Abbott Labs (ABT) Stock Forecast & Price Target

Abbott Laboratories reported a notable increase in diabetes-related continuous glucose monitoring (CGM) sales, reaching approximately $2.0 billion, which reflects a year-over-year organic growth rate of 12.2%. The company also demonstrated strong performance in its Rhythm Management segment, achieving an 11.5% organic growth rate, while expanding gross margins by 50 basis points and EBIT margins by 100 basis points year-over-year despite weaker sales in Q4. Additionally, Abbott's established pharmaceuticals and nutrition divisions experienced balanced growth across various markets, further enhancing the company's positive outlook driven by ongoing advancements in MedTech and disciplined mergers and acquisitions.

Abbott Laboratories is experiencing a negative outlook primarily due to a projected earnings per share (EPS) of $1.12-1.18, which falls short of the consensus estimate of $1.20, alongside underperformance across nearly all business segments in Q4. The company's sales forecast for 2026 has been lowered, particularly reflecting a significant decline in Nutrition sales by 7.1% year-over-year, which outweighs anticipated growth in Devices, Diagnostics, and Established Pharmaceutical Divisions (EPD). Despite expected recovery in Nutrition in the latter half of 2026, the current headwinds, including pricing adjustments and low growth projections in other key areas such as Rapid Diagnostics, contribute to the restrained revenue outlook.