Abbott Reports Second-Quarter 2025 Results

Core Insights - Abbott reported strong financial results for the second quarter of 2025, with total worldwide sales reaching $11.142 billion, a 7.4% increase compared to the same period in 2024 [28][29] - The company achieved high single-digit organic sales growth and double-digit growth in earnings per share (EPS), indicating robust operational performance [2][5] - Abbott anticipates continued momentum into 2026, projecting full-year 2025 organic sales growth of 7.5% to 8.0% excluding COVID-19 testing-related sales [22] Second Quarter Business Overview - Total reported sales for the second quarter were $11.142 billion, with U.S. sales at $4.276 billion and international sales at $6.866 billion [4] - Organic sales growth was reported at 6.9%, or 7.5% when excluding COVID-19 testing-related sales [5][6] - The company’s gross margin improved to 52.7% of sales, with an adjusted gross margin of 57.0%, reflecting a 100 basis point increase [5] Segment Performance Nutrition - Worldwide Nutrition sales increased by 2.9% on a reported basis and 3.4% on an organic basis in the second quarter [8] - Adult Nutrition drove growth, with global sales rising 6.1% on a reported basis, supported by brands like Ensure® and Glucerna® [8] Diagnostics - Total Diagnostics sales decreased by 1.0% on a reported basis and 1.4% on an organic basis, impacted by a decline in COVID-19 testing-related sales [10][11] - COVID-19 testing sales were $55 million in the quarter, down from $102 million in the previous year [11] Established Pharmaceuticals - Established Pharmaceuticals sales increased by 6.9% on a reported basis and 7.7% on an organic basis in the second quarter [14][15] Medical Devices - Worldwide Medical Devices sales grew by 13.4% on a reported basis and 12.2% on an organic basis, with significant contributions from Diabetes Care and Heart Failure segments [18][19] Financial Guidance - Abbott projects full-year 2025 adjusted diluted EPS to be between $5.10 and $5.20, reflecting double-digit growth at the midpoint [22] - The company also expects an adjusted operating margin of approximately 23.5% of sales for the full year [22] Dividend Declaration - Abbott declared its quarterly dividend of $0.59 per share, marking the 406th consecutive quarterly dividend [24]