Abbott Shares Climb on Strong 2026 Forecast, Q4 Earnings Beat
Company projects double-digit earnings growth and sustained sales momentum, driven by its powerhouse Medical Devices division.
Abbott Laboratories (NYSE: ABT) shares gained in early trading Thursday after the global healthcare giant reported fourth-quarter 2025 earnings that surpassed analyst estimates and issued a robust growth forecast for 2026.
Investors responded positively to the strong outlook, which signals Abbott's successful transition away from pandemic-related revenue streams and a focus on its core innovative businesses. The company's stock, which closed Wednesday at $120.73, saw buying pressure after the pre-market announcement.
For the fourth quarter, Abbott posted adjusted earnings of $1.50 per share, a significant 15.4% beat on the consensus estimate of approximately $1.30. Revenue for the quarter was $11.46 billion, narrowly exceeding expectations and demonstrating resilience across its portfolio.
The main driver of investor optimism was the company's strong full-year 2026 guidance. Abbott management projected adjusted earnings per share in the range of $5.55 to $5.80, which represents 10% growth at the midpoint. Furthermore, the company forecast organic sales growth between 6.5% and 7.5% for the year, indicating confidence in sustained business momentum.
The performance was anchored by Abbott's Medical Devices unit, its largest business segment, which delivered impressive organic sales growth of 10.4%. This strength was broad-based, with notable contributions from the company's diabetes care portfolio, particularly the popular Freestyle Libre continuous glucose monitoring system. Abbott continues to innovate in the space, recently previewing an AI-powered feature, Libre Assist, designed to provide personalized diabetes management.
In its fourth-quarter earnings announcement, the company underscored the performance of its underlying business, excluding the impact of declining COVID-19 testing sales. The results reflect the successful execution of a strategy centered on a diversified portfolio of life-changing technologies in diagnostics, medical devices, nutrition, and established pharmaceuticals.
Wall Street analysts had been anticipating a solid report. As noted by analysts at TD Cowen in a pre-earnings brief, the consensus forecast was for Abbott to meet or exceed expectations. The current median analyst price target for ABT sits at $145, suggesting significant upside from its recent trading levels. The majority of analysts covering the stock maintain a "Buy" or "Overweight" rating.
The detailed financial results, including segment-specific performance and management commentary, were outlined in the company's Form 8-K filing with the SEC. With a market capitalization exceeding $210 billion, Abbott's performance is a key bellwether for the broader healthcare technology sector. Thursday's results and encouraging forecast suggest that even as the world moves on from the acute phase of the pandemic, Abbott's core business is positioned for healthy, sustainable growth.