Company Overview

Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The Established Pharmaceutical Products segment provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. The Diagnostic Products segment offers laboratory systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, as well as detect and measure infectious agents; point of care systems; cartridges for testing blood; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for use in laboratories. The Nutritional Products segment provides pediatric and adult nutritional products. The Medical Devices segment offers rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; and diabetes care products, as well as neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.

  • Name

    Abbott Laboratories

  • CEO

    Philip Boudreau

  • Website

    www.abbott.com

  • Sector

    Health Care Equipment and Supplies

  • Year Founded

    1888

Company Statistics

Profile

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Valuation (NTM)

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Financial Health

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Bulls Say

  • Abbott has been investing in structural heart products and recently entered the fast-growing left atrial appendage closure market.

  • Despite falling behind in the race for pulsed field ablation, Abbott has benefited from robust electrophysiolgy growth thanks to its established ablation devices.

  • Abbott's sale of its established pharma business in developed markets to Mylan and its acquisition of CFR and Veropharm have put the branded generics business in a strong position to benefit from growing demand in emerging markets.

Bears Say

  • Edwards Lifesciences' Pascal device and its emerging portfolio of transcatheter mitral technologies are likely to put pressure on Abbott's MitraClip franchise over the longer term.

  • Abbott remains a peripheral presence in the crowded field of molecular diagnostics, where it must go head-to-head against market leader Roche, along with energetic competitors like Qiagen and Hologic.

  • Falling global birthrates in the wake of the pandemic would offer challenging conditions to Abbott's nutritionals segment. This could saddle nutritionals with an unfavorable secular trend.

Source: Morningstar Analysis - Nov 20, 2025

What's happening

Nov 8, 2025 - Dec 10, 2025

Abbott Laboratories Faces Significant Challenges Amid Acquisition and Regulatory Scrutiny

  • Abbott Laboratories announced a $21 billion acquisition of Exact Sciences, raising concerns about potential earnings dilution.
  • The FDA issued an alert regarding inaccuracies in FreeStyle Libre glucose monitors, leading to increased scrutiny.
  • Despite some positive developments, product safety issues overshadowed Abbott's performance.

Over the past month, Abbott Laboratories (ABT) experienced a decline of 3.4%, underperforming relative to the S&P 500's return of 1.9%. This negative trend reflects investor concerns surrounding the company's glucose monitoring devices and its recent strategic acquisitions that have not been favorably received by the market.

A significant factor impacting ABT's stock was its announcement regarding the acquisition of Exact Sciences for $21 billion. While this move aimed to strengthen Abbott’s position in cancer diagnostics, it resulted in an immediate drop in stock price due to fears about potential earnings per share dilution through 2027. Although the deal is expected to close by mid-2026, investors are questioning how it will affect Abbott's financial health in both short and long terms.

Regulatory challenges further complicated matters for Abbott as an FDA alert warned against using their FreeStyle Libre glucose monitors due to reported inaccuracies linked with severe adverse events, including fatalities. This warning led to heightened scrutiny from consumers and healthcare providers alike, exacerbating negative sentiment around ABT shares. Additionally, following internal testing that revealed inconsistencies in sensor performance, the company initiated a medical device correction for these products.

Despite plans for expanding access to their Lingo continuous glucose monitor on Android devices and optimistic projections from UBS regarding growth opportunities within specific markets like atrial fibrillation, these positive developments were largely overshadowed by ongoing product safety concerns and competitive pressures highlighted by Medtronic’s new diabetes management technology launch.

Overall, during this one-month period marked by volatility surrounding product reliability and strategic decisions made by management at Abbott Laboratories (ABT), the company underperformed not only against broader market indices but also lagged behind its sector; specifically trailing behind the Health Care (XLV) sector by 6%.

NYSE:ABT