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Investing.com - Abbott Labs (NYSE:ABT), a $214 billion healthcare giant with $42.3 billion in trailing twelve-month revenue, maintained its Buy rating from Goldman Sachs on Thursday following the company’s second-quarter 2025 earnings report, despite a reduction in full-year revenue guidance.
The healthcare company lowered its 2025 organic revenue growth forecast from 7.5-8.5% to 6.0-7.0%, primarily due to ongoing challenges in its Diagnostics business, which represents approximately 20% of Abbott’s total sales. According to InvestingPro, Abbott has maintained dividend payments for 55 consecutive years, demonstrating remarkable financial stability despite market fluctuations.
Goldman Sachs kept its $153.00 price target on Abbott Labs stock unchanged, noting that while quarterly results were largely in line with consensus expectations, the reduced sales outlook could create market volatility.
The investment bank highlighted that Abbott narrowed its expected earnings per share range for the year while maintaining the same mid-point, suggesting cost management efforts despite revenue headwinds.
Goldman Sachs also pointed out that Abbott Labs stock had outperformed the S&P 500 index by approximately 670 basis points year-to-date, which could amplify market reaction to the guidance reduction.
In other recent news, Abbott Laboratories reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.26, slightly above the consensus forecast of $1.25, marking an 11% increase year-over-year. Revenue reached $11.42 billion, exceeding the forecast of $11.07 billion, driven by strong sales in its core businesses. Despite these positive earnings results, Abbott’s stock experienced a decline, reflecting investor concerns over broader market trends and challenges in the diagnostics sector.
Abbott’s strategic focus on innovation and expansion in key markets, such as continuous glucose monitoring (CGM), contributed to these gains. The company’s medical devices division saw significant growth, with sales increasing by 12%, driven by double-digit growth in diabetes care and cardiac rhythm management. Abbott maintains a positive outlook for the remainder of 2025, forecasting high single-digit sales growth for the full year. The company expects to continue addressing challenges in the diagnostics market while benefiting from new product launches and market expansion.
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