# Abbott Laboratories (ABT), NYSE: 2Q 2025 Financial Results
Abbott Laboratories reported its financial results for the second quarter of 2025 on July 17, 2025.
## Key Takeaways
– **Sales Growth**
– Second-quarter reported sales increased by **7.4%** compared to 2Q24.
– Organic sales growth was **6.9%**, or **7.5%** when excluding COVID-19 testing-related sales.
– For the first half of 2025, sales grew **5.7%** on a reported basis and **6.9%** on an organic basis.
– **Earnings Per Share (EPS)**
– GAAP diluted EPS for the quarter was **$1.01**, marking an increase of **36.5%** from **$0.74** in 2Q24.
– Adjusted diluted EPS was **$1.26**, up **10.5%** from **$1.14** in the same quarter last year.
– **Gross Margin**
– Reported gross margin was **52.7%** of sales, while adjusted gross margin rose to **57.0%**, up **100 basis points** versus 2Q24.
– **Operating Margin**
– Reported operating margin was **18.4%**, compared to an adjusted operating margin of **22.9%**, which reflects a **100 basis points** increase.
– **Segment Performance**
– **Nutrition**: Sales increased **2.9%** reported and **3.4%** organic growth.
– U.S. sales rose **2.6%**; international sales rose **3.1%**.
– **Diagnostics**: Total sales decreased **1.0%** reported and **1.4%** organic.
– U.S. sales slightly declined **0.1%**.
– **Established Pharmaceuticals**: Sales rose **6.9%** reported and **7.7%** organic in the international market.
– **Medical Devices**: Sales grew significantly by **13.4%** reported and **12.2%** organic.
– In Diabetes Care, continuous glucose monitors generated sales of **$1.9 billion**, a growth of **21.4%** reported.
– **Projected Growth**
– For the full year 2025, Abbott anticipates organic sales growth to be between **7.5%** and **8.0%** excluding COVID-19 testing-related sales.
– Adjusted diluted EPS is projected to be **$5.10** to **$5.20**, reflecting double-digit growth at the midpoint.
– **Operational Highlights**
– In April, Abbott completed early enrollment in the FlexPulse U.S. IDE trial for the TactiFlex™ Duo Pulsed Field Ablation System.
– May saw FDA approval for the Tendyne™ transcatheter mitral valve replacement system.
– Plans were announced for a new cardiovascular device manufacturing facility in Georgia, expected to be completed by 2028.
– **Dividend Declaration**
– On June 13, 2025, Abbott declared its quarterly dividend of **$0.59 per share**, marking the **406th consecutive quarterly dividend**. The cash dividend is payable on August 15, 2025.
## Summary of Metrics
### Financial Performance Metrics
– **Sales Performance**:
– 2Q25: **$11.142 billion**, +**7.4%** vs. 2Q24
– 1H25: **$21.500 billion**, +**5.7%** vs. 1H24
– **EPS**:
– GAAP: **$1.01**, +**36.5%** vs. 2Q24
– Adjusted: **$1.26**, +**10.5%** vs. 2Q24
– **Margins**:
– Gross Margin: **52.7%** reported, **57.0%** adjusted
– Operating Margin: **18.4%** reported, **22.9%** adjusted
### Segment Sales Change (2Q25 vs. 2Q24)
– **Nutrition**:
– Total: +**2.9%**
– **Diagnostics**:
– Total: -**1.0%**
– **Established Pharmaceuticals**:
– Total: +**6.9%**
– **Medical Devices**:
– Total: +**13.4%**
## Conclusion
Abbott Laboratories’ solid financial performance in the second quarter of 2025 reflects strong sales growth across various segments, successful product launches, and a continued commitment to shareholder returns through its dividend program.
### Condensed Consolidated Statement of Earnings
*Amounts are in millions.*
| 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 |
| Net Earnings | $1,779 | $1,302 | 36.7 |
| Net Earnings excluding Specified Items | $2,213 | $2,003 | 10.5 |
| Diluted Earnings per Common Share | $1.01 | $0.74 | 36.5 |
| excluding Specified Items | $1.26 | $1.14 | 10.5 |
| Plus Dilutive Common Stock Options | 1,751 | 1,751 |
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### Condensed Consolidated Balance Sheet
*Amounts are in millions.*
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Cash and cash equivalents | $3,074 | $2,740 |
| Accounts receivable | $5,752 | $5,635 |
| Inventories | $3,876 | $3,520 |
| Other current assets | $1,123 | $1,050 |
| Total current assets | $13,825 | $12,945 |
| Property, plant and equipment | $7,146 | $7,045 |
| Intangible assets | $9,842 | $10,525 |
| Other non-current assets | $1,691 | $1,506 |
| Total assets | $32,504 | $31,021 |
| Liabilities and Equity | ||
| Accounts payable | $4,260 | $4,072 |
| Short-term debt | $1,322 | $1,132 |
| Other current liabilities | $3,574 | $3,785 |
| Total current liabilities | $9,156 | $9,989 |
| Long-term debt | $5,888 | $5,582 |
| Other long-term liabilities | $2,524 | $2,125 |
| Total liabilities | $17,568 | $17,696 |
| Equity | ||
| Common stock and additional paid-in capital | $11,100 | $10,167 |
| Retained earnings | $4,413 | $3,158 |
| Accumulated other comprehensive income | $423 | $242 |
| Total equity | $14,936 | $13,325 |
| Total liabilities and equity | $32,504 | $31,021 |
