10-QPeriod: Q3 FY2025

ABBOTT LABORATORIES Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 29, 2025For Securities:ABT

Summary

Abbott Laboratories reported solid financial results for the nine months ended September 30, 2025, with total net sales increasing 6.1% to $32.9 billion, or 6.4% excluding foreign exchange impacts. This growth was primarily driven by strong performance in the Medical Devices and Established Pharmaceutical Products segments, fueled by new and existing product sales. While net earnings remained flat year-over-year at $1.64 billion for the third quarter, they increased to $4.75 billion for the nine-month period, up from $4.17 billion in the prior year, demonstrating the company's ability to generate value. The company's Medical Devices segment saw robust growth, particularly in Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology, with significant contributions from continuous glucose monitoring systems and new product approvals like the Volt™ PFA System and Tendyne™ TMVR system. However, the Diagnostic Products segment experienced a decline, largely due to a significant drop in COVID-19 testing-related sales and challenging market conditions in China. Investors should note the ongoing legal proceedings related to infant formula, where Abbott maintains no material loss is probable, though the ultimate outcome could be material. The company also faces significant tax-related matters with the IRS, which it intends to contest vigorously.

Financial Highlights

51 data points
Beta

Revenue

$11.37B

55.4% Gross Margin

Net Income

$1.64B

14.5% Net Margin

EPS (Diluted)

$0.94

Total Assets

$84.18B

Cash & Equivalents

$7.51B

Free Cash Flow

$2.29B

Financial Statements
Beta
Revenue$11.37B
Cost of Revenue$5.08B
Gross Profit$6.29B
R&D Expenses$766.00M
SG&A Expenses$3.05B
Operating Expenses$9.31B
Operating Income$2.06B
Net Income$1.64B
EPS (Basic)$0.94
EPS (Diluted)$0.94
Shares Outstanding (Basic)1.74B
Shares Outstanding (Diluted)1.75B

Key Highlights

  • 1Total net sales grew 6.1% to $32.9 billion for the first nine months of 2025, driven by Medical Devices and Established Pharmaceuticals.
  • 2Medical Devices segment saw robust double-digit growth (12.8% for nine months), with Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology leading the way.
  • 3Diagnostic Products segment faced headwinds, with sales down 5.0% (excluding FX) for the nine months, primarily due to a sharp decline in COVID-19 testing revenue and challenges in China.
  • 4Net earnings for the nine months increased to $4.75 billion from $4.17 billion in the prior year, signaling improved profitability.
  • 5The company continues to invest in R&D, with expenses increasing 5.4% to $2.2 billion for the nine-month period.
  • 6Abbott announced a new $7 billion share repurchase program in October 2024, and repurchased $303 million in the third quarter of 2025.
  • 7The company is actively managing its tax positions with the IRS, contesting several notices of deficiency, and is monitoring global tax developments.

Frequently Asked Questions

Abbott Laboratories reported a 6.1% increase in total net sales to $32.9 billion for the first nine months of 2025, with a 6.4% increase excluding foreign exchange. Net earnings for the nine-month period rose to $4.75 billion from $4.17 billion in the prior year, indicating improved profitability. The Medical Devices segment was a strong performer, while the Diagnostic Products segment experienced a decline due to reduced COVID-19 testing sales.

The Medical Devices segment is a key growth driver, with significant contributions from Diabetes Care (especially CGM systems), Heart Failure, Structural Heart, and Electrophysiology products. The Established Pharmaceutical Products segment also showed solid growth. The main challenge comes from the Diagnostic Products segment, which saw a significant drop in COVID-19 testing revenue and faces market headwinds in China. The Nutritional Products segment showed moderate growth.

Abbott Laboratories is involved in numerous lawsuits alleging that its preterm infant formula products cause necrotizing enterocolitis (NEC). While two federal 'bellwether' cases resulted in summary judgment in favor of Abbott, the company states it does not believe a material loss is probable and has not recorded reserves. However, it acknowledges that the resolution of these specific cases could be material to its financial position, cash flows, or results of operations. The company is contesting these claims.

Abbott is actively contesting multiple Statutory Notices of Deficiency (SNODs) from the IRS concerning income allocation between its U.S. and foreign entities for tax years 2017-2020. The company believes these proposed adjustments are without merit and is pursuing litigation in the U.S. Tax Court. While Abbott believes its reserves for uncertain tax positions are appropriate, the resolution of these matters could have a material impact. The company is also monitoring global tax reform developments.