Abbott Laboratories (NYSE:ABT) Trims 2025 Outlook After Q3 Earnings

ABBOTT LABORATORIES (NYSE:ABT) reported third-quarter 2025 financial results that largely aligned with Wall Street's expectations, though a slight trimming of full-year guidance appears to have influenced early market sentiment. The healthcare giant posted steady sales growth while navigating a complex global environment.

Third-Quarter Financial Results

The company reported third-quarter revenue of $11.37 billion, representing a 6.9% year-over-year increase. This figure came in slightly below the analyst consensus estimate of $11.52 billion. On the profitability front, Abbott delivered non-GAAP earnings per share of $1.30, nearly matching the $1.31 per share that analysts had projected.

Key performance metrics from the quarter include:

• Reported Sales Growth: 6.9%
• Organic Sales Growth: 5.5% (or 7.5% excluding COVID-19 testing-related sales)
• EPS (Non-GAAP): $1.30

Market Reaction and Guidance Outlook

The immediate market reaction to the earnings report was negative, with shares trading down approximately 3.2% in pre-market activity. This movement seems to be less about the quarterly miss and more connected to the company's updated full-year forecast. While Abbott reaffirmed its overall guidance, it notably trimmed the top end of its 2025 EPS outlook by 2 cents. This adjustment coincides with broader sector concerns, including a newly launched U.S. administration investigation into the medical device sector that could potentially lead to tariffs.

Recent stock performance shows a mixed picture leading into the earnings release:

• Last Week: +0.19%
• Last Two Weeks: -0.50%
• Last Month: +0.38%

Management Commentary and Strategic Position

In the earnings release, Chairman and CEO Robert B. Ford struck a confident tone, stating, "Our third-quarter results demonstrate our ability to deliver consistent, high-quality performance." He emphasized the role of the company's "differentiated product pipeline" in driving current results and building a foundation for "durable long-term value to our shareholders." This commentary underscores management's focus on innovation across its diversified healthcare portfolio, which includes medical devices, diagnostics, nutritionals, and established pharmaceuticals.

Looking Ahead

Analyst estimates for the coming periods provide a benchmark for Abbott's performance trajectory. For the full year 2025, the consensus sales estimate stands at $45.14 billion, with an EPS estimate of $5.20. Looking specifically at the fourth quarter, analysts are projecting sales of $11.91 billion and EPS of $1.50. The company's ability to meet these targets will depend on its execution in a potentially challenging regulatory and macroeconomic climate.

For a detailed breakdown of historical earnings and future analyst estimates for ABBOTT LABORATORIES (NYSE:ABT), you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice of any kind. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.