Abbott's Net Earnings Soar 36.7% in Strong Second Quarter

Abbott (ABT) reported a strong second quarter for 2025, with net sales reaching $11.142 billion, an increase of 7.4% compared to $10.377 billion in Q2 2024. Net earnings for the quarter significantly grew to $1.779 billion, marking a substantial 36.7% increase from $1.302 billion in the same period last year. Diluted GAAP EPS stood at $1.01, while adjusted diluted EPS was $1.26, surpassing the analyst estimate of $1.25.

Strategic Highlights and Product Innovation

Abbott continued to advance its product pipeline with several key developments. In April, the company completed enrollment ahead of schedule in its FlexPulse U.S. IDE trial, evaluating the TactiFlex™ Duo Pulsed Field Ablation (PFA) System for treating atrial fibrillation (AFib). Additionally, late-breaking data was announced for the AVEIR™ Conduction System Pacing (CSP) clinical feasibility study, marking the world's first assessment of a leadless pacemaker delivering conduction pacing. In May, Abbott received U.S. FDA approval for its Tendyne™ transcatheter mitral valve replacement (TMVR) system, a pioneering device for mitral valve disease.

Segmental Performance Drivers

Worldwide Medical Devices sales were a primary growth driver, increasing 13.4% on a reported basis to $5.369 billion, and 12.2% organically. This growth was fueled by double-digit increases in Diabetes Care, Heart Failure, Structural Heart, and Electrophysiology. Key product contributions came from FreeStyle Libre®, Navitor®, TriClip®, and AVEIR®. Diabetes Care sales of continuous glucose monitors reached $1.9 billion, showing a 21.4% reported increase and 19.6% organic growth. Established Pharmaceuticals also saw robust performance, with sales increasing 6.9% reported and 7.7% organically, primarily driven by double-digit growth in several Key Emerging Markets across Asia, Latin America, and the Middle East.

Management Outlook

Looking ahead, Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing-related sales, to be between 7.5% and 8.0%. Including COVID-19 testing-related sales, the projected organic sales growth is 6.0% to 7.0%. The company anticipates full-year 2025 adjusted diluted EPS to range from $5.10 to $5.20, reflecting double-digit growth at the midpoint. For the third quarter of 2025, adjusted diluted EPS is projected to be between $1.28 and $1.32. Robert B. Ford, chairman and chief executive officer, stated, "We see this momentum carrying into 2026."