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Investing.com -- Abbott Laboratories reported second-quarter earnings that slightly exceeded analyst expectations, but shares fell 2.5% following the results.
The healthcare giant posted adjusted earnings per share of $1.26 for the second quarter, edging past the analyst consensus of $1.25. Revenue came in at $11.42 billion, significantly above the $11.07 billion analysts had expected, representing a 7.4% increase on a reported basis and 6.9% on an organic basis. When excluding COVID-19 testing-related sales, organic growth was 7.5%.
The company’s full-year 2025 EPS guidance came in at $5.10 to $5.20 compared to the analyst consensus of $5.16.
Medical (TASE:BLWV) Devices led growth with a 13.4% revenue increase, driven by strong performance in Diabetes Care where sales of continuous glucose monitors, including the FreeStyle Libre system, grew 21.4%. The Established Pharmaceuticals division saw 6.9% growth, while Nutrition sales increased 2.9%.
"Halfway through the year, we delivered high single-digit organic sales growth, double-digit EPS growth, significantly expanded our margin profiles, and continued to advance key programs through our new product pipeline," said Robert B. Ford, chairman and chief executive officer. "We see this momentum carrying into 2026."
The company reported improved profitability with adjusted gross margin of 57.0% of sales, reflecting a 100 basis point increase, and adjusted operating margin of 22.9%, also up 100 basis points.
For the full year 2025, Abbott projects organic sales growth of 7.5% to 8.0% excluding COVID-19 testing-related sales, or 6.0% to 7.0% when including these sales. The company also expects adjusted operating margin to be approximately 23.5% of sales.