— Second-quarter reported sales growth of 7.4 percent; organic sales growth of 6.9 percent or 7.5 percent excluding COVID-19 testing-related sales1
— Second-quarter GAAP diluted EPS of $1.01; adjusted diluted EPS of $1.26
— Reported gross margin of 52.7 percent of sales; adjusted gross margin of 57.0 percent, which reflects a 100 basis point increase
— Reported operating margin of 18.4 percent of sales; adjusted operating margin of 22.9 percent, which reflects a 100 basis point increase
Abbott (NYSE: ABT) today announced financial results for the second quarter ended June 30, 2025.
— Second-quarter sales increased 7.4 percent on a reported basis, 6.9 percent on an organic basis, or 7.5 percent when excluding COVID-19 testing-related sales1.
— Second-quarter GAAP diluted EPS of $1.01 and adjusted diluted EPS of $1.26, which excludes specified items and reflects double-digit growth compared to the prior year.
— First-half sales increased 5.7 percent on a reported basis, 6.9 percent on an organic basis, or 7.9 percent when excluding COVID-19 testing-related sales2.
— Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing-related sales, to be 7.5% to 8.0%, or 6.0% to 7.0% when including COVID-19 testing-related sales.
— Abbott projects full-year 2025 adjusted diluted EPS of $5.10 to $5.20, which reflects double-digit growth at the midpoint.
— In April, Abbott completed enrollment ahead of schedule in its FlexPulse U.S. IDE trial, which is designed to evaluate the TactiFlex™ Duo Pulsed Field Ablation (PFA) System for treating patients with heart rhythm disorders such as atrial fibrillation (AFib).
— In April, Abbott announced late-breaking data from the AVEIR™ Conduction System Pacing (CSP) clinical feasibility study. This study was the world's first assessment of a leadless pacemaker delivering conduction pacing, which produces pacing that closely mimics the heart's natural electrical rhythm and represents a new treatment option for people with irregular heart rhythms.
— In May, Abbott announced U.S. Food and Drug Administration (FDA) approval of the company's Tendyne™ transcatheter mitral valve replacement (TMVR) system, a first-of-its-kind device to help treat people with mitral valve disease.
— Abbott has initiated plans to develop a new cardiovascular device manufacturing facility in the state of Georgia to be completed by 2028.
“Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, significantly expanded our margin profiles, and continued to advance key programs through our new product pipeline,” said Robert B. Ford, chairman and chief executive officer, Abbott. “We see this momentum carrying into 2026.”
SECOND-QUARTER BUSINESS OVERVIEW Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect® product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand the underlying performance of the company as the demand for COVID-19 tests has significantly declined following the transition from a pandemic to endemic phase.
Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates.
Second Quarter 2025 Results (2Q25)Sales 2Q25 ($ in millions) Total Company Nutrition Diagnostics Established Medical Devices PharmaceuticalsU.S. 4,276 957 811 – 2,503International 6,866 1,255 1,362 1,383 2,866Total reported 11,142 2,212 2,173 1,383 5,369% Change vs. 2Q24U.S. 8.7 2.6 (0.1) n/a 14.6International 6.6 3.1 (1.5) 6.9 12.4Total reported 7.4 2.9 (1.0) 6.9 13.4Impact of foreign exchange 0.5 (0.5) 0.4 (0.8) 1.2Organic 6.9 3.4 (1.4) 7.7 12.2Impact of COVID-19 testing sales 1 (0.6) – (2.2) – -Organic (excluding COVID-19 tests) 7.5 3.4 0.8 7.7 12.2OrganicU.S. 8.7 2.6 (0.1) n/a 14.6International 5.8 4.0 (2.2) 7.7 10.1
First Half 2025 Results (1H25)Sales 1H25 ($ in millions) Total Company Nutrition Diagnostics Established Medical Devices PharmaceuticalsU.S. 8,444 1,912 1,682 – 4,842International 13,056 2,446 2,545 2,643 5,422Total reported 21,500 4,358 4,227 2,643 10,264% Change vs. 1H24U.S. 8.5 5.6 (3.5) n/a 14.8International 3.9 1.6 (4.5) 4.9 9.1Total reported 5.7 3.3 (4.1) 4.9 11.7Impact of foreign exchange (1.1) (1.5) (0.9) (2.9) (0.7)Impact of business exit* (0.1) (0.3) – – -Organic 6.9 5.1 (3.2) 7.8 12.4Impact of COVID-19 testing sales 2 (1.0) – (3.9) – -Organic (excluding COVID-19 tests) 7.9 5.1 0.7 7.8 12.4OrganicU.S. 8.7 6.4 (3.5) n/a 14.8International 5.8 4.1 (3.0) 7.8 10.3
Refer to table titled “Non-GAAP Revenue Reconciliation” for a reconciliation of adjusted historical revenue to reported revenue.
*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.
NutritionSecond Quarter 2025 Results (2Q25)Sales 2Q25 ($ in millions) Total Pediatric AdultU.S. 957 587 370International 1,255 467 788Total reported 2,212 1,054 1,158% Change vs. 2Q24U.S. 2.6 4.2 0.2International 3.1 (5.7) 9.2Total reported 2.9 (0.4) 6.1Impact of foreign exchange (0.5) (0.6) (0.5)Organic 3.4 0.2 6.6U.S. 2.6 4.2 0.2International 4.0 (4.5) 9.8
Worldwide Nutrition sales increased 2.9 percent on a reported basis and 3.4 percent on an organic basis in the second quarter.
Growth in the quarter was led by Adult Nutrition, where global sales increased 6.1 percent on a reported basis and 6.6 percent on an organic basis, led by strong growth of Ensure®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna®, Abbott's market-leading brand of products designed to meet the nutritional requirements for people with diabetes.
First Half 2025 Results (1H25)Sales 1H25 ($ in millions) Total Pediatric AdultU.S. 1,912 1,175 737International 2,446 920 1,526Total reported 4,358 2,095 2,263% Change vs. 1H24U.S. 5.6 9.0 0.6International 1.6 (7.0) 7.7Total reported 3.3 1.3 5.3Impact of foreign exchange (1.5) (1.2) (1.6)Impact of business exit* (0.3) – (0.7)Organic 5.1 2.5 7.6U.S. 6.4 9.0 2.4International 4.1 (4.6) 10.2
*Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.
DiagnosticsSecond Quarter 2025 Results (2Q25)Sales 2Q25 ($ in millions) Total Core Laboratory Molecular Point of Care Rapid DiagnosticsU.S. 811 351 35 104 321International 1,362 1,007 88 44 223Total reported 2,173 1,358 123 148 544% Change vs. 2Q24U.S. (0.1) 7.3 5.5 (2.0) (7.1)International (1.5) 0.5 (5.6) (11.9) (6.1)Total reported (1.0) 2.2 (2.7) (5.1) (6.7)Impact of foreign exchange 0.4 0.6 0.7 0.1 0.1Organic (1.4) 1.6 (3.4) (5.2) (6.8)U.S. (0.1) 7.3 5.5 (2.0) (7.1)International (2.2) (0.3) (6.5) (12.1) (6.3)
Global Diagnostics sales decreased 1.0 percent on a reported basis, decreased 1.4 percent on an organic basis, and increased 0.8 percent when excluding COVID-19 testing-related sales1.
Diagnostics sales growth was impacted by the year-over-year decline in COVID-19 testing-related sales and volume-based procurement programs in China.
COVID-19 testing-related sales were $55 million in the quarter, compared to $102 million in the second quarter of the prior year.
Global Core Laboratory Diagnostics sales increased 2.2 percent on a reported basis and increased 1.6 percent on an organic basis. Growth in the quarter was impacted by volume-based procurement programs in China.
First Half 2025 Results (1H25)Sales 1H25 ($ in millions) Total Core Laboratory Molecular Point of Care Rapid DiagnosticsU.S. 1,682 683 75 204 720International 2,545 1,852 170 86 437Total reported 4,227 2,535 245 290 1,157% Change vs. 1H24U.S. (3.5) 7.2 – (0.3) (12.8)International (4.5) (2.4) (6.1) (4.5) (12.3)Total reported (4.1) 0.1 (4.4) (1.6) (12.6)Impact of foreign exchange (0.9) (1.2) (1.0) (0.4) (0.6)Organic (3.2) 1.3 (3.4) (1.2) (12.0)U.S. (3.5) 7.2 – (0.3) (12.8)International (3.0) (0.7) (4.9) (3.3) (10.7)
Established PharmaceuticalsSecond Quarter 2025 Results (2Q25)Sales 2Q25 ($ in millions) Total Key Emerging Other MarketsU.S. – – -International 1,383 1,059 324Total reported 1,383 1,059 324% Change vs. 2Q24U.S. n/a n/a n/aInternational 6.9 7.3 5.9Total reported 6.9 7.3 5.9Impact of foreign exchange (0.8) (1.4) 1.4Organic 7.7 8.7 4.5U.S. n/a n/a n/aInternational 7.7 8.7 4.5
Established Pharmaceuticals sales increased 6.9 percent on a reported basis and 7.7 percent on an organic basis in the second quarter.
Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 7.3 percent on a reported basis and 8.7 percent on an organic basis, led by double-digit growth in several countries across Asia, Latin America and the Middle East.
First Half 2025 Results (1H25)Sales 1H25 ($ in millions) Total Key Emerging Other MarketsU.S. – – -International 2,643 2,024 619Total reported 2,643 2,024 619% Change vs. 1H24U.S. n/a n/a n/aInternational 4.9 5.7 2.4Total reported 4.9 5.7 2.4Impact of foreign exchange (2.9) (3.3) (1.4)Organic 7.8 9.0 3.8U.S. n/a n/a n/aInternational 7.8 9.0 3.8
Medical DevicesSecond Quarter 2025 Results (2Q25)Sales 2Q25 ($ in millions) Total Rhythm Electro- Heart Vascular Structural Neuro- Diabetes Management physiology Failure Heart modulation CareU.S. 2,503 340 322 282 283 289 193 794International 2,866 333 378 86 474 347 61 1,187Total reported 5,369 673 700 368 757 636 254 1,981% Change vs. 2Q24U.S. 14.6 16.5 12.2 15.8 3.0 12.2 0.4 24.5International 12.4 5.7 10.9 11.2 5.4 13.7 20.4 17.5Total reported 13.4 10.9 11.5 14.7 4.5 13.0 4.6 20.2Impact of foreign exchange 1.2 1.1 1.2 0.7 1.0 1.3 0.3 1.7Organic 12.2 9.8 10.3 14.0 3.5 11.7 4.3 18.5U.S. 14.6 16.5 12.2 15.8 3.0 12.2 0.4 24.5International 10.1 3.6 8.8 8.4 3.8 11.4 18.7 14.7
Worldwide Medical Devices sales increased 13.4 percent on a reported basis and 12.2 percent on an organic basis in the second quarter.
Sales growth in the quarter was led by double-digit growth in Diabetes Care, Heart Failure, Structural Heart and Electrophysiology.
Several products contributed to the strong performance, including FreeStyle Libre®, Navitor®, TriClip® and AVEIR®.
In Diabetes Care, sales of continuous glucose monitors were $1.9 billion and grew 21.4 percent on a reported basis and 19.6 percent on an organic basis.
First Half 2025 Results (1H25)Sales 1H25 ($ in millions) Total Rhythm Electro- Heart Vascular Structural Neuro- Diabetes Management physiology Failure Heart modulation CareU.S. 4,842 644 621 544 551 571 369 1,542International 5,422 614 708 163 916 642 113 2,266Total reported 10,264 1,258 1,329 707 1,467 1,213 482 3,808% Change vs. 1H24U.S. 14.8 14.4 11.7 13.2 4.2 16.3 (1.1) 25.7International 9.1 1.2 7.6 12.6 3.5 9.3 18.5 13.8Total reported 11.7 7.6 9.5 13.1 3.8 12.5 2.9 18.4Impact of foreign exchange (0.7) (0.4) (0.6) (0.2) (0.7) (0.7) (0.4) (0.7)Organic 12.4 8.0 10.1 13.3 4.5 13.2 3.3 19.1U.S. 14.8 14.4 11.7 13.2 4.2 16.3 (1.1) 25.7International 10.3 2.0 8.8 13.4 4.8 10.5 20.5 15.0
ABBOTT'S FINANCIAL GUIDANCE Abbott projects full-year 2025 organic sales growth, excluding COVID-19 testing related sales, to be 7.5% to 8.0%, or 6.0% to 7.0% when including COVID-19 testing-related sales.
Abbott projects full-year 2025 adjusted operating margin to be approximately 23.5% of sales.
Abbott projects full-year 2025 adjusted diluted earnings per share of $5.10 to $5.20 and third-quarter 2025 adjusted diluted earnings per share of $1.28 to $1.32.
Abbott has not provided the related GAAP financial measures on a forward-looking basis for these forward-looking non-GAAP financial measures because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items such as restructuring and cost reduction initiatives, charges for intangible asset impairments, acquisition-related expenses, and foreign exchange, which could significantly impact Abbott's results in accordance with GAAP.
ABBOTT DECLARES 406thCONSECUTIVE QUARTERLY DIVIDEND On June 13, 2025, the board of directors of Abbott declared the company's quarterly dividend of $0.59 per share. Abbott's cash dividend is payable Aug. 15, 2025, to shareholders of record at the close of business on July 15, 2025.
Abbott has increased its dividend payout for 53 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
About Abbott: Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.
Connect with us atwww.abbott.comand onLinkedIn, Facebook, Instagram, X and YouTube.
Abbott will live-webcast its second-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the webcast will be available later in the day.
Private Securities Litigation Reform Act of 1995 – A Caution Concerning Forward-Looking Statements
Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended Dec. 31, 2024, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.
1. In the second quarter of 2025, total worldwide sales were $11.142 billion, total Diagnostics sales were $2.173 billion and COVID-19 testing-related sales were $55 million. In the second quarter of 2024, total worldwide sales were $10.377 billion, total Diagnostics sales were $2.195 billion and COVID-19 testing-related sales were $102 million.2. In the first half of 2025, total worldwide sales were $21.500 billion, total Diagnostics sales were $4.227 billion and COVID-19 testing-related sales were $139 million. In the first half of 2024, total worldwide sales were $20.341 billion, total Diagnostics sales were $4.409 billion and COVID-19 testing-related sales were $306 million.
Abbott Laboratories and SubsidiariesCondensed Consolidated Statement of EarningsSecond Quarter Ended June30, 2025 and 2024(in millions, except per share data)(unaudited) 2Q25 2Q24 % ChangeNet Sales $11,142 $10,377 7.4Cost of products sold, excluding amortization expense 4,854 4,603 5.5Amortization of intangible assets 420 471 (10.7)Research and development 725 698 3.9Selling, general, and administrative 3,091 2,936 5.3Total Operating Cost and Expenses 9,090 8,708 4.4Operating Earnings 2,052 1,669 23.0Interest expense, net 50 58 (14.2)Net foreign exchange (gain) loss (11) (6) 55.6Other (income) expense, net (137) 10 n/mEarnings before taxes 2,150 1,607 33.8Taxes on earnings 371 305 21.3 1)Net Earnings $1,779 $1,302 36.7Net Earnings excluding Specified Items, as described below $2,213 $2,003 10.5 2)Diluted Earnings per Common Share $1.01 $0.74 36.5Diluted Earnings per Common Share, $1.26 $1.14 10.5 2)excluding Specified Items, as described belowAverage Number of Common Shares Outstanding 1,751 1,751Plus Dilutive Common Stock Options
NOTES:See table titled “Non-GAAP Reconciliation of Financial Information” for an explanation of certain non-GAAP financial information.n/m = Percent change is not meaningful.See footnotes on the following section.1) 2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit. 2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years.2) 2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $434 million, or $0.25 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, and other net expenses. 2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $701 million, or $0.40 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses.
Abbott Laboratories and SubsidiariesCondensed Consolidated Statement of EarningsFirst Half Ended June30, 2025 and 2024(in millions, except per share data)(unaudited) 1H25 1H24 % ChangeNet Sales $21,500 $20,341 5.7Cost of products sold, excluding amortization expense 9,322 9,066 2.8Amortization of intangible assets 840 943 (10.8)Research and development 1,441 1,382 4.3Selling, general, and administrative 6,152 5,895 4.4Total Operating Cost and Expenses 17,755 17,286 2.7Operating Earnings 3,745 3,055 22.6Interest expense, net 99 119 (16.4)Net foreign exchange (gain) loss (18) (6) n/mOther (income) expense, net (264) (101) n/mEarnings before taxes 3,928 3,043 29.1Taxes on earnings 824 516 59.5 1)Net Earnings $3,104 $2,527 22.9Net Earnings excluding Specified Items, as described below $4,132 $3,732 10.7 2)Diluted Earnings per Common Share $1.77 $1.44 22.9Diluted Earnings per Common Share, $2.35 $2.12 10.8 2)excluding Specified Items, as described belowAverage Number of Common Shares Outstanding 1,749 1,750Plus Dilutive Common Stock Options
NOTES:See table titled “Non-GAAP Reconciliation of Financial Information” for an explanation of certain non-GAAP financial information.n/m = Percent change is not meaningful.See footnotes on the following section.1) 2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit. 2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years.2) 2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.028 billion, or $0.58 per share, for intangible amortization, charges related to investment impairments, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions, and other net expenses. 2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.205 billion, or $0.68 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and a divestiture, and other net expenses.
Abbott Laboratories and SubsidiariesNon-GAAP Reconciliation of Financial InformationSecond Quarter Ended June30, 2025 and 2024(in millions, except per share data)(unaudited) 2Q25 As Specified As Reported Items Adjusted (GAAP)Intangible Amortization $ 420 $ (420) $ -Gross Margin 5,868 478 6,346R&D 725 (20) 705SG&A 3,091 (1) 3,090Other (income) expense, net (137) (1) (138)Earnings before taxes 2,150 500 2,650Taxes on Earnings 371 66 437Net Earnings 1,779 434 2,213Diluted Earnings per Share $ 1.01 $ 0.25 $ 1.26
Specified items reflect intangible amortization expense of $420 million and other net expenses of $80 million associated with restructuring actions, costs associated with acquisitions, and other net expenses. See table titled “Details of Specified Items” for additional details regarding specified items.
2Q24 As Specified As Reported Items Adjusted (GAAP)Intangible Amortization $ 471 $ (471) $ -Gross Margin 5,303 506 5,809R&D 698 (41) 657SG&A 2,936 (57) 2,879Other (income) expense, net 10 (145) (135)Earnings before taxes 1,607 749 2,356Taxes on Earnings 305 48 353Net Earnings 1,302 701 2,003Diluted Earnings per Share $ 0.74 $ 0.40 $ 1.14
Specified items reflect intangible amortization expense of $471 million and other net expenses of $278 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled “Details of Specified Items” for additional details regarding specified items.
Abbott Laboratories and SubsidiariesNon-GAAP Reconciliation of Financial InformationFirst Half Ended June30, 2025 and 2024(in millions, except per share data)(unaudited) 1H25 As Specified As Reported Items Adjusted (GAAP)Intangible Amortization $ 840 $ (840) $ -Gross Margin 11,338 926 12,264R&D 1,441 (47) 1,394SG&A 6,152 (11) 6,141Other (income) expense, net (264) (36) (300)Earnings before taxes 3,928 1,020 4,948Taxes on Earnings 824 (8) 816Net Earnings 3,104 1,028 4,132Diluted Earnings per Share $ 1.77 $ 0.58 $ 2.35
Specified items reflect intangible amortization expense of $840 million and other net expenses of $180 million associated with restructuring actions, acquisitions, investment impairment charges, and other net expenses. See table titled “Details of Specified Items” for additional details regarding specified items.
1H24 As Specified As Reported Items Adjusted (GAAP)Intangible Amortization $ 943 $ (943) $ -Gross Margin 10,332 1,024 11,356R&D 1,382 (62) 1,320SG&A 5,895 (91) 5,804Other (income) expense, net (101) (171) (272)Earnings before taxes 3,043 1,348 4,391Taxes on Earnings 516 143 659Net Earnings 2,527 1,205 3,732Diluted Earnings per Share $ 1.44 $ 0.68 $ 2.12
Specified items reflect intangible amortization expense of $943 million and other net expenses of $405 million associated with restructuring actions, acquisitions, a divestiture and other net expenses. See table titled “Details of Specified Items” for additional details regarding specified items.
A reconciliation of the second-quarter tax rates for 2025 and 2024 is shown below:
2Q25($ in millions) Pre-Tax Taxes on Tax Income Earnings RateAs reported (GAAP) $ 2,150 $ 371 17.3% 1)Specified items 500 66Excluding specified items $ 2,650 $ 437 16.5% 2Q24($ in millions) Pre-Tax Taxes on Tax Income Earnings RateAs reported (GAAP) $ 1,607 $ 305 19.0% 2)Specified items 749 48Excluding specified items $ 2,356 $ 353 15.0%
1) 2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.2) 2024 Taxes on Earnings includes the recognition of approximately $25 million of net tax expense as a result of the resolution of various tax positions related to prior years.
A reconciliation of the year-to-date tax rates for 2025 and 2024 is shown below:
1H25($ in millions) Pre-Tax Taxes on Tax Income Earnings RateAs reported (GAAP) $ 3,928 $ 824 21.0% 3)Specified items 1,020 (8)Excluding specified items $ 4,948 $ 816 16.5% 1H24($ in millions) Pre-Tax Taxes on Tax Income Earnings RateAs reported (GAAP) $ 3,043 $ 516 17.0% 4)Specified items 1,348 143Excluding specified items $ 4,391 $ 659 15.0%
3) 2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.4) 2024 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense as a result of the resolution of various tax positions related to prior years.
Abbott Laboratories and SubsidiariesNon-GAAP Revenue ReconciliationFirst HalfEnded June30, 2025and 2024($ in millions)(unaudited) 1H25 1H24 % Change vs. 1H24 Non-GAAP Abbott Abbott Impact Adjusted Reported Adjusted Organic Reported Reported from Revenue business exit (a)Total Company 21,500 20,341 (13) 20,328 5.7 5.8 6.9U.S. 8,444 7,780 (13) 7,767 8.5 8.7 8.7Intl 13,056 12,561 – 12,561 3.9 3.9 5.8Total Nutrition 4,358 4,218 (13) 4,205 3.3 3.6 5.1U.S. 1,912 1,811 (13) 1,798 5.6 6.4 6.4Intl 2,446 2,407 – 2,407 1.6 1.6 4.1Adult Nutrition 2,263 2,150 (13) 2,137 5.3 6.0 7.6U.S. 737 733 (13) 720 0.6 2.4 2.4Intl 1,526 1,417 – 1,417 7.7 7.7 10.2
(a) Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.
Abbott Laboratories and SubsidiariesDetails of Specified ItemsSecond Quarter Ended June30, 2025(in millions, except per share data)(unaudited) Acquisition or Restructuring Intangible Other (c) Total Divestiture- and Cost Amortization Specifieds related (a) Reduction Initiatives (b)Gross Margin $ 1 $ 55 $ 420 $ 2 $ 478R&D – (7) – (13) (20)SG&A (3) 1 – 1 (1)Other (income) expense, net (1) – – – (1)Earnings before taxes $ 5 $ 61 $ 420 $ 14 500Taxes on Earnings (d) 66Net Earnings $ 434Diluted Earnings per Share $ 0.25
The table above provides additional details regarding the specified items described on table titled “Non-GAAP Reconciliation of Financial Information.”a) Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.b) Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.c) Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products.d) Reflects the net tax benefit associated with the specified items and the recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
Abbott Laboratories and SubsidiariesDetails of Specified ItemsSecond Quarter Ended June 30, 2024(in millions, except per share data)(unaudited) Acquisition or Restructuring Intangible Other (c) Total Divestiture- and Cost Amortization Specifieds related (a) Reduction Initiatives (b)Gross Margin $ 1 $ 32 $ 471 $ 2 $ 506R&D (1) 1 – (41) (41)SG&A (11) (10) – (36) (57)Other (income) expense, net (147) – – 2 (145)Earnings before taxes $ 160 $ 41 $ 471 $ 77 749Taxes on Earnings (d) 48Net Earnings $ 701Diluted Earnings per Share $ 0.40
The table above provides additional details regarding the specified items described on table titled “Non-GAAP Reconciliation of Financial Information.”a) Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.b) Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.c) Other includes incremental costs to comply with the MDR and IVDR requirements for previously approved products and an intangible asset impairment charge.d) Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.
Abbott Laboratories and SubsidiariesDetails of Specified ItemsFirst Half Ended June30, 2025(in millions, except per share data)(unaudited) Acquisition or Restructuring Intangible Other (c) Total Divestiture- and Cost Amortization Specifieds related (a) Reduction Initiatives (b)Gross Margin $ 1 $ 81 $ 840 $ 4 $ 926R&D (1) (23) – (23) (47)SG&A (6) (6) – 1 (11)Other (income) expense, net (25) – – (11) (36)Earnings before taxes $ 33 $ 110 $ 840 $ 37 1,020Taxes on Earnings (d) (8)Net Earnings $ 1,028Diluted Earnings per Share $ 0.58
The table above provides additional details regarding the specified items described on table titled “Non-GAAP Reconciliation of Financial Information.”a) Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.b) Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.c) Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment impairments.d) Reflects the net tax benefit associated with the specified items and recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings includes approximately $300 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
Abbott Laboratories and SubsidiariesDetails of Specified ItemsFirst Half Ended June 30, 2024(in millions, except per share data)(unaudited) Acquisition or Restructuring Intangible Other (c) Total Divestiture- and Cost Amortization Specifieds related (a) Reduction Initiatives (b)Gross Margin $ 2 $ 74 $ 943 $ 5 $ 1,024R&D (4) (1) – (57) (62)SG&A (25) (19) – (47) (91)Other (income) expense, net (135) – – (36) (171)Earnings before taxes $ 166 $ 94 $ 943 $ 145 1,348Taxes on Earnings (d) 143Net Earnings $ 1,205Diluted Earnings per Share $ 0.68
The table above provides additional details regarding the specified items described on table titled “Non-GAAP Reconciliation of Financial Information.”a) Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.b) Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.c) Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment and intangible asset impairments.d) Reflects the net tax benefit associated with the specified items and tax expense as a result of the resolution of various tax positions related to prior years.
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SOURCE Abbott
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