Abbott Laboratories (ABT) lost ~5% in the premarket on Thursday after the MedTech giant reported lower-than-expected revenue for Q4 2025 following underperformance in its Nutrition segment.
The company recorded $11.4B in net sales for the quarter with ~4% YoY growth, missing the $11.8B projected by analysts as its Nutrition segment contracted ~9% YoY, adding $1.9B to the topline, and its Diagnostics division brought $2.5B with a ~3% YoY decline.
The Illinois-based company attributed the decline in nutrition sales to lower sales volumes and new strategic price initiatives aimed at improving future product volumes. However, the company’s MedTech and Pharma units outperformed, adding $5.7B and $1.4B to the topline with ~12% YoY and ~9% YoY growth, respectively.
“In 2025, we expanded margins and achieved double-digit earnings per share growth, our new product pipeline was highly productive, and we took important strategic steps to shape the company for the future,” CEO Robert Ford said.
However, ABT’s Q4 earnings reached $1.50 per share on a non-GAAP basis, exceeding the consensus by $0.01 with ~12% YoY growth as its adjusted gross margin improved 20 bps to ~57%.
Looking ahead, the company projected 6.5%–7.5% of organic sales growth for 2026, which at the midpoint fell short of ~7.4% in the consensus. Its outlook for Q4 adjusted EPS at $1.12–$1.18 also missed $1.20 in Street forecasts, while that for 2026 at $5.55–$5.80 was in line with the $5.68 projected by analysts.