Abbott(US:ABT)2026-01-22 12:35Earnings Per Share (EPS) - Fourth-quarter GAAP diluted EPS was $1.01, and adjusted diluted EPS was $1.50, reflecting a growth of 12%[3] - Full-year 2025 GAAP diluted EPS was $3.72, and adjusted diluted EPS was $5.15, reflecting a growth of 10%[3] - Abbott expects full-year 2026 adjusted diluted EPS to be between $5.55 and $5.80, indicating a 10% growth at the midpoint[3] - In Q4 2025, Abbott reported a net earnings of $1.776 billion, which adjusted to $2.630 billion after specified items, resulting in a diluted earnings per share of $1.01 and $1.50 respectively[37] Sales Performance - Full-year 2025 sales reached $44.3 billion, an increase of 5.7% on a reported basis and 5.5% on an organic basis[3] - Fourth-quarter sales increased by 4.4% on a reported basis and 3.0% on an organic basis, or 3.8% when excluding COVID-19 testing-related sales[3] - In Q4 2025, total worldwide sales reached $11.459 billion, a 4.4% increase from $10.974 billion in Q4 2024[27] - For the full year 2025, total worldwide sales were $44.328 billion, up 5.7% from $41.950 billion in 2024[32] - In Q4 2025, U.S. sales were $2.605 billion, reflecting a 10.7% increase compared to Q4 2024[17] - International sales in Q4 2025 totaled $3.070 billion, marking a 13.7% increase year-over-year[17] - The Diabetes Care segment reported sales of $2.0 billion in Q4 2025, growing 15.0% on a reported basis[18] - Abbott's international revenue for 2025 was $27.202 billion, up 6.1% from $25.627 billion in 2024[49] Future Projections - Abbott projects full-year 2026 organic sales growth to be in the range of 6.5% to 7.5%[3] - The company plans to continue focusing on market expansion and new product development as part of its growth strategy[52] Expenses and Margins - Abbott's R&D expenses for 2025 were $2.942 billion, adjusted to $2.830 billion, showing a slight increase from $2.844 billion in 2024[41] - The company's SG&A expenses for 2025 were reported at $12.332 billion, adjusted to $12.020 billion, compared to $11.697 billion in 2024[41] - The gross margin for Q4 2025 was $6.115 billion, adjusted to $6.543 billion after accounting for specified items, reflecting an increase from Q4 2024's adjusted gross margin of $6.240 billion[37][38] - Gross margin for the twelve months ended December 31, 2025, was $1,824 million, with a contribution of $1,682 million from intangible amortization[57] Net Earnings - Net earnings for Q4 2025 were $1.776 billion, compared to $9.229 billion in Q4 2024, with significant adjustments impacting the figures[29] - For the full year 2025, Abbott's net earnings were reported at $6.524 billion, adjusted to $9.040 billion, with diluted earnings per share increasing from $3.72 to $5.15[41] - Net earnings for the same period were $2,516 million, resulting in diluted earnings per share of $1.43[57] - For the twelve months ended December 31, 2024, net earnings were reported as a loss of $5,202 million, leading to diluted earnings per share of $(2.97)[60] Acquisitions and Approvals - Abbott announced an agreement to acquire Exact Sciences to enter the cancer diagnostics market, with the transaction expected to close in Q2 2026[3] - Abbott received FDA approval for its Volt™ PFA System and CE Mark for its TactiFlex™ Duo Ablation Catheter, enhancing its Electrophysiology leadership[3] Tax and Other Items - In Q4 2025, the effective tax rate excluding specified items was 14.8%, compared to 15.0% in Q4 2024[44] - The specified items in Q4 2025 included $422 million in intangible amortization and $306 million in other net expenses related to restructuring and acquisitions[37][50] - The company recognized a tax benefit of approximately $610 million due to the resolution of various tax positions related to prior years[58] - Acquisition-related expenses included integration costs directly related to integrating acquired businesses[55]