Abbott’s stock has fallen by over 7% despite reporting strong fiscal year 2025 (FY25) revenues of $44.32bn, representing a 5.7% increase on FY24.
The fall of the healthcare giant’s stock primarily appears to be down to its Q4 2025 financials, which were released alongside the FY25 financials ahead of market open on 22 January.
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For Q4 2025, Abbott achieved revenues of $11.46bn, falling short of analysts’ expectations of $11.80bn, according to London Stock Exchange Group (LSEG) data seen by Reuters.
Abbott’s shares on the New York Stock Exchange (NYSE) fell by 10.9% to $107.53 per share at market open on 22 January, down from a pre-announcement market close of $120.73 on 21 January. Abbott has a market cap of $209.93bn.
Weakness in Abbott’s nutrition and diagnostics lines affected overall revenue in Q4, with respective declines of 8.9% and 2.5% to $1.94bn and $2.45bn, down from $2.12bn and $2.52bn in Q4 2024.
For nutrition, Abbott said it’s the Q4 results were reflective of the the impact of lower sales volumes compared to the prior year, with new strategic price actions targeted to increase volume growth in the future. In addition to these strategic price actions, the company added that it expects to increase volume growth with the launch of several new products in 2026.
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By GlobalDataRegarding diagnostics, Abbott previously stated during its Q2 2025 post-earnings conference call that sales for the business segment face a headwind of approximately $700m for FY25 due to diminished Covid testing demand and volume-based procurement programmes in China.
Weakness offset by medical device portfolio growth
Despite the weakness in nutrition and diagnostics, strong performance across Abbott’s medical device portfolio, with a 12.3% rise in Q4, offset the reported declines, resulting in overall revenue increase of 4.4% in the quarter.
The healthcare giant now expects FY26 sales growth to fall in the 6.5%-7.5% range, reflecting earnings between $5.55 to $5.80 per share.
Abbott achieved FY25 medical device portfolio revenues of around $21.38bn, denoting a 12.6% rise on $18.98bn in FY24.
Diabetes care, vascular, and electrophysiology drew in the most revenue at almost $8bn, almost $3bn, and around $2.76bn, respectively.
However, compared with FY24, the strongest medical device portfolio growth lines were diabetes care at 17.5%, followed by heart failure and structural heart, with respective rises of 13.2% and 12.35%.
Abbott CEO Robert Ford commented: “In 2025, we expanded margins and achieved double-digit earnings per share growth, our new product pipeline was highly productive, and we took important strategic steps to shape the company for the future. We’re well positioned for accelerating growth in 2026.”
