Abbott Reports First-Quarter 2025 Results and Reaffirms Full-Year Guidance

Core Insights - Abbott's diversified business model has led to strong sales and earnings per share (EPS) growth, allowing the company to navigate uncertainty and achieve sustainable growth [2][6][20] Financial Performance - Total worldwide sales for the first quarter of 2025 reached $10.358 billion, representing a 4.0% increase compared to $9.964 billion in the first quarter of 2024 [26] - The first-quarter GAAP diluted EPS was $0.76, while the adjusted diluted EPS was $1.09, reflecting double-digit growth year-over-year [6][26] - Reported gross margin was 52.8% of sales, with an adjusted gross margin of 57.1%, indicating a 140 basis point increase [6] - Operating margin for the first quarter was reported at 16.3%, with an adjusted operating margin of 21.0%, reflecting a 130 basis point increase [6] Segment Performance Nutrition - Total Nutrition sales were $2.146 billion, with U.S. sales at $955 million and international sales at $1.191 billion [9][10] - Pediatric Nutrition sales increased by 3.2% globally, while Adult Nutrition sales grew by 4.4% on a reported basis [10][11] - Organic sales growth in Nutrition was 6.8%, driven by Abbott's comprehensive product portfolio [9][10] Diagnostics - Total Diagnostics sales were $2.054 billion, with a reported decline of 7.2% year-over-year [12][14] - The decline was attributed to reduced COVID-19 testing-related sales, which fell to $84 million from $204 million in the previous year [14][26] - Core Laboratory Diagnostics sales decreased by 2.3% on a reported basis but increased by 0.9% on an organic basis [14] Established Pharmaceuticals - Established Pharmaceuticals sales increased by 2.7% on a reported basis and 7.8% on an organic basis, with international sales at $1.260 billion [15][16] - Key Emerging Markets showed a 4.0% increase in sales, driven by double-digit growth in several countries across Asia, Latin America, and the Middle East [16] Medical Devices - Medical Devices sales reached $4.895 billion, with a reported increase of 9.9% and organic growth of 12.6% [18][19] - Sales growth was led by Diabetes Care, Structural Heart, Heart Failure, and Electrophysiology products, including FreeStyle Libre® and TriClip® [19] Future Outlook - Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5% and adjusted operating margin to be 23.5% to 24.0% of sales [20] - The company also anticipates adjusted diluted earnings per share for 2025 to be between $5.05 and $5.25 [20]