ABT 10-K & 10-Q changes, risk factors and insider trading
Abbott Laboratories · NYSE · Pharmaceutical Preparations · CIK 1800 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Changes in geopolitical and macroeconomic conditions could negatively affect Abbott’s business, financial condition, and results of operations.”
Removed heading “Abbott is subject to risks related to public health crises, such as widespread outbreaks of infectious diseases, which could have a material effect on Abbott’s business, financial condition and results of operations.”
Removed heading “The international nature of Abbott’s business subjects it to additional business risks that may cause its revenue and profitability to decline.”
Largest changes
“Many of these factors may manifest individually or collectively, such as Russia’s invasion of Ukraine which resulted in political instability, sanctions, economic and currency volatility, inflation and other operational and supply disruptions. To date, Abbott has been able to manage these disruptions without material impact to its results of operations. However, it is difficult to predict the future implications and consequences of the situation on local, regional or global economies and Abbott’s operations. …”see in full comparison
“For example, the global economy has been impacted by geopolitical tensions focused on trade, which has increased uncertainty for global businesses such as Abbott. The U.S. government has imposed tariffs on imports into the U.S., and it may impose additional tariffs in the future. Some countries may retaliate with trade protection measures, including reciprocal tariffs. …”see in full comparison
“As a global healthcare company with sales outside of the U.S. making up approximately 61 percent of Abbott’s net sales in 2025, Abbott’s business is subject to geopolitical and macroeconomic risks that are beyond its control. These risks include the enactment of trade protection measures such as tariffs, import or export licensing requirements, other governmental restrictions such as trade sanctions, and changes to international trade agreements; government actions such as price controls, limitations on participation in local enterprises, expropriation, and nationalization; …”see in full comparison
“•potential penalties or other adverse consequences for violations of anti-corruption, anti-bribery, anti-competition, and other similar laws and regulations, including the Foreign Corrupt Practices Act and the U.K. Bribery Act.”see in full comparison
“•changes in business, economic, and geopolitical conditions, including: war, political instability, terrorist attacks, the threat of future terrorist activity and related military action; global climate change, extreme weather and natural disasters; the cost and availability of insurance due to any of the foregoing events; labor disputes, strikes, slow-downs, or other forms of labor or union activity; and pressure from third-party interest groups;”see in full comparison
“Abbott is subject to risks related to public health crises, such as widespread outbreaks of infectious diseases, which could have a material effect on Abbott’s business, financial condition and results of operations.”see in full comparison
Full comparison: every changed paragraph (49)
From time to time, Abbott pursues acquisitions, licensing arrangements, and strategic alliances, or may dispose of or spin-off some of its businesses, as part of its business strategy. Abbott may not complete these transactions in a timely manner, on a cost-effective basis, or at all, and the expected benefits may not realizebe realized or may not be realized within the expected benefits.time period. If Abbott is successful in making an acquisition, the products and technologies that are acquired may not be successful or may require significantly greater resources and investments than originally anticipated. Abbott may not be able to integrate acquisitions successfully into its existing business or transition disposed businesses efficiently, and could incur or assume significant debt and unknown or contingent liabilities. Abbott could also experience negative effects on its reported results of operations from acquisition or disposition-related charges, amortization of expenses related to intangiblesintangible assets and charges for impairment of long-lived assets. These effects could cause a deterioration of Abbott’s credit rating, result in increased borrowing costs and interest expense, and decrease liquidity.
Similar to other large multi-national companies, the size and complexity of the information systems on which Abbott relies for both its infrastructure and products make them susceptible to a cybersecurity incident, breakdown, destruction, loss of data privacy, or other significant disruption. These systems have been and are expected to continue to be the target of malware and other cybersecurity incidents. In addition, third partythird-party hacking attempts may cause Abbott’s information systems and related products, protected data, or proprietary information to be compromised or stolen. A significant cybersecurity incident or other disruption could result in adverse consequences, including regulatory inquiries or litigation, increased costs and expenses, manufacturing challenges or disruption, problems with product availability, functionality or safety, damage to customer relations, reputational damage, lost revenue, and fines or penalties.
Abbott invests in its information systems and technology and in the protection of its products and data to reduce the risk of a cybersecurity incident or other significant disruption, and monitors its information systems on an ongoing basis for any current or potential cybersecurity threats or vulnerabilities andas well as for changes in technology and the regulatory environment. There can be no assurance that these measures and efforts will prevent future cybersecurity incidents or other significant disruptions to any of the information systems on which Abbott relies or that related product issues will not arise in the future. Similarly, there can be no assurance that third partythird-party information technology providers or other partners with whom Abbott contracts will not suffer a significant cybersecurity incident or disruption that impacts Abbott. Any significant cybersecurity incident or other disruption affecting Abbott’s information systems or products could have a material adverse effect on Abbott’s business, financial condition and results of operations.
In addition, Abbott is developing new business and operating models necessary to support the creation of data-driven healthcare solutions such as data-centric prevention and treatment strategies, new products and technologies that incorporate data insights, and product technology strategies that focus on connectivity and data creationcollection and management. Even if Abbott successfully develops such new data-driven healthcare solutions, they may be rendered obsolete by competitors' innovations, the nature of the data and insights generated, or changing customer preferences. Failure to develop and maintain business and operating models necessary to support data-driven healthcare solutions may negatively impact the demand for Abbott products and technologies, causing Abbott's revenues and profitability to decline.
The manufacture of many of Abbott’s products is a highly exacting and complex process, due in part to strict regulatory requirements. Problems may arise during manufacturing for a variety of reasons, including equipment malfunction, failure to follow specific protocols and procedures, problems with raw materials or the global supply chain, failure to meet product specifications, cybersecurity incidents, natural disasters, and environmental factors. In addition, third-party manufacturers and single suppliers are currently used for certain products and materials. If problems arise during the production of a lot or batch of product, those products may have to be discarded. If problems are not discovered before the product is released to the market, recall and product liability costs may also be incurred. Any of these events could, among other things, lead to increased costs, lost revenue, damage to customer relations, reputational damage, time and expense spent investigating the cause and remediating the problem, if any, a production stoppage at a manufacturing facility, and depending on the cause, similar losses with respect to other lots, batches or products. To the extent that Abbott or one of its suppliers or manufacturers experiences significant manufacturing problems, this could have a material adverse effect on Abbott’s revenues and profitability.
Abbott haswill indebtedness,incur additional indebtedness in connection with the Exact Sciences acquisition, which could adversely affect its business, including decreasing its business flexibility.
As of December 31, 2024,2025, Abbott's consolidated indebtedness was approximately $14.1$12.9 billion. Abbott plans to fund the Exact Sciences acquisition with approximately $20 billion of borrowings. This increase in Abbott's consolidated indebtedness could have the effect, among other things, of reducing Abbott's flexibility to respond to changing business and economic conditions.
and economic conditions, and reducing funds available for working capital, capital expenditures, acquisitions, and other general corporate purposes.
In addition, no assurance can be given that Abbott will remain in compliance with applicable FDA and other regulatory requirements once approval, clearance, or marketing authorization has been obtained for a product. These requirements include, among other things, regulations regarding manufacturing practices, testing requirements, product labeling, postmarketpost-market changes to products, advertising, and postmarketingpost-marketing reporting, including adverse event reports and field alerts. Many of Abbott’s facilities and procedures and those of Abbott’s suppliers are subject to ongoing regulation, including periodic inspection by the FDA and other regulatory authorities. Abbott must incur expense and spend time and effort to ensure compliance with these complex regulations. Possible regulatory actions for non-compliance include warning letters, fines, damages, injunctions, civil penalties, recalls, consent decrees, seizures of Abbott’s products, and civil litigation and/or criminal prosecution.
These actions could result in, among other things, substantial modifications to Abbott’s business practices and operations; refunds, recalls, or seizures of Abbott’s products; a total or partial shutdown of production in one or more facilities while Abbott or Abbott’s suppliers remedy any actual or potential issues; the inability to obtain future product approvals, clearances, or marketing authorizations; and withdrawals or suspensions of current products from the market. Any of these events could disrupt Abbott’s business and have a material adverse effect on Abbott’s revenues, profitability, cash flows, and financial condition. For example, in February 2022, Abbott initiated a voluntary recall of certain powder infant formula products manufactured at its facility in Sturgis, Michigan at which time it temporarily stopped manufacturing at the facility. In May 2022, Abbott entered into a consent decree with the FDA. For information on the impact of Abbott's voluntary recall and manufacturing stoppage, see the discussion in the “Financial Review” section in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this report.
Abbott’s industry is subject to various international, supranational, federal, and state laws and regulations pertaining to government benefit program reimbursement, price reporting and regulation, and healthcare fraud and abuse, including anti-kickback and false claims laws, and international and individual state laws relating to pricing and sales and marketing practices. Violations of these laws may be punishable by criminal and/or civil sanctions, including, in some instances, substantial fines, imprisonment, and exclusion from participation in government healthcare programs, including Medicare, Medicaid, and Veterans Administration health programs in the U.S. These laws and regulations are broad in scope and they are subject to evolving interpretations, which could require Abbott to incur substantial costs associated with compliance or to alter one or more of its sales or marketing practices. In addition, violations of these laws, or allegations of such violations, could disrupt Abbott’s business and result in a material adverse effect on Abbott’s revenues, profitability, and financial condition.
violations, could disrupt Abbott’s business and result in a material adverse effect on Abbott’s revenues, profitability, and financial condition.
Further, in the U.S., a number of the provisions of the Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 address access to healthcare products and services. These provisions have been and may continue to be modified, expanded, repealed, or otherwise invalidated, in whole or in part. Future rulemaking could affect rebates, prices or the rate of price increases for healthcare products and services, or required reporting and disclosure. Abbott cannot predict the timing or impact of any future rulemaking or changes in the law.
The expiration or loss of intellectual property protection and licenses may affect Abbott’s future revenues and operating income.earnings.
Many of Abbott’s businesses rely on patent and trademark and other intellectual property protection. Although most of the challenges to Abbott’s intellectual property have come from other companies, governments may also challenge or diminish intellectual property protections. To the extent Abbott’s intellectual property is successfully challenged, invalidated, or circumvented or to the extent it does not allow Abbott to compete effectively, Abbott’s businesses could suffer. To the extent that countries do not enforce Abbott’s intellectual property rights, Abbott’s future revenues and operating incomeearnings could be reduced. Any material litigation regarding Abbott’s patents and trademarks is described in the section captioned “Legal Proceedings.”
Changes in geopolitical and macroeconomic conditions could negatively affect Abbott’s business, financial condition, and results of operations.
As a global healthcare company with sales outside of the U.S. making up approximately 61 percent of Abbott’s net sales in 2025, Abbott’s business is subject to geopolitical and macroeconomic risks that are beyond its control. These risks include the enactment of trade protection measures such as tariffs, import or export licensing requirements, other governmental restrictions such as trade sanctions, and changes to international trade agreements; government actions such as price controls, limitations on participation in local enterprises, expropriation, and nationalization; restrictions on local currency conversion and/or cash extraction; changes in inflation (including the cost of raw materials, labor, commodities, and supplies) and interest rates; and fluctuations in foreign currency exchange rates. Abbott is also subject to other geopolitical risks, such as war, political and geopolitical instability, terrorist attacks and related military action.
For example, the global economy has been impacted by geopolitical tensions focused on trade, which has increased uncertainty for global businesses such as Abbott. The U.S. government has imposed tariffs on imports into the U.S., and it may impose additional tariffs in the future. Some countries may retaliate with trade protection measures, including reciprocal tariffs. These tariffs or other trade protection measures could have a negative impact on macroeconomic conditions, including inflation rates, foreign currency exchange rates, and interest rates, as well as causing potential disruptions to Abbott’s global supply chain, which could adversely affect its business. Additionally, the ongoing Russia-Ukraine conflict has resulted in sanctions, economic and currency volatility, higher inflation, heightened cybersecurity risks, and operational and supply chain disruptions. To date, Abbott has been able to manage these disruptions without material impact to its results of operations. However, it is difficult to predict the future implications and consequences of the conflict on local, regional, or global economies and Abbott’s operations
Abbott is subject to cost containment efforts that could cause a reduction in future revenues and operating income.earnings.
In the United States and other countries, Abbott’s businesses have experienced downward pressure on certain product pricing. Cost containment efforts by governments and private organizations are described in greater detail in the section captioned “Regulation.” To the extent these cost containment efforts are not offset by greater patient access to healthcare or other factors, Abbott’s future revenues and operating incomeearnings will be reduced.
In the ordinary course of business, Abbott is the subject of patent litigation, such as competitor claims that an Abbott product infringes their intellectual property. Resolving an intellectual property infringement claim can be costly and time
In the ordinary course of business, Abbott is the subject of patent litigation, such as competitor claims that an Abbott product infringes their intellectual property. Resolving an intellectual property infringement claim can be costly and time consuming and may require Abbott to enter into license agreements. Abbott cannot guarantee that it would be able to obtain license agreements on commercially reasonable terms. A successful claim of patent or other intellectual property infringement could subject Abbott to significant damages or an injunction preventing the manufacture, sale or use of affected Abbott products. Any of these events could have a material adverse effect on Abbott’s profitability and financial condition.
Abbott’s products face intense competition from competitors' products and technological advances. Competitors’ products may be safer, more effective, more effectively marketed or sold, or have lower prices or superior performance features than Abbott’s products. Further, the development of new technology,technologies, including disruptive technologies such as artificial intelligence, healthcare products and medicines, and the development of new treatments for disease could significantly change the competitive landscape of the healthcare industry and negatively impact the demand for certain Abbott products. Abbott cannot predict with certainty the timing or impact of the introduction of competitors’ products and technological advances.advances on Abbott's results of operations.
Although Abbott’s financial statements are denominated in U.S. dollars, a significant portion of Abbott’s revenues and costs are realized in other currencies. Sales outside of the U.S. in 20242025 made up approximately 61 percent of Abbott’s net sales. Abbott’s profitability is affected by movement of the U.S. dollar against other currencies. Fluctuations in exchange rates between the U.S. dollar and other currencies may also affect the reported value of Abbott’s assets and liabilities, as well as its cash flows. Some foreign currencies are subject to government exchange controls. While Abbott enters into hedging arrangements to mitigate some of its foreign currency exposure, Abbott cannot predict with any certainty changes in foreign currency exchange rates or its ability to mitigate these risks.
Abbott is subject to risks related to public health crises, such as widespread outbreaks of infectious diseases, which could have a material effect on Abbott’s business, financial condition and results of operations.
As a global healthcare company, public health crises, such as the widespread outbreaks of infectious diseases, may negatively impact certain Abbott's operations. Health concerns and significant changes in political or economic conditions caused by such outbreaks can cause, and during the COVID-19 pandemic caused, significant reductions in demand for certain products, increased difficulty in serving customers, disruptions to manufacturing and supply chains, and negative effects on certain of Abbott’s operations as well as the operations of its suppliers, distributors and other third-party partners. Furthermore, such widespread outbreaks may impact, and during the COVID-19 pandemic impacted, the broader
economies of affected countries, including negatively impacting economic growth, the proper functioning of financial and capital markets, inflation rates, foreign currency exchange rates, and interest rates.
For information on the impact that the COVID-19 pandemic had on Abbott’s business, see the discussion in the “Financial Review” section in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this report.
The international nature of Abbott’s business subjects it to additional business risks that may cause its revenue and profitability to decline.
Abbott’s business is subject to risks associated with managing a global supply chain and doing business internationally. Sales outside of the United States in 2024 made up approximately 61 percent of Abbott’s net sales. Additional risks associated with Abbott’s international operations include:
•differing local product preferences and product requirements;
•trade protection measures, including tariffs, import or export licensing requirements, other governmental restrictions such as trade sanctions, and changes to international trade agreements;
•difficulty in establishing, staffing, and managing operations;
•differing labor regulations;
•potentially negative consequences from changes in or interpretations of tax laws;
•geopolitical and economic instability, including sovereign debt issues;
•restrictions on local currency conversion and/or cash extraction;
•price controls, limitations on participation in local enterprises, expropriation, nationalization, and other governmental action;
•inflation, recession, and fluctuations in interest rates;
•diminished protection of intellectual property; and
•potential penalties or other adverse consequences for violations of anti-corruption, anti-bribery, anti-competition, and other similar laws and regulations, including the Foreign Corrupt Practices Act and the U.K. Bribery Act.
Events contemplated by these risks may, individually or in the aggregate, have a material adverse effect on Abbott’s revenues and profitability.
•differences between the fair value measurement of assets and liabilities and their actual value, particularly for pensions, retiree healthcare, stock compensation, intangibles,intangible assets, goodwill, and contingent consideration; and for contingent liabilities such as litigation, the absence of a recorded amount, or an amount recorded at the minimum, compared to the actual amount;
•changes in the rate of inflation (including the cost of raw materials, labor, commodities, and supplies), interest rates, market value of Abbott’s equity investments, and the performance of investments held by Abbott or Abbott’s employee benefit trusts;
•additional challenges of doing business internationally, including differing local product preferences and product requirements, difficulty in establishing, staffing, and managing operations, and differing labor regulations;
•climate and public health-related events, including global climate change, extreme weather and natural disasters, public health crises such as widespread outbreaks of infectious diseases, and the cost and availability of insurance due to any of the foregoing events;
•labor disputes, strikes, slow-downs, or other forms of labor or union activity, and pressure from third-party interest groups;
•changes in business, economic, and geopolitical conditions, including: war, political instability, terrorist attacks, the threat of future terrorist activity and related military action; global climate change, extreme weather and natural disasters; the cost and availability of insurance due to any of the foregoing events; labor disputes, strikes, slow-downs, or other forms of labor or union activity; and pressure from third-party interest groups;
Many of these factors may manifest individually or collectively, such as Russia’s invasion of Ukraine which resulted in political instability, sanctions, economic and currency volatility, inflation and other operational and supply disruptions. To date, Abbott has been able to manage these disruptions without material impact to its results of operations. However, it is difficult to predict the future implications and consequences of the situation on local, regional or global economies and Abbott’s operations. There could be additional sanctions, economic volatility, cybersecurity threats, political instability, transportation and other supply disruptions, as well as collection default or liquidity risks or limited availability of resources to conduct essential business processes that could have a material adverse impact to Abbott’s operations and financial condition. The resolution and long-term impact of this matter are uncertain and difficult to predict.
Management's Discussion & Analysis (MD&A)
Largest changes
“In 2023, Abbott management approved plans to restructure various operations in order to reduce costs in its Medical Devices, Diagnostic, and Established Pharmaceutical businesses. Abbott recorded employee related severance and other charges of $144 million of which approximately $56 million was recorded in Cost of products sold, $22 million was recorded in Research and development and $66 million was recorded in Selling, general and administrative expenses. In addition, Abbott recognized fixed asset impairment and inventory related charges of $31 million related to these restructuring plans.”see in full comparison
“In 2023, Abbott management approved plans to restructure various operations in order to reduce costs in its Medical Devices, Diagnostics, and Established Pharmaceuticals businesses. Abbott recorded employee related severance and other charges of $144 million, of which $56 million was recorded in Cost of products sold, $22 million was recorded in R&D, and $66 million was recorded in SG&A expenses. In addition, Abbott recognized fixed asset impairment and inventory-related charges of $31 million related to these restructuring plans.”see in full comparison
Selling, general and administrative (SG&A) expenses were $12.3 billion in 2025, $11.7 billion in 2024, and $10.9 billion insee in full comparison20232023. In 2025 and$11.22024,billionthe increase in2022.SG&AInexpenses2024,was due to higher selling and marketing spending to drive growth across variousbusinessesbusinesses. In 2024, SG&A spending was partially offset by the favorable impact of foreign exchange.The 2023 decrease in SG&A expenses reflects the favorable impact of foreign exchange and lower restructuring charges in 2023, as well as the non-recurrence of 2022 expenses related to the voluntary product recall in the Nutritional Products segment.
Research and development (R&D) expenses were $2.9 billion in 2025, $2.8 billion in 2024, and $2.7 billion insee in full comparison2023, and $2.9 billion in 2022.2023. Theincreaseincreases in R&Dexpenseexpenses in 2025 and 2024waswere primarily driven by higher spending on variousprojects,projects. In 2024, higher project spending was partially offset by lower 2024 charges for the impairment ofin-process R&D (IPR&D)assets acquired in previous business combinations.In 2023, the decrease in R&D expense was primarily driven by lower restructuring charges, lower impairment charges related to IPR&D acquired in previous business combinations, and other cost reductions.
“In Core Laboratory, sales increased 5.6 percent in 2024 and 8.4 percent in 2023, excluding the effect of foreign exchange. The increase in 2024 was due to the continued deployment of Abbott's Alinity® testing platform and higher volume of routine diagnostic testing performed in hospitals and other laboratories along with price increases, partially offset by lower sales in China. …”see in full comparison
see in full comparisonTheIn Abbott's Established Pharmaceutical Productssegmentsegment,focuses on the sale of its products in emerging markets. Excludingexcluding the impact of foreign exchange,Established Pharmaceuticalsales increased 7.4 percent in 2025 and 9.2 percent in20242024.andSales10.9 percentgrowth in2023.bothTheperiodssaleswasincreasebroad-basedinacross2024countries and was led by higher revenuein several countries in Latin America, Southeast Asia and the Middle East andacrossseveralmultiple therapeutic areas, includingrespiratory,cardiometabolic, gastroenterology,cardiometabolicand central nervous system/pain management.TheInsales2024,increasegrowth in2023thisreflectssegment also reflected highersalesrespiratoryinproductseveral geographies including India, Vietnam, and Brazil.sales. In2024,2025, operating earningsfor the Established Pharmaceutical Products segmentincreased2.24.7 percent. Operating margin profileincreaseddecreased from21.423.8 percent in20222023 to23.723.3 percent in20242025,primarilyreflectingdueincreasedtobusinessthe impact of margin improvement initiativescosts andhigherunfavorablesales,foreign exchange, partially offset byinflationhigheronvolumesvariousandproductfavorableinputs.price adjustment initiatives.
Full comparison: every changed paragraph (97)
Abbott’s revenues are derived primarily from the sale of a broad line of health carehealthcare products, which include medical devices, diagnostic testing products, nutritional products and branded generic pharmaceuticals. These products are sold under short-term receivable arrangements. Patent protection and licenses, technological and performance features, and inclusion of Abbott’s products under a contract most impact which products are sold; price controls, competitioncompetition, and rebates most impact the net selling prices of products; and the measurement of net sales and costs is impacted by foreign currency translation. Sales in international markets comprise 61 percent of consolidated net sales.
On November 19, 2025, Abbott entered into a definitive agreement to acquire Exact Sciences Corporation (Exact Sciences), which is expected to enable Abbott to enter the cancer diagnostics market. The acquisition is subject to customary closing conditions, including the approval of Exact Sciences shareholders, and obtaining the required regulatory clearances. Under the terms of the agreement, Abbott will pay $105 per common share in cash at the completion of the transaction, representing a total equity value of approximately $21 billion and an estimated enterprise value of $23 billion. Abbott's financing contemplates absorption of Exact Sciences' estimated $1.8 billion of net debt.
On November 19, 2025, Abbott obtained a commitment for a 364-day senior unsecured bridge term loan facility for an amount not to exceed $20.0 billion in conjunction with its pending acquisition of Exact Sciences. While Abbott plans to fund this transaction with cash on hand and borrowings, the bridge facility will provide back-up financing.
Abbott’s sales growth in 20242025 was primarily drivenattributable byto the performance of the Medical Devices,Devices and Established Pharmaceutical andProducts Nutritionalsegments. businesses.Results Thereflect growthcontinued isprogress theacross result of a productiverelated research and development (R&D)programs, pipeline and a combination ofincluding the introductioncontribution of new and recently introduced products and indication expansionsexpansions. acrossResults variousin businesses.the Nutritional Products segment were flat, reflecting price increases and lower volumes, particularly in the United States (U.S.). Sales growthalso wascontinued negativelyto impactedbe affected by continued year-over-yearthe decline in COVID-19COVID‑19 testing-relatedtesting‑related sales,sales asin the COVID-19Diagnostics pandemic shifted to an endemic state.segment. In 2025, 2024, 2023 and 2022,2023, Abbott’s COVID-19 testing relatedtesting-related sales totaltotaled $297 million, $747 million, $1.6 billion and $8.4$1.6 billion, respectively. Sales in emerging markets, which represent approximately 37 percent of total company sales, increased 5.1 percent in 2025 and 8.2 percent in 2024 and 5.4 percent in 2023,2024, excluding the impact of foreign exchange. (Emerging markets include all countries, except the United States,U.S., Japan, Canada, Australia, New Zealand, the United KingdomKingdom, and Western European countries.)
Abbott’s operating margin profile increased in 20242025 to 18.2 percent from 16.3 percent fromin 2024 and 16.2 percent in 2023. The increase in 20242025 reflects the favorable impact of margin improvement initiatives, partially offset by foreign exchange and inflation. In 2022, operating margin as a percentage of sales was 19.2 percent. The decrease in 2023 from 2022 reflects the unfavorable effects of lower COVID-19 testing-related sales, foreign exchange, and higher costs for various manufacturing inputs. In 2023, these unfavorable effects were partially offset by the favorable impact of margin improvement initiatives.
With respect to the performance of each reportable segment over the last three years, sales in the Medical Devices segment, excluding the impact of foreign exchange, increased 11.9 percent in 2025 and 13.7 percent in 2024 and 15.1 percent in 2023.2024. In Medical Devices, sales in 20242025 and 20232024 increased across all businesses, with double-digit growth in Diabetes Care, StructuralHeart Heart,Failure, Electrophysiology, and HeartStructural Failure.Heart, Inand 2023,in Neuromodulation2025, salesRhythm also increased double digits.Management. Growth was led by Diabetes Care where sales of Abbott's continuous glucose monitoring (CGM) systems continued to increase and totaled $7.6 billion in 2025 and $6.4 billion in 2024 and $5.3 billion in 2023.2024.
•U.S. Food and Drug Administration (FDA) approval and CE Mark for the Volt™ Pulsed Field Ablation (PFA) System to treat patients with atrial fibrillation,
•FDA approval of the Tendyne™ transcatheter mitral valve replacement (TMVR) system to treat people with mitral valve disease,
•U.S. Food and Drug Administration (FDA) clearance for two new over-the-counter CGM systems, Lingo® and Libre Rio™, which are based on Abbott's FreeStyle Libre® CGM technology,
•FDA approval of the Esprit™ below-the-knee (BTK) system, which is designed to keep arteries open in people living with peripheral artery disease and deliver a drug to support vessel healing prior to completely dissolving,
•FDARegulatory approval ofin Japan for TriClip®, which provides a minimally invasive treatment option for patients with tricuspid regurgitation, or a leaky tricuspid heart valve,
•CE Mark for TactiFlex™ Duo Ablation Catheter, Sensor Enabled™, designed to deliver radiofrequency (RF) and PFA energy to treat patients battling atrial fibrillation, and
•CE Mark for an expanded indication for the Navitor® transcatheter aortic valve implantation (TAVI) system to treat people with symptomatic, severe aortic stenosis who are at low or intermediate risk for open-heart surgery.
•CE Mark for the Aveir® dual chamber (DR) leadless pacemaker system, which is the world's first dual chamber leadless pacemaker system that treats people with abnormal or slow heart rhythms, and
•FDA clearance for Advisor® HD Grid X Mapping Catheter, Sensor Enabled™, which will further support mapping of both pulsed field ablation (PFA) and radiofrequency (RF) ablation cases.
Operating earnings for the Medical Devices segment increased 17.2 percent in 2025 and 16.0 percent in 2024. Operating margin profile increased from 31.4 percent in 2023 to 32.4 percent in 2024 and 19.6to 33.7 percent in 2023. The operating margin profile for the Medical Devices segment increased from 30.0 percent in 2022 to 31.4 percent in 2023 and then increased to 32.4 percent in 2024.2025. The increase in 2024 from 20222025 reflects the impact of higher sales volumes across the Medical Devices businesses.
In Abbott’s Diagnostics segment, sales decreased 4.5 percent in 2025 and 3.9 percent in 2024 and 38.2 percent in 2023,2024, excluding the impact of foreign exchange. The 20242025 and 20232024 sales decreases were driven by continued lower demand for the company's portfolio of COVID-19 tests,tests and challenging market conditions in China, including the impact of volume-based procurement programs. The sales decrease was partially offset by higher volume of routine diagnostic tests in the Rapid Diagnostics and Core Laboratory businesses and the continued deployment of Abbott's Alinity® testing platform.platform and digital health solutions, as Abbott continues to build outexpand its test menu for the Alinity testing platform. In the first quarter of 2024, Abbott received FDA clearance of its i-STAT™ traumatic brain injury (TBI) cartridge for use with the i-STAT Alinity instrument, a whole blood point-of-carediagnostic test to help assess mild TBI. In the fourth quarter of 2023, Abbott received FDA approval of its new laboratory automation system, GLP systems Track™, to help laboratories optimize lab performance by consolidating multiple analytical instruments into a unified workflow.menus.
In Abbott’s Nutritional Products segment, total pediatric nutrition sales, excluding the impact of foreign exchange, increaseddecreased 3.70.7 percent in 20242025, reflecting lower sales volumes in the U.S., partially offset by higher international sales and 14.8price percentincreases. inIn 2023,2024, excluding the impact of foreign exchange, total pediatric nutrition sales increased 3.7 percent, which includesincluded market share recovery in the U.S. infant formula business following the voluntary recall of certain products in 2022, as discussed below, and the continued favorable impact of price increase initiatives.increases. Excluding the impact of foreign exchange, total adult nutrition sales increased 2.7 percent in 2025 and 8.0 percent in 20242024, reflecting growth in international markets and 8.8favorable percent in 2023, led by the continued growthimpact of Abbott'sprice Ensure®increases. andThese Glucerna® products. U.S. Adult Nutritionals salesincreases were partially offset by lower U.S. sales, including the impact from the discontinuation of the ZonePerfect® product line.line in 2024.
In 2024,2025, operating earnings for the Nutritional Products segment increased 12.93.5 percent compared to 2023.2024. Operating margin profile for this segment increased from 9.5 percent in 2022 to 16.4 percent in 2023 and then increased to 17.9 percent in 2024.2024 and to 18.4 percent in 2025. The increase in 2025 primarily reflects the favorable effect of margin improvement initiatives and price increases, partially offset by continued inflation in manufacturing and input costs and the impact of foreign exchange. The increase in 2024 reflectsprimarily the favorable effects ofreflected higher sales, the favorable impact of price increasesincreases, and a continued focusexecution onof margin improvement initiatives. The increase in 2023 reflects the favorable effects of higher sales and a continued focus on margin improvement initiatives, partially offset by higher commodity and other costs.
In February 2022, Abbott’s U.S. Pediatric Nutrition business was impacted by a voluntary recall of certain infant powder formula products manufactured at its facility in Sturgis, Michigan, at which time the company temporarily stopped operations at that facility. Abbott took various actions to mitigate the impact of the recall on the supply of formula in the U.S. Abbott resumed operations later in 2022 and made significant progress through 2023 to increase production of infant formula in the U.S and recover market share. Beginning in the fourth quarter of 2023 and through 2024, Abbott has regained and maintained its market-leading position in the U.S., as measured on a volume basis.
TheIn Abbott's Established Pharmaceutical Products segmentsegment, focuses on the sale of its products in emerging markets. Excludingexcluding the impact of foreign exchange, Established Pharmaceutical sales increased 7.4 percent in 2025 and 9.2 percent in 20242024. andSales 10.9 percentgrowth in 2023.both Theperiods saleswas increasebroad-based inacross 2024countries and was led by higher revenue in several countries in Latin America, Southeast Asia and the Middle East and across severalmultiple therapeutic areas, including respiratory,cardiometabolic, gastroenterology, cardiometabolic and central nervous system/pain management. TheIn sales2024, increasegrowth in 2023this reflectssegment also reflected higher salesrespiratory inproduct several geographies including India, Vietnam, and Brazil.sales. In 2024,2025, operating earnings for the Established Pharmaceutical Products segment increased 2.24.7 percent. Operating margin profile increaseddecreased from 21.423.8 percent in 20222023 to 23.723.3 percent in 20242025, primarilyreflecting dueincreased tobusiness the impact of margin improvement initiativescosts and higherunfavorable sales,foreign exchange, partially offset by inflationhigher onvolumes variousand productfavorable inputs.price adjustment initiatives.
With respect to Abbott’s financial position, atas of December 31, 20242025, and 2023,December 31, 2024, Abbott’s cash and cash equivalents and short-term investments totaltotaled approximately $8.0$8.9 billion and $7.3$8.0 billion, respectively. Abbott’s long-term debt totalstotaled $14.1$12.9 billion and $14.7$14.1 billion at December 31, 20242025, and 2023,2024, respectively.
On September 22, 2023, Abbott completed the acquisition of Bigfoot Biomedical, Inc. (Bigfoot), which furthers Abbott's efforts to develop connected solutions for making diabetes management more personal and precise. On April 27, 2023, Abbott completed the acquisition of Cardiovascular Systems, Inc. (CSI). CSI's atherectomy system, which is used in treating peripheral and coronary artery disease, adds complementary technologies to Abbott's portfolio of vascular device offerings.
In 2025,2026, Abbott will focus on continuingcontinue to invest in product development areas that provide the opportunity for strong sustainable growth over the next several years. In itsthe diagnostics business,businesses, Abbott'sAbbott will focus will includeon driving sales growth from its Alinity suite of diagnosticsdiagnostic instrumentsinstruments, alongincluding withexpanded menu offerings and GLP track integrationintegration, andas well as its portfolio of rapid diagnostic testing systems.systems, and growing digital health solutions. In the medical devices business,businesses, Abbott will focus on growing recently launched new products and expanding its market position across theits various businesses. In itsthe nutritionalnutrition business,businesses, Abbott will continuefocus on introducing new products to focusadapt onto evolving consumer preferences and driving growth globally and further enhancing its portfolio with the introduction of science-based products and line extensions.globally. In the established pharmaceuticals business,businesses, Abbott will continue to focus on growing its business with the depth and breadth of its portfolio in emerging markets.markets, including expanding its biosimilars portfolio.
Sales Rebates — In 2024,2025, 4844 percent of Abbott’s consolidated gross revenues were subject to various forms of rebates and allowances that Abbott recorded as reductions of revenues at the time of sale. Most of these rebates and allowances in 20242025 are in the Nutritional Products and Diabetes Care businesses. Abbott provides rebates to state agencies that administer the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC),agencies, wholesalers, group purchasing organizations, and other government agencies and private entities. Rebate amounts are usually based upon the volume of purchases using contractual or statutory prices for a product. Factors used in the rebate calculations include the identification of which products have been sold subject to a rebate, which customer or government agency price terms apply, and the estimated lag time between sale and payment of a rebate. Using historical trends, adjusted for current changes, Abbott estimates the amount of the rebate that will be paid, and records the liability as a reduction of gross sales when Abbott records its sale of the product. Settlement of the rebate generally occurs from one to six months after sale. Abbott regularly analyzes the historical rebate trends and makes adjustments to reserves for changes in trends and terms of rebate programs. Rebates and chargebacks charged against gross sales in 2025, 2024, 2023, and 20222023 amounted to $4.8 billion in 2025, $4.4 billion in 20242024, and $3.9 billion in 2023 and 2022,2023, or 21.1 percent, 18.6 percent, 17.4 percent, and 17.617.4 percent of gross sales, respectively, based on gross sales of approximately $23.5$22.5 billion, $22.7$23.5 billion, and $22.4$22.7 billion, respectively, subject to rebate. A one-percentage point increase in the percentage of rebates to related gross sales would decrease net sales by approximately $235$225 million in 2024.2025. Abbott considers a one-percentage point increase to be a reasonably likely increase in the percentage of rebates related to related gross sales. Other allowances charged against gross sales were approximately$316 million, $319 million, $263 million, and $280$263 million for cash discounts in 2025, 2024, 2023, and 2022,2023, respectively, and $211$236 million, $169$211 million, and $379$169 million for returns in 2025, 2024, 2023, and 2022,2023, respectively. Cash discounts are known within 15 to 30 days of sale,sale and therefore can be reliably estimated. Returns can be reliably estimated because Abbott’s historical returns are low, and because sales returns terms and other sales terms have remained relatively unchanged for several periods.
Management analyzes the adequacy of ending rebate accrual balances each quarter. In the domestic nutritional business, management uses both internal and external data available to estimate the accruals. In the WIC business, estimates are required for the amount of WIC sales within each state where Abbott holds the WIC contract. The state where the sale is made, which is the determining factor for the applicable rebated price, is reliably determinable. Rebated prices are based on contractually obligated agreements generally lasting a period of two to four years. Except for a change in contract price or a transition period before or after a change in the supplier for the WIC business in a state, accruals are based on historical redemption rates and data from the U.S. Department of Agriculture (USDA) and the states submitting rebate claims. The USDA, which administers the WIC program, has been making its data available for many years. Management also estimates the states' processing lag time based on sales and claims data. Management has access to several large customers' inventory management data, which allows management to make reliable estimates of inventory in the retail distribution channel. At December 31, 2024, Abbott had WIC business in 42 states.
Management analyzes the adequacy of ending rebate accrual balances each quarter using both internal and external data available to estimate the accruals. Historically, adjustments to prior years’ rebate accruals have not been material to net earnings. Abbott employs various techniques to verify the accuracy of claims submitted to it,claims, and where possible, works with the organizations submitting claims to gain insight into changes that might affect the rebate amounts. For government agency programs, the calculation of a rebate involves interpretations of relevant regulations, which are subject to challenge or change in interpretation.
Pension and Post-Employment Benefits — Abbott offers pension benefits and post-employment health carehealthcare to many of its employees. Abbott engages outside actuaries to assist in the determination of the obligations and costs under these programs. Abbott must develop long-term assumptions, the most significant of which are the health carehealthcare cost trend rates, discount ratesrates, and the expected return on plan assets. The discount rates used to measure liabilities were determined based on high-quality fixed income securities that match the duration of the expected retiree benefits. The health carehealthcare cost trend rates represent Abbott’s expected annual rates of change in the cost of health carehealthcare benefits and are a forward projection of health carehealthcare costs as of the measurement date. A difference between the assumed rates and the actual rates, which will not be known for years, can be significant in relation to the obligations and the annual cost recorded for these programs. The net actuarial gains for Abbott's defined benefit plans in 2025 reflect the impact of actual asset returns during the year in excess of expected returns and the impact of higher discount rates on the measurement of plan liabilities. The net actuarial losses for Abbott's medical and dental plans primarily reflect an increase in claims. At December 31, 2025, pretax net actuarial gains (losses) and prior service costs and credits recognized in Accumulated other comprehensive income (loss) were net gains of $152 million for Abbott’s defined benefit plans and net losses of $189 million for Abbott’s medical and dental plans. Actuarial losses and gains are amortized over the remaining service attribution periods of the employees under the corridor method, in accordance with the rules for accounting for post-employment benefits. Differences between the expected long-term return on plan assets and the actual annual return are amortized over a five-year period.
net actuarial gains for these plans in 2024 reflect the impact of actual asset returns during the year in excess of expected returns and the impact of higher discount rates on the measurement of plan liabilities. At December 31, 2024, pretax net actuarial losses and prior service costs and (credits) recognized in Accumulated other comprehensive income (loss) were net losses of $777 million for Abbott’s defined benefit plans and net losses of $21 million for Abbott’s medical and dental plans. Actuarial losses and gains are amortized over the remaining service attribution periods of the employees under the corridor method, in accordance with the rules for accounting for post-employment benefits. Differences between the expected long-term return on plan assets and the actual annual return are amortized over a five-year period.
Valuation of Intangible Assets — Abbott has acquired and continues to acquire significant intangible assets that Abbott records at fair value at the acquisition date. Transactions involving the purchase or sale of intangible assets occur with some frequency between companies in the health carehealthcare field and valuations are usually based on a discounted cash flow analysis. The discounted cash flow model requires assumptions about the timing and amount of future net cash flows, risk, cost of capital, terminal valuesvalues, and market participants. Each of these factors can significantly affect the value of the intangible asset. Abbott engages independent valuation experts who review Abbott’s critical assumptions and calculations for acquisitions of significant intangibles.intangible assets. Abbott reviews definite-lived intangible assets for impairment each quarter. An undiscounted net cash flows approach is used to test for impairment. If the undiscounted cash flows of an intangible asset are less than the carrying value of an intangible asset, the intangible asset is written down to its fair value, which is usually the discounted cash flow amount. Where cash flows cannot be identified for an individual asset, the review is applied at the lowest group level for which cash flows are identifiable. Goodwill and indefinite-lived intangible assets, which relate to in-process research and development (IPR&D) acquired in a business combination,combination or consolidated variable interest entities, are reviewed for impairment annually or when an event that could result in an impairment occurs. At December 31, 2024,2025, goodwill amounted to $23.1$24.0 billion and net intangiblesintangible assets amounted to $6.6$5.5 billion. Amortization expense for intangible assets amounted to $1.7 billion in 2025, $1.9 billion in 20242024, and $2.0 billion per year in 2023 and 2022.2023. There was no reduction of goodwill relating to impairments in 2025, 2024, 2023, and 2022.2023.
Litigation — Abbott accounts for litigation losses in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) No. 450, “Contingencies.” Under ASC No. 450, loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount is recorded. These estimates are often initially developed substantially earlier than the ultimate loss is known, and the estimates are refined each accounting period as additional information becomes known. Accordingly, Abbott is often initially unable to develop a best estimate of loss, and therefore the minimum amount, which could be zero, is recorded. As information becomes known, either the minimum loss amount is increased, resulting in additional loss provisions, or a best estimate can be made, also resulting in additional loss provisions. Occasionally, a best estimate amount is changed to a lower amount when events result in an expectation of a more favorable outcome than previously expected. Abbott estimates the range of possible loss to be from approximately $25$170 million to $35$180 million for its legal proceedings and environmental exposures. Accruals of approximately $30 million have beenThe recorded accruals balance at December 31, 20242025, for these proceedings and exposures.exposures were approximately $175 million and included $165 million for legal reserves related to a negotiated settlement. These accruals represent management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.”
The increase in total net sales in 2024,2025, excluding the impact of foreign exchange, primarily reflects higher sales in the Medical Devices,Devices and Established Pharmaceutical Products andsegments. Nutritional Products segments,segment partiallysales offsetfor the year remained relatively unchanged, reflecting price increases and lower volumes. Diagnostic Products segment sales continued to be impacted by athe decreasedecline in demandCOVID-19 fortesting-related Abbott’ssales rapidand diagnosticchallenging testsmarket toconditions detectin COVID-19.China. Abbott’s COVID-19 testing-related sales totaled $297 million in 2025, $747 million in 2024,2024 and $1.6 billion in 2023 and $8.4 billion in 2022. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 7.0 percent in 2024. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 9.6 percent.2023. Abbott’s net sales in 20242025 were unfavorablynot significantly impacted by changes in foreign exchange rates as the relatively stronger U.S. dollar decreasedat the beginning of the year weakened later in the year, resulting in a 0.2 percent favorable impact on total international sales by 4.2 percent and total sales by 2.6 percent.sales.
The decreaseincrease in total net sales in 20232024, excluding the impact of foreign exchange, primarily reflects higher sales in the declineMedical Devices, Established Pharmaceutical Products, and Nutritional Products segments, partially offset by a decrease in demand for Abbott’s rapid diagnostic tests to detect COVID-19, partially offset by higher sales in the Medical Devices, Established Pharmaceutical Products and Nutritional Products segments. Excluding the impact of COVID-19 testing-related sales, Abbott’s total net sales increased 9.2 percent in 2023. Excluding the impacts of COVID-19 testing-related sales and foreign exchange, Abbott’s total net sales increased 11.7 percent.COVID-19. Abbott’s net sales in 20232024 were unfavorably impacted by changes in foreign exchange rates as the relatively stronger U.S. dollar decreased total international sales by 3.54.2 percent and total sales by 2.02.6 percent.
Established Pharmaceutical Products segment sales increased 7.4 percent in 2025 and 9.2 percent in 2024 and 10.9 percent in 2023,2024, excluding the unfavorable impact of foreign exchange. Excluding the effect of foreign exchange, sales in Key Emerging Markets for Established Pharmaceutical Products increased 9.5 percent in 20242025 and 10.3 percent in 2023,2024, led by higher revenue in several countries and across severalmultiple therapeutic areas, including respiratory,cardiometabolic, gastroenterology, cardiometabolic and central nervous system/pain management. In 2024, growth in this segment also reflected higher respiratory product sales. Other Emerging Markets, excluding the effect of foreign exchange, increased by 1.4 percent in 2025 and 8.4 percent in 20242024. and 12.8 percentGrowth in 2023.2025 was unfavorably impacted by the absence of deferred gain amortization related to a prior transaction. The deferred gain was fully amortized in 2024.
Excluding the impact of foreign exchange, total Nutritional Products segment sales increased 1.1 percent in 2025 and 5.9 percent in 20242024. andU.S. 11.6Pediatric Nutritionals sales decreased 2.3 percent in 2023.2025, primarily reflecting lower infant formula sales. In 2024, U.S. Pediatric NutritionalNutritionals sales,sales theincreased 11.7 percentpercent, increasedriven in 2024 reflectsby infant formula market share gains and the continued favorable impact of price increases, partially offset by a decrease in PediaSure® and Pedialyte® product sales. In 2023, U.S. Pediatric Nutritional sales increased 26.6 percent as a result of market share recovery related to the voluntary recall of certain infant formula products in the first quarter of 2022, partially offset by a decrease in 2023 Pedialyte sales.
Excluding the effect of foreign exchange, International Pediatric Nutritionals sales increased 1.3 percent in 2025, driven primarily by higher PediaSure product sales. Excluding the effect of foreign exchange, the 4.3 percent decrease in International Pediatric NutritionalNutritionals sales in 2024 reflects a decrease inlower sales in the Asia Pacific and Latin America regions, partially offset by increased sales in Canada and the Europe/Middle East regions. Excluding the effect of foreign exchange, the 5.2 percent increase in International Pediatric Nutritional sales in 2023 reflects higher sales in Latin America and Canada, partially offset by the impact of exiting the pediatric nutrition business in China.
In 2025, U.S. Adult Nutritionals sales decreased 2.2 percent, reflecting lower Ensure® product sales and the discontinuation of the ZonePerfect product line in March 2024, partially offset by growth in Glucerna® product sales. International Adult Nutritionals sales, excluding the effect of foreign exchange, increased 5.1 percent due to growth of Ensure and Glucerna product sales. In 2024, U.S. and International Adult Nutritionals sales increased 3.2 percent and 10.5 percent, respectively, due to higher Ensure and Glucerna product sales. In 2024, U.S. Adult Nutritionals sales were partially offset by the discontinuation of the ZonePerfect product line.
In 2024 and 2023, U.S. and International Adult Nutritional sales increased due to higher Ensure® and Glucerna® product sales. In 2024 and 2023, U.S. Adult Nutritional sales increased 3.2 percent and 5.8 percent, respectively, and International Adult Nutritional sales, excluding the effect of foreign exchange, increased 10.5 percent and 10.4 percent, respectively. In 2024, U.S. Adult Nutritional sales were partially offset by the discontinuation of the ZonePerfect® product line.
Excluding the effect of foreign exchange, Diagnostic Products segment sales decreased 4.5 percent in 2025 and 3.9 percent in 2024 anddue 38.2to percentthe continued decline in 2023, driven by lower demand for COVID-19 tests.testing-related sales and challenging market conditions in China. Rapid Diagnostics sales decreased 18.0 percent in 2025 and 17.8 percent in 2024 and 62.9 percent in 2023,2024, excluding the effect of foreign exchange. The 2025 and 2024 sales decrease in Rapid Diagnostics reflects lower demand for COVID-19 tests. Rapid Diagnostics COVID-19 testing-related salessales, which were $285 million in 2025 and $725 million in 2024, $1.5 billion in 2023 and $7.9 billion in 2022.2024.
In Core Laboratory, sales increased 2.1 percent in 2025 and 5.6 percent in 2024, driven by continued growth of Alinity product sales outside of China. Lower sales in China were due to the impact of challenging market conditions, including the impact of volume-based procurement programs. In 2024, sales increased due to higher volume of routine diagnostic testing performed in hospitals and other laboratories along with price increases.
Rapid Diagnostics sales, excluding COVID-19 testing-related sales, increased 4.8 percent in 2024 and remained unchanged in 2023. In 2024, Rapid Diagnostics sales increased 6.0 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales, due to strong demand for respiratory disease tests used to diagnose influenza, strep throat and RSV. In 2023, Rapid Diagnostics sales increased 1.3 percent, excluding the impact of foreign exchange and COVID-19 testing-related sales. Growth in various Rapid Diagnostics products in 2023 was partially offset by the unfavorable effects of an early 2022 flu season and a later start of the 2023 flu season.
In Core Laboratory, sales increased 5.6 percent in 2024 and 8.4 percent in 2023, excluding the effect of foreign exchange. The increase in 2024 was due to the continued deployment of Abbott's Alinity® testing platform and higher volume of routine diagnostic testing performed in hospitals and other laboratories along with price increases, partially offset by lower sales in China. The increase in 2023 was due to higher year-over-year volume of routine diagnostic testing performed in hospitals and other laboratories, partially offset by lower test sales for the detection of COVID-19 IgG and IgM antibodies. Core Laboratory COVID-19 testing-related sales on Abbott’s ARCHITECT® and Alinity i platforms were $10 million in 2024, $20 million in 2023, and $62 million in 2022. Excluding COVID-19 testing-related sales, Core Laboratory sales increased 1.7 percent in 2024 and 6.5 percent in 2023. Excluding the impact of foreign exchange and COVID-19 testing-related sales, Core Laboratory sales increased 5.8 percent in 2024 and 9.4 percent in 2023.
Excluding the effect of foreign exchange, total Medical Devices segment sales grew 11.9 percent in 2025 and 13.7 percent in 2024 and 15.1 percent in 2023,2024, led by double-digit growth in 2024 in Diabetes Care, Heart Failure, Electrophysiology, and Structural Heart, Electrophysiology and Heartin Failure.2025, Rhythm Management. Higher Diabetes Care sales were driven by continued growth in Abbott’s CGM systems,systems in the U.S. and internationally. CGM sales totaled $6.4$7.6 billion in 2024,2025, which reflectedrepresenting a 21.817.4 percent increase, excluding the effect of foreign exchange, overcompared 2023to when$6.4 CGMbillion salesin totaled $5.3 billion.2024.
In Heart Failure, sales grew 12.7 percent in 2025 and 10.3 percent in 2024, excluding the effect of foreign exchange. The increase primarily reflects growth across the portfolio of ventricular assist devices and related accessories, as well as growth in CardioMEMs®, an implantable sensor used for the early detection of heart failure.
In Structural Heart, sales increased 11.5 percent in 2025 and 17.0 percent in 2024, excluding the effect of foreign exchange, primarily driven by growth in TriClip®, Navitor®, and Mitraclip® product sales.
Procedure volumes continued to increase across the cardiovascular and neuromodulation businesses in 2024. In Structural Heart, excluding the effect of foreign exchange, the 17.0 percent and 14.3 percent sales increases in 2024 and 2023, respectively, reflect continued growth of the Navitor® and TriClip® products, as well as growth in surgical valves, structural interventions and other transcatheter repair sales.
Electrophysiology sales, excluding the effect of foreign exchange, increased 11.6 percent in 2025 and 14.4 percent in 2024 and 15.9 percent in 2023 which2024, primarily reflectsdue to higher procedure volumes and increased demand for cathetersAbbott's portfolio of products designed to diagnose and treat cardiac mapping products across all regions.arrhythmias.
In Rhythm Management, sales increased 10.2 percent in 2025 and 6.9 percent in 2024, excluding the impact of foreign exchange, primarily driven by growth in Aveir® leadless pacemakers. In 2025, sales growth was partially offset by lower traditional pacemaker and implantable cardioverter defibrillator sales.
In Heart Failure, the 10.3 percent increase in sales in 2024, excluding the effect of foreign exchange, primarily reflects growth in heart assist devices, which offer treatment for chronic and temporary conditions. In 2023, Heart Failure sales increased 12.0 percent, excluding the effect of foreign exchange, as procedure volumes and staffing challenges, which occurred during the COVID-19 pandemic, began to recover.
In Rhythm Management, the 6.9 percent increase in 2024, excluding the impact of foreign exchange, was primarily due to growth in Aveir® leadless pacemaker and ASSERT-IQ® implantable cardiac monitor sales. In 2023, the 7.5 percent increase, excluding the impact of foreign exchange, was due to growth across the portfolio of low and high voltage pacemakers, led by the Aveir leadless pacemaker that launched in 2022.
In Vascular, the 6.7 percent increase in 2024, excluding the impact of foreign exchange, was primarily due to higher vessel closure sales. In 2023, the 9.3 percent increase, excluding the impact of foreign exchange, was primarily due to the acquisition of CSI in April 2023.
Gross profit margins were 52.6 percent of net sales in 2025, 50.9 percent of net sales in 2024, and 50.3 percent of net sales in 2023. The increase in 2025 reflects the favorable impact of margin improvement initiatives, partially offset by higher costs, including tariffs, and the unfavorable impact of foreign exchange. The increase in 2024 reflects the favorable impact of margin improvement initiatives, partially offset by the unfavorable effect of foreign exchange.
Gross profit margins were 50.9 percent of net sales in 2024, 50.3 percent of net sales in 2023, and 51.5 percent of net sales in 2022. The increase in 2024 reflects the favorable impacts of margin improvement initiatives, partially offset by the unfavorable effect of foreign exchange. The decrease in 2023 reflects the unfavorable effects of lower sales of COVID-19 tests, foreign exchange, and higher costs for various manufacturing inputs, partially offset by the nonrecurrence of the negative impact in 2022 of the voluntary product recall in the nutritional business and the impact in 2023 of margin improvement initiatives.
Research and development (R&D) expenses were $2.9 billion in 2025, $2.8 billion in 2024, and $2.7 billion in 2023, and $2.9 billion in 2022.2023. The increaseincreases in R&D expenseexpenses in 2025 and 2024 waswere primarily driven by higher spending on various projects,projects. In 2024, higher project spending was partially offset by lower 2024 charges for the impairment of in-process R&D (IPR&D) assets acquired in previous business combinations. In 2023, the decrease in R&D expense was primarily driven by lower restructuring charges, lower impairment charges related to IPR&D acquired in previous business combinations, and other cost reductions.
Selling, general and administrative (SG&A) expenses were $12.3 billion in 2025, $11.7 billion in 2024, and $10.9 billion in 20232023. In 2025 and $11.22024, billionthe increase in 2022.SG&A Inexpenses 2024,was due to higher selling and marketing spending to drive growth across various businessesbusinesses. In 2024, SG&A spending was partially offset by the favorable impact of foreign exchange. The 2023 decrease in SG&A expenses reflects the favorable impact of foreign exchange and lower restructuring charges in 2023, as well as the non-recurrence of 2022 expenses related to the voluntary product recall in the Nutritional Products segment.
In 2024,2025, Abbott management approved plans to streamline certain operations in order to reduce costs and improve efficiencies in its Diagnostic,Diagnostics, Nutritionals, Established Pharmaceuticals, and Medical Devices,Devices Established Pharmaceutical and Nutritional businesses, including the discontinuation of its ZonePerfect® product line.businesses. Abbott recorded employee related severance and other charges of $129$274 million, of which $62$109 million was recorded in Cost of products sold, $21$53 million was recorded in ResearchR&D, and development, and $46$112 million was recorded in Selling, general and administrativeSG&A expenses. Payments related to these actions totaled $32$94 million in 20242025 and the remaining liabilityliabilities totaled $97$180 million at December 31, 2024.2025. In addition, in 2025, Abbott recognized inventory related charges of $34 million and fixed asset impairment charges of $12$28 million related to these restructuring plans.
In 2023, Abbott management approved plans to restructure various operations in order to reduce costs in its Medical Devices, Diagnostic, and Established Pharmaceutical businesses. Abbott recorded employee related severance and other charges of $144 million of which approximately $56 million was recorded in Cost of products sold, $22 million was recorded in Research and development and $66 million was recorded in Selling, general and administrative expenses. In addition, Abbott recognized fixed asset impairment and inventory related charges of $31 million related to these restructuring plans.
In 2022,2024, Abbott management approved plans to streamline certain operations in order to reduce costs and improve efficiencies in its Diagnostics, Medical Devices, Nutritional,Established Diagnostic,Pharmaceuticals, and EstablishedNutritionals Pharmaceuticalbusinesses, businesses.including the discontinuation of its ZonePerfect product line. Abbott recorded employee related severance and other charges of $234$129 millionmillion, of which $59$62 million was recorded in Cost of products sold, $36$21 million was recorded in ResearchR&D, and development and $139$46 million was recorded in Selling, general and administrativeSG&A expenses. In addition, Abbott recognized inventory relatedinventory-related charges of $23$34 million and fixed asset impairment charges of $4$12 million related to these restructuring plans.
In 2023, Abbott management approved plans to restructure various operations in order to reduce costs in its Medical Devices, Diagnostics, and Established Pharmaceuticals businesses. Abbott recorded employee related severance and other charges of $144 million, of which $56 million was recorded in Cost of products sold, $22 million was recorded in R&D, and $66 million was recorded in SG&A expenses. In addition, Abbott recognized fixed asset impairment and inventory-related charges of $31 million related to these restructuring plans.
Interest expense, net decreased from $252 million in 2023 to $215 million in 2024.2024 to $185 million in 2025. In 2025, interest expense decreased primarily due to the repayment of approximately $2.0 billion of long-term debt in November 2024, March 2025, and September 2025, as well as the maturity of an interest rate swap associated with the March 2025 debt. Interest expense decreased in 2024 due to the repayment of approximately $2.25 billion of long-term debt in September and November of 2023, partially offset by a reduction in interest income due to lower average cash and short-term investment balances versus the prior year. Interest expense, net decreased $123 million in 2023 due to the favorable impact of higher interest rates on interest income, partially offset by the negative impact of interest rate hedge contracts related to certain fixed-rate debt.
What changed in the latest 10-Q
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Management's Discussion & Analysis (MD&A)
Largest changes
“Other (income) expense, net was income of $134 million in the second quarter of 2026, compared to income of $137 million in the second quarter of 2025, and income of $293 million in the first six months of 2026, compared to income of $264 million in the first six months of 2025. The lower income in the second quarter of 2026 primarily reflected higher investment impairments, partially offset by higher income from the non-service cost components of net pension and post-retirement medical benefit costs. …”see in full comparison
In the firstsee in full comparisonthreesix months of 2026, Diagnostic Products sales increased2.522.4 percent, excluding the impact of foreign exchange.Growth in Core Laboratory and theThe inclusion of ExactSciences'Sciencesresultsand growth in Core Laboratory were partially offset by a decline in Rapid and Molecular Diagnostics.Cancer Diagnostics results include Exact Sciences' net sales of $96 million fromFrom the acquisition date of March 23,2026.2026, Diagnostic Products results included approximately $1.0 billion of sales from Exact Sciences, which are reported as Cancer Diagnostics.
If the acquisition had occurred as of the beginning of 2025, unaudited pro forma consolidated net salessee in full comparisonfor the three months ended March 31, 2025,would have been approximately$11.1$11.9billion.billion and $23.0 billion for the three and six months ended June 30, 2025, respectively. Unaudited pro forma earnings before taxes for the three months endedMarchJune31,30, 2025, would have been approximately$0.7$1.6 billion, reflecting interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.3 billion. Unaudited pro forma earnings before taxes for the six months ended June 30, 2025, would have been approximately $2.3 billion, reflecting transaction-related costs of approximately $0.5 billion, interest expense of approximately$0.2$0.5 billion, and amortization expense related to acquired intangible assets of approximately$0.2$0.5 billion. Unaudited pro forma consolidated net salesfor the three months ended March 31, 2026,would have been approximately$11.9$12.6billion.billion and $24.5 billion for the three and six months ended June 30, 2026, respectively. Unaudited pro forma earnings before taxesfor the three months ended March 31, 2026,would have been approximately$1.4$1.6billion,billionreflectingand $2.9 billion for the three and six months ended June 30, 2026, respectively, after giving effect to interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.2 billion, and excluding transaction-related expenses of $0.5 billion that were directly attributable to the acquisition. The unaudited pro forma information is not necessarily indicative of the consolidated results of operations that would have been realized had the Exact Sciences acquisition been completed as of the beginning of 2025, nor is it intended to be indicative of future results of operations of the combined entity.
“The 8.2 percent increase in total net sales during the first six months of 2026, excluding the impact of foreign exchange, reflected higher sales in Diagnostic Products, Medical Devices, and Established Pharmaceutical Products, partially offset by lower sales in Nutritional Products. Diagnostic Products sales increased as a result of the acquisition of Exact Sciences, while sales in Medical Devices and Established Pharmaceutical Products were driven by higher sales of existing products. …”see in full comparison
Thesee in full comparison3.812.2 percent increase in total net sales during thefirstsecond quarter of 2026, excluding the impact of foreign exchange,primarilywasreflecteddrivenhigher product sales in the Medical Devices and Established Pharmaceutical Products segments. Nutritional Products sales primarily declined due to lower sales volumes compared to the prior year. Diagnostic Products sales reflectby the acquisition of Exact Sciences Corporation (Exact Sciences),whichand high single-digit growth in Medical Devices and Established Pharmaceutical Products, partially offset by lower sales in Nutritional Products. The Exact Sciences acquisition was completed on March 23, 2026,withandsalesitsfromresultsthe acquisitionare reportedinwithin the Diagnostic Products segment as Cancer Diagnostics from the date of acquisition. On a reported basis, net sales were favorably impacted by foreign exchange as the relatively weaker U.S. dollar increased total international sales by6.71.3 percent and total sales by4.00.8 percent.
Selling, general, and administrative (SG&A) expenses increasedsee in full comparison$679$934 million to$3.7$4.0 billion in the second quarter, or 30.3 percent, and increased $1.6 billion to $7.8 billion, or22.226.2 percent, in the firstquartersix months of20262026, primarily due to theacquisitionaddition of the Exact Sciences business and related integrationofexpenses,ExactasSciences,wellincludingasstock-basedhighercompensationlegalexpense resulting from the cash out of equity awards related to the acquisition. Higher SG&A expenses also reflectreserves, increased selling and marketingspendingspend to drive growth across various businesses,as well asand the unfavorable impact of foreign exchange.
Full comparison: every changed paragraph (30)
The following tables detail sales by reportable segment for the three and six months ended MarchJune 31.30. Percent changes are versus the prior year and are based on unrounded numbers.
The 3.812.2 percent increase in total net sales during the firstsecond quarter of 2026, excluding the impact of foreign exchange, primarilywas reflecteddriven higher product sales in the Medical Devices and Established Pharmaceutical Products segments. Nutritional Products sales primarily declined due to lower sales volumes compared to the prior year. Diagnostic Products sales reflectby the acquisition of Exact Sciences Corporation (Exact Sciences), whichand high single-digit growth in Medical Devices and Established Pharmaceutical Products, partially offset by lower sales in Nutritional Products. The Exact Sciences acquisition was completed on March 23, 2026, withand salesits fromresults the acquisitionare reported inwithin the Diagnostic Products segment as Cancer Diagnostics from the date of acquisition. On a reported basis, net sales were favorably impacted by foreign exchange as the relatively weaker U.S. dollar increased total international sales by 6.71.3 percent and total sales by 4.00.8 percent.
The 8.2 percent increase in total net sales during the first six months of 2026, excluding the impact of foreign exchange, reflected higher sales in Diagnostic Products, Medical Devices, and Established Pharmaceutical Products, partially offset by lower sales in Nutritional Products. Diagnostic Products sales increased as a result of the acquisition of Exact Sciences, while sales in Medical Devices and Established Pharmaceutical Products were driven by higher sales of existing products. Abbott’s net sales were favorably impacted by changes in foreign exchange rates in the first six months as the relatively weaker U.S. dollar increased total international sales by 3.8 percent and total sales by 2.3 percent.
The table below provides detail by sales category for the threesix months ended MarchJune 31.30. Percent changes are versus the prior year and are based on unrounded numbers.
In the first threesix months of 2026, total Established Pharmaceutical Products sales, excluding the impact of foreign exchange, increased 9.08.9 percent. Excluding the favorable effect of foreign exchange, sales in Key Emerging Markets for Established Pharmaceutical Products increased 9.410.1 percent in the first threesix months of 2026, led by double-digit growth in several countries across the Latin America and Asia Pacific regions. Other Emerging Markets, excluding the effect of foreign exchange, increased 7.94.9 percent in the first threesix months of 2026.
Excluding the impact of foreign exchange, total Nutritional Products sales in the first threesix months of 2026 decreased 7.75.6 percent.percent, The decline primarily reflectedreflecting lower sales volumes across both pediatric andthe adult nutritional product portfolios in theand U.S. andpediatric internationally.product portfolios.
In the first threesix months of 2026, Diagnostic Products sales increased 2.522.4 percent, excluding the impact of foreign exchange. Growth in Core Laboratory and theThe inclusion of Exact Sciences'Sciences resultsand growth in Core Laboratory were partially offset by a decline in Rapid and Molecular Diagnostics. Cancer Diagnostics results include Exact Sciences' net sales of $96 million fromFrom the acquisition date of March 23, 2026.2026, Diagnostic Products results included approximately $1.0 billion of sales from Exact Sciences, which are reported as Cancer Diagnostics.
In Core Laboratory, sales increased 3.33.2 percent in the first threesix months of 2026, excluding the impact of foreign exchange, reflecting continued growth of diagnostic test sales on the Alinity® platform across the U.S., Europe,U.S. and Latin America, partially offset by lower sales in China due to continued challenging market conditions. In Rapid and Molecular Diagnostics, sales decreased 9.68.8 percent in the first threesix months of 2026, excluding the impact of foreign exchange, primarily reflecting lower demand for respiratory virus tests due to a weaker respiratory virus season compared to the prior year.
Excluding the impact of foreign exchange, total Medical Devices sales increased 8.18.0 percent in the first threesix months of 2026, led by double‑digit growth in Electrophysiology, Rhythm Management, Electrophysiology, and Heart Failure. Diabetes Care sales increased 7.48.2 percent, excluding the impact of foreign exchange, driven by continued growth in Abbott’s continuous glucose monitoring (CGM) systems in the U.S. and internationally. CGM systems sales totaled $2.0$4.1 billion and $1.7$3.6 billion in the first threesix months of 2026 and 2025, respectively, and increased 7.68.6 percent excluding the impact of foreign exchange.
In Rhythm Management, sales increased 12.510.9 percent in the first threesix months of 2026, excluding the impact of foreign exchange, primarily due to growth in Aveir® leadless pacemakers. In Electrophysiology, sales increased 12.513.0 percent, excluding the impact of foreign exchange, primarily reflecting higherincreased proceduresales volumesof ablation catheters and increasedrelated demandportfolio for ablation catheters.products. In Heart Failure, sales increased 12.210.4 percent, excluding the impact of foreign exchange, primarily reflecting growth across the portfolio of ventricular assist devices and related accessories. In Structural Heart,Vascular, sales increased 3.65.0 percent, excluding the impact of foreign exchange, primarily reflecting growth in Navitor®endovascular and MitraClip® products, partially offset by the completion of payments related to a multi‑year agreement with a competitor.products.
In May 2026, Abbott announced it secured CE Mark for Libre® Duo, its dual glucose-ketone biowearable sensor.
The gross profit margin percentage was 52.452.5 percent for the second quarter of 2026 and the first quartersix months of 2026, compared to 52.852.7 percent for the second quarter and the first quartersix months of 2025. The decrease in the second quarter and the first threesix months of 2026 primarily reflects higher intangible amortization expense related to the Exact Sciences acquisition and the unfavorable impact of higher costs and foreign exchange,costs, partially offset by favorable business mix, including the impactaddition of Exact Sciences, continued margin improvement initiatives.initiatives, and foreign exchange.
Research and development (R&D) expenses increased $51$167 million to $767$892 million, or 7.222.9 percent, in the second quarter of 2026 compared to the prior year, and increased $218 million to $1.7 billion, or 15.1 percent, in the first quartersix months of 2026 compared to the prior year. The increase in R&D expenses in the second quarter and the first threesix months of 2026 was primarily drivenreflects bythe higheraddition spendingof onthe Exact Sciences business, as well as continued investment in development programs across multiple businesses.
Selling, general, and administrative (SG&A) expenses increased $679$934 million to $3.7$4.0 billion in the second quarter, or 30.3 percent, and increased $1.6 billion to $7.8 billion, or 22.226.2 percent, in the first quartersix months of 20262026, primarily due to the acquisitionaddition of the Exact Sciences business and related integration ofexpenses, Exactas Sciences,well includingas stock-basedhigher compensationlegal expense resulting from the cash out of equity awards related to the acquisition. Higher SG&A expenses also reflectreserves, increased selling and marketing spendingspend to drive growth across various businesses, as well asand the unfavorable impact of foreign exchange.
On March 23, 2026, Abbott completed the acquisition of Exact Sciences for approximately $20.6 billion. The acquisition was funded primarily through the issuance of $20$20.0 billion of long-term debt in March 2026, with the remainder funded by cash on hand. Under the terms of the agreement, Abbott paid $105 per common share in cash. As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, nearly all of which $1.4 billion was repaid inas Marchof 2026.June The remaining debt is expected to be repaid in30, 2026. The acquisition of Exact Sciences ishas expected to establishestablished Abbott's position in the cancer diagnostics market and expands its portfolio to include products such as Cologuard®, Oncotype DX®, and Cancerguard®.
The goodwill is primarily attributable to future growth opportunities, assembled workforce, potential future technologies, and other intangible assets that do not qualify for separate recognition, as well as expected synergies from combining operations. The acquired net tangible assets consist primarily of property, plant,property and equipment, trade accounts receivable, trade accounts payable, other current liabilities, and other non-current liabilities.
If the acquisition had occurred as of the beginning of 2025, unaudited pro forma consolidated net sales for the three months ended March 31, 2025, would have been approximately $11.1$11.9 billion.billion and $23.0 billion for the three and six months ended June 30, 2025, respectively. Unaudited pro forma earnings before taxes for the three months ended MarchJune 31,30, 2025, would have been approximately $0.7$1.6 billion, reflecting interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.3 billion. Unaudited pro forma earnings before taxes for the six months ended June 30, 2025, would have been approximately $2.3 billion, reflecting transaction-related costs of approximately $0.5 billion, interest expense of approximately $0.2$0.5 billion, and amortization expense related to acquired intangible assets of approximately $0.2$0.5 billion. Unaudited pro forma consolidated net sales for the three months ended March 31, 2026, would have been approximately $11.9$12.6 billion.billion and $24.5 billion for the three and six months ended June 30, 2026, respectively. Unaudited pro forma earnings before taxes for the three months ended March 31, 2026, would have been approximately $1.4$1.6 billion,billion reflectingand $2.9 billion for the three and six months ended June 30, 2026, respectively, after giving effect to interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.2 billion, and excluding transaction-related expenses of $0.5 billion that were directly attributable to the acquisition. The unaudited pro forma information is not necessarily indicative of the consolidated results of operations that would have been realized had the Exact Sciences acquisition been completed as of the beginning of 2025, nor is it intended to be indicative of future results of operations of the combined entity.
In the first quartersix months of 2026, Abbott's condensed consolidated results include $96$1.0 millionbillion of net sales related to Exact Sciences. Earnings of Exact Sciences included in Abbott's condensed consolidated financial statements since the acquisition date are not material to Abbott's consolidated net earnings.
Other (income) expense, net was income of $134 million in the second quarter of 2026, compared to income of $137 million in the second quarter of 2025, and income of $293 million in the first six months of 2026, compared to income of $264 million in the first six months of 2025. The lower income in the second quarter of 2026 primarily reflected higher investment impairments, partially offset by higher income from the non-service cost components of net pension and post-retirement medical benefit costs. The higher income in the first six months of 2026 primarily reflected higher income associated with the non-service cost components of net pension and post-retirement medical benefit costs and unfavorable fair value adjustments of contingent consideration liabilities in the prior year that did not reoccur.
Other (income) expense, net increased from $127 million of income in the first quarter of 2025 to $159 million of income in the first quarter of 2026. The increase in the first quarter of 2026 reflects a prior year change in fair value of contingent consideration liabilities that did not repeat, higher income associated with the non-service cost components of net pension, and post-retirement medical benefits costs.
Interest expense, net increased by $19$249 million to $68$299 million in the second quarter of 2026 and increased by $268 million to $367 million in the first quartersix months of 20262026. In the second quarter and the first six months of 2026, interest expense increased primarily due to interest on debt incurred related to the acquisition of Exact Sciences, partially offset by the benefit of prior year debt repayments and interest income earned on bond proceeds andduring priorthe yearfirst debtquarter repayments.of 2026.
Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first threesix months of 2026 and 2025, taxes on earnings includeincluded $17$18 million and $73$84 million, respectively, in excess tax benefits associated with share-based compensation. In the first threesix months of 2026 and 2025, taxes on earnings includesincluded approximately $200$440 million and $300 million, respectively, of tax expense related to a deferred tax asset that was recognized as a significant non-cash tax benefit in a prior year. In the first threesix months of 2026,2026 and 2025, taxes on earnings also included approximately $50$60 million of net tax benefitexpense and $90 million of net tax benefit, respectively, primarily as the result of the resolution of various tax positions related to prior years.
In September 2023, Abbott received a Statutory Notice of Deficiency (SNOD) from the U.S. Internal Revenue Service (IRS) for the 2019 Federal tax year in the amount of $417 million. The primary adjustments proposed in the SNOD relate to the reallocation of income between Abbott’s U.S. entities and its foreign affiliates. Abbott believes that the income reallocation adjustments proposed in the SNOD are without merit, in part because certain adjustments contradict methods that were agreed to with the IRS in prior audit periods. The SNOD also contains other proposed adjustments that Abbott believes are erroneous and unsupported. Abbott filed a petition with the U.S. Tax Court contesting the SNOD in December 2023.
The decrease in cash and cash equivalents from $8.5 billion at December 31, 2025, to $6.8$5.1 billion at MarchJune 31,30, 2026, primarily reflects the use of cash to fund the cash portion of the acquisition of Exact Sciences and repay the repayment of $1.4$2.8 billion of debt assumed as part ofin the acquisition, as well as the payment of dividendsdividends, share repurchases, and capital expenditures in the first threesix months of 2026, partially offset by cash generated from operations.
Working capital was $7.1$6.7 billion at MarchJune 31,30, 2026, and $9.5 billion at December 31, 2025. The decrease in working capital in 2026 primarily reflects the reduction in cash to fund the cash portion of the Exact Sciences acquisition and the repayment of $1.4$2.8 billion of debt assumed as part of the acquisition, as well as an increase in theother currentaccrued portionliabilities, ofpartially long-termoffset debt.by increases in trade receivables and inventories.
In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first threesix months of 2026 totaled $1.3$3.8 billion, aan decreaseincrease of $102$339 million from the prior year. Cash flow from operating activities decreasedincreased during the period, primarily due to a favorable movement in trade receivables, lower pension contributions and lower cash taxes paid, partially offset by the cash outpayments related to the settlement of equity awards relatedassociated towith the acquisition of Exact Sciences,Sciences partially offset by a decrease in trade receivables.acquisition. In the first threesix months of 2026, Net cash from operating activities included the payment of cash taxes of $266$856 million. Net cash from operating activities in the first threesix months of 2025 included $235pension millioncontributions of pension$246 contributionsmillion and the paymentcash tax payments of cash taxes of $255$945 million.
At MarchJune 31,30, 2026, Abbott’s long-term debt rating was A+ by S&P Global Ratings and Aa3 by Moody’s Investors Service. Abbott expects to maintain an investment grade rating.
As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, nearly all of which $1.4has billion wasbeen repaid inas Marchof June 30, 2026. The remaining debt is expected to be repaid in 2026.
In October 2024, the boardfirst six months of directors2026, authorizedAbbott therepurchased repurchaseapproximately 11.6 million of up to $7 billion of Abbottits common shares,shares fromfor time$1.0 to time (the "2024 repurchase program").billion. As of MarchJune 31,30, 2026, $6.7$5.6 billion remains available for repurchase under the 2024share repurchase program.program authorized by the board of directors in October 2024.
In each of the first quartertwo quarters of 2026, Abbott declared a quarterly dividend of $0.63 per share on its common shares, which represents an increase of 6.8 percent over the $0.59 per share dividend declared in each of the first quartertwo quarters of 2025.
ABT insider buying and selling (Form 4)
Form 4 filings since 2026-04-11: 3 open-market purchases (about $1.3M) and 4 open-market sales (about $46.9M), across 22 filings with stock transactions. Awards, option exercises, tax withholding and gifts are listed but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-09-23 | Conroy Kevin T |
Shares withheld for tax | 52,507 | $103.99 | $5.5M |
| 2026-09-02 | Mccoy John A. Jr. |
Open-market sale | 27 | $109.54 | $3.0K |
| 2026-09-01 | Mccoy John A. Jr. |
Shares withheld for tax | 52 | $110.36 | $5.7K |
| 2026-09-01 | Boudreau Philip P |
Shares withheld for tax | 388 | $110.36 | $42.8K |
| 2026-08-25 | Ford Robert B |
Option exercise | 151,869 | $44.40 | $6.7M |
| 2026-08-25 | Ford Robert B |
Option exercise | 246,963 | $59.94 | $14.8M |
| 2026-08-25 | Ford Robert B |
Open-market sale | 218,535 | $115.57 | $25.3M |
| 2026-08-25 | Ford Robert B |
Open-market sale | 180,297 | $116.19 | $20.9M |
| 2026-08-12 | Morrone Louis H. |
Discretionary | 12 | $107.99 | $1.3K |
| 2026-08-11 | Morrone Louis H. |
Open-market sale | 5,850 | $109.83 | $642.5K |
| 2026-06-30 | Morrone Louis H. |
Shares withheld for tax | 269 | $92.71 | $24.9K |
| 2026-06-27 | Cushman Elizabeth C. |
Shares withheld for tax | 560 | $94.12 | $52.7K |
| 2026-05-07 | Stratton John G |
Open-market purchase | 2,000 | $86.82 | $173.6K |
| 2026-04-28 | Moreland Mary K |
Discretionary | 5,314 | $94.41 | $501.7K |
| 2026-04-27 | Starks Daniel J |
Open-market purchase | 10,000 | $92.65 | $926.5K |
| 2026-04-24 | Conroy Kevin T |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Stratton John G |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Starks Daniel J |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Roman Michael F |
Grant/award | 2,286 | — | — |
| 2026-04-24 | O'grady Michael |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Mckinstry Nancy |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Mcdew Darren W |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Kumbier Michelle |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Gonzalez Patricia Paola |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Blount Sally E. |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Babineaux-Fontenot Claire |
Grant/award | 2,286 | — | — |
| 2026-04-24 | Ahuja Nita |
Grant/award | 2,286 | — | — |
| 2026-04-23 | Boudreau Philip P |
Open-market purchase | 2,200 | $91.50 | $201.3K |
| 2026-04-23 | Boudreau Philip P |
Discretionary | 8,909 | $92.04 | $820.0K |
Well-known investors holding ABT (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 8,597,227 | $780.1M | 0.45% | Added 349% |
| Two Sigma Investments | 2026-06-30 | 8,126,315 | $737.4M | 0.55% | Added 27% |
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 4,193,058 | $380.5M | 0.13% | Added 167% |
| Millennium Management (Israel Englander) | 2026-06-30 | 3,599,994 | $326.7M | 0.22% | Added 172% |
| Point72 Asset Management (Steve Cohen) | 2026-06-30 | 1,551,929 | $140.8M | 0.22% | New position |
| D. E. Shaw & Co. | 2026-06-30 | 1,457,592 | $132.3M | 0.08% | Reduced 72% |
| Southeastern Asset Management (Longleaf) | 2026-06-30 | 840,747 | $76.3M | 3.98% | New position |
| PRIMECAP Management | 2026-06-30 | 761,900 | $69.1M | 0.04% | No change |
| Renaissance Technologies | 2026-06-30 | 686,366 | $62.3M | 0.09% | Reduced 45% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 490,181 | $44.5M | 0.1% | Added 103% |
| Bridgewater Associates | 2026-06-30 | 59,775 | $5.4M | 0.02% | Reduced 49% |
| Soros Fund Management | 2026-06-30 | 44,750 | $4.1M | 0.05% | No change |
| Dodge & Cox | 2026-06-30 | 17,324 | $1.6M | 0.0% | No change |
| Polen Capital Management | 2026-06-30 | 3,156 | $286.4K | 0.0% | Reduced 79% |