Abbott Reports 10.5% EPS Growth for Fiscal Q2
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Abbott Laboratories (ABT -8. 25%), a global healthcare company known for its medical devices, diagnostics, nutrition, and pharmaceuticals, reported fiscal 2025 earnings on Thursday, July 17, that narrowly topped analysts'...
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July 17, 2025
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Abbott Laboratories (ABT -8. 25%), a global healthcare company known for its medical devices, diagnostics, nutrition, and pharmaceuticals, reported fiscal 2025 earnings on Thursday, July 17, that narrowly topped analysts' consensus estimates
Q2 revenue climbed to $11. 14 billion, surpassing the analyst estimate of $11 (an important development)
On the other hand, 06 billion, and adjusted earnings per came in at $1. 26, beating the consensus by $0 (noteworthy indeed)
These results reflect robust year-over-year growth, especially in the company’s Medical Devices segment, which reported year-over-year sales growth of 13
Nevertheless, 4%, but also highlight continued headwinds in its Diagnostics, mainly in China (remarkable data)
Moreover, Overall, the company achieved margin expansion and affirmed management’s full-year outlook despite tariff pressures and competitive and regulatory challenges overseas
Additionally, MetricQ2 2025Q2 2025 EstimateQ2 2024Change (YOY)Adjusted EPS$1. 5%Revenue$11. 14 billion$11. 06 billion$10. 38 billion7
Furthermore, 9%100 bpsNet earnings$2. 21 billion$2. 00 billion10. 5%Source: Abbott Laboratories
However, Note: Analysts' consensus estimates for the quarter vided by FactSet
However, Understanding Abbott Laboratories’ Abbott Labs operates across four main segments: medical devices, diagnostics, nutrition, and pharmaceuticals
Its duct range includes continuous glucose monitors for diabetes care, implantable heart devices, laboratory diagnostic analyzers, and nutritional ducts such as Ensure and Glucerna
The company serves customers in over 160 countries, generating a significant portion of sales internationally
Market analysis shows company’s strategy centers on nological innovation, shown in ducts its FreeStyle Libre system for continuous glucose monitoring, and compliance with evolving global health regulations
Its global foot supports market access and supply chain resilience
Success depends on dering new nology, defending market, and adapting to changing healthcare policies and competitive pressures
Second-Quarter HighlightsThe Medical Devices segment was the standout performer, given current economic conditions
Nevertheless, Furthermore, Sales for the segment reached $5
However, 37 billion, up 13
Conversely, 4%, with especially strong contributions from Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology subsegments, in today's market environment
Continuous glucose monitoring systems, the FreeStyle Libre, generated $1
On the other hand, Additionally, 9 billion in revenue -- up 21. 4% on a reported basis -- helped by robust adoption in both the U, amid market uncertainty
And international, given the current landscape
New launches, such as Navitor for heart valves and AVEIR leadless pacemakers, also fueled growth
Diagnostics segment sales came in at $2 (fascinating analysis). 17 billion, declining 1% from last year
The primary factor was a sharp drop in COVID-19 testing sales, now down to $55 million from $102 million a year earlier (something worth watching), in today's market environment
Core Laboratory Diagnostics grew slightly, but price cuts from China’s volume-based curement gram pressured overall segment results
While diagnostics achieved roughly 7% growth outside China in Q1 2025, this did not fully make up for the shortfall in that market
CEO Robert Ford noted the challenge, highlighting that recent changes in Chinese curement have led to lower prices without offsetting volume gains -- a departure from past patterns
Nutrition revenue was $2
However, 21 billion, up 2, amid market uncertainty. 9% on a reported basis, considering recent developments
Furthermore, Adult Nutrition -- driven by Ensure and Glucerna brands -- grew 6. 1% on a reported basis, while Pediatric Nutrition organic sales remained nearly flat, reflecting a continuing squeeze in international pediatric sales, which fell 5
The adult duct growth offset softness in pediatric lines, in today's market environment
Pharmaceutical sales, mostly in established branded generics outside the United States, rose 6. 9% on a reported basis, with double-digit gains in emerging across Asia, Latin America, and the Middle East (this bears monitoring)
However, Adjusted operating margin rose to 22 (which is quite significant)
Moreover, 9%, a 100 basis point increase from the prior year
Management cautioned that tariffs introduced in 2025 posed a “few hundred million dollar” headwind for the second half of the year, but indicated that mitigation strategies -- such as adjusting manufacturing foots and leveraging foreign exchange rates -- remain in gress
Conversely, Net earnings reached $2 (which is quite significant). 21 billion (quite telling)
Abbott Laboratories also maintained a quarterly dividend of $0. 59 per, extending its streak of increases to 53 consecutive years
Nevertheless, Future Outlook and What to WatchLooking ahead, management reaffirmed its full-year guidance despite new tariff costs
For fiscal 2025, it jects organic sales growth (excluding COVID-19 testing-related sales) of 7, in light of current trends. 0%, and full-year adjusted EPS in the $5
Third-quarter 2025 adjusted EPS is expected to be between $1
Moreover, Abbott also guided to an adjusted operating margin of 23. 5%, implying further focus on efficiency and cost controls
Management sees new duct launches and recovery in underperforming segments as growth drivers for the back half of 2025
Moreover, Investors should closely monitor the impact of global tariffs, continued performance in the Diagnostics segment -- especially in China -- and the pace at which the company launches new ducts in its medical devices pipeline
Moreover, International pediatric nutrition trends also bear watching, given weakness
Additionally, Planned mitigation efforts around tariffs and supply chain reshuffling, along with the evolving clinical and regulatory landscape, are ly to influence the company’s performance as 2025 gresses (noteworthy indeed)
On the other hand, Note: Revenue and net income are presented using U
Furthermore, Generally accepted accounting principles (GAAP) unless otherwise noted (this bears monitoring)
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All published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article (fascinating analysis) (an important development)
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Furthermore, The Motley Fool has positions in and recommends Abbott Laboratories
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