Abbott Laboratories (ABT) Stock Analysis

Abbott Laboratories’ competitive edge rests on its diversified healthcare portfolio, global scale, and sustained investment in innovation. The company operates across four segments—Medical Devices, Diagnostics, Nutritionals, and Established Pharmaceuticals—reducing reliance on any single market or product. In 2025, Medical Devices and Diagnostics together accounted for over 65% of sales, with Medical Devices growing 14.8% year-over-year in Q3 2025, outpacing most peers.

Abbott’s FreeStyle Libre continuous glucose monitoring system is a global leader, with Diabetes Care sales reaching $6.4 billion in 2024, surpassing Medtronic and challenging Dexcom. In Diagnostics, Abbott’s Alinity and rapid testing platforms provide scale and recurring revenue, though the segment faces pressure from declining COVID-19 testing demand and competition from Roche and Siemens.

Geographically, Abbott generates 61% of sales outside the U.S., giving it resilience against regional downturns and access to faster-growing emerging markets. Its strong distribution and local manufacturing footprint in these regions is a barrier for new entrants.

The company’s culture emphasizes operational discipline and R&D, with R&D spend at roughly 7% of sales. Abbott’s long record of dividend growth (54 consecutive years) signals financial strength and management’s commitment to shareholder returns.

Risks include pricing pressure, regulatory complexity, and rapid technological change. However, Abbott’s breadth, global reach, and brand reputation provide a durable advantage over more narrowly focused competitors.