Abbott Laboratories has delivered a robust third-quarter performance for 2025, with reported sales climbing 6.9% to $11.37 billion, demonstrating the healthcare giant’s continued momentum despite ongoing COVID-19 testing declines. The company’s adjusted earnings per share reached $1.30, supported by an improved operating margin that increased 40 basis points to 23.0% compared to the same period last year.
The results, announced earlier today, highlight Abbott’s strategic pivot toward high-growth medical device segments while navigating the expected decline in pandemic-related diagnostics revenue. When excluding COVID-19 testing sales, the company’s organic growth rate jumped to an impressive 7.5%.
Medical Devices Lead the Charge
Where’s the growth coming from? Abbott’s Medical Devices segment emerged as the standout performer, posting a remarkable 14.8% increase in reported sales and 12.5% organic growth. The company’s Diabetes Care business, particularly its continuous glucose monitoring systems, has become a powerhouse, generating $2 billion in quarterly sales — up 20.5% on a reported basis and 17.2% organically.
“Our third-quarter results demonstrate our ability to deliver consistent, high-quality performance,” said Robert B. Ford, chairman and CEO of Abbott. “Our differentiated product pipeline continues to power our performance and positions Abbott to deliver durable long-term value to our shareholders.”
The company’s Established Pharmaceuticals division also showed strength, with sales increasing 7.5% on a reported basis and 7.1% organically. Key emerging markets drove much of this growth, with countries across Asia, Latin America, and the Middle East delivering double-digit gains, reinforcing Abbott’s global reach.
COVID Testing Decline Offsets Otherwise Strong Diagnostics
As expected, Abbott’s Diagnostics segment faced headwinds, with sales declining 6.6% on a reported basis. This drop was primarily due to the continued normalization of COVID-19 testing demand, which fell to just $69 million in Q3 2025 compared to $265 million in the same quarter last year. When stripping out these pandemic-related effects, the core diagnostics business actually grew by a modest 0.4%.
Meanwhile, the Nutrition segment contributed steady growth with sales climbing 4.2% on a reported basis. Adult Nutrition products led the way, with flagship brands Ensure® and Glucerna® driving a 5.8% reported increase in that category.
Innovation Pipeline Fuels Future Growth
Beyond the numbers, Abbott continues to strengthen its product portfolio through regulatory approvals and expanded indications. The company secured Japanese regulatory approval for TriClip®, a minimally invasive treatment for tricuspid regurgitation, and received CE Mark approval in Europe for expanded indications of its Navitor® transcatheter aortic valve implantation system.
These innovations appear to be gaining clinical support as well. In August, the European Society of Cardiology issued new treatment guidelines that provide additional backing for Abbott’s MitraClip® and TriClip® technologies in treating valvular heart disease, based on evidence from multiple clinical studies.
Outlook and Shareholder Returns
Can Abbott maintain this momentum? The company seems confident in its trajectory, reaffirming its full-year 2025 organic sales growth guidance of 7.5% to 8.0% excluding COVID-19 testing sales, or 6.0% to 7.0% when including them. Abbott also narrowed its adjusted EPS guidance range to $5.12 to $5.18, still reflecting double-digit growth at the midpoint.
The company continues its commitment to shareholder returns as well, declaring its 407th consecutive quarterly dividend of $0.59 per share, payable on November 17, 2025. This marks Abbott’s 53rd year of consecutive dividend increases, cementing its status as a member of the S&P 500 Dividend Aristocrats Index.
For a company that’s weathered the pandemic boom-and-bust cycle better than most in the healthcare sector, Abbott’s latest results suggest it has successfully navigated the transition to a post-COVID environment while positioning itself for sustained growth through its diversified portfolio and innovation pipeline. The question now is whether emerging competitors in high-growth areas like diabetes care can challenge Abbott’s market leadership — or if the company’s decades of experience will continue to translate into market-beating returns for years to come.
