Abbott's Q3 Earnings Meet Estimates, Revenues Up Y/Y, Stock Climbs

Core Insights - Abbott Laboratories (ABT) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.30, matching the Zacks Consensus Estimate and reflecting a 7.4% increase from the prior year [1][8] - Total revenues for the quarter were $11.37 billion, up 6.9% year over year, but slightly missing the Zacks Consensus Estimate by 0.24% [2][8] Revenue Breakdown - Established Pharmaceuticals segment sales increased by 7.5% to $1.51 billion, with organic sales in emerging markets growing by 11.1% [3] - Medical Devices segment sales rose 14.8% to $5.45 billion, driven by strong growth in Diabetes Care and other areas [4] - Nutrition sales grew by 4.2% to $2.15 billion, with Adult Nutrition benefiting from strong global brand performance [5][6] - Diagnostics sales declined by 6.6% to $2.25 billion, with organic sales ex-COVID rising by 0.4% [6] Margin and Expense Analysis - Gross profit increased by 6% to $6.29 billion, but gross margin contracted by 46 basis points to 55.4% [9] - Selling, general and administrative expenses rose by 5.4% to $3.05 billion, while research and development expenses increased by 7.4% to $766 million [10] Financial Guidance - For the full year, Abbott expects adjusted diluted EPS in the range of $5.12 to $5.18, reaffirming previous guidance [11] - Full-year organic sales growth, excluding COVID-19 testing-related sales, is projected to be between 7.5% and 8.0% [12] Market Position and Developments - Abbott's third-quarter performance was mixed, with earnings exceeding estimates while revenues fell short [13] - Notable developments include regulatory approval in Japan for TriClip and CE Mark for the Navitor TAVI system [14]