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Abbott Reports Second-Quarter 2025 Results

July 17, 2025 | Last Trade: US$123.67 3.16 2.62
  • Second-quarter reported sales growth of 7.4 percent; organic sales growth of 6.9 percent or 7.5 percent excluding COVID-19 testing-related sales1
  • Second-quarter GAAP diluted EPS of $1.01; adjusted diluted EPS of $1.26
  • Reported gross margin of 52.7 percent of sales; adjusted gross margin of 57.0 percent, which reflects a 100 basis point increase
  • Reported operating margin of 18.4 percent of sales; adjusted operating margin of 22.9 percent, which reflects a 100 basis point increase

ABBOTT PARK, Ill., July 17, 2025 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2025.

  • Second-quarter sales increased 7.4 percent on a reported basis, 6.9 percent on an organic basis, or 7.5 percent when excluding COVID-19 testing-related sales1.
  • Second-quarter GAAP diluted EPS of $1.01 and adjusted diluted EPS of $1.26, which excludes specified items and reflects double-digit growth compared to the prior year.
  • First-half sales increased 5.7 percent on a reported basis, 6.9 percent on an organic basis, or 7.9 percent when excluding COVID-19 testing-related sales2.
  • Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing-related sales, to be 7.5% to 8.0%, or 6.0% to 7.0% when including COVID-19 testing-related sales.
  • Abbott projects full-year 2025 adjusted diluted EPS of $5.10 to $5.20, which reflects double-digit growth at the midpoint.
  • In April, Abbott completed enrollment ahead of schedule in its FlexPulse U.S. IDE trial, which is designed to evaluate the TactiFlex Duo Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib).
  • In April, Abbott announced late-breaking data from the AVEIRConduction System Pacing (CSP) clinical feasibility study. This study was the world's first assessment of a leadless pacemaker delivering conduction pacing, which produces pacing that closely mimics the heart's natural electrical rhythm and represents a new treatment option for people with irregular heart rhythms.
  • In May, Abbott announced U.S. Food and Drug Administration (FDA) approval of the company's Tendynetranscatheter mitral valve replacement (TMVR) system, a first-of-its-kind device to help treat people with mitral valve disease.
  • Abbott has initiated plans to develop a new cardiovascular device manufacturing facility in the state of Georgia to be completed by 2028.

"Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, significantly expanded our margin profiles, and continued to advance key programs through our new product pipeline," said Robert B. Ford, chairman and chief executive officer, Abbott. "We see this momentum carrying into 2026."

SECOND-QUARTER BUSINESS OVERVIEW

Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect® product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand the underlying performance of the company as the demand for COVID-19 tests has significantly declined following the transition from a pandemic to endemic phase.

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.  

Second Quarter 2025 Results (2Q25)

 

Sales 2Q25 ($ in millions)

Total Company

 

Nutrition

 

Diagnostics

 

Established
Pharmaceuticals

 

Medical Devices

U.S.

4,276

 

957

 

811

 

 

2,503

International

6,866

 

1,255

 

1,362

 

1,383

 

2,866

Total reported

11,142

 

2,212

 

2,173

 

1,383

 

5,369

% Change vs. 2Q24

         

U.S.

8.7

 

2.6

 

(0.1)

 

n/a

 

14.6

International

6.6

 

3.1

 

(1.5)

 

6.9

 

12.4

Total reported

7.4

 

2.9

 

(1.0)

 

6.9

 

13.4

Impact of foreign exchange

0.5

 

(0.5)

 

0.4

 

(0.8)

 

1.2

Organic

6.9

 

3.4

 

(1.4)

 

7.7

 

12.2

Impact of COVID-19 testing sales 1

(0.6)

 

 

(2.2)

 

 

Organic (excluding COVID-19 tests)

7.5

 

3.4

 

0.8

 

7.7

 

12.2

          

Organic

         

    U.S.

8.7

 

2.6

 

(0.1)

 

n/a

 

14.6

    International

5.8

 

4.0

 

(2.2)

 

7.7

 

10.1

First Half 2025 Results (1H25)

 

Sales 1H25 ($ in millions)

Total Company

 

Nutrition

 

Diagnostics

 

Established
Pharmaceuticals

 

Medical Devices

U.S.

8,444

 

1,912

 

1,682

 

 

4,842

International

13,056

 

2,446

 

2,545

 

2,643

 

5,422

Total reported

21,500

 

4,358

 

4,227

 

2,643

 

10,264

          

% Change vs. 1H24

         

U.S.

8.5

 

5.6

 

(3.5)

 

n/a

 

14.8

International

3.9

 

1.6

 

(4.5)

 

4.9

 

9.1

Total reported

5.7

 

3.3

 

(4.1)

 

4.9

 

11.7

Impact of foreign exchange

(1.1)

 

(1.5)

 

(0.9)

 

(2.9)

 

(0.7)

Impact of business exit*

(0.1)

 

(0.3)

 

 

 

Organic

6.9

 

5.1

 

(3.2)

 

7.8

 

12.4

Impact of COVID-19 testing sales 2

(1.0)

 

 

(3.9)

 

 

Organic (excluding COVID-19 tests)

7.9

 

5.1

 

0.7

 

7.8

 

12.4

          

Organic

         

    U.S.

8.7

 

6.4

 

(3.5)

 

n/a

 

14.8

    International

5.8

 

4.1

 

(3.0)

 

7.8

 

10.3

Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.

*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.

Nutrition

 

Second Quarter 2025 Results (2Q25)

 

Sales 2Q25 ($ in millions)

Total

 

Pediatric

 

Adult

U.S.

957

 

587

 

370

International

1,255

 

467

 

788

Total reported

2,212

 

1,054

 

1,158

      

% Change vs. 2Q24

     

U.S.

2.6

 

4.2

 

0.2

International

3.1

 

(5.7)

 

9.2

Total reported

2.9

 

(0.4)

 

6.1

Impact of foreign exchange

(0.5)

 

(0.6)

 

(0.5)

Organic

3.4

 

0.2

 

6.6

      

    U.S.

2.6

 

4.2

 

0.2

    International

4.0

 

(4.5)

 

9.8

Worldwide Nutrition sales increased 2.9 percent on a reported basis and 3.4 percent on an organic basis in the second quarter.

Growth in the quarter was led by Adult Nutrition, where global sales increased 6.1 percent on a reported basis and 6.6 percent on an organic basis, led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading brand of products designed to meet the nutritional requirements for people with diabetes. 

First Half 2025 Results (1H25)

 

Sales 1H25 ($ in millions)

Total

 

Pediatric

 

Adult

U.S.

1,912

 

1,175

 

737

International

2,446

 

920

 

1,526

Total reported

4,358

 

2,095

 

2,263

      

% Change vs. 1H24

     

U.S.

5.6

 

9.0

 

0.6

International

1.6

 

(7.0)

 

7.7

Total reported

3.3

 

1.3

 

5.3

Impact of foreign exchange

(1.5)

 

(1.2)

 

(1.6)

Impact of business exit*

(0.3)

 

 

(0.7)

Organic

5.1

 

2.5

 

7.6

      

    U.S.

6.4

 

9.0

 

2.4

    International

4.1

 

(4.6)

 

10.2

 

*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.

Diagnostics

 

Second Quarter 2025 Results (2Q25)

 

Sales 2Q25 ($ in millions)

Total

 

Core Laboratory

 

Molecular

 

Point of Care

 

Rapid
Diagnostics

U.S.

811

 

351

 

35

 

104

 

321

International

1,362

 

1,007

 

88

 

44

 

223

Total reported

2,173

 

1,358

 

123

 

148

 

544

          

% Change vs. 2Q24

         

U.S.

(0.1)

 

7.3

 

5.5

 

(2.0)

 

(7.1)

International

(1.5)

 

0.5

 

(5.6)

 

(11.9)

 

(6.1)

Total reported

(1.0)

 

2.2

 

(2.7)

 

(5.1)

 

(6.7)

Impact of foreign exchange

0.4

 

0.6

 

0.7

 

0.1

 

0.1

Organic

(1.4)

 

1.6

 

(3.4)

 

(5.2)

 

(6.8)

          

    U.S.

(0.1)

 

7.3

 

5.5

 

(2.0)

 

(7.1)

    International

(2.2)

 

(0.3)

 

(6.5)

 

(12.1)

 

(6.3)

Global Diagnostics sales decreased 1.0 percent on a reported basis, decreased 1.4 percent on an organic basis, and increased 0.8 percent when excluding COVID-19 testing-related sales1.

Diagnostics sales growth was impacted by the year-over-year decline in COVID-19 testing-related sales and volume-based procurement programs in China.

COVID-19 testing-related sales were $55 million in the quarter, compared to $102 million in the second quarter of the prior year.

Global Core Laboratory Diagnostics sales increased 2.2 percent on a reported basis and increased 1.6 percent on an organic basis. Growth in the quarter was impacted by volume-based procurement programs in China. 

First Half 2025 Results (1H25)

 

Sales 1H25 ($ in millions)

Total

 

Core Laboratory

 

Molecular

 

Point of Care

 

Rapid
Diagnostics

U.S.

1,682

 

683

 

75

 

204

 

720

International

2,545

 

1,852

 

170

 

86

 

437

Total reported

4,227

 

2,535

 

245

 

290

 

1,157

          

% Change vs. 1H24

         

U.S.

(3.5)

 

7.2

 

 

(0.3)

 

(12.8)

International

(4.5)

 

(2.4)

 

(6.1)

 

(4.5)

 

(12.3)

Total reported

(4.1)

 

0.1

 

(4.4)

 

(1.6)

 

(12.6)

Impact of foreign exchange

(0.9)

 

(1.2)

 

(1.0)

 

(0.4)

 

(0.6)

Organic

(3.2)

 

1.3

 

(3.4)

 

(1.2)

 

(12.0)

          

    U.S.

(3.5)

 

7.2

 

 

(0.3)

 

(12.8)

    International

(3.0)

 

(0.7)

 

(4.9)

 

(3.3)

 

(10.7)

Established Pharmaceuticals

 

Second Quarter 2025 Results (2Q25)

 

Sales 2Q25 ($ in millions)

Total

 

Key Emerging
Markets

 

Other

U.S.

 

 

International

1,383

 

1,059

 

324

Total reported

1,383

 

1,059

 

324

      

% Change vs. 2Q24

     

U.S.

n/a

 

n/a

 

n/a

International

6.9

 

7.3

 

5.9

Total reported

6.9

 

7.3

 

5.9

Impact of foreign exchange

(0.8)

 

(1.4)

 

1.4

Organic

7.7

 

8.7

 

4.5

      

    U.S.

n/a

 

n/a

 

n/a

    International

7.7

 

8.7

 

4.5

Established Pharmaceuticals sales increased 6.9 percent on a reported basis and 7.7 percent on an organic basis in the second quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 7.3 percent on a reported basis and 8.7 percent on an organic basis, led by double-digit growth in several countries across Asia, Latin America and the Middle East.

First Half 2025 Results (1H25)

 

Sales 1H25 ($ in millions)

Total

 

Key Emerging
Markets

 

Other

U.S.

 

 

International

2,643

 

2,024

 

619

Total reported

2,643

 

2,024

 

619

      

% Change vs. 1H24

     

U.S.

n/a

 

n/a

 

n/a

International

4.9

 

5.7

 

2.4

Total reported

4.9

 

5.7

 

2.4

Impact of foreign exchange

(2.9)

 

(3.3)

 

(1.4)

Organic

7.8

 

9.0

 

3.8

      

    U.S.

n/a

 

n/a

 

n/a

    International

7.8

 

9.0

 

3.8

Medical Devices

 

Second Quarter 2025 Results (2Q25)

 

Sales 2Q25 ($ in millions)

Total

 

Rhythm
Management

 

Electro-

physiology

 

Heart
Failure

 

Vascular

 

Structural
Heart

 

Neuro-
modulation

 

Diabetes
Care

U.S.

2,503

 

340

 

322

 

282

 

283

 

289

 

193

 

794

International

2,866

 

333

 

378

 

86

 

474

 

347

 

61

 

1,187

Total reported

5,369

 

673

 

700

 

368

 

757

 

636

 

254

 

1,981

                

% Change vs. 2Q24

               

U.S.

14.6

 

16.5

 

12.2

 

15.8

 

3.0

 

12.2

 

0.4

 

24.5

International

12.4

 

5.7

 

10.9

 

11.2

 

5.4

 

13.7

 

20.4

 

17.5

Total reported

13.4

 

10.9

 

11.5

 

14.7

 

4.5

 

13.0

 

4.6

 

20.2

Impact of foreign exchange

1.2

 

1.1

 

1.2

 

0.7

 

1.0

 

1.3

 

0.3

 

1.7

Organic

12.2

 

9.8

 

10.3

 

14.0

 

3.5

 

11.7

 

4.3

 

18.5

                

    U.S.

14.6

 

16.5

 

12.2

 

15.8

 

3.0

 

12.2

 

0.4

 

24.5

    International

10.1

 

3.6

 

8.8

 

8.4

 

3.8

 

11.4

 

18.7

 

14.7

Worldwide Medical Devices sales increased 13.4 percent on a reported basis and 12.2 percent on an organic basis in the second quarter.

Sales growth in the quarter was led by double-digit growth in Diabetes Care, Heart Failure, Structural Heart  and Electrophysiology.

Several products contributed to the strong performance, including FreeStyle Libre®, Navitor®, TriClip® and AVEIR®.

In Diabetes Care, sales of continuous glucose monitors were $1.9 billion and grew 21.4 percent on a reported basis and 19.6 percent on an organic basis. 

First Half 2025 Results (1H25)

 

Sales 1H25 ($ in millions)

Total

 

Rhythm
Management

 

Electro-

physiology

 

Heart
Failure

 

Vascular

 

Structural
Heart

 

Neuro-
modulation

 

Diabetes
Care

U.S.

4,842

 

644

 

621

 

544

 

551

 

571

 

369

 

1,542

International

5,422

 

614

 

708

 

163

 

916

 

642

 

113

 

2,266

Total reported

10,264

 

1,258

 

1,329

 

707

 

1,467

 

1,213

 

482

 

3,808

                

% Change vs. 1H24

               

U.S.

14.8

 

14.4

 

11.7

 

13.2

 

4.2

 

16.3

 

(1.1)

 

25.7

International

9.1

 

1.2

 

7.6

 

12.6

 

3.5

 

9.3

 

18.5

 

13.8

Total reported

11.7

 

7.6

 

9.5

 

13.1

 

3.8

 

12.5

 

2.9

 

18.4

Impact of foreign exchange

(0.7)

 

(0.4)

 

(0.6)

 

(0.2)

 

(0.7)

 

(0.7)

 

(0.4)

 

(0.7)

Organic

12.4

 

8.0

 

10.1

 

13.3

 

4.5

 

13.2

 

3.3

 

19.1

                

    U.S.

14.8

 

14.4

 

11.7

 

13.2

 

4.2

 

16.3

 

(1.1)

 

25.7

    International

10.3

 

2.0

 

8.8

 

13.4

 

4.8

 

10.5

 

20.5

 

15.0

ABBOTT'S FINANCIAL GUIDANCE

Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing related sales, to be 7.5% to 8.0%, or 6.0% to 7.0% when including COVID-19 testing-related sales.

Abbott projects full-year 2025 adjusted operating margin to be approximately 23.5% of sales.

Abbott projects full-year 2025 adjusted diluted earnings per share of $5.10 to $5.20 and third-quarter 2025 adjusted diluted earnings per share of $1.28 to $1.32.

Abbott has not provided the related GAAP financial measures on a forward-looking basis for these forward-looking non-GAAP financial measures because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items such as restructuring and cost reduction initiatives, charges for intangible asset impairments, acquisition-related expenses, and foreign exchange, which could significantly impact Abbott's results in accordance with GAAP.

ABBOTT DECLARES 406th CONSECUTIVE QUARTERLY DIVIDEND

On June 13, 2025, the board of directors of Abbott declared the company's quarterly dividend of $0.59 per share. Abbott's cash dividend is payable Aug. 15, 2025, to shareholders of record at the close of business on July 15, 2025.

Abbott has increased its dividend payout for 53 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

About Abbott:

Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube. 

Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.

— Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

1.

In the second quarter of 2025, total worldwide sales were $11.142 billion, total Diagnostics sales were $2.173 billion and COVID-19 testing-related sales were $55 million. In the second quarter of 2024, total worldwide sales were $10.377 billion, total Diagnostics sales were $2.195 billion and COVID-19 testing-related sales were $102 million.

  

2.

In the first half of 2025, total worldwide sales were $21.500 billion, total Diagnostics sales were $4.227 billion and COVID-19 testing-related sales were $139 million. In the first half of 2024, total worldwide sales were $20.341 billion, total Diagnostics sales were $4.409 billion and COVID-19 testing-related sales were $306 million.

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

Second Quarter Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)

 
  
 

2Q25

 

2Q24

 

% Change

 

Net Sales

$11,142

 

$10,377

 

7.4

 
       

Cost of products sold, excluding amortization expense

4,854

 

4,603

 

5.5

 

Amortization of intangible assets

420

 

471

 

(10.7)

 

Research and development

725

 

698

 

3.9

 

Selling, general, and administrative

3,091

 

2,936

 

5.3

 

Total Operating Cost and Expenses

9,090

 

8,708

 

4.4

 
       

Operating Earnings

2,052

 

1,669

 

23.0

 
       

Interest expense, net

50

 

58

 

(14.2)

 

Net foreign exchange (gain) loss

(11)

 

(6)

 

55.6

 

Other (income) expense, net

(137)

 

10

 

n/m

 

Earnings before taxes

2,150

 

1,607

 

33.8

 

Taxes on earnings

371

 

305

 

21.3

1)

       

Net Earnings

$1,779

 

$1,302

 

36.7

 
       

Net Earnings excluding Specified Items, as described below

$2,213

 

$2,003

 

10.5

2)

       

Diluted Earnings per Common Share

$1.01

 

$0.74

 

36.5

 
       

Diluted Earnings per Common Share,

excluding Specified Items, as described below

$1.26

 

$1.14

 

10.5

2)

       

Average Number of Common Shares Outstanding

Plus Dilutive Common Stock Options

1,751

 

1,751

   
 

NOTES:

See table titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following section.

 

1)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

  
 

2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years.

  

2)

2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $434 million, or $0.25 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, and other net expenses.

  
 

2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $701 million, or $0.40 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses.

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

First Half Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)

 
  
 

1H25

 

1H24

 

% Change

 

Net Sales

$21,500

 

$20,341

 

5.7

 
       

Cost of products sold, excluding amortization expense

9,322

 

9,066

 

2.8

 

Amortization of intangible assets

840

 

943

 

(10.8)

 

Research and development

1,441

 

1,382

 

4.3

 

Selling, general, and administrative

6,152

 

5,895

 

4.4

 

Total Operating Cost and Expenses

17,755

 

17,286

 

2.7

 
       

Operating Earnings

3,745

 

3,055

 

22.6

 
       

Interest expense, net

99

 

119

 

(16.4)

 

Net foreign exchange (gain) loss

(18)

 

(6)

 

n/m

 

Other (income) expense, net

(264)

 

(101)

 

n/m

 

Earnings before taxes

3,928

 

3,043

 

29.1

 

Taxes on earnings

824

 

516

 

59.5

1)

       

Net Earnings

$3,104

 

$2,527

 

22.9

 
       

Net Earnings excluding Specified Items, as described below

$4,132

 

$3,732

 

10.7

2)

       

Diluted Earnings per Common Share

$1.77

 

$1.44

 

22.9

 
       

Diluted Earnings per Common Share,

excluding Specified Items, as described below

$2.35

 

$2.12

 

10.8

2)

       

Average Number of Common Shares Outstanding

Plus Dilutive Common Stock Options

1,749

 

1,750

   
 

NOTES:

See table titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following section.

  

1)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

  
 

2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years.

  

2)

2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.028 billion, or $0.58 per share, for intangible amortization, charges related to investment impairments, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions, and other net expenses.

  
 

2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.205 billion, or $0.68 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses.

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information

Second Quarter Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)

 
 

2Q25

 

As

Reported
(GAAP)

 

Specified
Items

 

As

Adjusted

      

Intangible Amortization

$            420

 

$          (420)

 

$              —

Gross Margin

5,868

 

478

 

6,346

R&D

725

 

(20)

 

705

SG&A

3,091

 

(1)

 

3,090

Other (income) expense, net

(137)

 

(1)

 

(138)

Earnings before taxes

2,150

 

500

 

2,650

Taxes on Earnings

371

 

66

 

437

Net Earnings

1,779

 

434

 

2,213

Diluted Earnings per Share

$           1.01

 

$           0.25

 

$           1.26

Specified items reflect intangible amortization expense of $420 million and other net expenses of $80 million associated with restructuring actions, costs associated with acquisitions, and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

 

2Q24

 

As

Reported
(GAAP)

 

Specified
Items

 

As

Adjusted

      

Intangible Amortization

$            471

 

$          (471)

 

$              —

Gross Margin

5,303

 

506

 

5,809

R&D

698

 

(41)

 

657

SG&A

2,936

 

(57)

 

2,879

Other (income) expense, net

10

 

(145)

 

(135)

Earnings before taxes

1,607

 

749

 

2,356

Taxes on Earnings

305

 

48

 

353

Net Earnings

1,302

 

701

 

2,003

Diluted Earnings per Share

$           0.74

 

$           0.40

 

$           1.14

Specified items reflect intangible amortization expense of $471 million and other net expenses of $278 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information

First Half Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)

 
 

1H25

 

As

Reported
(GAAP)

 

Specified
Items

 

As

Adjusted

      

Intangible Amortization

$            840

 

$          (840)

 

$              —

Gross Margin

11,338

 

926

 

12,264

R&D

1,441

 

(47)

 

1,394

SG&A

6,152

 

(11)

 

6,141

Other (income) expense, net

(264)

 

(36)

 

(300)

Earnings before taxes

3,928

 

1,020

 

4,948

Taxes on Earnings

824

 

(8)

 

816

Net Earnings

3,104

 

1,028

 

4,132

Diluted Earnings per Share

$           1.77

 

$           0.58

 

$           2.35

Specified items reflect intangible amortization expense of $840 million and other net expenses of $180 million associated with restructuring actions, acquisitions, investment impairment charges, and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

 

1H24

 

As

Reported
(GAAP)

 

Specified
Items

 

As

Adjusted

      

Intangible Amortization

$            943

 

$          (943)

 

$              —

Gross Margin

10,332

 

1,024

 

11,356

R&D

1,382

 

(62)

 

1,320

SG&A

5,895

 

(91)

 

5,804

Other (income) expense, net

(101)

 

(171)

 

(272)

Earnings before taxes

3,043

 

1,348

 

4,391

Taxes on Earnings

516

 

143

 

659

Net Earnings

2,527

 

1,205

 

3,732

Diluted Earnings per Share

$           1.44

 

$           0.68

 

$           2.12

Specified items reflect intangible amortization expense of $943 million and other net expenses of $405 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

A reconciliation of the second-quarter tax rates for 2025 and 2024 is shown below: 

 

2Q25

 

($ in millions)

Pre-Tax

Income

 

Taxes on

Earnings

 

Tax

Rate

 

As reported (GAAP)

$         2,150

 

$            371

 

17.3 %

1)

Specified items

500

 

66

   

Excluding specified items

$         2,650

 

$            437

 

16.5 %

 
       
 

2Q24

 

($ in millions)

Pre-Tax

Income

 

Taxes on

Earnings

 

Tax

Rate

 

As reported (GAAP)

$         1,607

 

$            305

 

19.0 %

2)

Specified items

749

 

48

   

Excluding specified items

$         2,356

 

$            353

 

15.0 %

 

1)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

2)

2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years.

A reconciliation of the year-to-date tax rates for 2025 and 2024 is shown below: 

 

1H25

 

($ in millions)

Pre-Tax

Income

 

Taxes on

Earnings

 

Tax

Rate

 

As reported (GAAP)

$         3,928

 

$            824

 

21.0 %

3)

Specified items

1,020

 

(8)

   

Excluding specified items

$         4,948

 

$            816

 

16.5 %

 
       
 

1H24

 

($ in millions)

Pre-Tax

Income

 

Taxes on

Earnings

 

Tax

Rate

 

As reported (GAAP)

$         3,043

 

$            516

 

17.0 %

4)

Specified items

1,348

 

143

   

Excluding specified items

$         4,391

 

$            659

 

15.0 %

 

3)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

4)

2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years.

Abbott Laboratories and Subsidiaries

Non-GAAP Revenue Reconciliation

First Half Ended June 30, 2025 and 2024

($ in millions)

(unaudited)

 
  

1H25

 

1H24

 

% Change vs. 1H24

          

Non-GAAP

  

Abbott
Reported

 

Abbott
Reported

Impact
from
business
exit (a)

Adjusted
Revenue

 

Reported

 

Adjusted

Organic

Total Company

 

21,500

 

20,341

(13)

20,328

 

5.7

 

5.8

6.9

U.S.

 

8,444

 

7,780

(13)

7,767

 

8.5

 

8.7

8.7

Intl

 

13,056

 

12,561

12,561

 

3.9

 

3.9

5.8

            

Total Nutrition

 

4,358

 

4,218

(13)

4,205

 

3.3

 

3.6

5.1

U.S.

 

1,912

 

1,811

(13)

1,798

 

5.6

 

6.4

6.4

Intl

 

2,446

 

2,407

2,407

 

1.6

 

1.6

4.1

            

Adult Nutrition

 

2,263

 

2,150

(13)

2,137

 

5.3

 

6.0

7.6

U.S.

 

737

 

733

(13)

720

 

0.6

 

2.4

2.4

Intl

 

1,526

 

1,417

1,417

 

7.7

 

7.7

10.2

  

(a)

Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.

Abbott Laboratories and Subsidiaries

Details of Specified Items

Second Quarter Ended June 30, 2025

(in millions, except per share data)

(unaudited)

 
 

Acquisition or

Divestiture-

related (a)

 

Restructuring

and Cost

Reduction

Initiatives (b)

 

Intangible

Amortization

 

Other (c)

 

Total

Specifieds

Gross Margin

$                    1

 

$                  55

 

$                420

 

$                    2

 

$                478

R&D

 

(7)

 

 

(13)

 

(20)

SG&A

(3)

 

1

 

 

1

 

(1)

Other (income) expense, net

(1)

 

 

 

 

(1)

Earnings before taxes

$                    5

 

$                  61

 

$                420

 

$                  14

 

500

Taxes on Earnings (d)

        

66

Net Earnings

        

$                434

Diluted Earnings per Share

        

$               0.25

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."

a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.

c)

Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products.

d)

Reflects the net tax benefit associated with the specified items and the recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

Abbott Laboratories and Subsidiaries

Details of Specified Items

Second Quarter Ended June 30, 2024

(in millions, except per share data)

(unaudited)

 
 

Acquisition or

Divestiture-

related (a)

 

Restructuring

and Cost

Reduction

Initiatives (b)

 

Intangible

Amortization

 

Other (c)

 

Total

Specifieds

Gross Margin

$                    1

 

$                  32

 

$                471

 

$                    2

 

$                506

R&D

(1)

 

1

 

 

(41)

 

(41)

SG&A

(11)

 

(10)

 

 

(36)

 

(57)

Other (income) expense, net

(147)

 

 

 

2

 

(145)

Earnings before taxes

$                160

 

$                  41

 

$                471

 

$                  77

 

749

Taxes on Earnings (d)

        

48

Net Earnings

        

$                701

Diluted Earnings per Share

        

$               0.40

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."

a)

Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.

c)

Other includes incremental costs to comply with the MDR and IVDR requirements for previously approved products and an intangible asset impairment charge.

d)

Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.

 Abbott Laboratories and Subsidiaries

Details of Specified Items

First Half Ended June 30, 2025

(in millions, except per share data)

(unaudited)

 
 

Acquisition or

Divestiture-

related (a)

 

Restructuring

and Cost

Reduction

Initiatives (b)

 

Intangible

Amortization

 

Other (c)

 

Total

Specifieds

Gross Margin

$                    1

 

$                  81

 

$                840

 

$                    4

 

$                926

R&D

(1)

 

(23)

 

 

(23)

 

(47)

SG&A

(6)

 

(6)

 

 

1

 

(11)

Other (income) expense, net

(25)

 

 

 

(11)

 

(36)

Earnings before taxes

$                  33

 

$                110

 

$                840

 

$                  37

 

1,020

Taxes on Earnings (d)

        

(8)

Net Earnings

        

$             1,028

Diluted Earnings per Share

        

$               0.58

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."

a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.

b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.

c)

Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment impairments.

d)

Reflects the net tax benefit associated with the specified items and recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

Abbott Laboratories and Subsidiaries

Details of Specified Items

First Half Ended June 30, 2024

(in millions, except per share data)

(unaudited)

 
 

Acquisition or

Divestiture-

related (a)

 

Restructuring

and Cost

Reduction

Initiatives (b)

 

Intangible

Amortization

 

Other (c)

 

Total

Specifieds

Gross Margin

$                    2

 

$                  74

 

$                943

 

$                    5

 

$             1,024

R&D

(4)

 

(1)

 

 

(57)

 

(62)

SG&A

(25)

 

(19)

 

 

(47)

 

(91)

Other (income) expense, net

(135)

 

 

 

(36)

 

(171)

Earnings before taxes

$                166

 

$                  94

 

$                943

 

$                145

 

1,348

Taxes on Earnings (d)

        

143

Net Earnings

        

$             1,205

Diluted Earnings per Share

        

$               0.68

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."

  

a)

Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.

  

b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.

  

c)

Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment and intangible asset impairments.

  

d)

Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.

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