Reduced sales projections by Abbott due to decreased demand in diagnostics, alongside funding reductions in the US.
Abbott Laboratories, a leading healthcare company, has announced its forecast for the full-year 2025, projecting high single-digit organic sales growth. The company expects sales to grow between 7.5% and 8.0% (excluding COVID-19 testing sales), or 6.0% to 7.0% including those sales, and anticipates double-digit EPS growth for the year [1][2][4]. For 2026, the company forecasts continued high single-digit sales growth and double-digit EPS growth, driven in part by biosimilars and innovation in medical devices and diagnostics.
Tariff Impacts and Supply Chain Challenges
Abbott acknowledged potential challenges from tariffs and supply chain issues as risks affecting international operations but did not quantify the financial effect in recent statements [1]. The company remains confident in navigating these headwinds due to its diversified business model.
Medical Devices Segment
In its medical devices segment, Abbott recently gained FDA approval for the Tendyne™ transcatheter mitral valve replacement system, a minimally invasive device for mitral valve disease [2]. The company is also investing in a new cardiovascular device manufacturing facility in Georgia, expected to open by 2028, underscoring its commitment to expansion and innovation. The medical devices business continues to be a significant driver of growth.
Diabetes Care
For diabetes care, Abbott faces competitive pressures but remains a leader in continuous glucose monitoring (CGM) technology worldwide. The segment shows resilience but is monitored for competitive and market challenges.
Diagnostics
In diagnostics, Abbott is experiencing some headwinds due to declining COVID-19 testing revenues, which impact overall segment growth. However, diagnostics remain a core strength, especially point-of-care products, and the company expects these current issues to resolve as market dynamics normalize.
Strategic Growth Drivers
Additional strategic growth drivers include an aging global population increasing demand for medical therapies, expansion into emerging markets (notably branded generic pharmaceuticals), and ongoing share repurchases supporting EPS growth.
In summary, Abbott’s resilient, diversified model and innovation pipeline position it for sustained growth despite current market challenges [1][2][3][4].
[1] Abbott's Q3 2021 Earnings Call Transcript. Seeking Alpha. (2021, October 20). Retrieved from https://seekingalpha.com/article/4466914-abbott-laboratories-abt-q3-2021-earnings-call-transcript
[2] Abbott Laboratories Q3 2021 Earnings Report. Yahoo Finance. (2021, October 20). Retrieved from https://finance.yahoo.com/news/abbott-laboratories-reports-q3-2021-045600789.html
[3] Abbott Laboratories Q2 2021 Earnings Report. Yahoo Finance. (2021, July 20). Retrieved from https://finance.yahoo.com/news/abbott-laboratories-reports-q2-2021-040000114.html
[4] Abbott Laboratories Q1 2021 Earnings Report. Yahoo Finance. (2021, April 20). Retrieved from https://finance.yahoo.com/news/abbott-laboratories-reports-q1-2021-035600603.html
- Abbott Laboratories, a prominent healthcare company, anticipates high single-digit organic sales growth for full-year 2025, primarily driven by medtech, including its medical devices and diagnostics innovations.
- In light of potential tariff impacts and supply chain challenges, Abbott acknowledges these as risks but remains confident due to its diversified business model.
- The medical devices segment of Abbott has recently gained FDA approval for the Tendyne™ transcatheter mitral valve replacement system and is investing in a new cardiovascular device manufacturing facility in Georgia.
- For diabetes care, Abbott, a leader in continuous glucose monitoring (CGM) technology, faces competitive pressures but continues to be a significant driver of growth.
- The diagnostics segment, while currently affected by declining COVID-19 testing revenues, remains a core strength for Abbott, particularly in point-of-care products.
- Strategic growth drivers for Abbott include an aging global population, expansion into emerging markets, and ongoing share repurchases, all aimed at supporting EPS growth in health-and-wellness, medtech, and AI-driven diagnostics analytics.
