the near term [8].

Core Insights - Abbott Laboratories (ABT) is expected to report second-quarter 2025 results on July 17, with adjusted earnings per share (EPS) of $1.09 in the last quarter, surpassing the Zacks Consensus Estimate by 1.9% [1] - The Zacks Consensus Estimate for revenues is $11.07 billion, indicating a 6.7% increase year-over-year, while EPS is estimated to rise 9.6% to $1.25 [1][2] Revenue Estimates by Segment - **Diagnostics**: Expected revenue growth impacted by a decline in COVID-19 testing revenues, but anticipated to benefit from high demand across various settings. Estimated revenue increase of 0.1% year-over-year [3][4][6] - **Established Pharmaceuticals (EPD)**: Projected to continue strong performance across multiple regions and therapeutic areas, with a year-over-year revenue increase of 6.1% [7][8] - **Medical Devices**: Anticipated to show significant growth, driven by the Diabetes Care division and continuous glucose monitor (CGM) systems, with a projected revenue increase of 10.9% year-over-year [8][9][13] - **Nutrition**: Expected robust sales from adult nutrition brand Ensure and solid growth in infant formula and toddler brands, with a year-over-year revenue improvement of 4.3% [13] Earnings Estimate Revision - Estimates for Q2 earnings have remained unchanged at $1.25 per share over the past 30 days, indicating stability in expectations [3] Market Position and Growth Drivers - The Medical Devices segment is highlighted as a standout performer, with growth driven by new product approvals and strong demand in various categories, including heart assist devices and structural heart products [10][11][12]