📊 ABT Key Takeaways
Is Abbott Laboratories (ABT) a Good Investment?
Abbott faces significant headwinds with net income growth of only 0.4% despite 5.7% revenue growth, indicating severe margin compression. Most critically, diluted EPS collapsed 51.3% year-over-year while ROE (2.1%) and ROA (1.0%) are extraordinarily low, suggesting serious inefficiencies in capital deployment or operational challenges within the core business.
Abbott Laboratories shows solid fundamental quality, with mid-single-digit revenue growth, strong operating profitability, and robust free cash flow generation. The balance sheet appears conservative, with low leverage, ample liquidity, and very high interest coverage, which supports resilience and flexibility. The main caveat is mixed earnings quality, as diluted EPS fell sharply despite stable net income, suggesting non-operating or capital structure effects that warrant closer scrutiny.
Abbott Laboratories Key Strengths (ABT)
- Positive revenue growth of 5.7% YoY demonstrates market demand
- Strong operating cash flow ($1.3B) with solid 8.2% FCF margin shows cash generation capability
- Moderate leverage with 0.57x debt-to-equity ratio and robust 9.5x interest coverage indicates manageable debt burden
- Substantial balance sheet with $110.4B in assets and $6.8B cash provides financial cushion
- Consistent top-line growth with revenue up 5.7% year over year
- Strong financial health supported by low debt-to-equity, solid liquidity, and 57.1x interest coverage
- Healthy cash generation with $7.39B of free cash flow and a 16.7% free cash flow margin
ABT Stock Risks: Abbott Laboratories Investment Risks
- Severe margin compression: revenue +5.7% but net income +0.4% signals operational deterioration
- Catastrophic 51.3% EPS decline year-over-year indicates either massive share dilution or earnings collapse
- Critically low return metrics (ROE 2.1%, ROA 1.0%) suggest fundamental inefficiencies in capital allocation
- Tight quick ratio at 1.01x indicates limited short-term liquidity flexibility despite adequate current ratio
- Large long-term debt of $29.6B relative to weak profitability growth creates refinancing risk in adverse conditions
- Diluted EPS declined 51.3% year over year despite flat net income, indicating potential earnings quality or one-time distortions
- Net income growth of just 0.4% trails revenue growth, suggesting margin pressure or higher costs below the operating line
- Reported gross margin appears unusually low relative to the business profile, raising possible data classification or reporting-quality concerns
Key Metrics to Watch
- Quarterly gross and operating margin trends to identify if compression stabilizes or worsens
- Year-over-year EPS growth trajectory and share dilution rates
- Operating cash flow sustainability relative to capital expenditure and debt service
- Return on Equity improvement pathway and capital allocation changes
- Operating margin and net margin progression
- Free cash flow conversion relative to net income
Abbott Laboratories (ABT) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Abbott Laboratories presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
ABT Profit Margin, ROE & Profitability Analysis
ABT vs Healthcare Sector: How Abbott Laboratories Compares
How Abbott Laboratories compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Abbott Laboratories Stock Overvalued? ABT Valuation Analysis 2026
Based on fundamental analysis, Abbott Laboratories has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Abbott Laboratories Balance Sheet: ABT Debt, Cash & Liquidity
ABT Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Abbott Laboratories's revenue has shown modest growth of 3% over the 5-year period. The most recent EPS of $3.26 reflects profitable operations.
ABT Revenue Growth, EPS Growth & YoY Performance
ABT Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $10.4B | $1.1B | $0.61 |
| Q3 2025 | $10.6B | $1.6B | $0.94 |
| Q2 2025 | $10.4B | $1.3B | $0.74 |
| Q1 2025 | $10.0B | $1.2B | $0.70 |
| Q3 2024 | $10.1B | $1.4B | $0.82 |
| Q2 2024 | $10.0B | $1.3B | $0.74 |
| Q1 2024 | $9.7B | $1.2B | $0.70 |
| Q3 2023 | $10.1B | $1.4B | $0.81 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Abbott Laboratories Dividends, Buybacks & Capital Allocation
ABT SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Abbott Laboratories (CIK: 0000001800)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 29, 2026 | 4 | xslF345X06/form4-04292026_090456.xml | View → |
| Apr 29, 2026 | 10-Q | abt-20260331.htm | View → |
| Apr 28, 2026 | 4 | xslF345X06/form4-04292026_120423.xml | View → |
| Apr 28, 2026 | 4 | xslF345X06/form4-04282026_110409.xml | View → |
| Apr 28, 2026 | 4 | xslF345X06/form4-04282026_110450.xml | View → |
❓ Frequently Asked Questions about ABT
What is the AI rating for ABT?
Abbott Laboratories (ABT) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ABT's key strengths?
Claude: Positive revenue growth of 5.7% YoY demonstrates market demand. Strong operating cash flow ($1.3B) with solid 8.2% FCF margin shows cash generation capability. ChatGPT: Consistent top-line growth with revenue up 5.7% year over year. Strong financial health supported by low debt-to-equity, solid liquidity, and 57.1x interest coverage.
What are the risks of investing in ABT?
Claude: Severe margin compression: revenue +5.7% but net income +0.4% signals operational deterioration. Catastrophic 51.3% EPS decline year-over-year indicates either massive share dilution or earnings collapse. ChatGPT: Diluted EPS declined 51.3% year over year despite flat net income, indicating potential earnings quality or one-time distortions. Net income growth of just 0.4% trails revenue growth, suggesting margin pressure or higher costs below the operating line.
What is ABT's revenue and growth?
Abbott Laboratories reported revenue of $11.2B.
Does ABT pay dividends?
Abbott Laboratories pays dividends, with $1,098.0M distributed to shareholders in the trailing twelve months.
Where can I find ABT SEC filings?
Official SEC filings for Abbott Laboratories (CIK: 0000001800) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ABT's EPS?
Abbott Laboratories has a diluted EPS of $0.61.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is ABT's fundamental grade?
Based on our AI fundamental analysis in June 2026, Abbott Laboratories has a B grade with 74% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is ABT stock overvalued or undervalued?
Valuation metrics for ABT: ROE of 2.1% (sector avg: 15%), net margin of 9.6% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is ABT's AI grade for 2026?
Our dual AI analysis gives Abbott Laboratories a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ABT's free cash flow?
Abbott Laboratories's operating cash flow is $1.3B, with capital expenditures of $399.0M. FCF margin is 8.2%.
How does ABT compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 9.6% (avg: 12%), ROE 2.1% (avg: 15%), current ratio 1.39 (avg: 2).