Upside case
Bull case
$109+24.7%
ABT would need investors to value it at roughly 20x earnings — about 4x more generous than today's 16x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Abbott Laboratories (ABT) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
41
analysts
31 bullish · 0 bearish · 41 covering ABT
Strong Buy
0
Buy
31
Hold
10
Sell
0
Strong Sell
0
Consensus Target
$129
+47.6% vs today
Scenario Range
$23 – $109
Model bear to bull value window
Coverage
41
Published analyst ratings
Valuation Context
15.9x
Forward P/E · Market cap $151.6B
ABT price targets
Three scenarios for where ABT stock could go
Current
~$87
Confidence
54 / 100
Updated
May 1, 2026
Where we are now
Current · $87
Bear
$23
Base
$85
Bull
$109
Market caseClosest to today
Base case
$85-2.2%
This is close to how the market is already pricing ABT — at roughly 16x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$23-73.4%
If investor confidence fades or macro conditions deteriorate, a 12x multiple contraction could push ABT down roughly 73% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Abbott Laboratories
ABT · NYSEHealthcareMedical - DevicesDecember year-end
Abbott Laboratories is a diversified healthcare company that develops, manufactures, and sells medical devices, diagnostics, nutrition products, and pharmaceuticals. It generates revenue through four main segments: medical devices (~40%), diagnostics (~30%), nutrition (~20%), and established pharmaceuticals (~10%). The company's competitive advantage lies in its broad portfolio of market-leading products—particularly in diabetes care with FreeStyle Libre—and its global scale in diagnostics and nutrition.
Market Cap
$151.6B
Revenue TTM
$43.8B
Net Income TTM
$14.0B
Net Margin
31.9%
ABT Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.4%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.26/$1.26
Revenue
$11.1B/$11.1B
Q4 2025
EPS
$1.30/$1.30
Revenue
$11.4B/$11.4B
Q1 2026
EPS
$1.50/$1.50
Revenue
$11.5B/$11.8B
Q2 2026
EPS
$1.15/$1.14
Revenue
$11.2B/$11.0B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.26/$1.26 | +0.0% | $11.1B/$11.1B | +0.5% |
| Q4 2025 | $1.30/$1.30 | +0.0% | $11.4B/$11.4B | -0.2% |
| Q1 2026 | $1.50/$1.50 | +0.0% | $11.5B/$11.8B | -2.9% |
| Q2 2026 | $1.15/$1.14 | +0.9% | $11.2B/$11.0B | +1.5% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$47.9B
+9.3% YoY
FY2
$50.1B
+4.6% YoY
EPS Outlook
FY1
$6.78
-15.2% YoY
FY2
$7.47
+10.3% YoY
Trailing FCF (TTM)$6.9B
FCF Margin: 15.8%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
ABT beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ABT Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $41.9B
Product Mix
Latest annual revenue by segment or product family
Medical Devices
45.3%
+12.4% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
38.9%
+5.6% YoY
Tap, hover, or focus a slice to inspect segment detail.
Medical Devices is the largest disclosed segment at 45.3% of FY 2024 revenue, up 12.4% YoY.
UNITED STATES is the largest reported region at 38.9%, up 5.6% YoY.
ABT Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $152 — implies +69.5% from today's price.
Upside to Fair Value
69.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ABT
11.4x
vs
S&P 500
25.1x
55% discount
vs Healthcare Trailing P/E
ABT
11.4x
vs
Healthcare
22.2x
49% discount
vs ABT 5Y Avg P/E
Today
11.4x
vs
5Y Average
31.2x
63% discount
Forward PE
15.9x
S&P 500
19.1x
-17%
Healthcare
18.8x
-16%
5Y Avg
—
—
Trailing PE
11.4x
S&P 500
25.1x
-55%
Healthcare
22.2x
-49%
5Y Avg
31.2x
-63%
PEG Ratio
0.38x
S&P 500
1.72x
-78%
Healthcare
1.53x
-75%
5Y Avg
—
—
EV/EBITDA
15.9x
S&P 500
15.2x
+4%
Healthcare
14.0x
+13%
5Y Avg
20.7x
-23%
Price/FCF
23.9x
S&P 500
21.1x
+13%
Healthcare
18.6x
+29%
5Y Avg
31.5x
-24%
Price/Sales
3.6x
S&P 500
3.1x
+16%
Healthcare
2.8x
+29%
5Y Avg
5.1x
-29%
Dividend Yield
2.52%
S&P 500
1.87%
+35%
Healthcare
1.42%
+77%
5Y Avg
1.62%
+56%
| Metric | ABT | S&P 500 | Healthcare | 5Y Avg ABT |
|---|---|---|---|---|
| Forward PE | 15.9x | 19.1x-17% | 18.8x-16% | — |
| Trailing PE | 11.4x | 25.1x-55% | 22.2x-49% | 31.2x-63% |
| PEG Ratio | 0.38x | 1.72x-78% | 1.53x-75% | — |
| EV/EBITDA | 15.9x | 15.2x | 14.0x+13% | 20.7x-23% |
| Price/FCF | 23.9x | 21.1x+13% | 18.6x+29% | 31.5x-24% |
| Price/Sales | 3.6x | 3.1x+16% | 2.8x+29% | 5.1x-29% |
| Dividend Yield | 2.52% | 1.87% | 1.42% | 1.62% |
ABT trades above S&P 500 benchmarks on 2 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolABT Financial Health
Verdict
Strong
ABT generates $6.9B in free cash flow at a 15.8% margin — returns 3.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$43.8B
Revenue Growth
TTM vs prior year
+6.4%
Gross Margin
Gross profit as a share of revenue
54.0%
Operating Margin
Operating income divided by revenue
17.8%
Net Margin
Net income divided by revenue
31.9%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.99
Free Cash Flow (TTM)
Cash generation after capex
$6.9B
FCF Margin
FCF as share of revenue — the primary cash quality signal
15.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
9.9%
ROA
Return on assets, trailing twelve months
16.6%
Cash & Equivalents
Liquid assets on the balance sheet
$7.6B
Net Debt
Total debt minus cash
$7.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.1× FCF
~1.1 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
27.3%
* Elevated by buyback-compressed equity — compare ROIC (9.9%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
3.4%
Dividend
2.5%
Buyback
0.9%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$1.3B
Dividend / Share
Annualized trailing dividend per share
$2.19
Payout Ratio
Share of earnings distributed as dividends
28.6%
Shares Outstanding
Declining as buybacks retire shares
1.7B
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageABT Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Legal & Regulatory
Legal and regulatory issues account for 32% of Abbott’s identified risks, encompassing compliance, potential lawsuits, and shifts in healthcare regulations. A recent jury verdict imposed $53 million in compensatory damages for infant formula litigation, highlighting significant legal exposure and potential brand perception damage.
High Risk
Production & Supply Chain
Production and supply‑chain risks represent 21% of total risks, covering manufacturing processes, product quality, recalls, and supply‑chain disruptions. Reports of unsanitary practices at a baby‑formula plant—similar to a prior shutdown that caused a nationwide shortage—raise the likelihood of costly recalls and revenue loss.
Medium
Technology & Innovation
Technology and innovation risks also make up 21% of the risk profile, involving challenges in R&D, the risk of obsolescence versus competitors, and the need to adopt data‑driven healthcare models. Failure to keep pace could erode Abbott’s market share in medical devices and diabetes care.
Medium
Macroeconomic & Political
Macroeconomic and political risks constitute 16% of the total, including geopolitical instability in emerging markets where Abbott generates a significant portion of revenue. Economic downturns could reduce demand for its medical devices and diabetes‑care products.
Lower
Financial & Corporate
Financial and corporate risks comprise 5% of the risk mix, covering acquisitions, licensing, alliances, and divestitures that can incur significant expenses and affect profitability. Abbott’s high valuation also poses a risk of investor disappointment if earnings or guidance fall short.
Lower
Market Competition
Competitive pressures, especially from rivals’ intellectual property, could hinder Abbott’s sales or profitability. The company’s reliance on medical devices and diabetes care segments makes it vulnerable to intensified competition in these markets.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ABT Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Medical Devices Double‑Digit Growth
Abbott's Medical Devices segment, especially diabetes care with FreeStyle Libre CGM and electrophysiology, consistently delivers double‑digit growth. The recent FDA approval for prone MRI use with neuromodulation systems expands its chronic pain device portfolio, adding new revenue streams.
Exact Sciences Acquisition Synergies
The acquisition of Exact Sciences is expected to add substantial sales and contribute positively to earnings long term, despite a short‑term EPS impact. This integration is projected to enhance Abbott's diagnostics capabilities and broaden its market reach.
Robust Dividend and Cash Flow
Abbott has a history of strong dividend payments, providing a steady income stream to investors. The company also generates durable free cash flow and maintains pricing power, supporting ongoing shareholder returns.
Guided 2026 Sales Growth
Management forecasts organic sales growth of 6.5% to 7.5% in 2026, indicating a healthy growth trajectory. Some models project annualized returns of around 10% or higher, driven by revenue growth and margin expansion.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ABT Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$87.17
52W Range Position
2%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$86.16
+1.2% from the low
52-Week High
$139.06
-37.3% from the high
1 Month
-14.78%
3 Month
-20.08%
YTD
-29.8%
1 Year
-34.3%
3Y CAGR
-7.8%
5Y CAGR
-6.0%
10Y CAGR
+8.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ABT vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
15.9x
vs 14.1x median
+13% above peer median
Revenue Growth
+9.3%
vs +2.9% median
+221% above peer median
Net Margin
31.9%
vs 13.0% median
+145% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ABT ABT Abbott Laboratories | $151.6B | 15.9x | +9.3% | 31.9% | Buy | +47.6% |
MDT MDT Medtronic plc | $99.7B | 14.1x | +2.5% | 13.0% | Buy | +40.8% |
BSX BSX Boston Scientific Corporation | $83.2B | 16.6x | +12.8% | 14.4% | Buy | +63.1% |
BDX BDX Becton, Dickinson and Company | $52.2B | 11.5x | +2.3% | 8.0% | Buy | +19.9% |
BAX BAX Baxter International Inc. | $8.6B | 8.8x | +2.9% | -9.7% | Hold | +17.9% |
EW EW Edwards Lifesciences Corporation | $47.8B | 27.6x | +9.9% | 17.6% | Buy | +16.4% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
ABT Dividend and Capital Return
ABT returns 3.4% total yield, led by a 2.52% dividend, raised 12 consecutive years. Buybacks add another 0.9%.
Dividend SustainableFCF Adequate
Total Shareholder Yield
3.4%
Dividend + buyback return per year
Buyback Yield
0.9%
Dividend Yield
2.52%
Payout Ratio
28.6%
How ABT Splits Its Return
Div 2.52%
Buyback 0.9%
Dividend 2.52%Buybacks 0.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.19
Growth Streak
Consecutive years of dividend increases
12Y
3Y Div CAGR
7.9%
5Y Div CAGR
10.4%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$1.3B
Estimated Shares Retired
15M
Approx. Share Reduction
0.8%
Shares Outstanding
Current diluted share count from the screening snapshot
1.7B
At 0.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.26 | — | — | — |
| 2025 | $2.36 | +7.3% | — | — |
| 2024 | $2.20 | +7.8% | 0.7% | 2.6% |
| 2023 | $2.04 | +8.5% | 0.6% | 2.5% |
| 2022 | $1.88 | +4.4% | 2.0% | 3.7% |
FAQ
7 questionsABT Investor Questions
Common questions answered from live analyst data and company financials.
01Is Abbott Laboratories (ABT) stock a buy or sell in 2026?
Abbott Laboratories (ABT) is rated Buy by Wall Street analysts as of 2026. Of 41 analysts covering the stock, 31 rate it Buy or Strong Buy, 10 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $129, implying +47.6% from the current price of $87. The bear case scenario is $23 and the bull case is $109.
02What is the ABT stock price target for 2026?
The Wall Street consensus price target for ABT is $129 based on 41 analyst estimates. The high-end target is $152 (+74.4% from today), and the low-end target is $92 (+5.5%). The base case model target is $85.
03Is Abbott Laboratories (ABT) stock overvalued in 2026?
ABT trades at 15.9x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Abbott Laboratories (ABT) stock in 2026?
The primary risks for ABT in 2026 are: (1) Legal & Regulatory — Legal and regulatory issues account for 32% of Abbott’s identified risks, encompassing compliance, potential lawsuits, and shifts in healthcare regulations. (2) Production & Supply Chain — Production and supply‑chain risks represent 21% of total risks, covering manufacturing processes, product quality, recalls, and supply‑chain disruptions. (3) Technology & Innovation — Technology and innovation risks also make up 21% of the risk profile, involving challenges in R&D, the risk of obsolescence versus competitors, and the need to adopt data‑driven healthcare models. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Abbott Laboratories's revenue and earnings forecast?
Analyst consensus estimates ABT will report consensus revenue of $47.9B (+9.3% year-over-year) and EPS of $6.78 (-15.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $50.1B in revenue.
06When does Abbott Laboratories (ABT) report its next earnings?
A confirmed upcoming earnings date for ABT is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Abbott Laboratories generate?
Abbott Laboratories (ABT) generated $6.9B in free cash flow over the trailing twelve months — a free cash flow margin of 15.8%. ABT returns capital to shareholders through dividends (2.5% yield) and share repurchases ($1.3B TTM).