Abbott Laboratories Shares Fall After Fourth Quarter Revenue Misses Wall Street Estimates
Abbott Laboratories reported fourth quarter revenue of $11.46 billion and issued soft guidance for 2026. The company faces headwinds in its diagnostics units.
Insights:
Abbott Laboratories reported its fourth-quarter 2025 financial results on Thursday, revealing total revenue of $11.46 billion that fell short of the $11.80 billion anticipated by Wall Street analysts. Alongside the revenue miss, the company issued adjusted earnings per share guidance for the first quarter of 2026 in the range of $1.12 to $1.18, which is below the analyst consensus of $1.20 per share. Following the announcement, Abbott Laboratoriesshares declined by 6% in premarket trading as investors reacted to the soft forward-looking projections and structural challenges in key business units.
The diagnostics segment sales decreased by 2.5% year-over-year to $2.46 billion, missing the $2.51 billion estimate. This decline was largely attributed to a steep drop-off in COVID-19 testing demand and pricing pressure resulting from the volume-based procurement program in China 
CN. Abbott Laboratorieswarned that its diagnostics business is expected to face a revenue hit of approximately $700 million in 2025. This segment previously benefited from high testing volume during the pandemic, but it is now navigating a period of normalization and market adjustments in the US 
USand international markets.
CN. Abbott Laboratorieswarned that its diagnostics business is expected to face a revenue hit of approximately $700 million in 2025. This segment previously benefited from high testing volume during the pandemic, but it is now navigating a period of normalization and market adjustments in the US USand international markets.
