01—Abstract
Summary
Summary of the 10-K filed February 20, 2026. Cited figures are marked; the original filing is the authoritative source.
Abbott Laboratories reported solid performance in its fiscal year ending December 31, 2025, with total net sales increasing by 5.7% to $44.3 billiona.
This growth was primarily driven by the Medical Devices segment, which saw a 12.6% increase in net sales, and the Established Pharmaceutical Products segment, with a 6.6% increase. The company continues to invest in innovation across its segments, with notable product approvals in Medical Devices including the Volt™ Pulsed Field Ablation System and the Tendyne™ transcatheter mitral valve replacement system. A significant strategic development for Abbott is the definitive agreement to acquire Exact Sciences Corporation for approximately $21 billionb, expected to significantly expand Abbott's presence in the cancer diagnostics market.
While the company faced headwinds in its Diagnostic Products segment due to declining COVID-19 testing sales and market conditions in China, and a slight decrease in Nutritional Products sales volume in the U.S., overall financial results indicate a positive trajectory supported by strong performance in its core Medical Devices and Pharmaceuticals businesses. Abbott also continued its commitment to shareholders through a 7.1%c increase in dividends declared in 2025.
02—Key points
Key Highlights
- Total net sales increased by 5.7% to $44.3 billion, driven by strong performance in Medical Devices and Established Pharmaceuticals.
- Announced definitive agreement to acquire Exact Sciences Corporation for approximately $21 billion to enter the cancer diagnostics market.
- Medical Devices segment sales grew 12.6%, with significant contributions from Diabetes Care (CGM systems up 17.4%), Heart Failure, Electrophysiology, and Structural Heart.
- Established Pharmaceutical Products segment sales increased 6.6%, with strong growth in emerging markets across multiple therapeutic areas.
- Diagnostic Products segment sales decreased 4.3%, primarily due to the decline in COVID-19 testing-related sales and challenges in the Chinese market.
- Nutritional Products segment sales saw a modest increase of 0.4%, with growth in adult nutritionals and international pediatric nutritionals offset by lower U.S. pediatric volumes.
- Abbott increased its quarterly dividend by 7.1% in 2025, demonstrating a commitment to returning capital to shareholders.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Abbott Laboratories kept $0.15.
- Revenue$44.33B100.0%
- Cost of revenue−$19.32B43.6%
- Gross profit$25.01B56.4%
- Operating costs−$16.96B38.3%
- Operating income$8.05B18.2%
- Interest, other & tax−$1.53B3.4%
- Net income$6.52B14.7%
Where FY2025 revenue went
$44.33B- Cost of revenue: $19.32B, 44% of revenue
- SG&A: $12.33B, 28% of revenue
- Net income: $6.52B, 15% of revenue
- R&D: $2.94B, 6.6% of revenue
- Other operating costs: $1.68B, 3.8% of revenue
- Interest, other & tax: $1.53B, 3.4% of revenue
Kept 15% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 20, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $44.33B$41.95B | +5.7% |
| Cost of Revenue | $19.32B$18.71B | +3.3% |
| Gross Profit | $25.01B$23.24B | +7.6% |
| R&D Expenses | $2.94B$2.84B | +3.4% |
| SG&A Expenses | $12.33B$11.70B | +5.4% |
| Operating Expenses | $36.27B$35.13B | +3.3% |
| Operating Income | $8.05B$6.83B | +18.0% |
| Net Income | $6.52B$13.40B | −51.3% |
| EPS (Basic) | $3.73$7.67 | −51.4% |
| EPS (Diluted) | $3.72$7.64 | −51.3% |
| Shares Outstanding (Basic) | 1.74B1.74B | +0.1% |
| Shares Outstanding (Diluted) | 1.75B1.75B | 0.0% |
05—Questions
Frequently Asked Questions
What is Abbott's strategy for growth in the coming year?
Abbott plans to focus on driving sales growth from its Alinity suite of diagnostic instruments and rapid diagnostic testing systems, expanding market position in Medical Devices with recently launched products, introducing new products in Nutritionals, and growing its Established Pharmaceuticals portfolio in emerging markets, including biosimilars.
How will the acquisition of Exact Sciences impact Abbott?
The acquisition of Exact Sciences is a strategic move to enter the cancer diagnostics market. It is expected to significantly expand Abbott's capabilities and market presence in a key growth area within healthcare.
What are the main challenges Abbott is facing?
Abbott is facing challenges related to declining COVID-19 testing sales in its Diagnostic Products segment, challenging market conditions in China, and lower sales volumes for certain nutritional products in the U.S. The company also faces ongoing litigation related to its infant formula products.
How is Abbott managing its debt and capital structure?
Abbott's long-term debt was $12.9 billion as of December 31, 2025. The company has obtained a commitment for a $20 billion bridge term loan facility for the Exact Sciences acquisition, indicating a strategic use of debt for growth. Abbott expects to maintain its investment-grade credit rating.
06—Continue