Abbott Labs (ABT) Stock Forecast & Price Target

Abbott Laboratories reported strong performance with its continuous glucose monitoring (CGM) segment generating approximately $2 billion in sales, reflecting a year-over-year growth of 12.2%. The company demonstrated robust margin expansion in 2025, adding 50 basis points to gross margins and 100 basis points to EBIT, while segment sales increased by 10% year-over-year, driven by advancements in technology and new product launches. Furthermore, Abbott's commitment to shareholder returns is underscored by its history of increasing dividends for over 50 consecutive years, highlighting its strong financial health and stability.

Abbott Laboratories reported weak Q4 organic ex-Covid sales growth of 3.8% year-over-year, which indicates a deceleration in growth compared to previous quarters, particularly affected by challenges in its Nutrition and Diagnostics divisions. The company's results reflected broader market pressures, including inflation and foreign exchange impacts, along with a decline in revenue from Covid-19 testing, which fell significantly from the previous year. Additionally, almost all segments underperformed relative to expectations, and the provided 2026 sales guidance was lower than consensus, contributing to an 8% decline in stock value following the Q4 results announcement.