# Abbott Laboratories (ABT.US)

Canonical: https://gigainvestors.com/s/ABT

Analysis as of: 2026-10-16T07:26:08.905Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $104.68 per share; close as of 2026-10-15.

Estimated value: low $59.48 per share, central $67.31 per share, high $77.73 per share. Buy at or below the central value $67.31 per share. Valuation as of 2026-10-16T07:26:08.905Z; scenarios are not confidence intervals.

Expected annual return: 7.4% at the stated quote. About 7.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.13×

- FY2019: 0.14×

- FY2020: 0.15×

- FY2021: 0.21×

- FY2022: 0.19×

- FY2023: 0.16×

- FY2024: 0.16×

- FY2025: 0.18×

- LTM to Mar 2026: 0.18×

### moat: pass

- ROIC, median of available years: 19.8%

- ROIC, second-lowest year: 13.7%

- Typical minus recent gross margin: 0.6 pp

- Typical gross margin (annual median): 51.4%

- Recent gross margin (lower of latest and 3-year median): 50.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.0%

- ROIC including acquisitions, ten-year median: 12.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 15.2%

- FY2017: 5.1%

- FY2018: 13.7%

- FY2019: 18.2%

- FY2020: 21.9%

- FY2021: 36.7%

- FY2022: 32.2%

- FY2023: 23.5%

- FY2024: 21.4%

- FY2025: 18.1%

### economics: pass

- Owner earnings / net income, 5-yr: 1.14×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $44B

- Net income, five-year total: $39B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.3 pp

- Working capital / revenue, final three-year average: 22.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.21×

- FY2023: 1.18×

- FY2024: 1.08×

- FY2025: 1.14×

- LTM to Mar 2026: 1.16×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.7% vs 21.4%

- Per-share earnings: 0.94 to 3.73 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.5%

- Ordinary dilution, 5-year annual growth: -0.4%

- Market cap gain: $162B

- Cumulative retained earnings: $24B

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: -0.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.7%

- Per-share value change: $2.79

- Per-share value, starting three-year median: $0.94

- Per-share value, ending three-year median: $3.73

- Buybacks concentrated in cheaper years (correlation): 0.37

- Average buyback yield: 0.7%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $33B

- Cumulative net income, 10 years: $52B

- ROIC, first three-year median: 13.7%

- ROIC, last three-year median: 21.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.94

- FY2017: $0.27

- FY2018: $1.34

- FY2019: $2.07

- FY2020: $2.52

- FY2021: $3.95

- FY2022: $3.93

- FY2023: $3.27

- FY2024: $7.67

- FY2025: $3.73

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 6.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.47×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.57×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.3%

- FY2017: -6.7%

- FY2018: -5.9%

- FY2019: -3.6%

- FY2020: -4.7%

- FY2021: -4.6%

- FY2022: -3.6%

- FY2023: -2.1%

- FY2024: 5.9%

- FY2025: -3.5%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Thomas Russo](https://gigainvestors.com/GR): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Katz](https://gigainvestors.com/MAVFX): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Mason Hawkins](https://gigainvestors.com/SE): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 26% since Dec 2021 · "Abbott Faces $384 Million Cost as Infant Formula Legal Risks Persist" (finance.yahoo.com, Sep 2026) · sales +1.8%

Story as of 2026-10-16T09:58:13.129Z; price observation 2026-10-15.

Price needs cash profits to grow 6.6% a year for ten years

- 2025-07-18: Abbott Labs stock falls 8% as China headwinds prompt guidance cut ([investing.com](https://www.investing.com/news/analyst-ratings/abbott-labs-stock-falls-8-as-china-headwinds-prompt-guidance-cut-93CH-4141751))

- 2025-10-15: Abbott Stock Drops Despite Earnings. Baby-Formula Sales Took a Hit. ([finance.yahoo.com](https://finance.yahoo.com/m/a1914f45-650e-36af-9e52-cb88c10d2594/abbott-stock-drops-despite.html))

- 2026-01-22: Abbott Laboratories Raised Prices, Prompting Sales Slump ([finance.yahoo.com](https://finance.yahoo.com/m/d97bb269-347f-34ed-ba64-32f6f07cf0d8/abbott-laboratories-raised.html))

- 2026-04-16: Abbott Stock Tumbles on Earnings. Nutrition Business Is Struggling and Merger Costs Biting. ([finance.yahoo.com](https://finance.yahoo.com/m/c42b4049-f158-3a12-8ffa-4b61a80701d8/abbott-stock-tumbles-on.html))

- 2026-07-16: Abbott (ABT) Lifts 2026 EPS Outlook Amid Business Mix Shift Toward Devices and Diagnostics ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/abbott-abt-lifts-2026-eps-201437790.html))

- 2026-09-24: Abbott Laboratories (ABT) is Facing Segment Competition and Sluggish Nutrition Recovery ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/abbott-laboratories-abt-facing-segment-131040100.html))

### Sales · FY2025–2026

sales +1.8%; source https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm; observed 2026-02-20.

- FY2017: $27B 

- FY2018: $31B 

- FY2019: $32B 

- FY2020: $35B 

- FY2021: $43B 

- FY2022: $44B 

- FY2023: $40B 

- FY2024: $42B 

- FY2025: $44B 

- FY2026: $45B 

### Gross margin · FY2025

gross margin 55.5%; source https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm; observed 2026-02-20.

- FY2016: 53.9% 

- FY2017: 47.7% 

- FY2018: 51.7% 

- FY2019: 52.3% 

- FY2020: 50.2% 

- FY2021: 53.9% 

- FY2022: 51.1% 

- FY2023: 50.0% 

- FY2024: 50.8% 

- FY2025: 55.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in medical devices; annual sales are USD 44.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm (filed 2026-02-20); FY2025: revenue 44328000000; grossProfit 24607000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABT.US: Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915. Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.

### Why customers stay

Margins ranged from 50% to 55.5% during 2023–25; it earns 19.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: grossProfit / revenue = 50%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: grossProfit / revenue = 50.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm (filed 2026-02-20); FY2025: grossProfit / revenue = 55.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); 10-year return on capital observations [[2016,0.1519472168305549],[2017,0.05088325195506332],[2018,0.1372673355186408],[2019,0.1816835066403554],[2020,0.21860650981449767],[2021,0.3672502236884185],[2022,0.3221965137466428],[2023,0.23498325897243835],[2024,0.2141915641476274],[2025,0.18121977158208713]]; median 0.1979375353939914. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

In the United States and other countries, Abbott’s businesses have experienced downward pressure on certain product pricing.

- Source: https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm (filed 2026-02-20); Both in the U.S. and internationally, government authorities may enact changes in regulatory requirements, make legislative or administrative reforms to existing reimbursement programs, make adverse decisions relating to Abbott’s products’ coverage or reimbursement, or make changes to patient ac nt efforts that could cause a reduction in future revenues and operating earnings. In the United States and other countries, Abbott’s businesses have experienced downward pressure on certain product pricing. Cost containment efforts by governments and private organizations are described in greater detail in the section captioned “Regulation.” To the extent these cost containment efforts are not offset by greater patient access to healthcare or other factors, Abbott’s future revenues and operating earnings will be reduced.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 893 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2016: growth capex 0; upkeep 1121000000; owner earnings 1632000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2017: growth capex 0; upkeep 1135000000; owner earnings 2363000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2018: growth capex 0; upkeep 1394000000; owner earnings 4252000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2019: growth capex 0; upkeep 1638000000; owner earnings 5063000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2020: growth capex 0; upkeep 2177000000; owner earnings 5645000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2021: growth capex 0; upkeep 1885000000; owner earnings 8724000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2022: growth capex 0; upkeep 1777000000; owner earnings 8423000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2023: growth capex 0; upkeep 2202000000; owner earnings 6764000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); FY2024: growth capex 0; upkeep 2207000000; owner earnings 14413000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm (filed 2026-02-20); FY2025: growth capex 0; upkeep 2171000000; owner earnings 7469000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Dividend observations: [[2016,1539000000],[2017,1849000000],[2018,1974000000],[2019,2270000000],[2020,2560000000],[2021,3202000000],[2022,3309000000],[2023,3556000000],[2024,3836000000],[2025,4116000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm (filed 2026-02-20); FY2025: cash repurchases 893000000 USD.

### Are managers owners

Insiders own 0.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ABT.US SharesStats.PercentInsiders = 0.492 percentage points; cache date 2026-10-16.

### What could break it

"Fluctuation in foreign currency exchange rates has adversely affected" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm (filed 2026-02-20); Fluctuation in foreign currency exchange rates has adversely affected

### What the price says

The price assumes cash profits grow 6.6% yearly over ten years; actual growth was 3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-20); Ten-year compound average after fade. Initial solved rate 0.0819611652574691. Price 104.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.1772908366533863 → FY2025 4.272883295194508. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $39.24 per share

- 2016-11: $38.07 per share

- 2016-12: $38.41 per share

- 2017-01: $41.77 per share

- 2017-02: $45.08 per share

- 2017-03: $44.41 per share

- 2017-04: $43.64 per share

- 2017-05: $45.66 per share

- 2017-06: $48.61 per share

- 2017-07: $49.18 per share

- 2017-08: $50.94 per share

- 2017-09: $53.36 per share

- 2017-10: $54.23 per share

- 2017-11: $56.37 per share

- 2017-12: $57.07 per share

- 2018-01: $62.16 per share

- 2018-02: $60.33 per share

- 2018-03: $59.92 per share

- 2018-04: $58.13 per share

- 2018-05: $61.53 per share

- 2018-06: $60.99 per share

- 2018-07: $65.54 per share

- 2018-08: $66.84 per share

- 2018-09: $73.36 per share

- 2018-10: $68.94 per share

- 2018-11: $74.05 per share

- 2018-12: $72.33 per share

- 2019-01: $72.98 per share

- 2019-02: $77.62 per share

- 2019-03: $79.94 per share

- 2019-04: $79.56 per share

- 2019-05: $76.13 per share

- 2019-06: $84.10 per share

- 2019-07: $87.10 per share

- 2019-08: $85.32 per share

- 2019-09: $83.67 per share

- 2019-10: $83.61 per share

- 2019-11: $85.45 per share

- 2019-12: $86.86 per share

- 2020-01: $87.14 per share

- 2020-02: $77.03 per share

- 2020-03: $78.91 per share

- 2020-04: $92.09 per share

- 2020-05: $94.92 per share

- 2020-06: $91.43 per share

- 2020-07: $100.64 per share

- 2020-08: $109.47 per share

- 2020-09: $108.83 per share

- 2020-10: $105.11 per share

- 2020-11: $108.22 per share

- 2020-12: $109.49 per share

- 2021-01: $123.59 per share

- 2021-02: $119.78 per share

- 2021-03: $119.84 per share

- 2021-04: $120.08 per share

- 2021-05: $116.65 per share

- 2021-06: $115.93 per share

- 2021-07: $120.98 per share

- 2021-08: $126.37 per share

- 2021-09: $118.13 per share

- 2021-10: $128.89 per share

- 2021-11: $125.77 per share

- 2021-12: $140.74 per share

- 2022-01: $127.46 per share

- 2022-02: $120.62 per share

- 2022-03: $118.36 per share

- 2022-04: $113.50 per share

- 2022-05: $117.46 per share

- 2022-06: $108.65 per share

- 2022-07: $108.84 per share

- 2022-08: $102.65 per share

- 2022-09: $96.76 per share

- 2022-10: $98.94 per share

- 2022-11: $107.58 per share

- 2022-12: $109.79 per share

- 2023-01: $110.55 per share

- 2023-02: $101.72 per share

- 2023-03: $101.26 per share

- 2023-04: $110.47 per share

- 2023-05: $102.00 per share

- 2023-06: $109.02 per share

- 2023-07: $111.33 per share

- 2023-08: $102.90 per share

- 2023-09: $96.85 per share

- 2023-10: $94.55 per share

- 2023-11: $104.29 per share

- 2023-12: $110.07 per share

- 2024-01: $113.15 per share

- 2024-02: $118.64 per share

- 2024-03: $113.66 per share

- 2024-04: $105.97 per share

- 2024-05: $102.19 per share

- 2024-06: $103.91 per share

- 2024-07: $105.94 per share

- 2024-08: $113.27 per share

- 2024-09: $114.01 per share

- 2024-10: $113.37 per share

- 2024-11: $118.77 per share

- 2024-12: $113.11 per share

- 2025-01: $127.93 per share

- 2025-02: $138.01 per share

- 2025-03: $132.65 per share

- 2025-04: $130.75 per share

- 2025-05: $133.58 per share

- 2025-06: $136.01 per share

- 2025-07: $126.19 per share

- 2025-08: $132.66 per share

- 2025-09: $133.94 per share

- 2025-10: $123.62 per share

- 2025-11: $128.90 per share

- 2025-12: $125.29 per share

- 2026-01: $109.30 per share

- 2026-02: $116.35 per share

- 2026-03: $102.67 per share

- 2026-04: $90.79 per share

- 2026-05: $85.60 per share

- 2026-06: $90.74 per share

- 2026-07: $105.70 per share

- 2026-08: $110.36 per share

- 2026-09: $98.83 per share

- 2026-10: $102.61 per share

## Annual estimated value (USD per share)

- FY2016: low $34.54 per share, central $37.59 per share, high $41.66 per share

- FY2017: low $28.47 per share, central $31.68 per share, high $35.96 per share

- FY2018: low $27.66 per share, central $31.20 per share, high $35.92 per share

- FY2019: low $29.19 per share, central $32.95 per share, high $37.94 per share

- FY2020: low $33.07 per share, central $37.13 per share, high $42.53 per share

- FY2021: low $47.01 per share, central $52.77 per share, high $60.44 per share

- FY2022: low $49.39 per share, central $55.47 per share, high $63.57 per share

- FY2023: low $45.97 per share, central $51.80 per share, high $59.56 per share

- FY2024: low $54.69 per share, central $61.67 per share, high $70.96 per share

- FY2025: low $58.09 per share, central $65.46 per share, high $75.28 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:31:43.912Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1800/000162828026010185/abt-20251231.htm); period 2025-12-31, filed 2026-02-20.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.