One-glance verdict
Within fair range
$102.92 our estimate vs market $105.70
Wall Street consensus: $118.42 (15.1% higher than our fair-value estimate)
3% above our estimate
Fundamentals snapshot
Abbott Laboratories
ABT · NYQ · Healthcare · Medical Devices
Current price
$105.70
52-week range
$81.97 - $137.49
Market cap
$182.90B
Balance sheet
Watch
16.33x Strong cushion
Net debt $27.12B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.8% last year.
- Reward Returns 10.6% on equity, ahead of 33% of its peers.
- Risk Stock trades 24.0% above its 5-year average P/E.
- Risk Operating margin compressed from 19.2% to 14.7% over 3 years.
What this company does
Abbott Laboratories
Abbott Laboratories is a broad healthcare company selling everything from baby formula and nutritional drinks to medical tools and diagnostic tests. It makes most of its money from medical devices, like glucose monitors for diabetes, and the equipment used for lab tests, which often require repeat purchases of supplies. This creates a reliable stream of sales because many patients and hospitals depend on these products for ongoing health management.
How the company got here
Abbott began in 1888 when Dr. Wallace C. Abbott, a physician in Chicago, started making precisely dosed medicine granules. A major turning point was in 2013, when Abbott spun off its research-based pharmaceutical business into a new company called AbbVie. This allowed Abbott to focus on its other areas, and it grew significantly by acquiring St. Jude Medical and Alere in 2017, which greatly expanded its medical device and diagnostics businesses. These moves shaped Abbott into the broad-based healthcare company it is today, with a strong presence in medical technology and consumer health products.
What it actually does
Abbott makes a wide range of health-related products that you might find in hospitals or even your own home. This includes things like nutritional drinks such as Ensure and Similac baby formula, at-home COVID-19 tests like BinaxNOW, and blood glucose monitors for people with diabetes called FreeStyle Libre. They also create sophisticated medical devices that doctors use, such as tools to repair heart valves without open-heart surgery (MitraClip) and systems that test blood in laboratories. Essentially, Abbott creates products to help people monitor, diagnose, and manage their health at every stage of life.
Medical Devices
This is Abbott's largest business, making up nearly half of the company's sales. It creates devices that help people with chronic (long-term) health issues. A major product is the FreeStyle Libre, a sensor that people with diabetes wear on their arm to continuously check their blood sugar without pricking their finger. This segment also makes devices for heart conditions, like pacemakers to manage heart rhythms and tiny clips that can repair a leaky heart valve. Hospitals and patients pay for these high-tech tools that can significantly improve a person's quality of life.
Diagnostic Products
This part of the company creates the tests and machines that help doctors and labs diagnose diseases. You may have used one of their products yourself, like the BinaxNOW rapid test for COVID-19. In hospitals and clinics, Abbott provides large, automated systems that can run hundreds of tests on blood and other samples to detect everything from infectious diseases to signs of cancer. This business, which is a significant portion of Abbott's revenue, sells these essential testing tools to hospitals, laboratories, and directly to consumers.
Nutritional Products
This segment makes well-known science-based food products that help people get the right nutrients. It includes popular brands like Ensure, a nutritional shake for adults, and Similac, a leading infant formula for babies. They also make Pedialyte, which helps children and adults rehydrate when they're sick, and Glucerna, a line of shakes and bars for people with diabetes. This business, which accounts for about a fifth of the company's revenue, sells its products directly to consumers in stores and online, as well as to healthcare facilities.
Established Pharmaceutical Products
This is Abbott's smallest business segment, and it sells a portfolio of trusted, brand-name generic medicines exclusively outside of the United States. Think of these as well-known, proven medications for common health issues related to digestion, women's health, and heart conditions, among others. The company focuses on selling these medicines in emerging markets (countries with growing economies), where there is high demand for affordable and reliable treatments. Wholesalers, pharmacies, and government health agencies in these countries are the primary customers.
What management is betting on now
Abbott is focused on growing its most successful products, especially in the Medical Devices division. A top priority is expanding the use of its FreeStyle Libre glucose monitor to more people with diabetes and even to consumers interested in tracking their health. The company is also investing heavily in developing new technologies for heart conditions, such as devices for minimally invasive valve repair and tools for mapping irregular heartbeats. Finally, Abbott aims to strengthen its core diagnostics business now that the surge in COVID-19 testing has passed and is looking to expand into new areas like cancer screening.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$1.43B
FY2024 Q3
$2.15B
FY2024 Q4
$2.15B
FY2025 Q1
$933.00M
FY2025 Q2
$1.54B
FY2025 Q3
$2.29B
FY2025 Q4
$2.63B
FY2026 Q1
$916.00M
Revenue
$11.16B
Net income
$1.08B
Diluted EPS
0.61
Operating cash flow
$1.31B
Free cash flow
$916.00M
Fetching…
Sources
Revenue
$11.46B
Net income
$1.78B
Diluted EPS
1.01
Operating cash flow
$3.31B
Free cash flow
$2.63B
Fetching…
Sources
Revenue
$11.37B
Net income
$1.64B
Diluted EPS
0.94
Operating cash flow
$2.79B
Free cash flow
$2.29B
Fetching…
Sources
Revenue
$11.14B
Net income
$1.78B
Diluted EPS
1.01
Operating cash flow
$2.05B
Free cash flow
$1.54B
Fetching…
Sources
Revenue
$10.36B
Net income
$1.32B
Diluted EPS
0.76
Operating cash flow
$1.42B
Free cash flow
$933.00M
Fetching…
Sources
Revenue
$10.97B
Net income
$9.23B
Diluted EPS
5.26
Operating cash flow
$2.87B
Free cash flow
$2.15B
Fetching…
Sources
Revenue
$10.63B
Net income
$1.65B
Diluted EPS
0.94
Operating cash flow
$2.71B
Free cash flow
$2.15B
Fetching…
Sources
Revenue
$10.38B
Net income
$1.30B
Diluted EPS
0.74
Operating cash flow
$1.96B
Free cash flow
$1.43B
Fetching…
Sources
Is it cheap or expensive?
Fair value $102.92 vs current price $105.70
Wall Street consensus is the average analyst price target: $118.42 (15.1% higher than our fair-value estimate).
Our most-likely fair value is $102.92 a share — about 2.6% away from today's price of $105.70, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $27.1B. Interest coverage 16.3x.
Net debt
$27.12B
Interest coverage
16.33x
Abbott Laboratories's profit covers its interest bill about 16.3 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
ABT
BASELINE
Abbott Laboratories
Total debt $32.72B Interest coverage 16.33x This is the baseline the peer rows are being compared against.
Total debt $29.15B Interest coverage 9.55x -42% vs ABT Carries about 1.7x less debt cushion than ABT.
Total debt $49.04B Interest coverage 26.36x +61% vs ABT Carries about 1.6x more debt cushion than ABT.
Total debt $42.55B Interest coverage 5.72x -65% vs ABT Carries about 2.9x less debt cushion than ABT.
Total debt $15.45B Interest coverage 8.33x -49% vs ABT Carries about 2.0x less debt cushion than ABT.
Total debt $27.86B Interest coverage 17.70x +8% vs ABT Has roughly the same debt cushion as ABT.
What you should know
The case for and against ABT
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.8% last year.
-
Returns 10.6% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 24.0% above its 5-year average P/E.
-
Operating margin compressed from 19.2% to 14.7% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
34.21x
Forward P/E
17.43x
P/B
3.58x
P/S
3.93x
EV/EBITDA
18.04x
PEG ratio
2.13x
Profitability
How much profit each dollar creates
Gross margin
56.8%
Operating margin
14.7%
Net margin
11.6%
ROE
10.6%
ROA
5.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.63x
Current ratio
1.38x
Quick ratio
0.80x
Total debt
$32.72B
Total cash
$5.60B
Growth
How the business has been compounding
Revenue TTM
$45.13B
Revenue 5Y CAGR
0.7%
EPS TTM
3.09
EPS 5Y CAGR
-1.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$9.46B
Free CF TTM
$7.39B
FCF margin
16.4%
Dividend
Shareholder payout
Yield
2.4%
Payout ratio
79.0%
Last ex-div date
2026-07-15