Company Reports

Abbott reported third-quarter revenue growth of 15% year over year, boosted by the addition of Exact Sciences. Reported earnings fell 44% due to increased amortization, legal settlements, and acquisition costs. Abbott also indicated the nutrition business will be spun off in late 2027.

Despite the disparate mix of businesses, Abbott has largely made it work. However, the firm plans to move more firmly into medtech by spinning out its nutrition business. As always, Abbott's prospects rely heavily on its ability to consistently introduce innovative products across divisions. On margins, we're pleased to see the company make steady progress over the last decade.

Abbott reported second-quarter performance that included organic revenue growth of 5%, and adjusted EPS up 4% year over year. Shares were up roughly 10% at time of writing.

While the pandemic caused some of Abbott's segments to balloon (diagnostics) and others to fall short (medical devices), conditions have largely normalized and Abbott's prospects will again rely heavily on its ability to consistently introduce innovative products across divisions. On margins, we're pleased to see the company make steady progress over the last decade.

Abbott's first-quarter results featured 4% organic revenue growth and adjusted net earnings growth of 5% year over year. Medical devices were up 9%, more than offsetting the nutrition revenue decline of 8%.

Abbott reported fourth-quarter organic revenue growth of 3%, with nutrition and rapid diagnostics sales falling 9% and 18%, respectively. This was offset by 12% quarterly growth in the medical device division, but shares fell 10% nonetheless.

While the pandemic caused some of Abbott's segments to balloon (diagnostics) and others to fall short (medical devices), conditions have largely normalized and Abbott's prospects will again rely heavily on its ability to consistently introduce innovative products across divisions. On margins, the company has made much progress over the past 10 years but still lags key rivals on profitability measures despite competing in businesses that are characterized by attractive margins.

While the pandemic caused some of Abbott's segments to balloon (diagnostics) and others to fall short (medical devices), conditions have largely normalized and Abbott's prospects will again rely heavily on its ability to consistently introduce innovative products across divisions. On margins, the company has made much progress over the past 10 years but still lags key rivals on profitability measures despite competing in businesses that are characterized by attractive margins.

On Nov. 20, Exact announced a definitive agreement to be acquired by Abbott Laboratories with an expected close in the second quarter of 2026. Exact shareholders will receive $105 per common share, and the stock closed 17% higher than the previous day's close while Abbott closed down 2%.

Abbott announced its planned acquisition of Exact Sciences, which makes several oncology-focused tests, for roughly $21 billion, or $105 per share.

On Nov. 19, Bloomberg reported that Abbott is nearing a possible acquisition of Exact Sciences. Exact shares closed up 24% on the day, while Abbott shares fell 3%.

Abbott's third-quarter results included reported revenue growth of 7%, with US nutrition sales falling 7% and global device revenue up 15% year over year.

Abbott posted second-quarter results that featured 7% top-line constant-currency growth and 120 basis points of operating margin improvement, but lowered guidance due to lingering covid and China weakness.

Abbott Labs posted strong first-quarter performance with top- and bottom-line growth of 7% (in constant currency) and 8%, respectively. Growth was robust across most divisions.

Despite intensive medtech industry lobbying to secure a carve-out from the Trump administration’s expansive tariffs on all countries, medical devices have been swept up in the tariff net.

While the pandemic caused some of Abbott's segments to balloon (diagnostics) and others to fall short (medical devices), conditions have largely normalized and Abbott's prospects will again rely heavily on its ability to consistently introduce innovative products. On margins, the company has made progress over the past 10 years but still lags key rivals on profitability measures despite competing in businesses that are characterized by attractive margins.

Abbott posted fourth-quarter performance that featured organic top-line growth of 9% and adjusted earnings rising by 12%, as its disparate divisions all displayed strength.

While the pandemic caused some of Abbott's segments to balloon (diagnostics) and others to fall short (medical devices), conditions have largely normalized and Abbott's prospects will again rely heavily on its ability to consistently introduce innovative products. On margins, the company has made progress over the past 10 years but still lags key rivals on profitability measures despite competing in businesses that are characterized by attractive margins.

Abbott Labs delivered solid third-quarter results that featured strength across most of the cardiac device portfolio, ongoing US recovery in pediatric nutrition, and double-digit Libre growth. We applaud management's tight control over expenses.

As the multiple lawsuits over necrotizing enterocolitis, or NEC, related to Abbott and Reckitt Benckiser continue to wend their way through the courts, last week’s judgment against Abbott has put shares of both firms under pressure. Considering the infant-formula makers are at various stages of appeal and the nuanced scientific view, we’re leaving our fair value estimates unchanged for now. We continue to view Abbott’s narrow economic moat and Reckitt’s wide economic moat as solid, with strong intangible assets in their nutrition businesses.