One-glance verdict
Within fair range
$89.74 our estimate vs market $102.03
Wall Street consensus: $120.26 (34.0% higher than our fair-value estimate)
14% above our estimate
Fundamentals snapshot
Abbott Laboratories
ABT · NYQ · Healthcare · Medical Devices
Current price
$102.03
52-week range
$81.97 - $137.49
Market cap
$176.55B
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 16% of its peers.
- Risk Stock trades 19.7% 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 large healthcare company that sells a wide range of familiar products, from Similac baby formula and FreeStyle Libre glucose monitors to heart devices and rapid COVID-19 tests. The company's business is split into four major divisions, including medical devices, diagnostics, nutrition, and established drugs, so it isn't overly dependent on a single product's success. This diversification is important because strong performance in one area can help balance out weakness in another, which can lead to more stable and predictable business results over time.
How the company got here
Founded in 1888 by a Chicago physician named Dr. Wallace C. Abbott, the company started by creating tiny pills that offered more accurate and reliable doses of medicine. Over many decades, it grew by developing new medicines, including early anesthetics and treatments for epilepsy. Key turning points included entering the baby formula business by acquiring the maker of Similac in 1964, launching the first HIV antibody test in 1985, and spinning off its research-based pharmaceutical business into a new company called AbbVie in 2013. More recently, major acquisitions of St. Jude Medical and Alere in 2017 significantly expanded its presence in medical devices and diagnostic testing.
What it actually does
Abbott is a broad-based healthcare company that makes products people use from infancy to old age. You might recognize their popular nutritional drinks like Ensure, Pedialyte, and Similac baby formula. They also make the FreeStyle Libre, a sensor that people with diabetes wear on their arm to continuously track blood sugar without fingersticks. Additionally, Abbott produces a wide range of medical tests used in hospitals and clinics, including rapid tests for COVID-19, the flu, and strep throat, as well as devices that treat heart conditions.
Medical Devices
This is Abbott's largest business segment, making up nearly half of the company's sales. It creates a wide variety of devices that doctors use to treat health problems, especially those related to the heart and blood vessels. This includes everything from pacemakers that regulate heartbeats to tiny clips that can repair a leaky heart valve without open-heart surgery. A major product in this division is the FreeStyle Libre continuous glucose monitor, a wearable sensor that helps people with diabetes track their sugar levels in real-time.
Diagnostic Products
This segment, which accounts for about a fifth of Abbott's revenue, makes the tests and equipment that hospitals and clinics use to diagnose diseases. This includes large automated systems for hospital labs that can process hundreds of samples, as well as small, portable devices for rapid testing at a doctor's office or clinic. For example, Abbott developed the popular BinaxNOW rapid antigen test for COVID-19 and also makes the i-STAT, a handheld device that can perform common blood tests right at a patient's bedside.
Nutritional Products
This well-known part of the company provides science-based nutrition for people of all ages and represents about one-fifth of total sales. It includes popular infant formulas like Similac, children's nutrition shakes like PediaSure, and adult nutrition drinks such as Ensure and Glucerna (for people with diabetes). These are consumer products that are purchased repeatedly, providing a steady stream of revenue (money a company receives from selling its products or services) for the company.
Established Pharmaceutical Products
This is Abbott's smallest segment, making up a little over ten percent of its business. It sells a portfolio of branded generic drugs in countries outside of the United States, particularly in emerging markets (countries with growing economies). These are medicines where the original patent (exclusive rights to make and sell a drug) has expired, but Abbott sells them under its own trusted brand names for a variety of conditions like digestive issues, high cholesterol, and pain relief.
What management is betting on now
Abbott's leadership is focused on developing new and innovative medical devices, especially for heart conditions and diabetes care. They are investing heavily in their FreeStyle Libre glucose monitoring technology, aiming to expand its use beyond diabetes management into general wellness tracking. The company is also focused on growing its diagnostics business with new tests for infectious diseases and by expanding its global manufacturing capabilities. A key part of their strategy is to increase access and affordability of their products in emerging markets around the world.
Price history
How the share price has moved
—
Loading price history…
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 $89.74 vs current price $102.03
Wall Street consensus is the average analyst price target: $120.26 (34.0% higher than our fair-value estimate).
Our most-likely fair value is $89.74 a share — about 12.0% away from today's price of $102.03, 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 $28.15B 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 16% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 19.7% 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)
33.02x
Forward P/E
16.82x
P/B
3.45x
P/S
3.79x
EV/EBITDA
17.49x
PEG ratio
1.89x
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
2.5%
Payout ratio
79.0%
Last ex-div date
2026-07-15