Abbott Q1 2025 earnings

Abbott reported first-quarter sales of 10.36 billion dollars, up 4 percent year over year. Organic sales growth was 6.9 percent, or 8.3 percent excluding COVID-19 testing-related sales. GAAP diluted earnings per share were 0.76 dollars, while adjusted diluted EPS rose 11.2 percent to 1.09 dollars. The company reaffirmed its full-year 2025 guidance.

Margins improved: adjusted gross margin rose 140 basis points to 57.1 percent and adjusted operating margin rose 130 basis points to 21.0 percent. Net earnings were 1.33 billion dollars GAAP, or 1.92 billion dollars adjusted, up 10.9 percent.

Segment performance

Nutrition sales grew 3.8 percent reported and 6.8 percent organically, led by strong adult nutrition demand, particularly for Ensure and Glucerna. Diagnostics sales declined 7.2 percent reported and 4.9 percent organically, largely due to falling COVID-19 test sales, which dropped to 84 million dollars from 204 million last year. Core Laboratory Diagnostics grew 0.9 percent organically.

Established Pharmaceuticals rose 2.7 percent reported and 7.8 percent organically, driven by strong growth in key emerging markets. Medical Devices rose 9.9 percent reported and 12.6 percent organically, led by strong Diabetes Care sales (up 21.6 percent organic), driven by FreeStyle Libre, and solid growth in Structural Heart, Heart Failure, and Electrophysiology segments.

Guidance and dividend

Abbott projects full-year 2025 organic sales growth of 7.5 to 8.5 percent and adjusted EPS of 5.05 to 5.25 dollars. Q2 2025 adjusted EPS is projected at 1.23 to 1.27 dollars. The company declared its 405th consecutive quarterly dividend of 0.59 dollars per share, continuing its 53-year streak of annual dividend increases.