# Abbott Laboratories (ABT)

Sector: Medical devices and diagnostics

| Field | Value |
|---|---|
| Price | $110.51 |
| Market cap | $191B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-10 |
| Next earnings | 2027-01-21 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Pricey

## In short

Investors pay a premium for Abbott's steady growth in devices and diagnostics, and only faster glucose monitor growth, lower debt and a clean Nutrition separation can earn it.

## Themes and gap

- Themes: Regulation and courts (regulation-legal), High debt (leverage)
- Gap type: Slow (slow)
- Why: The Q4 2026 report expected on January 21, 2027 is the next test, but the premium needs faster growth after Exact Sciences and the Nutrition separation, which ends in late 2027.

## About

Abbott makes medical devices, diagnostic tests, branded generic medicines and nutrition products. Medical Devices include FreeStyle Libre glucose monitors, electrophysiology, heart rhythm and heart failure devices, and vascular and structural heart products. Diagnostics include lab, rapid and molecular tests and, since the purchase of Exact Sciences on March 23, 2026, cancer screening tests such as Cologuard. Established Pharmaceuticals sells branded generic medicines outside the United States. Nutrition sells brands such as Similac, PediaSure, Ensure and Glucerna. Sales were $13.0 billion in Q3 2026 and $36.8 billion in the first nine months of 2026. On October 21, 2026, Abbott said that it plans to separate its Nutrition business, with about $8.5 billion of annual sales, into a new public company by the end of 2027.

## Thesis

Abbott trades at a premium because investors pay for steady growth across many health care markets and for its leading positions in glucose monitors, heart devices and diagnostics. In Q3 2026, Electrophysiology sales grew 15.5% and Rhythm Management sales grew 10.0% at constant currency, and Cologuard led comparable growth of 13.8% in Cancer Diagnostics. The price assumes that growth speeds up after the Exact Sciences purchase and the Nutrition separation. But growth slowed in 2026. Abbott lowered its full-year comparable sales growth to about 6.0% from 6.5% to 7.5%, sales of glucose monitors grew only 7.7% in Q3 2026, and Nutrition sales fell in the first nine months. For the premium to be earned, three things must be true. Glucose monitor growth must speed up again, with new products such as Libre Duo. Exact Sciences must keep double-digit growth and add to EPS while debt of $31.2 billion falls. The Nutrition separation must close by the end of 2027 and leave a faster-growing Abbott, and the NEC lawsuits must not bring large new costs. The Q4 2026 report, expected in late January 2027, gives the first test with the 2027 guidance. If comparable growth stays near 6% or less in 2027, the premium can shrink within one to two years.

## Checkpoints

- Jan 21, 2027 (estimate): Q4 2026 results and 2027 guidance. Status: Pending. Watch: 2027 guidance for comparable sales growth near 7% or more and adjusted EPS growth near 10% passes; growth guidance near 6% or less fails.
- 2027 (estimate): Nutrition separation. Status: Pending. Watch: A Form 10 filing and a tax-free separation by the end of 2027 pass; a delay or a separation that raises costs for the remaining Abbott fails.

## Balance sheet

- Cash: $4.3B
- Debt: $31.2B
- Net debt: $26.9B
- Debt due within 12 months: $1.7B
- Ratings: S&P A+, Moody's Aa3

Abbott took on much more debt to buy Exact Sciences. Total long-term debt was $31.16 billion at September 30, 2026, up from $12.93 billion at December 31, 2025, and $1.71 billion of it is due within one year. Abbott issued $20.0 billion of long-term debt in March 2026 and repaid nearly all of the $2.8 billion of Exact Sciences debt that it took on. On September 27, 2026, it repaid €1.14 billion of 1.500% notes at maturity. Cash and short-term investments were $4.30 billion. S&P rates Abbott A+ and Moody's rates it Aa3. Net cash from operating activities was $5.54 billion in the first nine months of 2026, and capital spending was $1.41 billion. Abbott pays a quarterly dividend of $0.63 per share. It bought back $1.0 billion of shares in the first nine months of 2026, and $5.6 billion of the authorization was left.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/1800/000162828026070154/abt-20260930.htm
- https://www.sec.gov/Archives/edgar/data/1800/000162828026066601/abt-2026q3xexhibitx991.htm

## Dividends

- Dividend yield: 2.3% (last 12 months, at the current price)
- Paid per share, last 12 months: $2.52 (4 payments)
- Current annual rate: $2.52 ($0.63 x 4 a year)
- Payout ratio: 63% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-10-15, $0.63 per share
- Growth over the last 5 years: 7.0% a year
- Growth over the last 10 years: 9.3% a year

Dividends per share by year: 2016: $1.04, 2017: $1.06, 2018: $1.12, 2019: $1.28, 2020: $1.44, 2021: $1.80, 2022: $1.88, 2023: $2.04, 2024: $2.20, 2025: $2.36.

Source: company filings and market data, read on 2026-11-09.

## Recent events

- 2026-10-21: Abbott reported Q3 2026 results. Sales grew 14.5% to $13.0 billion, or 7.0% on a comparable basis. GAAP diluted EPS was $0.53 and adjusted diluted EPS was $1.42. Abbott now expects full-year comparable sales growth of about 6.0%, and it narrowed its adjusted EPS guidance to $5.50 to $5.55.
- 2026-10-21: Abbott said that it plans to separate its Nutrition business into an independent public company through a tax-free distribution to shareholders. The new company will have about $8.5 billion of annual sales, and Abbott expects to complete the separation by the end of 2027.
- 2026-08-20: Abbott agreed to pay about $670 million to resolve the Gill case and NEC claims for about 2,000 more infants. After these agreements, about 1,700 lawsuits for about 12,700 infants were still pending.
- 2026-07-16: Abbott reported Q2 2026 results. Sales grew 13.0%, or 4.8% on a comparable basis, and adjusted diluted EPS was $1.31. It raised its 2026 adjusted EPS guidance to $5.45 to $5.60 and kept its comparable sales growth guidance of 6.5% to 7.5%.
- 2026-03-23: Abbott completed its purchase of Exact Sciences for about $20.6 billion, or $105 per share in cash. It paid mainly with $20.0 billion of long-term debt issued in March 2026.

## Latest news and filings

- Last earnings: 2026-10-21 (8-K: https://www.sec.gov/Archives/edgar/data/1800/000162828026066601/)
- Next earnings: 2027-01-21 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-11-04 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | abt-20260930 | https://www.sec.gov/Archives/edgar/data/1800/000162828026070154/abt-20260930.htm |
| 2026-10-21 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1800/000110465926117587/tm2627971d1_8k.htm |
| 2026-10-21 | 8-K | Earnings release |  | abt-20261021 | https://www.sec.gov/Archives/edgar/data/1800/000162828026066601/abt-20261021.htm |
| 2026-08-20 | 8-K | Investor disclosure and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1800/000110465926099247/tm2623675d1_8k.htm |
| 2026-07-28 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | abt-20260630 | https://www.sec.gov/Archives/edgar/data/1800/000162828026050134/abt-20260630.htm |
| 2026-07-16 | 8-K | Earnings release |  | abt-20260716 | https://www.sec.gov/Archives/edgar/data/1800/000162828026048377/abt-20260716.htm |
| 2026-04-29 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | abt-20260331 | https://www.sec.gov/Archives/edgar/data/1800/000162828026028357/abt-20260331.htm |
| 2026-04-27 | 8-K | Change of directors or officers and Change to shareholder rights or bylaws |  |  | https://www.sec.gov/Archives/edgar/data/1800/000110465926049434/tm2612318d1_8k.htm |
| 2026-04-17 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/1800/000110465926044892/tm2611915d1_8k.htm |
| 2026-04-16 | 8-K | Earnings release |  | abt-20260416 | https://www.sec.gov/Archives/edgar/data/1800/000162828026025365/abt-20260416.htm |

Every filing on SEC EDGAR (CIK 1800): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000001800&type=&dateb=&owner=include&count=40

## Risks

- High: About 1,700 lawsuits claim that Abbott's formula for preterm infants caused necrotizing enterocolitis (NEC). In 2024, a jury awarded one plaintiff $495 million. Abbott recorded no additional reserve for the remaining cases because it cannot estimate the loss.
- Medium: Growth of glucose monitors slowed to 7.7% in Q3 2026. These sensors were $6.2 billion of sales in the first nine months of 2026, so slower growth or price pressure has a large effect.
- Medium: Debt rose to $31.2 billion after the Exact Sciences purchase. Exact Sciences must grow fast to give a good return on $20.6 billion.
- Medium: The Nutrition separation adds costs and work until the end of 2027. U.S. Nutrition sales fell 4.5% in the first nine months of 2026.
- Low: About 58% of Q3 2026 sales were outside the United States, so a stronger dollar lowers reported sales.

## Links

- Page: https://picks.utilarium.app/company/ABT/
- History of changes: https://picks.utilarium.app/company/ABT/history/
- JSON with full history: https://picks.utilarium.app/data/company/ABT.json

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