Full Press Release Details
ABBOTT PARK , Ill. , July 17, 2025 /PRNewswire/ -- Abbott (NYSE: ABT ) today announced financial results for the second quarter ended June 30, 2025 .
"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 Pharmaceuticals | Medical Devices | ||||
| U.S. | 4,276 | 957 | 811 | — | 2,503 | ||||
| International | 6,866 | 1,255 | 1,362 | 1,383 | 2,866 | ||||
| Total reported | 11,142 | 2,212 | 2,173 | 1,383 | 5,369 | ||||
| % Change vs. 2Q24 | |||||||||
| U.S. | 8.7 | 2.6 | (0.1) | n/a | 14.6 | ||||
| International | 6.6 | 3.1 | (1.5) | 6.9 | 12.4 | ||||
| Total reported | 7.4 | 2.9 | (1.0) | 6.9 | 13.4 | ||||
| Impact of foreign exchange | 0.5 | (0.5) | 0.4 | (0.8) | 1.2 | ||||
| Organic | 6.9 | 3.4 | (1.4) | 7.7 | 12.2 | ||||
| Impact of COVID-19 testing sales 1 | (0.6) | — | (2.2) | — | — | ||||
| Organic (excluding COVID-19 tests) | 7.5 | 3.4 | 0.8 | 7.7 | 12.2 | ||||
| Organic | |||||||||
| U.S. | 8.7 | 2.6 | (0.1) | n/a | 14.6 | ||||
| International | 5.8 | 4.0 | (2.2) | 7.7 | 10.1 |
| First Half 2025 Results (1H25) | |||||||||
| Sales 1H25 ($ in millions) | Total Company | Nutrition | Diagnostics | Established Pharmaceuticals | Medical Devices | ||||
| U.S. | 8,444 | 1,912 | 1,682 | — | 4,842 | ||||
| International | 13,056 | 2,446 | 2,545 | 2,643 | 5,422 | ||||
| Total reported | 21,500 | 4,358 | 4,227 | 2,643 | 10,264 | ||||
| % Change vs. 1H24 | |||||||||
| U.S. | 8.5 | 5.6 | (3.5) | n/a | 14.8 | ||||
| International | 3.9 | 1.6 | (4.5) | 4.9 | 9.1 | ||||
| Total reported | 5.7 | 3.3 | (4.1) | 4.9 | 11.7 | ||||
| Impact 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 | 12.4 | ||||
| Impact of COVID-19 testing sales 2 | (1.0) | — | (3.9) | — | — | ||||
| Organic (excluding COVID-19 tests) | 7.9 | 5.1 | 0.7 | 7.8 | 12.4 | ||||
| Organic | |||||||||
| U.S. | 8.7 | 6.4 | (3.5) | n/a | 14.8 | ||||
| International | 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.
| Nutrition | |||||
| Second Quarter 2025 Results (2Q25) | |||||
| Sales 2Q25 ($ in millions) | Total | Pediatric | Adult | ||
| U.S. | 957 | 587 | 370 | ||
| International | 1,255 | 467 | 788 | ||
| Total reported | 2,212 | 1,054 | 1,158 | ||
| % Change vs. 2Q24 | |||||
| U.S. | 2.6 | 4.2 | 0.2 | ||
| International | 3.1 | (5.7) | 9.2 | ||
| Total reported | 2.9 | (0.4) | 6.1 | ||
| Impact of foreign exchange | (0.5) | (0.6) | (0.5) | ||
| Organic | 3.4 | 0.2 | 6.6 | ||
| U.S. | 2.6 | 4.2 | 0.2 | ||
| International | 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 | Adult | ||
| U.S. | 1,912 | 1,175 | 737 | ||
| International | 2,446 | 920 | 1,526 | ||
| Total reported | 4,358 | 2,095 | 2,263 | ||
| % Change vs. 1H24 | |||||
| U.S. | 5.6 | 9.0 | 0.6 | ||
| International | 1.6 | (7.0) | 7.7 | ||
| Total reported | 3.3 | 1.3 | 5.3 | ||
| Impact of foreign exchange | (1.5) | (1.2) | (1.6) | ||
| Impact of business exit* | (0.3) | — | (0.7) | ||
| Organic | 5.1 | 2.5 | 7.6 | ||
| U.S. | 6.4 | 9.0 | 2.4 | ||
| International | 4.1 | (4.6) | 10.2 |
| Diagnostics | |||||||||
| Second Quarter 2025 Results (2Q25) | |||||||||
| Sales 2Q25 ($ in millions) | Total | Core Laboratory | Molecular | Point of Care | Rapid Diagnostics | ||||
| U.S. | 811 | 351 | 35 | 104 | 321 | ||||
| International | 1,362 | 1,007 | 88 | 44 | 223 | ||||
| Total reported | 2,173 | 1,358 | 123 | 148 | 544 | ||||
| % Change vs. 2Q24 | |||||||||
| U.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 | 0.1 | ||||
| Organic | (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 sales 1 .
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 Diagnostics | ||||
| U.S. | 1,682 | 683 | 75 | 204 | 720 | ||||
| International | 2,545 | 1,852 | 170 | 86 | 437 | ||||
| Total reported | 4,227 | 2,535 | 245 | 290 | 1,157 | ||||
| % Change vs. 1H24 | |||||||||
| U.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 Pharmaceuticals | |||||
| Second Quarter 2025 Results (2Q25) | |||||
| Sales 2Q25 ($ in millions) | Total | Key Emerging Markets | Other | ||
| U.S. | — | — | — | ||
| International | 1,383 | 1,059 | 324 | ||
| Total reported | 1,383 | 1,059 | 324 | ||
| % Change vs. 2Q24 | |||||
| U.S. | n/a | n/a | n/a | ||
| International | 6.9 | 7.3 | 5.9 | ||
| Total reported | 6.9 | 7.3 | 5.9 | ||
| Impact of foreign exchange | (0.8) | (1.4) | 1.4 | ||
| Organic | 7.7 | 8.7 | 4.5 | ||
| U.S. | n/a | n/a | n/a | ||
| International | 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 Markets | Other | ||
| U.S. | — | — | — | ||
| International | 2,643 | 2,024 | 619 | ||
| Total reported | 2,643 | 2,024 | 619 | ||
| % Change vs. 1H24 | |||||
| U.S. | n/a | n/a | n/a | ||
| International | 4.9 | 5.7 | 2.4 | ||
| Total reported | 4.9 | 5.7 | 2.4 | ||
| Impact of foreign exchange | (2.9) | (3.3) | (1.4) | ||
| Organic | 7.8 | 9.0 | 3.8 | ||
| U.S. | n/a | n/a | n/a | ||
| International | 7.8 | 9.0 | 3.8 |
| Medical Devices | |||||||||||||||
| Second Quarter 2025 Results (2Q25) | |||||||||||||||
| Sales 2Q25 ($ in millions) | Total | Rhythm Management | Electro- physiology | Heart Failure | Vascular | Structural Heart | Neuro- modulation | Diabetes Care | |||||||
| U.S. | 2,503 | 340 | 322 | 282 | 283 | 289 | 193 | 794 | |||||||
| International | 2,866 | 333 | 378 | 86 | 474 | 347 | 61 | 1,187 | |||||||
| Total reported | 5,369 | 673 | 700 | 368 | 757 | 636 | 254 | 1,981 | |||||||
| % Change vs. 2Q24 | |||||||||||||||
| U.S. | 14.6 | 16.5 | 12.2 | 15.8 | 3.0 | 12.2 | 0.4 | 24.5 | |||||||
| International | 12.4 | 5.7 | 10.9 | 11.2 | 5.4 | 13.7 | 20.4 | 17.5 | |||||||
| Total reported | 13.4 | 10.9 | 11.5 | 14.7 | 4.5 | 13.0 | 4.6 | 20.2 | |||||||
| Impact of foreign exchange | 1.2 | 1.1 | 1.2 | 0.7 | 1.0 | 1.3 | 0.3 | 1.7 | |||||||
| Organic | 12.2 | 9.8 | 10.3 | 14.0 | 3.5 | 11.7 | 4.3 | 18.5 | |||||||
| U.S. | 14.6 | 16.5 | 12.2 | 15.8 | 3.0 | 12.2 | 0.4 | 24.5 | |||||||
| International | 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 Management | Electro- physiology | Heart Failure | Vascular | Structural Heart | Neuro- modulation | Diabetes Care | |||||||
| U.S. | 4,842 | 644 | 621 | 544 | 551 | 571 | 369 | 1,542 | |||||||
| International | 5,422 | 614 | 708 | 163 | 916 | 642 | 113 | 2,266 | |||||||
| Total reported | 10,264 | 1,258 | 1,329 | 707 | 1,467 | 1,213 | 482 | 3,808 | |||||||
| % Change vs. 1H24 | |||||||||||||||
| U.S. | 14.8 | 14.4 | 11.7 | 13.2 | 4.2 | 16.3 | (1.1) | 25.7 | |||||||
| International | 9.1 | 1.2 | 7.6 | 12.6 | 3.5 | 9.3 | 18.5 | 13.8 | |||||||
| Total reported | 11.7 | 7.6 | 9.5 | 13.1 | 3.8 | 12.5 | 2.9 | 18.4 | |||||||
| Impact 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 | 19.1 | |||||||
| U.S. | 14.8 | 14.4 | 11.7 | 13.2 | 4.2 | 16.3 | (1.1) | 25.7 | |||||||
| International | 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 406 th CONSECUTIVE 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 at www.abbott.com and on LinkedIn , 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 Subsidiaries Condensed Consolidated Statement of Earnings Second Quarter Ended June 30, 2025 and 2024 (in millions, except per share data) (unaudited) | ||||||
| 2Q25 | 2Q24 | % Change | ||||
| Net Sales | $11,142 | $10,377 | 7.4 | |||
| Cost of products sold, excluding amortization expense | 4,854 | 4,603 | 5.5 | |||
| Amortization of intangible assets | 420 | 471 | (10.7) | |||
| Research and development | 725 | 698 | 3.9 | |||
| Selling, general, and administrative | 3,091 | 2,936 | 5.3 | |||
| Total Operating Cost and Expenses | 9,090 | 8,708 | 4.4 | |||
| Operating Earnings | 2,052 | 1,669 | 23.0 | |||
| Interest expense, net | 50 | 58 | (14.2) | |||
| Net foreign exchange (gain) loss | (11) | (6) | 55.6 | |||
| Other (income) expense, net | (137) | 10 | n/m | |||
| Earnings before taxes | 2,150 | 1,607 | 33.8 | |||
| Taxes on earnings | 371 | 305 | 21.3 | 1) | ||
| Net Earnings | $1,779 | $1,302 | 36.7 | |||
| Net Earnings excluding Specified Items, as described below | $2,213 | $2,003 | 10.5 | 2) | ||
| Diluted Earnings per Common Share | $1.01 | $0.74 | 36.5 | |||
| Diluted Earnings per Common Share, excluding Specified Items, as described below | $1.26 | $1.14 | 10.5 | 2) | ||
| Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,751 | 1,751 |
| 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 Subsidiaries Condensed Consolidated Statement of Earnings First Half Ended June 30, 2025 and 2024 (in millions, except per share data) (unaudited) | ||||||
| 1H25 | 1H24 | % Change | ||||
| Net Sales | $21,500 | $20,341 | 5.7 | |||
| Cost of products sold, excluding amortization expense | 9,322 | 9,066 | 2.8 | |||
| Amortization of intangible assets | 840 | 943 | (10.8) | |||
| Research and development | 1,441 | 1,382 | 4.3 | |||
| Selling, general, and administrative | 6,152 | 5,895 | 4.4 | |||
| Total Operating Cost and Expenses | 17,755 | 17,286 | 2.7 | |||
| Operating Earnings | 3,745 | 3,055 | 22.6 | |||
| Interest expense, net | 99 | 119 | (16.4) | |||
| Net foreign exchange (gain) loss | (18) | (6) | n/m | |||
| Other (income) expense, net | (264) | (101) | n/m | |||
| Earnings before taxes | 3,928 | 3,043 | 29.1 | |||
| Taxes on earnings | 824 | 516 | 59.5 | 1) | ||
| Net Earnings | $3,104 | $2,527 | 22.9 | |||
| Net Earnings excluding Specified Items, as described below | $4,132 | $3,732 | 10.7 | 2) | ||
| Diluted Earnings per Common Share | $1.77 | $1.44 | 22.9 | |||
| Diluted Earnings per Common Share, excluding Specified Items, as described below | $2.35 | $2.12 | 10.8 | 2) | ||
| Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,749 | 1,750 |
| 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 Subsidiaries Non-GAAP Reconciliation of Financial Information Second Quarter Ended June 30, 2025 and 2024 (in millions, except per share data) (unaudited) | |||||
| 2Q25 | |||||
| As Reported (GAAP) | Specified Items | As Adjusted | |||
| Intangible Amortization | $ 420 | $ (420) | $ — | ||
| Gross Margin | 5,868 | 478 | 6,346 | ||
| R&D | 725 | (20) | 705 | ||
| SG&A | 3,091 | (1) | 3,090 | ||
| Other (income) expense, net | (137) | (1) | (138) | ||
| Earnings before taxes | 2,150 | 500 | 2,650 | ||
| Taxes on Earnings | 371 | 66 | 437 | ||
| Net Earnings | 1,779 | 434 | 2,213 | ||
| Diluted 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 Reported (GAAP) | Specified Items | As Adjusted | |||
| Intangible Amortization | $ 471 | $ (471) | $ — | ||
| Gross Margin | 5,303 | 506 | 5,809 | ||
| R&D | 698 | (41) | 657 | ||
| SG&A | 2,936 | (57) | 2,879 | ||
| Other (income) expense, net | 10 | (145) | (135) | ||
| Earnings before taxes | 1,607 | 749 | 2,356 | ||
| Taxes on Earnings | 305 | 48 | 353 | ||
| Net Earnings | 1,302 | 701 | 2,003 | ||
| Diluted 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 Subsidiaries Non-GAAP Reconciliation of Financial Information First Half Ended June 30, 2025 and 2024 (in millions, except per share data) (unaudited) | |||||
| 1H25 | |||||
| As Reported (GAAP) | Specified Items | As Adjusted | |||
| Intangible Amortization | $ 840 | $ (840) | $ — | ||
| Gross Margin | 11,338 | 926 | 12,264 | ||
| R&D | 1,441 | (47) | 1,394 | ||
| SG&A | 6,152 | (11) | 6,141 | ||
| Other (income) expense, net | (264) | (36) | (300) | ||
| Earnings before taxes | 3,928 | 1,020 | 4,948 | ||
| Taxes on Earnings | 824 | (8) | 816 | ||
| Net Earnings | 3,104 | 1,028 | 4,132 | ||
| Diluted 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 Reported (GAAP) | Specified Items | As Adjusted | |||
| Intangible Amortization | $ 943 | $ (943) | $ — | ||
| Gross Margin | 10,332 | 1,024 | 11,356 | ||
| R&D | 1,382 | (62) | 1,320 | ||
| SG&A | 5,895 | (91) | 5,804 | ||
| Other (income) expense, net | (101) | (171) | (272) | ||
| Earnings before taxes | 3,043 | 1,348 | 4,391 | ||
| Taxes on Earnings | 516 | 143 | 659 | ||
| Net Earnings | 2,527 | 1,205 | 3,732 | ||
| Diluted 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 Income | Taxes on Earnings | Tax Rate | |||
| As reported (GAAP) | $ 2,150 | $ 371 | 17.3 % | 1) | ||
| Specified items | 500 | 66 | ||||
| Excluding specified items | $ 2,650 | $ 437 | 16.5 % | |||
| 2Q24 | ||||||
| ($ in millions) | Pre-Tax Income | Taxes on Earnings | Tax Rate | |||
| As reported (GAAP) | $ 1,607 | $ 305 | 19.0 % | 2) | ||
| Specified items | 749 | 48 | ||||
| Excluding 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 Income | Taxes on Earnings | Tax Rate | |||
| As 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 Income | Taxes on Earnings | Tax Rate | |||
| As reported (GAAP) | $ 3,043 | $ 516 | 17.0 % | 4) | ||
| Specified items | 1,348 | 143 | ||||
| Excluding 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 $35 million of net tax expense as a result of the resolution of various tax positions related to prior years. |
| Abbott Laboratories and Subsidiaries Non-GAAP Revenue Reconciliation First Half Ended June 30, 2025 and 2024 ($ in millions) (unaudited) | |||||||||||
| 1H25 | 1H24 | % Change vs. 1H24 | |||||||||
| Non-GAAP | |||||||||||
| Abbott Reported | Abbott Reported | Impact from business exit (a) | Adjusted Revenue | Reported | Adjusted | Organic | |||||
| Total Company | 21,500 | 20,341 | (13) | 20,328 | 5.7 | 5.8 | 6.9 | ||||
| U.S. | 8,444 | 7,780 | (13) | 7,767 | 8.5 | 8.7 | 8.7 | ||||
| Intl | 13,056 | 12,561 | — | 12,561 | 3.9 | 3.9 | 5.8 | ||||
| Total Nutrition | 4,358 | 4,218 | (13) | 4,205 | 3.3 | 3.6 | 5.1 | ||||
| U.S. | 1,912 | 1,811 | (13) | 1,798 | 5.6 | 6.4 | 6.4 | ||||
| Intl | 2,446 | 2,407 | — | 2,407 | 1.6 | 1.6 | 4.1 | ||||
| Adult Nutrition | 2,263 | 2,150 | (13) | 2,137 | 5.3 | 6.0 | 7.6 | ||||
| U.S. | 737 | 733 | (13) | 720 | 0.6 | 2.4 | 2.4 | ||||
| Intl | 1,526 | 1,417 | — | 1,417 | 7.7 | 7.7 | 10.2 |
| Abbott Laboratories and Subsidiaries Details of Specified Items Second Quarter Ended June 30, 2025 (in millions, except per share data) (unaudited) | |||||||||
| Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
| Gross Margin | $ 1 | $ 55 | $ 420 | $ 2 | $ 478 | ||||
| R&D | — | (7) | — | (13) | (20) | ||||
| SG&A | (3) | 1 | — | 1 | (1) | ||||
| Other (income) expense, net | (1) | — | — | — | (1) | ||||
| Earnings before taxes | $ 5 | $ 61 | $ 420 | $ 14 | 500 | ||||
| Taxes on Earnings (d) | 66 | ||||||||
| Net Earnings | $ 434 | ||||||||
| Diluted 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 Subsidiaries Details of Specified Items Second Quarter Ended June 30, 2024 (in millions, except per share data) (unaudited) | |||||||||
| Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
| Gross Margin | $ 1 | $ 32 | $ 471 | $ 2 | $ 506 | ||||
| R&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 | 749 | ||||
| Taxes on Earnings (d) | 48 | ||||||||
| Net Earnings | $ 701 | ||||||||
| Diluted 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 Subsidiaries Details of Specified Items First Half Ended June 30, 2025 (in millions, except per share data) (unaudited) | |||||||||
| Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
| Gross Margin | $ 1 | $ 81 | $ 840 | $ 4 | $ 926 | ||||
| R&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 | 1,020 | ||||
| Taxes on Earnings (d) | (8) | ||||||||
| Net Earnings | $ 1,028 | ||||||||
| Diluted 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 Subsidiaries Details of Specified Items First Half Ended June 30, 2024 (in millions, except per share data) (unaudited) | |||||||||
| Acquisition or Divestiture- related (a) | Restructuring and Cost Reduction Initiatives (b) | Intangible Amortization | Other (c) | Total Specifieds | |||||
| Gross Margin | $ 2 | $ 74 | $ 943 | $ 5 | $ 1,024 | ||||
| R&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 | 1,348 | ||||
| Taxes on Earnings (d) | 143 | ||||||||
| Net Earnings | $ 1,205 | ||||||||
| Diluted 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. |