Abbott falls as fourth quarter revenue misses expectations

Investing.com -- Abbott Laboratories (NYSE: ABT) reported fourth-quarter earnings that met expectations but missed on revenue, sending shares down 4.8% as investors reacted to the shortfall and weaker-than-expected first quarter guidance.

The healthcare company posted adjusted earnings per share of $1.50 for the fourth quarter, matching analyst estimates, while revenue came in at $11.46 billion, below the $11.8 billion consensus. Total sales increased 4.4% on a reported basis and 3.0% organically. When excluding COVID-19 testing-related sales, organic growth was 3.8% compared to the same quarter last year.

Abbott’s stock declined following the results as the company also issued first-quarter 2026 guidance below expectations, projecting adjusted EPS of $1.12 to $1.18 versus the analyst consensus of $1.20.

"In 2025, we expanded margins and achieved double-digit earnings per share growth, our new product pipeline was highly productive, and we took important strategic steps to shape the company for the future," said Robert B. Ford, chairman and chief executive officer, Abbott. "We’re well positioned for accelerating growth in 2026."

The company’s Medical Devices segment was a bright spot, with sales increasing 12.3% on a reported basis to $5.68 billion. Diabetes Care sales, which include continuous glucose monitors, grew 14.5% to $2.13 billion.

Nutrition sales declined 8.9% to $1.94 billion, which the company attributed to lower sales volumes and strategic price actions intended to drive future volume growth. Diagnostics sales decreased 2.5% to $2.46 billion, impacted by lower COVID-19 testing demand.

For full-year 2026, Abbott projects organic sales growth of 6.5% to 7.5% and adjusted EPS of $5.55 to $5.80, which exceeds the analyst consensus of $5.17 and represents 10% growth at the midpoint.

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