Danaher Corporation Fourth Quarter 2025 Earnings Release January 28, 2026 Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward- looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those ...

This panel brings together leaders from AITEM, CytoReason, Superluminal Medicines, and Therapyside, showcasing how NVIDIA inference microservices (NIMs), AI blueprints, and BioNeMo are driving advances in diagnostics, therapy workflows, and drug development. Through a technical and forward-looking discussion, we’ll explore how these innovators are integrating AI into their systems, overcoming challenges, and shaping a future where technology fundamentally transforms patient care and advances the potential f ...

Core Insights - Abbott Laboratories (NYSE:ABT) is recognized as one of the 12 Most Profitable Dividend Stocks to consider for investment in 2026 [1] - Evercore ISI has reduced its price target for Abbott from $144 to $138 while maintaining an Outperform rating, indicating confidence in the company's long-term growth despite recent challenges [2] - Abbott's recent quarterly performance missed Wall Street's revenue expectations, leading to a 7% decline in share price, primarily due to underperformance in the nutrition and diagnostics segments [2][4] Financial Performance - The nutrition segment experienced an 8.9% decline in sales year-over-year, totaling $1.94 billion, while diagnostics revenue fell by 2.5% to $2.46 billion, raising concerns about the company's near-term momentum [4] - Rising production costs have compelled Abbott to increase prices, which has negatively impacted consumer demand as price sensitivity grows [4] Business Overview - Abbott Laboratories operates as a global healthcare company with a diverse portfolio that includes diagnostics, medical devices, nutrition, and branded generic medicines [5]

Industry Overview - The artificial intelligence (AI) in pathology market is projected to reach $1.15 billion by 2033, growing at a CAGR of 27.18% from 2025 to 2033, driven by demand for precision medicine, increasing chronic disease prevalence, and technological advancements in diagnostic tools [1] Company Developments - Tempus AI acquired Paige, a leading AI-driven digital pathology company, enhancing its capabilities with a proprietary dataset of nearly 7 million clinically annotated, digitized pathology slides [2] - Following the acquisition, Tempus launched Paige Predict, a suite of advanced digital pathology applications that analyze hematoxylin and eosin (H&E) whole-slide images to support informed testing decisions, predicting 123 biomarkers and oncogenic molecular pathways across 16 cancer types [3][7] - Labcorp entered a collaboration with Roche in 2025 to implement FDA-cleared VENTANA DP 600 and DP 200 slide scanners, enhancing efficiency and supporting AI integration in its anatomic pathology services [4] - Labcorp's Biopharma Laboratory Services added digital pathology capabilities and agreed to acquire select technical assets of Incyte Diagnostics' anatomic pathology business [5] - Quest Diagnostics introduced a new testing panel for amyloid brain pathology in symptomatic patients and acquired PathAI Diagnostics to accelerate AI adoption in digital pathology [6]

Group 1: Voya MidCap Opportunities Fund Performance - Voya MidCap Opportunities Fund's Q4 2025 investor letter highlighted solid market gains but noted relative underperformance against the Russell Mid Cap Growth Index due to unfavorable stock selection [1] - The fund's managers expressed a cautiously constructive outlook, emphasizing the importance of active and flexible positioning amid geopolitical risks and policy uncertainty [1] - The letter indicated that broadening market leadership, sustained corporate capital expenditure, and AI-led innovation could support future returns [1] Group 2: Natera, Inc. Performance Impact - Natera, Inc. (NASDAQ:NTRA) experienced significant stock price appreciation, with a one-month return of 6.17% and a trading range of $125.38 to $256.36 over the past 52 weeks [2] - The absence of Natera in the fund's portfolio negatively impacted performance, particularly as the stock rose following a strong earnings announcement [3] - Natera's market capitalization was approximately $34.247 billion as of January 22, 2026, with the stock closing at around $242.91 per share [2]

Core Insights - Abbott Laboratories reported Q4 2025 sales of $11.46 billion, a 4.4% increase year-over-year, but fell short of analyst projections by approximately 3% [2] - Adjusted EPS for the quarter was $1.50, meeting expectations, while total annual adjusted EPS reached $5.15, indicating a 10% growth [2] Financial Performance - Organic sales growth decreased to 3% during the quarter due to reduced demand in some areas [4] - Adjusted gross margin increased by 20 basis points to 57.1%, and operating margin expanded by 150 basis points to 25.8%, reflecting effective cost management [4] - Guidance for 2026 projects organic sales growth of 6.5%-7.5% and an adjusted EPS around $5.68 at the midpoint, aligning with consensus expectations [6] Valuation Dynamics - Abbott is currently priced at around $109 per share, trading at 21 times its trailing adjusted EPS of $5.15, down from a three-year average P/E of 24 times [6][7] - The forward P/E based on guidance is 19 times, indicating potential stability, but slowdowns in Nutrition and uncertainties regarding acquisitions limit optimism [7] Segment Performance - Medical Devices segment showed strong demand, particularly in structural heart and neuromodulation, with Freestyle Libre contributing significantly to organic growth [10] - Diagnostics revenue is normalizing post-COVID, with the Exact Sciences acquisition valued at up to $23 billion expected to enhance this sector [10] - Nutrition sales declined due to market dynamics, raising concerns about future growth in this segment [10] Future Catalysts and Risks - Potential upside for Abbott depends on realizing synergies from Exact Sciences, stabilization in Nutrition, and successful execution in high-growth devices [8] - Downside risks include persistent weakness in Nutrition, regulatory challenges with the Exact Sciences acquisition, and overall caution in medtech spending [9]

Core Insights - Abbott Laboratories reported fourth-quarter 2025 adjusted EPS of $1.50, aligning with estimates and showing an 11.9% increase from the previous year [1] - Full-year 2025 adjusted EPS was $5.15, reflecting a 10.3% year-over-year growth [1] - The company’s fourth-quarter revenues were $11.46 billion, a 4.4% increase year-over-year, but missed estimates by 2.8% [2] Financial Performance - The GAAP EPS for Q4 was $1.01, down from $5.27 in Q4 2024 [1] - Full-year 2025 worldwide sales reached $44.33 billion, up 5.7% year-over-year, but also missed estimates by 0.6% [2] - Gross profit for Q4 increased by 8.4% to $6.54 billion, with a gross margin expansion of 208 basis points to 57% [9] Segment Performance - Established Pharmaceuticals segment sales rose 9% to $1.38 billion, with organic sales growth of 7.1% [4] - Medical Devices segment sales increased 12.3% to $5.68 billion, driven by strong growth in Electrophysiology, Heart Failure, and Diabetes Care [5] - Nutrition sales declined 8.9% to $1.94 billion, with Pediatric Nutrition down 10.1% and Adult Nutrition down 8.2% [6][7] Future Guidance - For 2026, Abbott projects adjusted EPS between $5.55 and $5.80, with organic sales growth expected to be between 6.5% and 7.5% [11] - The first quarter of 2026 EPS is projected to be between $1.12 and $1.18 [11] Market Reaction - Following the earnings announcement, Abbott's stock fell 5.4% in pre-market trading [3] - The decline in Nutrition sales is attributed to lower sales volumes and strategic pricing actions [12]

Financial Data and Key Metrics Changes - In Q4 2025, sales increased by 3.8% excluding COVID testing sales, with adjusted earnings per share (EPS) of $1.50 reflecting a growth of 12% compared to the prior year [18] - Adjusted gross margin was 57.1% of sales, an increase of 20 basis points year-over-year, while adjusted operating margin rose to 25.8%, reflecting an increase of 150 basis points [18] - The company forecasts adjusted EPS for 2026 to be in the range of $5.55-$5.80, indicating a 10% growth at the midpoint [19] Business Line Data and Key Metrics Changes - Nutrition sales declined in Q4, impacted by market share loss and increased manufacturing costs, with a focus on reigniting volume growth through price and promotion initiatives [9][10] - Diagnostics sales decreased by 3.5% due to a decline in COVID testing, while Core Lab Diagnostics grew by 3.5%, achieving accelerating growth [11] - EPD (Established Pharmaceuticals Division) saw a 7% increase in sales, with double-digit growth in India and several Latin American and Middle Eastern countries [12] - Medical devices sales grew by 10.5%, driven by a 12% increase in continuous glucose monitors and strong performance in electrophysiology and structural heart segments [12][14] Market Data and Key Metrics Changes - The U.S. pediatric nutrition business faced challenges due to market share loss and increased price sensitivity among consumers [9][10] - Core Lab Diagnostics growth was 7% excluding China, reflecting durable demand globally [11] - EPD's growth was well-balanced across markets, with significant contributions from emerging markets [12] Company Strategy and Development Direction - The company aims to transition back to a more balanced growth profile, focusing on volume growth alongside price increases [10] - The acquisition of Exact Sciences is expected to enhance Abbott's position in the cancer diagnostics market, adding a high-growth business to its portfolio [8] - The company plans to launch at least eight new products in the nutrition segment over the next 12 months to support growth [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the nutrition business but expressed confidence in the ability to reignite volume growth and return to positive growth in the second half of 2026 [27] - The company expects continued momentum in most business segments, with a focus on innovation and operational excellence driving growth [8][29] - Management highlighted the importance of addressing price sensitivity and the need for a sustainable growth strategy in the nutrition segment [25][27] Other Important Information - The company anticipates a favorable impact from foreign exchange on full-year reported sales, estimated at around 1% [19] - The adjusted tax rate is forecasted to be in the range of 15%-16% for the year [19] Q&A Session Summary Question: Concerns about revenue growth guidance - Management acknowledged a slight reduction in top-line guidance primarily due to challenges in the nutrition business but maintained EPS guidance in line with consensus [23][24] Question: Insights on the EP product portfolio - Management emphasized the successful launch of the Vault PFA catheter and the strategic positioning of Abbott's EP portfolio, expecting to grow in line with market trends [34][39] Question: Guidance considerations and risk adjustments - Management explained that the guidance reflects a mix of stable growth in core segments and anticipated recovery in diagnostics, with a focus on maintaining high single-digit growth [42][45] Question: Continuous glucose monitor (CGM) growth expectations - Management projected continued strong growth in CGM sales, driven by market expansion opportunities and new product launches [50][56] Question: Capital allocation and M&A strategy - Management indicated a focus on integrating Exact Sciences post-acquisition, with potential for smaller tuck-in acquisitions in the future [69][70]

Financial Data and Key Metrics Changes - In Q4 2025, sales increased by 3.8% excluding COVID testing sales, with adjusted earnings per share (EPS) of $1.50 reflecting a growth of 12% compared to the prior year [18] - Adjusted gross margin was 57.1% of sales, an increase of 20 basis points year-over-year, while adjusted operating margin rose by 150 basis points to 25.8% [18] - The company forecasts adjusted EPS for 2026 to be in the range of $5.55-$5.80, indicating a 10% growth at the midpoint [19] Business Line Data and Key Metrics Changes - Nutrition sales declined in Q4, impacted by market share loss and increased manufacturing costs, with a focus on reigniting volume growth through price and promotion initiatives [9][10] - Diagnostics sales decreased by 3.5% due to a decline in COVID testing, but Core Lab Diagnostics grew by 3.5%, with a full-year growth of 7% excluding China [11] - EPD (Established Pharmaceuticals Division) saw a 7% sales increase, with double-digit growth in India and several Latin American and Middle Eastern countries [12] - Medical devices sales grew by 10.5%, driven by a 12% increase in continuous glucose monitors (CGM) and strong performance in electrophysiology and structural heart segments [12][14] Market Data and Key Metrics Changes - The U.S. pediatric nutrition business faced challenges due to a loss of a large WIC contract, leading to a need for volume growth strategies [9] - Core Lab Diagnostics experienced durable demand globally, with growth in markets outside of China [11] - EPD's growth was well-balanced across markets, with significant contributions from emerging markets [12] Company Strategy and Development Direction - The company aims to transition back to a volume-driven growth model in nutrition, with plans to launch at least eight new products in the next 12 months [10] - The acquisition of Exact Sciences is expected to enhance Abbott's position in the cancer diagnostics market, adding a high-growth business to its portfolio [8] - The company is focused on innovation and operational excellence to drive growth in 2026, with a forecast of 7% organic sales growth [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the nutrition segment due to price sensitivity among consumers and the need for a sustainable growth model [9][10] - The outlook for 2026 includes expectations of accelerating growth in diagnostics and continued strong performance in cardiovascular and diabetes products [29] - Management expressed confidence in the ability to navigate short-term challenges in nutrition and return to growth in the second half of the year [27] Other Important Information - The company is committed to maintaining a growing dividend and has a strong balance sheet to support future investments [70] - Management emphasized the importance of integrating Exact Sciences post-acquisition and the potential for tuck-in acquisitions in the future [70] Q&A Session Summary Question: Concerns about revenue growth guidance - Management acknowledged a slight reduction in top-line guidance primarily due to challenges in the nutrition business but maintained EPS guidance in line with consensus [23][24] Question: Insights on the electrophysiology (EP) portfolio - Management highlighted the successful launch of Volt and TactiFlex Duo products, positioning Abbott favorably in the EP market with a comprehensive portfolio [34][39] Question: Guidance considerations and risk adjustments - Management discussed the balance of sustaining growth in core segments while addressing short-term challenges in nutrition, with expectations for mid-single-digit growth in diagnostics [42][45] Question: Continuous glucose monitor (CGM) market outlook - Management expressed optimism about CGM growth, projecting continued market expansion and penetration opportunities across various patient groups [52][56] Question: Capital allocation and Exact Sciences acquisition - Management confirmed focus on integrating Exact Sciences and maintaining a strong capital allocation strategy, with no immediate changes to dilution expectations [70][72]

Financial Data and Key Metrics Changes - In Q4 2025, Abbott reported a 3.8% increase in sales when excluding COVID testing sales, with adjusted earnings per share (EPS) of $1.50 reflecting a 12% growth compared to the prior year [19] - The adjusted gross margin was 57.1% of sales, an increase of 20 basis points year-over-year, while adjusted operating margin rose to 25.8%, reflecting a 150 basis point increase [19] - For 2026, Abbott forecasts adjusted EPS in the range of $5.55-$5.80, indicating a 10% growth at the midpoint, and organic sales growth expected to be between 6.5%-7.5% [20] Business Line Data and Key Metrics Changes - Nutrition sales declined in Q4 due to market share loss and increased manufacturing costs, with a focus on reigniting volume growth through price and promotion initiatives [9][10] - Diagnostics sales decreased by 3.5% due to a decline in COVID testing, while Core Lab Diagnostics grew by 3.5%, and point-of-care diagnostics saw a 7% increase driven by a new troponin test [12] - The Established Pharmaceutical Division (EPD) experienced a 7% sales increase, with double-digit growth in India and several Latin American and Middle Eastern countries [13] - Medical devices sales grew by 10.5%, with continuous glucose monitors (CGM) sales increasing by 12% in Q4 and 17% for the year, exceeding $7.5 billion [13][14] Market Data and Key Metrics Changes - The U.S. pediatric nutrition business faced challenges due to a loss of a large WIC contract, impacting overall sales [10] - Core Lab Diagnostics growth was 7% excluding China, reflecting durable demand globally [12] - EPD's growth was well-balanced across markets, with significant contributions from high-demand therapies in emerging markets [13] Company Strategy and Development Direction - Abbott's acquisition of Exact Sciences aims to enhance its position in the cancer diagnostics market, adding a high-growth business to its portfolio [8] - The company is focusing on innovation and operational excellence, with a forecast for 2026 driven by new product launches and strategic execution [8] - Abbott plans to transition its nutrition business back to a volume-driven growth model, emphasizing innovation and product development [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the nutrition segment due to price sensitivity among consumers and rising manufacturing costs, indicating a need for strategic changes [10][26] - The outlook for 2026 is optimistic, with expectations of accelerating growth driven by a strong product pipeline and the integration of Exact Sciences [30][47] - Management expressed confidence in the ability to navigate short-term challenges in nutrition and return to positive growth in the second half of the year [28][29] Other Important Information - Abbott's investment strategy in medical devices focuses on sustaining strong performance in high-growth segments while also investing in foundational segments [15][16] - The company is committed to maintaining a growing dividend and has a strong balance sheet to support future investments [70] Q&A Session Summary Question: Concerns about revenue growth guidance - Management acknowledged a slight reduction in top-line guidance primarily due to challenges in the nutrition business but maintained EPS guidance in line with consensus [24][25] Question: Insights on the EP product portfolio - Management highlighted the successful launch of the Vault catheter and the strategic positioning of Abbott's EP portfolio, expecting to grow in line with market trends [39] Question: Outlook for diagnostics in China - Management indicated that while growth in China is expected to be stable, the U.S. and other international markets are performing well, with an overall mid-single-digit growth outlook for diagnostics [84] Question: Future of CGM growth - Management expressed optimism about CGM growth, projecting continued market expansion and penetration opportunities across various patient segments [54][58] Question: Capital allocation and M&A strategy - Management emphasized the focus on integrating Exact Sciences post-acquisition while remaining open to smaller tuck-in acquisitions [70][71]