ABTNYSE·Medical - Devices

Abbott Laboratories ABT

Market cap $179.1BP/E 33.3× trailingGross margin 56.8%Reports Wed 21 Oct, before the open

$103.51

+0.02 (+0.02%)live 09:30 ET

52-wk $81.97 – $135.45

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Orin's take

0.62conviction · moderate

Refreshed 1 Sep · take v8. A new filing or a print queues the next refresh.

Get emailed if this changes

Abbott's FY2025 fundamentals show genuine operational improvement — revenue of $44.3B grew 5.67% YoY, gross margin expanded to 55.5%, operating margin reached 18.2%, and free cash flow hit $7.4B — but the 51.3% YoY EPS decline to $3.72 (against FY2024's elevated $7.64) clouds the normalized earnings picture. The stock has cooled from prior overbought conditions (RSI now 52.9 versus the prior verdict's 72.8) and trades at a P/S of 4.1x and EV/EBITDA of 22.0x, both below the peer median, yet the P/E of 35.5x remains at a ~22% premium.

Recent FDA and CE Mark regulatory wins in diabetes and structural heart add credible growth catalysts, but with smart money still slightly negative (-0.05 as of Q2 2026) and the EPS reset fresh, patience is warranted until the earnings trajectory clarifies.

What could go wrong

EPS normalization uncertainty. FY2024 net income of $13.4B on $6.8B operating income versus FY2025's $6.5B on $8.0B suggests a one-time gain inflated the prior base; the market may still be repricing to the lower normalized figure.
Valuation premium. P/E of 35.5x sits ~22% above the peer median of 29.1x, limiting margin of safety even as P/S and EV/EBITDA come in below median.
Insider selling signals. CEO Robert Ford exercised options and sold shares on 2026-08-25 at ~$116, netting zero incremental common stock; while routine, it provides no incremental insider conviction at current levels.
Smart money positioning. Smart money score of -0.046 as of Q2 2026, while improving from -0.092 in Q4 2025, remains in negative territory across 66 funds.

What would change my mind

Sustained margin expansion. Two consecutive quarters of operating margin above 18.5% with revenue growth above 6% YoY would confirm the FY2025 improvement is structural, not cyclical.bullish

FDA diabetes commercial traction. Quantified U.S. launch metrics for the FDA-approved diabetes product (prescription volume, revenue contribution) demonstrating market share capture.bullish

Further EPS deterioration. Next two quarters show EPS declining further or operating margin reverting below 17%, indicating FY2025 margin gains are unsustainable.bearish

P/E de-rating. P/E compresses toward the peer median of 29.1x without an offsetting acceleration in revenue or margin growth.bearish

Where this comes from: FMP FY2025 + derived_metrics · derived_metrics FY2025 · FMP FY2025 · FMP FY2025 + derived_metrics. Orin's read on ABT; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

On file

All ABT filings

Form	Filed	What it says	Read
8-K	20 Aug	Abbott announced on August 20, 2026, agreements to resolve the "Gill" litigation and claims for approximately 2,000 additional infants concerning its specialty formulas for…	read
10-Q	28 Jul	Abbott Laboratories reported $12.593 billion in net sales for the three months ended June 30, 2026, a 13.0% increase year-over-year, or 12.2% excluding foreign exchange.	read
8-K	16 Jul	Abbott Laboratories announced its second quarter 2026 results on July 16, 2026.	read
13G	29 Apr	—	on file
10-Q	29 Apr	Abbott closed the Exact Sciences acquisition on 23 March 2026, paying $20.6 billion in cash and assuming $2.8 billion of debt; the deal was financed with $20 billion of new senior…	read
8-K	27 Apr	Abbott’s 2026 annual meeting on April 24, 2026 approved a new 140 million-share equity plan, expanding the dilutable pool by roughly 8% of current shares outstanding and replacing the 2017 program.	read
8-K	17 Apr	The Northern District of Illinois on April 10, 2026, preliminarily approved a settlement of the consolidated shareholder derivative litigation In re Abbott Laboratories Infant…	read
8-K	16 Apr	Abbott Laboratories filed an 8-K on April 16, 2026, solely to furnish its first-quarter 2026 earnings release under Item 2.02; no other events are disclosed.	read

Largest holders · 13F Q2 2026

Money flow

Filer	Position	Of fund
Vanguard Capital Management	$10.3B	0.2% of fund
State Street	$7.3B	0.2% of fund
Charles Schwab Investment Management	$5.4B	0.7% of fund
Vanguard Portfolio Management	$4.4B	0.2% of fund
Geode Capital Management	$3.5B	0.2% of fund
Capital Research Global Investors	$3.3B	0.5% of fund

158 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 117 Form 4 filings, net $66.0M. Of the 50 on hand, 2 were open-market purchases and 10 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Healthcare

Metric	Now	Own median	Sector
P/E	33.3×	33.4×	26.4×
EV/EBITDA	20.8×	18.8×	—
P/S	3.85×	4.76×	—
P/B	3.5×	4.9×	—

Its P/E sits 40th percentile of its own last 5 years (+0.58σ from its own mean).

What the price assumes

10.3%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $7.4B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

41 firms · 2026-09-23

Consensus target

$122

$92 – $143 · +17% against today's price

How they rate it

32 buy or overweight
9 hold
0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 28.1× of 7 peers

Company	Market cap	P/E	EV/EBITDA	Gross	Net	ROE
ABTAbbott Laboratories	$179B	33.3×	20.8×	56.8%	11.6%	11%
BSXBoston Scientific Corporation	$66B	18.0×	13.8×	71.2%	17.5%	15%
GILDGilead Sciences, Inc.	$188B	—	331.4×	79.6%	-10.6%	-16%
ISRGIntuitive Surgical, Inc.	$141B	45.0×	30.6×	66.7%	28.4%	18%
MDTMedtronic plc	$114B	21.8×	14.9×	66.7%	13.9%	11%
MRKMerck & Co., Inc.	$366B	117.5×	29.8×	75.4%	4.8%	7%
SYKStryker Corporation	$105B	28.1×	18.6×	65.2%	14.4%	16%
TMOThermo Fisher Scientific Inc.	$246B	35.7×	26.0×	41.0%	15.1%	13%
UNHUnitedHealth Group Incorporated	$337B	23.9×	14.8×	22.5%	3.1%	15%

The median is of the 7 peers listed above and nothing else — check it against the column. This company trades 18.5% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year

FY14 29.8×FY25 33.5×

What its sector has traded at

Healthcare

FY14 6.5×FY26 28.6×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since

Model	Fair value	Against	Computed
Standard DCF	$149	$89.08 · +67%	2026-06-10
Levered DCF	$127	$89.08 · +43%	2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $103.51

52-week range$82 – $137

Analyst targets$92 – $143

Standard DCF$149 as of 2026-06-10, when it was $89.08

Levered DCF$127 as of 2026-06-10, when it was $89.08

At own 5y-median P/E (33×)$104

At 5y P/E range (15–35×)$45 – $110

At sector P/E (26×)$82

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.