Abbott Q4 sales misses analyst expectations, hurt by diagnostics unit's challenges

Overview

• Healthcare co's Q4 adjusted EPS grew 12%, meeting analyst expectations

• Q4 sales increased 4.4% reported, 3.0% organic, excluding COVID-19 test sales, but misses analyst expectations

• Company announced acquisition of Exact Sciences, closing expected in Q2 2026

Outlook

• Abbott projects full-year 2026 organic sales growth of 6.5% to 7.5%

• Abbott expects full-year 2026 adjusted EPS of $5.55 to $5.80

• Company plans new product launches in Nutrition to boost volume growth

Result Drivers

• MEDICAL DEVICES GROWTH - Sales in Medical Devices increased 12.3% reported, led by double-digit growth in Electrophysiology, Heart Failure, Diabetes Care, and Rhythm Management

• DIAGNOSTICS CHALLENGES - Diagnostics sales decreased 2.5% reported, impacted by lower COVID-19 test sales, though Core Laboratory Diagnostics grew 5.3%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Abbott Laboratories is $145.00, about 20.1% above its January 21 closing price of $120.73

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPncbP6VXa

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