Abbott Projects Double-Digit EPS Growth for 2026 on Strength in Medical Devices
Medical Devices Deliver Double-Digit Growth, Driving Optimism for 2026
Abbott (NYSE: ABT) reported strong performance in the fourth quarter and full year 2025, with its Medical Devices segment leading the way. Medical Devices sales soared 12.3% on a reported basis and 10.4% organically in Q4, powered by double-digit gains in Electrophysiology, Heart Failure, Diabetes Care, and Rhythm Management. In 2025, global Medical Devices sales totaled $21.39 billion, up 12.6% year-over-year on a reported basis and 11.9% organically.
Key highlights within Medical Devices include $2 billion in global sales of continuous glucose monitors for Diabetes Care (up 15% reported, up 12.2% organic in Q4), while recent regulatory approvals in Electrophysiology position Abbott for continued expansion in advanced cardiac care in 2026.
Solid Overall Financial Performance with Earnings and Margins Expanding
For full-year 2025, Abbott reported sales of $44.33 billion (up 5.7% reported, up 5.5% organic). Adjusted diluted EPS grew 10% to $5.15, and strong operational execution resulted in an 18% jump in operating earnings. Excluding the drag from declining COVID-19 testing demand, organic sales rose an even stronger 6.7%. Gross margin, on an adjusted basis, improved to $25.15 billion for the year.
Looking ahead, Abbott projects 2026 adjusted diluted EPS in the $5.55–$5.80 range (a 10% increase at the midpoint) and organic sales growth of 6.5% to 7.5%. This guidance reflects a healthy new product pipeline and the expected accretive impact of the planned acquisition of Exact Sciences. The deal, set to close in mid-2026, will open a new front for Abbott in the rapidly growing cancer diagnostics market.
Segment Performance: Medical Devices Outperform, Nutrition Stabilizes
| Segment | Q4 2025 Reported Sales ($M) | Q4 2025 Organic Growth (%) | Full-Year 2025 Sales ($M) | Full-Year Organic Growth (%) |
|---|---|---|---|---|
| Medical Devices | 5,675 | 10.4 | 21,387 | 11.9 |
| Established Pharmaceuticals | 1,382 | 7.0 | 5,536 | 7.4 |
| Diagnostics | 2,457 | -3.6 | 8,937 | -4.5 |
| Nutrition | 1,940 | -9.1 | 8,451 | 1.2 |
| Total Company | 11,459 | 3.0 | 44,328 | 5.5 |
Medical Devices was a clear standout, while the Diagnostics segment saw a 3.6% organic decline in Q4 due to continued normalization of COVID-19 testing sales. Nutrition sales dipped (especially in the U.S.), but global nutrition is expected to rebound with new product launches and strategic pricing initiatives in 2026. Established Pharmaceuticals delivered 7% organic growth, led by double-digit expansion in key emerging markets.
Dividend Aristocrat Status Reaffirmed
Demonstrating sustained financial strength, Abbott declared its 408th consecutive quarterly dividend. The company has now raised its dividend payout for 54 consecutive years and remains a member of the elite S&P 500 Dividend Aristocrats Index.
Strategic Moves Signal Growth Ambitions
Beyond its robust current results, Abbott’s outlook is bolstered by recent approvals for its Pulsed Field Ablation (PFA) and dual-energy ablation technologies, and the transformative Exact Sciences deal. These moves align with the company’s stated intent to "shape the company for the future," as CEO Robert Ford described.
Key Takeaways
- Medical Devices momentum is powering Abbott’s growth story, with double-digit organic sales increases and product innovation leading the charge.
- Adjusted EPS growth is outpacing revenue, reflecting margin expansion and effective cost management.
- 2026 guidance points to continued strength, with mid-single digit organic top-line growth and a double-digit EPS advance anticipated.
- The ongoing Exact Sciences acquisition and launches in Electrophysiology and Nutrition could further accelerate performance going forward.
Investors may want to follow Abbott’s 2026 trajectory closely, especially as Medical Devices and Cancer Diagnostics shape the company’s next leg of growth. The upcoming earnings call and further product unveilings could offer more insights on how Abbott plans to capitalize on these trends.
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