FT Markets Data
Abbott Laboratories

Abbott Reports Second-Quarter 2025 Results

  • Second-quarter reported sales growth of 7.4 percent; organic sales growth of 6.9 percent or 7.5 percent excluding COVID-19 testing-related sales1
  • Second-quarter GAAP diluted EPS of $1.01; adjusted diluted EPS of $1.26
  • Reported gross margin of 52.7 percent of sales; adjusted gross margin of 57.0 percent, which reflects a 100 basis point increase
  • Reported operating margin of 18.4 percent of sales; adjusted operating margin of 22.9 percent, which reflects a 100 basis point increase

ABBOTT PARK, Ill., July 17, 2025 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2025.

  • Second-quarter sales increased 7.4 percent on a reported basis, 6.9 percent on an organic basis, or 7.5 percent when excluding COVID-19 testing-related sales1.
  • Second-quarter GAAP diluted EPS of $1.01 and adjusted diluted EPS of $1.26, which excludes specified items and reflects double-digit growth compared to the prior year.
  • First-half sales increased 5.7 percent on a reported basis, 6.9 percent on an organic basis, or 7.9 percent when excluding COVID-19 testing-related sales2.
  • Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing-related sales, to be 7.5% to 8.0%, or 6.0% to 7.0% when including COVID-19 testing-related sales.
  • Abbott projects full-year 2025 adjusted diluted EPS of $5.10 to $5.20, which reflects double-digit growth at the midpoint.
  • In April, Abbott completed enrollment ahead of schedule in its FlexPulse U.S. IDE trial, which is designed to evaluate the TactiFlex™ Duo Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib).
  • In April, Abbott announced late-breaking data from the AVEIR™ Conduction System Pacing (CSP) clinical feasibility study. This study was the world's first assessment of a leadless pacemaker delivering conduction pacing, which produces pacing that closely mimics the heart's natural electrical rhythm and represents a new treatment option for people with irregular heart rhythms.
  • In May, Abbott announced U.S. Food and Drug Administration (FDA) approval of the company's Tendyne™ transcatheter mitral valve replacement (TMVR) system, a first-of-its-kind device to help treat people with mitral valve disease.
  • Abbott has initiated plans to develop a new cardiovascular device manufacturing facility in the state of Georgia to be completed by 2028.

"Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, significantly expanded our margin profiles, and continued to advance key programs through our new product pipeline," said Robert B. Ford, chairman and chief executive officer, Abbott. "We see this momentum carrying into 2026."

SECOND-QUARTER BUSINESS OVERVIEW
 Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect® product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand the underlying performance of the company as the demand for COVID-19 tests has significantly declined following the transition from a pandemic to endemic phase.

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.  

Second Quarter 2025 Results (2Q25)


Sales 2Q25 ($ in millions)

Total Company


Nutrition


Diagnostics


Established
Pharmaceuticals


Medical Devices

U.S.

4,276


957


811


—


2,503

International

6,866


1,255


1,362


1,383


2,866

Total reported

11,142


2,212


2,173


1,383


5,369

% Change vs. 2Q24










U.S.

8.7


2.6


(0.1)


n/a


14.6

International

6.6


3.1


(1.5)


6.9


12.4

Total reported

7.4


2.9


(1.0)


6.9


13.4

Impact of foreign exchange

0.5


(0.5)


0.4


(0.8)


1.2

Organic

6.9


3.4


(1.4)


7.7


12.2

Impact of COVID-19 testing sales 1

(0.6)


—


(2.2)


—


—

Organic (excluding COVID-19 tests)

7.5


3.4


0.8


7.7


12.2











Organic










    U.S.

8.7


2.6


(0.1)


n/a


14.6

    International

5.8


4.0


(2.2)


7.7


10.1

 

First Half 2025 Results (1H25)


Sales 1H25 ($ in millions)

Total Company


Nutrition


Diagnostics


Established
Pharmaceuticals


Medical Devices

U.S.

8,444


1,912


1,682


—


4,842

International

13,056


2,446


2,545


2,643


5,422

Total reported

21,500


4,358


4,227


2,643


10,264











% Change vs. 1H24










U.S.

8.5


5.6


(3.5)


n/a


14.8

International

3.9


1.6


(4.5)


4.9


9.1

Total reported

5.7


3.3


(4.1)


4.9


11.7

Impact of foreign exchange

(1.1)


(1.5)


(0.9)


(2.9)


(0.7)

Impact of business exit*

(0.1)


(0.3)


—


—


—

Organic

6.9


5.1


(3.2)


7.8


12.4

Impact of COVID-19 testing sales 2

(1.0)


—


(3.9)


—


—

Organic (excluding COVID-19 tests)

7.9


5.1


0.7


7.8


12.4











Organic










    U.S.

8.7


6.4


(3.5)


n/a


14.8

    International

5.8


4.1


(3.0)


7.8


10.3

 

Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.

*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.

 

Nutrition


Second Quarter 2025 Results (2Q25)


Sales 2Q25 ($ in millions)

Total


Pediatric


Adult

U.S.

957


587


370

International

1,255


467


788

Total reported

2,212


1,054


1,158







% Change vs. 2Q24






U.S.

2.6


4.2


0.2

International

3.1


(5.7)


9.2

Total reported

2.9


(0.4)


6.1

Impact of foreign exchange

(0.5)


(0.6)


(0.5)

Organic

3.4


0.2


6.6







    U.S.

2.6


4.2


0.2

    International

4.0


(4.5)


9.8

 

Worldwide Nutrition sales increased 2.9 percent on a reported basis and 3.4 percent on an organic basis in the second quarter.

Growth in the quarter was led by Adult Nutrition, where global sales increased 6.1 percent on a reported basis and 6.6 percent on an organic basis, led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading brand of products designed to meet the nutritional requirements for people with diabetes. 

First Half 2025 Results (1H25)


Sales 1H25 ($ in millions)

Total


Pediatric


Adult

U.S.

1,912


1,175


737

International

2,446


920


1,526

Total reported

4,358


2,095


2,263







% Change vs. 1H24






U.S.

5.6


9.0


0.6

International

1.6


(7.0)


7.7

Total reported

3.3


1.3


5.3

Impact of foreign exchange

(1.5)


(1.2)


(1.6)

Impact of business exit*

(0.3)


—


(0.7)

Organic

5.1


2.5


7.6







    U.S.

6.4


9.0


2.4

    International

4.1


(4.6)


10.2


*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.

 

Diagnostics


Second Quarter 2025 Results (2Q25)


Sales 2Q25 ($ in millions)

Total


Core Laboratory


Molecular


Point of Care


Rapid
Diagnostics

U.S.

811


351


35


104


321

International

1,362


1,007


88


44


223

Total reported

2,173


1,358


123


148


544











% Change vs. 2Q24










U.S.

(0.1)


7.3


5.5


(2.0)


(7.1)

International

(1.5)


0.5


(5.6)


(11.9)


(6.1)

Total reported

(1.0)


2.2


(2.7)


(5.1)


(6.7)

Impact of foreign exchange

0.4


0.6


0.7


0.1


0.1

Organic

(1.4)


1.6


(3.4)


(5.2)


(6.8)











    U.S.

(0.1)


7.3


5.5


(2.0)


(7.1)

    International

(2.2)


(0.3)


(6.5)


(12.1)


(6.3)

 

Global Diagnostics sales decreased 1.0 percent on a reported basis, decreased 1.4 percent on an organic basis, and increased 0.8 percent when excluding COVID-19 testing-related sales1.

Diagnostics sales growth was impacted by the year-over-year decline in COVID-19 testing-related sales and volume-based procurement programs in China.

COVID-19 testing-related sales were $55 million in the quarter, compared to $102 million in the second quarter of the prior year.

Global Core Laboratory Diagnostics sales increased 2.2 percent on a reported basis and increased 1.6 percent on an organic basis. Growth in the quarter was impacted by volume-based procurement programs in China. 

First Half 2025 Results (1H25)


Sales 1H25 ($ in millions)

Total


Core Laboratory


Molecular


Point of Care


Rapid
Diagnostics

U.S.

1,682


683


75


204


720

International

2,545


1,852


170


86


437

Total reported

4,227


2,535


245


290


1,157











% Change vs. 1H24










U.S.

(3.5)


7.2


—


(0.3)


(12.8)

International

(4.5)


(2.4)


(6.1)


(4.5)


(12.3)

Total reported

(4.1)


0.1


(4.4)


(1.6)


(12.6)

Impact of foreign exchange

(0.9)


(1.2)


(1.0)


(0.4)


(0.6)

Organic

(3.2)


1.3


(3.4)


(1.2)


(12.0)











    U.S.

(3.5)


7.2


—


(0.3)


(12.8)

    International

(3.0)


(0.7)


(4.9)


(3.3)


(10.7)

 

Established Pharmaceuticals


Second Quarter 2025 Results (2Q25)


Sales 2Q25 ($ in millions)

Total


Key Emerging
Markets


Other

U.S.

—


—


—

International

1,383


1,059


324

Total reported

1,383


1,059


324







% Change vs. 2Q24






U.S.

n/a


n/a


n/a

International

6.9


7.3


5.9

Total reported

6.9


7.3


5.9

Impact of foreign exchange

(0.8)


(1.4)


1.4

Organic

7.7


8.7


4.5







    U.S.

n/a


n/a


n/a

    International

7.7


8.7


4.5

 

Established Pharmaceuticals sales increased 6.9 percent on a reported basis and 7.7 percent on an organic basis in the second quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 7.3 percent on a reported basis and 8.7 percent on an organic basis, led by double-digit growth in several countries across Asia, Latin America and the Middle East.

First Half 2025 Results (1H25)


Sales 1H25 ($ in millions)

Total


Key Emerging
Markets


Other

U.S.

—


—


—

International

2,643


2,024


619

Total reported

2,643


2,024


619







% Change vs. 1H24






U.S.

n/a


n/a


n/a

International

4.9


5.7


2.4

Total reported

4.9


5.7


2.4

Impact of foreign exchange

(2.9)


(3.3)


(1.4)

Organic

7.8


9.0


3.8







    U.S.

n/a


n/a


n/a

    International

7.8


9.0


3.8

 

Medical Devices


Second Quarter 2025 Results (2Q25)


Sales 2Q25 ($ in millions)

Total


Rhythm
Management


Electro-

physiology


Heart
Failure


Vascular


Structural
Heart


Neuro-
modulation


Diabetes
Care

U.S.

2,503


340


322


282


283


289


193


794

International

2,866


333


378


86


474


347


61


1,187

Total reported

5,369


673


700


368


757


636


254


1,981

















% Change vs. 2Q24
















U.S.

14.6


16.5


12.2


15.8


3.0


12.2


0.4


24.5

International

12.4


5.7


10.9


11.2


5.4


13.7


20.4


17.5

Total reported

13.4


10.9


11.5


14.7


4.5


13.0


4.6


20.2

Impact of foreign exchange

1.2


1.1


1.2


0.7


1.0


1.3


0.3


1.7

Organic

12.2


9.8


10.3


14.0


3.5


11.7


4.3


18.5

















    U.S.

14.6


16.5


12.2


15.8


3.0


12.2


0.4


24.5

    International

10.1


3.6


8.8


8.4


3.8


11.4


18.7


14.7

 

Worldwide Medical Devices sales increased 13.4 percent on a reported basis and 12.2 percent on an organic basis in the second quarter.

Sales growth in the quarter was led by double-digit growth in Diabetes Care, Heart Failure, Structural Heart  and Electrophysiology.

Several products contributed to the strong performance, including FreeStyle Libre®, Navitor®, TriClip® and AVEIR®.

In Diabetes Care, sales of continuous glucose monitors were $1.9 billion and grew 21.4 percent on a reported basis and 19.6 percent on an organic basis. 

First Half 2025 Results (1H25)


Sales 1H25 ($ in millions)

Total


Rhythm
Management


Electro-

physiology


Heart
Failure


Vascular


Structural
Heart


Neuro-
modulation


Diabetes
Care

U.S.

4,842


644


621


544


551


571


369


1,542

International

5,422


614


708


163


916


642


113


2,266

Total reported

10,264


1,258


1,329


707


1,467


1,213


482


3,808

















% Change vs. 1H24
















U.S.

14.8


14.4


11.7


13.2


4.2


16.3


(1.1)


25.7

International

9.1


1.2


7.6


12.6


3.5


9.3


18.5


13.8

Total reported

11.7


7.6


9.5


13.1


3.8


12.5


2.9


18.4

Impact of foreign exchange

(0.7)


(0.4)


(0.6)


(0.2)


(0.7)


(0.7)


(0.4)


(0.7)

Organic

12.4


8.0


10.1


13.3


4.5


13.2


3.3


19.1

















    U.S.

14.8


14.4


11.7


13.2


4.2


16.3


(1.1)


25.7

    International

10.3


2.0


8.8


13.4


4.8


10.5


20.5


15.0

 

ABBOTT'S FINANCIAL GUIDANCE
 Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing related sales, to be 7.5% to 8.0%, or 6.0% to 7.0% when including COVID-19 testing-related sales.

Abbott projects full-year 2025 adjusted operating margin to be approximately 23.5% of sales.

Abbott projects full-year 2025 adjusted diluted earnings per share of $5.10 to $5.20 and third-quarter 2025 adjusted diluted earnings per share of $1.28 to $1.32.

Abbott has not provided the related GAAP financial measures on a forward-looking basis for these forward-looking non-GAAP financial measures because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items such as restructuring and cost reduction initiatives, charges for intangible asset impairments, acquisition-related expenses, and foreign exchange, which could significantly impact Abbott's results in accordance with GAAP.

ABBOTT DECLARES 406th CONSECUTIVE QUARTERLY DIVIDEND
On June 13, 2025, the board of directors of Abbott declared the company's quarterly dividend of $0.59 per share. Abbott's cash dividend is payable Aug. 15, 2025, to shareholders of record at the close of business on July 15, 2025.

Abbott has increased its dividend payout for 53 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube. 

Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.

— Private Securities Litigation Reform Act of 1995 —
 A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

1.

In the second quarter of 2025, total worldwide sales were $11.142 billion, total Diagnostics sales were $2.173 billion and COVID-19 testing-related sales were $55 million. In the second quarter of 2024, total worldwide sales were $10.377 billion, total Diagnostics sales were $2.195 billion and COVID-19 testing-related sales were $102 million.



2.

In the first half of 2025, total worldwide sales were $21.500 billion, total Diagnostics sales were $4.227 billion and COVID-19 testing-related sales were $139 million. In the first half of 2024, total worldwide sales were $20.341 billion, total Diagnostics sales were $4.409 billion and COVID-19 testing-related sales were $306 million.

 

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

Second Quarter Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)





2Q25


2Q24


% Change


Net Sales

$11,142


$10,377


7.4









Cost of products sold, excluding amortization expense

4,854


4,603


5.5


Amortization of intangible assets

420


471


(10.7)


Research and development

725


698


3.9


Selling, general, and administrative

3,091


2,936


5.3


Total Operating Cost and Expenses

9,090


8,708


4.4









Operating Earnings

2,052


1,669


23.0









Interest expense, net

50


58


(14.2)


Net foreign exchange (gain) loss

(11)


(6)


55.6


Other (income) expense, net

(137)


10


n/m


Earnings before taxes

2,150


1,607


33.8


Taxes on earnings

371


305


21.3

1)








Net Earnings

$1,779


$1,302


36.7









Net Earnings excluding Specified Items, as described below

$2,213


$2,003


10.5

2)








Diluted Earnings per Common Share

$1.01


$0.74


36.5









Diluted Earnings per Common Share,

excluding Specified Items, as described below

$1.26


$1.14


10.5

2)








Average Number of Common Shares Outstanding

Plus Dilutive Common Stock Options

1,751


1,751





NOTES:

See table titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following section.


1)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.




2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years.



2)

2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $434 million, or $0.25 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, and other net expenses.




2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $701 million, or $0.40 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses.

 

Abbott Laboratories and Subsidiaries

Condensed Consolidated Statement of Earnings

First Half Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)





1H25


1H24


% Change


Net Sales

$21,500


$20,341


5.7









Cost of products sold, excluding amortization expense

9,322


9,066


2.8


Amortization of intangible assets

840


943


(10.8)


Research and development

1,441


1,382


4.3


Selling, general, and administrative

6,152


5,895


4.4


Total Operating Cost and Expenses

17,755


17,286


2.7









Operating Earnings

3,745


3,055


22.6









Interest expense, net

99


119


(16.4)


Net foreign exchange (gain) loss

(18)


(6)


n/m


Other (income) expense, net

(264)


(101)


n/m


Earnings before taxes

3,928


3,043


29.1


Taxes on earnings

824


516


59.5

1)








Net Earnings

$3,104


$2,527


22.9









Net Earnings excluding Specified Items, as described below

$4,132


$3,732


10.7

2)








Diluted Earnings per Common Share

$1.77


$1.44


22.9









Diluted Earnings per Common Share,

excluding Specified Items, as described below

$2.35


$2.12


10.8

2)








Average Number of Common Shares Outstanding

Plus Dilutive Common Stock Options

1,749


1,750





NOTES:

See table titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.

n/m = Percent change is not meaningful.

See footnotes on the following section.



1)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.




2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years.



2)

2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.028 billion, or $0.58 per share, for intangible amortization, charges related to investment impairments, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions, and other net expenses.




2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.205 billion, or $0.68 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses.

 

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information

Second Quarter Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)



2Q25


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$            420


$          (420)


$              —

Gross Margin

5,868


478


6,346

R&D

725


(20)


705

SG&A

3,091


(1)


3,090

Other (income) expense, net

(137)


(1)


(138)

Earnings before taxes

2,150


500


2,650

Taxes on Earnings

371


66


437

Net Earnings

1,779


434


2,213

Diluted Earnings per Share

$           1.01


$           0.25


$           1.26

 

Specified items reflect intangible amortization expense of $420 million and other net expenses of $80 million associated with restructuring actions, costs associated with acquisitions, and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

2Q24


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$            471


$          (471)


$              —

Gross Margin

5,303


506


5,809

R&D

698


(41)


657

SG&A

2,936


(57)


2,879

Other (income) expense, net

10


(145)


(135)

Earnings before taxes

1,607


749


2,356

Taxes on Earnings

305


48


353

Net Earnings

1,302


701


2,003

Diluted Earnings per Share

$           0.74


$           0.40


$           1.14

 

Specified items reflect intangible amortization expense of $471 million and other net expenses of $278 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

Abbott Laboratories and Subsidiaries

Non-GAAP Reconciliation of Financial Information

First Half Ended June 30, 2025 and 2024

(in millions, except per share data)

(unaudited)



1H25


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$            840


$          (840)


$              —

Gross Margin

11,338


926


12,264

R&D

1,441


(47)


1,394

SG&A

6,152


(11)


6,141

Other (income) expense, net

(264)


(36)


(300)

Earnings before taxes

3,928


1,020


4,948

Taxes on Earnings

824


(8)


816

Net Earnings

3,104


1,028


4,132

Diluted Earnings per Share

$           1.77


$           0.58


$           2.35

 

Specified items reflect intangible amortization expense of $840 million and other net expenses of $180 million associated with restructuring actions, acquisitions, investment impairment charges, and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

1H24


As

Reported
(GAAP)


Specified
Items


As

Adjusted







Intangible Amortization

$            943


$          (943)


$              —

Gross Margin

10,332


1,024


11,356

R&D

1,382


(62)


1,320

SG&A

5,895


(91)


5,804

Other (income) expense, net

(101)


(171)


(272)

Earnings before taxes

3,043


1,348


4,391

Taxes on Earnings

516


143


659

Net Earnings

2,527


1,205


3,732

Diluted Earnings per Share

$           1.44


$           0.68


$           2.12

 

Specified items reflect intangible amortization expense of $943 million and other net expenses of $405 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

A reconciliation of the second-quarter tax rates for 2025 and 2024 is shown below: 

2Q25


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         2,150


$            371


17.3 %

1)

Specified items

500


66




Excluding specified items

$         2,650


$            437


16.5 %










2Q24


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         1,607


$            305


19.0 %

2)

Specified items

749


48




Excluding specified items

$         2,356


$            353


15.0 %




1)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.



2)

2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years.

 

A reconciliation of the year-to-date tax rates for 2025 and 2024 is shown below: 

1H25


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         3,928


$            824


21.0 %

3)

Specified items

1,020


(8)




Excluding specified items

$         4,948


$            816


16.5 %










1H24


($ in millions)

Pre-Tax

Income


Taxes on

Earnings


Tax

Rate


As reported (GAAP)

$         3,043


$            516


17.0 %

4)

Specified items

1,348


143




Excluding specified items

$         4,391


$            659


15.0 %




3)

2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.



4)

2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years.

 

Abbott Laboratories and Subsidiaries

Non-GAAP Revenue Reconciliation

First Half Ended June 30, 2025 and 2024

($ in millions)

(unaudited)




1H25


1H24


% Change vs. 1H24











Non-GAAP



Abbott
Reported


Abbott
Reported

Impact
from
business
exit (a)

Adjusted
Revenue


Reported


Adjusted

Organic

Total Company


21,500


20,341

(13)

20,328


5.7


5.8

6.9

U.S.


8,444


7,780

(13)

7,767


8.5


8.7

8.7

Intl


13,056


12,561

—

12,561


3.9


3.9

5.8













Total Nutrition


4,358


4,218

(13)

4,205


3.3


3.6

5.1

U.S.


1,912


1,811

(13)

1,798


5.6


6.4

6.4

Intl


2,446


2,407

—

2,407


1.6


1.6

4.1













Adult Nutrition


2,263


2,150

(13)

2,137


5.3


6.0

7.6

U.S.


737


733

(13)

720


0.6


2.4

2.4

Intl


1,526


1,417

—

1,417


7.7


7.7

10.2



(a)

Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

Second Quarter Ended June 30, 2025

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                    1


$                  55


$                420


$                    2


$                478

R&D

—


(7)


—


(13)


(20)

SG&A

(3)


1


—


1


(1)

Other (income) expense, net

(1)


—


—


—


(1)

Earnings before taxes

$                    5


$                  61


$                420


$                  14


500

Taxes on Earnings (d)









66

Net Earnings









$                434

Diluted Earnings per Share









$               0.25



The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."



a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.



b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.



c)

Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products.



d)

Reflects the net tax benefit associated with the specified items and the recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

Second Quarter Ended June 30, 2024

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                    1


$                  32


$                471


$                    2


$                506

R&D

(1)


1


—


(41)


(41)

SG&A

(11)


(10)


—


(36)


(57)

Other (income) expense, net

(147)


—


—


2


(145)

Earnings before taxes

$                160


$                  41


$                471


$                  77


749

Taxes on Earnings (d)









48

Net Earnings









$                701

Diluted Earnings per Share









$               0.40



The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."



a)

Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.



b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.



c)

Other includes incremental costs to comply with the MDR and IVDR requirements for previously approved products and an intangible asset impairment charge.



d)

Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.

 

 Abbott Laboratories and Subsidiaries

Details of Specified Items

First Half Ended June 30, 2025

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                    1


$                  81


$                840


$                    4


$                926

R&D

(1)


(23)


—


(23)


(47)

SG&A

(6)


(6)


—


1


(11)

Other (income) expense, net

(25)


—


—


(11)


(36)

Earnings before taxes

$                  33


$                110


$                840


$                  37


1,020

Taxes on Earnings (d)









(8)

Net Earnings









$             1,028

Diluted Earnings per Share









$               0.58



The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."



a)

Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.



b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.



c)

Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment impairments.



d)

Reflects the net tax benefit associated with the specified items and recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.

 

Abbott Laboratories and Subsidiaries

Details of Specified Items

First Half Ended June 30, 2024

(in millions, except per share data)

(unaudited)



Acquisition or

Divestiture-

related (a)


Restructuring

and Cost

Reduction

Initiatives (b)


Intangible

Amortization


Other (c)


Total

Specifieds

Gross Margin

$                    2


$                  74


$                943


$                    5


$             1,024

R&D

(4)


(1)


—


(57)


(62)

SG&A

(25)


(19)


—


(47)


(91)

Other (income) expense, net

(135)


—


—


(36)


(171)

Earnings before taxes

$                166


$                  94


$                943


$                145


1,348

Taxes on Earnings (d)









143

Net Earnings









$             1,205

Diluted Earnings per Share









$               0.68



The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."



a)

Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.



b)

Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.



c)

Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment and intangible asset impairments.



d)

Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.

 

Cision View original content:https://www.prnewswire.com/news-releases/abbott-reports-second-quarter-2025-results-302507875.html

SOURCE Abbott