Abbott Reports Fourth-Quarter and Full-Year 2024 Results; Issues 2025 Financial Outlook

Rhea-AI Summary

Abbott (ABT) reported strong Q4 2024 results with sales of $11.0 billion, up 7.2% on a reported basis and 10.1% organic growth excluding COVID-19 testing. Full-year 2024 sales reached $42.0 billion, increasing 4.6% on a reported basis and 9.6% organic growth excluding COVID-19 testing.

The company achieved the upper end of its initial 2024 guidance ranges for both organic sales growth and adjusted earnings per share. Q4 2024 GAAP diluted EPS was $5.27, while adjusted diluted EPS was $1.34. Full-year 2024 GAAP diluted EPS was $7.64, with adjusted EPS at $4.67.

Looking ahead, Abbott projects full-year 2025 organic sales growth of 7.5% to 8.5%, with adjusted operating margin expected to be 23.5% to 24.0%. The company forecasts full-year 2025 adjusted diluted EPS of $5.05 to $5.25, representing double-digit growth at the midpoint.

Positive

• Q4 2024 sales increased 7.2% to $11.0 billion
• Full-year 2024 sales grew 4.6% to $42.0 billion
• Q4 organic sales growth of 10.1% excluding COVID-19 testing
• Medical Devices segment grew 13.7% in Q4
• Diabetes Care sales increased 22.7% in Q4
• Projected 2025 organic sales growth of 7.5-8.5%
• Expected operating margin improvement of 150 basis points in 2025

Negative

• Diagnostics segment reported -0.6% growth in Q4
• COVID-19 testing sales declined from $288M to $176M in Q4
• Molecular diagnostics sales decreased 10.5% in Q4

• Fourth-quarter sales of $11.0 billion; full-year 2024 sales of $42.0 billion
• Fourth-quarter reported sales increased 7.2 percent; organic sales growth for the underlying base business increased 10.1 percent¹
• Full-year 2024 reported sales increased 4.6 percent; organic sales growth for the underlying base business increased 9.6 percent²
• Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%

ABBOTT PARK, Ill., Jan. 22, 2025 /PRNewswire/ -- Abbott (NYSE: ABT) today announced financial results for the fourth quarter ended Dec. 31, 2024.

• Fourth-quarter sales increased 7.2 percent on a reported basis, 8.8 percent on an organic basis, and 10.1 percent on an organic basis, excluding COVID-19 testing-related sales.
• Fourth-quarter GAAP diluted EPS of $5.27 and adjusted diluted EPS of $1.34, which excludes specified items (see table titled "Non-GAAP Reconciliation of Financial Information").
• Full-year 2024 sales of $42.0 billion increased 4.6 percent on a reported basis, 7.1 percent on an organic basis, and 9.6 percent on an organic basis, excluding COVID-19 testing-related sales.
• Full-year 2024 gross margin as a percent of sales improved 60 basis points on a GAAP basis compared to 2023 and improved 70 basis points on an adjusted basis.
• Full-year 2024 GAAP diluted EPS of $7.64 and adjusted diluted EPS of $4.67, which excludes specified items (see table titled "Non-GAAP Reconciliation of Financial Information").
• For the full-year 2024, Abbott achieved the upper end of the initial guidance ranges the company provided in January 2024 for both organic sales growth and adjusted earnings per share.
• During 2024, Abbott announced more than 15 new growth opportunities coming from the company's highly productive R&D pipeline. These include a combination of new product approvals and new treatment indications.
• Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%.
• Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales, which reflects an increase of 150 basis points at the midpoint compared to 2024.
• Abbott projects full-year 2025 adjusted diluted EPS of $5.05 to $5.25, which reflects double-digit growth at the midpoint.

"We finished the year with very strong momentum. Sales growth and earnings per share growth in the fourth quarter were the highest of the year," said Robert B. Ford, chairman and chief executive officer, Abbott. "We continued our track record for delivering on our commitments by achieving the upper end of our initial guidance ranges for 2024 and are well-positioned to deliver another year of strong growth in 2025."

FOURTH-QUARTER BUSINESS OVERVIEW
Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange and the impact of discontinuing the ZonePerfect^® product line in the Nutrition business, is an appropriate way for investors to best understand the core underlying performance of the business. Management further believes that measuring sales growth rates on an organic basis excluding COVID-19 tests is an appropriate way for investors to best understand underlying base business performance in 2024, as the COVID-19 pandemic has shifted to an endemic state, resulting in significantly lower demand for COVID-19 tests.

Note: In order to compute results excluding the impact of exchange rates, current year U.S. dollar sales are multiplied or divided, as appropriate, by the current year average foreign exchange rates and then those amounts are multiplied or divided, as appropriate, by the prior year average foreign exchange rates. 

Fourth Quarter 2024 Results (4Q24)
Sales 4Q24 ($ in millions)	Total Company		Nutrition		Diagnostics		Established Pharmaceuticals		Medical Devices
U.S.	4,341		928		1,055		—		2,353
International	6,633		1,201		1,465		1,268		2,699
Total reported	10,974		2,129		2,520		1,268		5,052
% Change vs. 4Q23
U.S.	10.0		8.0		3.5		n/a		14.0
International	5.4		2.0		(3.4)		3.8		13.5
Total reported	7.2		4.5		(0.6)		3.8		13.7
Impact of foreign exchange	(1.4)		(1.7)		(1.6)		(4.7)		(0.3)
Impact of business exit*	(0.2)		(0.9)		—		—		—
Organic	8.8		7.1		1.0		8.5		14.0
Impact of COVID-19 testing sales (3)	(1.3)		—		(5.1)		—		—
Organic (excluding COVID-19 tests)	10.1		7.1		6.1		8.5		14.0
U.S.	13.5		10.0		15.9		n/a		14.0
International	8.1		4.9		0.8		8.5		14.0

 

Full-Year 2024 Results (12M24)
Sales 12M24 ($ in millions)	Total Company		Nutrition		Diagnostics		Established Pharmaceuticals		Medical Devices
U.S.	16,323		3,689		3,830		—		8,788
International	25,627		4,724		5,511		5,194		10,198
Total reported	41,950		8,413		9,341		5,194		18,986
% Change vs. 12M23
U.S.	5.6		8.1		(11.5)		n/a		14.2
International	3.9		(0.4)		(2.6)		2.5		11.0
Total reported	4.6		3.2		(6.5)		2.5		12.4
Impact of foreign exchange	(2.6)		(2.7)		(2.6)		(6.7)		(1.3)
Impact of business exit and acquisition*	0.1		(0.5)		—		—		0.3
Organic	7.1		6.4		(3.9)		9.2		13.4
Impact of COVID-19 testing sales (3)	(2.5)		—		(9.1)		—		—
Organic (excluding COVID-19 tests)	9.6		6.4		5.2		9.2		13.4
U.S.	10.9		9.2		6.3		n/a		13.5
International	8.8		4.4		4.5		9.2		13.3

 

Refer to table titled "Non-GAAP Revenue Reconciliation" for a reconciliation of adjusted historical revenue to reported revenue.

*Quarter to date Dec. 31, 2024, reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business in March 2024.  Full-year Dec. 31, 2024, reflects the impact of discontinuing the ZonePerfect product line in the Nutrition business in March 2024 and the acquisition of CSI on April 27, 2023. Organic sales growth excludes the impact of the acquired business from January through April 2024.

 

Nutrition
Fourth Quarter 2024 Results (4Q24)
Sales 4Q24 ($ in millions)	Total		Pediatric		Adult
U.S.	928		562		366
International	1,201		438		763
Total reported	2,129		1,000		1,129
% Change vs. 4Q23
U.S.	8.0		11.3		3.2
International	2.0		(8.9)		9.5
Total reported	4.5		1.5		7.4
Impact of foreign exchange	(1.7)		(1.0)		(2.3)
Impact of business exit*	(0.9)		—		(1.7)
Organic	7.1		2.5		11.4
U.S.	10.0		11.3		8.1
International	4.9		(6.7)		13.0

 

Worldwide Nutrition sales increased 4.5 percent on a reported basis and increased 7.1 percent on an organic basis in the fourth quarter.

In Pediatric Nutrition, global sales increased 1.5 percent on a reported basis and 2.5 percent on an organic basis. Sales in the U.S. reflect continued market share gains in the infant formula business.

In Adult Nutrition, global sales increased 7.4 percent on a reported basis and 11.4 percent on an organic basis, which was led by strong growth of Ensure^®, Abbott's market-leading complete and balanced nutrition brand, and Glucerna^®, Abbott's market-leading brand of products designed to meet the nutritional requirements for people with diabetes.

Full-Year 2024 Results (12M24)
Sales 12M24 ($ in millions)	Total		Pediatric		Adult
U.S.	3,689		2,208		1,481
International	4,724		1,815		2,909
Total reported	8,413		4,023		4,390
% Change vs. 12M23
U.S.	8.1		11.7		3.2
International	(0.4)		(7.3)		4.5
Total reported	3.2		2.2		4.0
Impact of foreign exchange	(2.7)		(1.5)		(4.0)
Impact of business exit*	(0.5)		—		(0.9)
Organic	6.4		3.7		8.9
U.S.	9.2		11.7		5.8
International	4.4		(4.3)		10.5

*Reflects the impact of discontinuing the ZonePerfect® product line. This action was initiated in March 2024.

 

Diagnostics
Fourth Quarter 2024 Results (4Q24)
Sales 4Q24 ($ in millions)	Total		Core Laboratory		Molecular		Point of Care		Rapid Diagnostics
U.S.	1,055		363		38		100		554
International	1,465		1,024		99		47		295
Total reported	2,520		1,387		137		147		849
% Change vs. 4Q23
U.S.	3.5		11.6		(13.9)		(6.1)		2.1
International	(3.4)		(1.9)		(9.1)		11.0		(7.9)
Total reported	(0.6)		1.3		(10.5)		(1.3)		(1.6)
Impact of foreign exchange	(1.6)		(2.5)		(0.3)		0.1		(0.6)
Organic	1.0		3.8		(10.2)		(1.4)		(1.0)
Impact of COVID-19 testing sales (3)	(5.1)		(0.2)		(2.8)		—		(17.4)
Organic (excluding COVID-19 tests)	6.1		4.0		(7.4)		(1.4)		16.4
U.S.	15.9		11.9		(7.2)		(6.1)		30.0
International	0.8		1.5		(7.5)		10.7		(0.6)

 

As expected, Diagnostics sales growth in the fourth quarter was negatively impacted by year-over-year declines in COVID-19 testing-related sales³. Worldwide COVID-19 testing sales were $176 million in the fourth quarter of 2024 compared to $288 million in the fourth quarter of the prior year.

Excluding COVID-19 testing-related sales, global Diagnostics sales increased 4.3 percent on a reported basis and increased 6.1 percent on an organic basis.

Excluding COVID-19 testing-related sales, growth in Rapid Diagnostics was driven by strong demand for Abbott's portfolio of respiratory disease tests used to diagnose influenza, strep throat, and respiratory syncytial virus (RSV).

Full-Year 2024 Results (12M24)
Sales 12M24 ($ in millions)	Total		Core Laboratory		Molecular		Point of Care		Rapid Diagnostics
U.S.	3,830		1,332		150		408		1,940
International	5,511		3,903		371		180		1,057
Total reported	9,341		5,235		521		588		2,997
% Change vs. 12M23
U.S.	(11.5)		7.2		(12.7)		3.1		(23.0)
International	(2.6)		(0.3)		(7.7)		6.4		(9.8)
Total reported	(6.5)		1.5		(9.2)		4.1		(18.8)
Impact of foreign exchange	(2.6)		(4.1)		(0.7)		—		(1.0)
Organic	(3.9)		5.6		(8.5)		4.1		(17.8)
Impact of COVID-19 testing sales (3)	(9.1)		(0.2)		(5.3)		—		(23.8)
Organic (excluding COVID-19 tests)	5.2		5.8		(3.2)		4.1		6.0
U.S.	6.3		7.5		(4.3)		3.1		7.4
International	4.5		5.3		(2.8)		6.5		3.8

 

Established Pharmaceuticals
Fourth Quarter 2024 Results (4Q24)
Sales 4Q24 ($ in millions)	Total		Key Emerging Markets		Other
U.S.	—		—		—
International	1,268		948		320
Total reported	1,268		948		320
% Change vs. 4Q23
U.S.	n/a		n/a		n/a
International	3.8		3.3		5.2
Total reported	3.8		3.3		5.2
Impact of foreign exchange	(4.7)		(5.5)		(2.6)
Organic	8.5		8.8		7.8
U.S.	n/a		n/a		n/a
International	8.5		8.8		7.8

 

Established Pharmaceuticals sales increased 3.8 percent on a reported basis and 8.5 percent on an organic basis in the fourth quarter.

Key Emerging Markets include several emerging countries that represent the most attractive long-term growth opportunities for Abbott's branded generics product portfolio. Sales in these geographies increased 3.3 percent on a reported basis and increased 8.8 percent on an organic basis, led by growth in several geographies and therapeutic areas, including gastroenterology, women's health, and central nervous system/pain management.

Full-Year 2024 Results (12M24)
Sales 12M24 ($ in millions)	Total		Key Emerging Markets		Other
U.S.	—		—		—
International	5,194		3,858		1,336
Total reported	5,194		3,858		1,336
% Change vs. 12M23
U.S.	n/a		n/a		n/a
International	2.5		1.3		6.1
Total reported	2.5		1.3		6.1
Impact of foreign exchange	(6.7)		(8.2)		(2.3)
Organic	9.2		9.5		8.4
U.S.	n/a		n/a		n/a
International	9.2		9.5		8.4

 

Medical Devices
Fourth Quarter 2024 Results (4Q24)
Sales 4Q24 ($ in millions)	Total		Rhythm Management		Electro- physiology		Heart Failure		Vascular		Structural Heart		Neuro- modulation		Diabetes Care
U.S.	2,353		303		300		253		269		290		204		734
International	2,699		321		343		78		456		319		53		1,129
Total reported	5,052		624		643		331		725		609		257		1,863
% Change vs. 4Q23
U.S.	14.0		6.0		7.7		11.5		9.7		25.7		4.2		22.0
International	13.5		8.2		8.8		5.0		5.7		19.5		23.9		18.8
Total reported	13.7		7.1		8.3		9.9		7.1		22.4		7.7		20.1
Impact of foreign exchange	(0.3)		(0.1)		(0.5)		0.3		0.3		(0.2)		(0.7)		(0.5)
Organic	14.0		7.2		8.8		9.6		6.8		22.6		8.4		20.6
U.S.	14.0		6.0		7.7		11.5		9.7		25.7		4.2		22.0
International	14.0		8.4		9.8		4.1		5.2		20.0		27.8		19.7

 

Worldwide Medical Devices sales increased 13.7 percent on a reported basis and 14.0 percent on an organic basis in the fourth quarter, including double-digit growth in both the U.S. and internationally.

Several products contributed to the strong performance, including FreeStyle Libre^®, Navitor^®, TriClip^®, Amplatzer^® Amulet^®, and AVEIR^®.

In Diabetes Care, sales of continuous glucose monitors were $1.8 billion and grew 22.7 percent on a reported basis and 22.8 percent on an organic basis.

For the full-year 2024, Medical Devices sales were $19 billion and increased more than $2 billion compared to the previous year.

Full-Year 2024 Results (12M24)
Sales 12M24 ($ in millions)	Total		Rhythm Management		Electro- physiology		Heart Failure		Vascular		Structural Heart		Neuro- modulation		Diabetes Care
U.S.	8,788		1,154		1,141		986		1,056		1,051		767		2,633
International	10,198		1,236		1,326		293		1,781		1,195		195		4,172
Total reported	18,986		2,390		2,467		1,279		2,837		2,246		962		6,805
% Change vs. 12M23
U.S.	14.2		6.3		13.2		11.1		8.0		19.0		5.9		23.6
International	11.0		5.7		11.6		7.3		4.6		12.6		18.4		14.9
Total reported	12.4		6.0		12.3		10.2		5.8		15.5		8.2		18.1
Impact of foreign exchange	(1.3)		(0.9)		(2.1)		(0.1)		(0.9)		(1.5)		(1.3)		(1.6)
Impact of acquisition*	0.3		—		—		—		2.1		—		—		—
Organic	13.4		6.9		14.4		10.3		4.6		17.0		9.5		19.7
U.S.	13.5		6.3		13.2		11.1		2.5		19.0		5.9		23.6
International	13.3		7.5		15.4		7.6		5.8		15.3		25.5		17.3

*Abbott completed the acquisition of CSI on April 27, 2023. For purposes of calculating organic sales growth, the impact from this acquired business has been excluded from January through April 2024.

 

ABBOTT'S GUIDANCE
Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%.

Abbott projects full-year 2025 adjusted operating margin to be 23.5% to 24.0% of sales.

Abbott projects full-year 2025 adjusted diluted earnings per share of $5.05 to $5.25 and first-quarter 2025 adjusted diluted earnings per share of $1.05 to $1.09.

Abbott has not provided the related GAAP financial measures on a forward-looking basis for these forward-looking non-GAAP financial measures because the company is unable to predict with reasonable certainty and without unreasonable effort the timing and impact of certain items such as restructuring and cost reduction initiatives, charges for intangible asset impairments, acquisition-related expenses, and foreign exchange, which could significantly impact Abbott's results in accordance with GAAP. 

ABBOTT DECLARES 404^th CONSECUTIVE QUARTERLY DIVIDEND
On Dec. 13, 2024, the board of directors of Abbott declared the company's quarterly dividend of $0.59 per share. Abbott's cash dividend is payable Feb. 14, 2025, to shareholders of record at the close of business on Jan. 15, 2025.

Abbott has increased its dividend payout for 53 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.

About Abbott: 
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 114,000 colleagues serve people in more than 160 countries.

Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.

Abbott will live-webcast its fourth-quarter earnings conference call through its Investor Relations website at www.abbottinvestor.com at 8:30 a.m. Central time today. An archived edition of the webcast will be available later in the day.

— Private Securities Litigation Reform Act of 1995 —
A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995. Abbott cautions that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated in the forward-looking statements. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended Dec. 31, 2023, and are incorporated herein by reference. Abbott undertakes no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments, except as required by law.

1	In the fourth quarter of 2024, total worldwide sales were $10.974 billion and COVID-19 testing-related sales were $176 million. In the fourth quarter of 2023, total worldwide sales were $10.241 billion and COVID-19 testing-related sales were $288 million.
2	In the full-year 2024, total worldwide sales were $41.950 billion and COVID-19 testing related sales were $747 million. In the full-year 2023, total worldwide sales were $40.109 billion and COVID-19 testing sales were $1.586 billion.
3	Diagnostic sales and COVID-19 testing-related sales in 2024 and 2023 are summarized below:

 

	Sales 4Q24							COVID Tests Sales 4Q24
($ in millions)	U.S.		Int'l		Total			U.S.		Int'l		Total
Total Diagnostics	1,055		1,465		2,520			134		42		176
Core Laboratory	363		1,024		1,387			1		1		2
Molecular	38		99		137			1		1		2
Rapid Diagnostics	554		295		849			132		40		172
	Sales 4Q23							COVID Tests Sales 4Q23
($ in millions)	U.S.		Int'l		Total			U.S.		Int'l		Total
Total Diagnostics	1,020		1,514		2,534			224		64		288
Core Laboratory	326		1,044		1,370			1		3		4
Molecular	44		109		153			5		2		7
Rapid Diagnostics	543		319		862			218		59		277
	Sales 12M24							COVID Tests Sales 12M24
($ in millions)	U.S.		Int'l		Total			U.S.		Int'l		Total
Total Diagnostics	3,830		5,511		9,341			562		185		747
Core Laboratory	1,332		3,903		5,235			4		6		10
Molecular	150		371		521			8		4		12
Rapid Diagnostics	1,940		1,057		2,997			550		175		725
	Sales 12M23							COVID Tests Sales 12M23
($ in millions)	U.S.		Int'l		Total			U.S.		Int'l		Total
Total Diagnostics	4,329		5,659		9,988			1,255		331		1,586
Core Laboratory	1,243		3,916		5,159			7		13		20
Molecular	172		402		574			24		19		43
Rapid Diagnostics	2,518		1,172		3,690			1,224		299		1,523

 

Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Fourth Quarter Ended December 31, 2024 and 2023 (in millions, except per share data) (unaudited)
	4Q24		4Q23		% Change
Net Sales	$10,974		$10,241		7.2
Cost of products sold, excluding amortization expense	4,942		4,556		8.5
Amortization of intangible assets	465		481		(3.1)
Research and development	749		700		7.0
Selling, general, and administrative	2,907		2,724		6.7
Total Operating Cost and Expenses	9,063		8,461		7.1
Operating Earnings	1,911		1,780		7.4
Interest expense, net	45		70		(35.6)
Net foreign exchange (gain) loss	(10)		24		n/m
Other (income) expense, net	(154)		(109)		n/m
Earnings before taxes	2,030		1,795		13.1
Taxes on earnings	(7,199)		201		n/m	1)
Net Earnings	$9,229		$1,594		n/m
Net Earnings excluding Specified Items, as described below	$2,349		$2,094		12.2	2)
Diluted Earnings per Common Share	$5.27		$0.91		n/m
Diluted Earnings per Common Share, excluding Specified Items, as described below	$1.34		$1.19		12.6	2)
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,746		1,748

 

NOTES:
See table titled "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following section.
1)	2024 Taxes on Earnings includes $7.497 billion in non-cash valuation allowance adjustments resulting from the restructuring of certain foreign affiliates and the confirmation of certain tax filing positions.
2)	2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax benefits of $6.880 billion, or $3.93 per share, for non-cash valuation allowance adjustments, intangible amortization, charges related to intangible impairments, expenses associated with restructuring actions, acquisitions and other net expenses.
	2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $500 million, or $0.28 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.

 

Abbott Laboratories and Subsidiaries Condensed Consolidated Statement of Earnings Twelve Months Ended December 31, 2024 and 2023 (in millions, except per share data) (unaudited)
	12M24		12M23		% Change
Net Sales	$41,950		$40,109		4.6
Cost of products sold, excluding amortization expense	18,706		17,975		4.1
Amortization of intangible assets	1,878		1,966		(4.4)
Research and development	2,844		2,741		3.8
Selling, general, and administrative	11,697		10,949		6.8
Total Operating Cost and Expenses	35,125		33,631		4.4
Operating Earnings	6,825		6,478		5.4
Interest expense, net	215		252		(14.5)
Net foreign exchange (gain) loss	(27)		41		n/m
Other (income) expense, net	(376)		(479)		n/m
Earnings before taxes	7,013		6,664		5.2
Taxes on earnings	(6,389)		941		n/m	1)
Net Earnings	$13,402		$5,723		n/m
Net Earnings excluding Specified Items, as described below	$8,200		$7,802		5.1	2)
Diluted Earnings per Common Share	$7.64		$3.26		n/m
Diluted Earnings per Common Share, excluding Specified Items, as described below	$4.67		$4.44		5.2	2)
Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options	1,748		1,749

 

NOTES:
See table title "Non-GAAP Reconciliation of Financial Information" for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following section.
1)	2024 Taxes on Earnings includes $7.497 billion in non-cash valuation allowance adjustments resulting from the restructuring of certain foreign affiliates and the confirmation of certain tax filing positions.
	2023 Taxes on Earnings includes the recognition of approximately $80 million of net tax expense as a result of the resolution of various tax positions related to prior years.
2)	2024 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax benefits of $5.202 billion, or $2.97 per share, for non-cash valuation allowance adjustments, intangible amortization, charges related to intangible impairments, expenses associated with restructuring actions, acquisitions and a divestiture, and other net expenses.
	2023 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $2.079 billion, or $1.18 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions and other net expenses.

 

Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Fourth Quarter Ended December 31, 2024 and 2023 (in millions, except per share data) (unaudited)
	4Q24
	As Reported (GAAP)		Specified Items		As Adjusted
Intangible Amortization	$            465		$          (465)		$              —
Gross Margin	5,567		673		6,240
R&D	749		(59)		690
SG&A	2,907		(21)		2,886
Other (income) expense, net	(154)		20		(134)
Earnings before taxes	2,030		733		2,763
Taxes on Earnings	(7,199)		7,613		414
Net Earnings	9,229		(6,880)		2,349
Diluted Earnings per Share	$           5.27		$         (3.93)		$           1.34

 

Specified items reflect intangible amortization expense of $465 million and other net expenses of $268 million associated with intangible impairments, restructuring actions, acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

	4Q23
	As Reported (GAAP)		Specified Items		As Adjusted
Intangible Amortization	$            481		$          (481)		$              —
Gross Margin	5,204		518		5,722
R&D	700		(78)		622
SG&A	2,724		(35)		2,689
Other (income) expense, net	(109)		(9)		(118)
Earnings before taxes	1,795		640		2,435
Taxes on Earnings	201		140		341
Net Earnings	1,594		500		2,094
Diluted Earnings per Share	$           0.91		$           0.28		$           1.19

 

Specified items reflect intangible amortization expense of $481 million and other net expenses of $159 million associated with restructuring actions, acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

 

Abbott Laboratories and Subsidiaries Non-GAAP Reconciliation of Financial Information Twelve Months Ended December 31, 2024 and 2023 (in millions, except per share data) (unaudited)
	12M24
	As Reported (GAAP)		Specified Items		As Adjusted
Intangible Amortization	$         1,878		$       (1,878)		$              —
Gross Margin	21,366		2,213		23,579
R&D	2,844		(140)		2,704
SG&A	11,697		(117)		11,580
Other (income) expense, net	(376)		(163)		(539)
Earnings before taxes	7,013		2,633		9,646
Taxes on Earnings	(6,389)		7,835		1,446
Net Earnings	13,402		(5,202)		8,200
Diluted Earnings per Share	$           7.64		$         (2.97)		$           4.67

 

Specified items reflect intangible amortization expense of $1.878 billion and other net expenses of $755 million associated with intangible impairments, restructuring actions, acquisitions, a divestiture and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

	12M23
	As Reported (GAAP)		Specified Items		As Adjusted
Intangible Amortization	$         1,966		$       (1,966)		$              —
Gross Margin	20,168		2,109		22,277
R&D	2,741		(222)		2,519
SG&A	10,949		(102)		10,847
Other (income) expense, net	(479)		25		(454)
Earnings before taxes	6,664		2,408		9,072
Taxes on Earnings	941		329		1,270
Net Earnings	5,723		2,079		7,802
Diluted Earnings per Share	$           3.26		$           1.18		$           4.44

 

Specified items reflect intangible amortization expense of $1.966 billion and other net expenses of $442 million associated with restructuring actions, acquisitions and other net expenses. See table titled "Details of Specified Items" for additional details regarding specified items.

A reconciliation of the fourth-quarter tax rates for 2024 and 2023 is shown below:

	4Q24
($ in millions)	Pre-Tax Income		Taxes on Earnings		Tax Rate
As reported (GAAP)	$         2,030		$       (7,199)		(354.6 %)	1)
Specified items	733		7,613
Excluding specified items	$         2,763		$           414		15.0 %
	4Q23
($ in millions)	Pre-Tax Income		Taxes on Earnings		Tax Rate
As reported (GAAP)	$         1,795		$           201		11.2 %	2)
Specified items	640		140
Excluding specified items	$         2,435		$           341		14.0 %

 

A reconciliation of the year-to-date tax rates for 2024 and 2023 is shown below:

	12M24
($ in millions)	Pre-Tax Income		Taxes on Earnings		Tax Rate
As reported (GAAP)	$         7,013		$       (6,389)		(91.1 %)	1)
Specified items	2,633		7,835
Excluding specified items	$         9,646		$        1,446		15.0 %
	12M23
($ in millions)	Pre-Tax Income		Taxes on Earnings		Tax Rate
As reported (GAAP)	$         6,664		$           941		14.1 %	2)
Specified items	2,408		329
Excluding specified items	$         9,072		$        1,270		14.0 %

1)	2024 Taxes on Earnings includes $7.497 billion in non-cash valuation allowance adjustments resulting from the restructuring of certain foreign affiliates and the confirmation of certain tax filing positions.
2)	2023 Taxes on Earnings includes the recognition of approximately $80 million of net tax expense as a result of the resolution of various tax positions related to prior years.

 

Abbott Laboratories and Subsidiaries Non-GAAP Revenue Reconciliation Fourth Quarter and Twelve Months Ended December 31, 2024 and 2023 ($ in millions) (unaudited)
		4Q24				4Q23				% Change vs. 4Q23
												Non-GAAP
		Abbott Reported	Impact from business exit (b)	Adjusted Revenue		Abbott Reported	Impact from business exit (b)	Adjusted Revenue		Reported		Adjusted	Organic
Total Company		10,974	(1)	10,973		10,241	(17)	10,224		7.2		7.4	8.8
U.S.		4,341	(1)	4,340		3,949	(17)	3,932		10.0		10.4	10.4
Intl		6,633	—	6,633		6,292	—	6,292		5.4		5.4	7.7
Total Nutrition		2,129	(1)	2,128		2,038	(17)	2,021		4.5		5.4	7.1
U.S.		928	(1)	927		860	(17)	843		8.0		10.0	10.0
Intl		1,201	—	1,201		1,178	—	1,178		2.0		2.0	4.9
Adult Nutrition		1,129	(1)	1,128		1,053	(17)	1,036		7.4		9.1	11.4
U.S.		366	(1)	365		355	(17)	338		3.2		8.1	8.1
Intl		763	—	763		698	—	698		9.5		9.5	13.0
Total Medical Devices		5,052	—	5,052		4,443	—	4,443		13.7		13.7	14.0
U.S.		2,353	—	2,353		2,065	—	2,065		14.0		14.0	14.0
Intl		2,699	—	2,699		2,378	—	2,378		13.5		13.5	14.0
Vascular		725	—	725		677	—	677		7.1		7.1	6.8
U.S.		269	—	269		245	—	245		9.7		9.7	9.7
Intl		456	—	456		432	—	432		5.7		5.7	5.2

 

	12M24					12M23				% Change vs. 12M23
											Non-GAAP
	Abbott Reported	Impact of acquisition (a)	Impact from business exit (b)	Adjusted Revenue		Abbott Reported	Impact from business exit (b)	Adjusted Revenue		Reported	Adjusted	Organic
Total Company	41,950	(57)	(14)	41,879		40,109	(49)	40,060		4.6	4.5	7.1
U.S.	16,323	(53)	(14)	16,256		15,452	(49)	15,403		5.6	5.5	5.5
Intl	25,627	(4)	—	25,623		24,657	—	24,657		3.9	3.9	8.1
Total Nutrition	8,413	—	(14)	8,399		8,154	(49)	8,105		3.2	3.7	6.4
U.S.	3,689	—	(14)	3,675		3,413	(49)	3,364		8.1	9.2	9.2
Intl	4,724	—	—	4,724		4,741	—	4,741		(0.4)	(0.4)	4.4
Adult Nutrition	4,390	—	(14)	4,376		4,220	(49)	4,171		4.0	4.9	8.9
U.S.	1,481	—	(14)	1,467		1,436	(49)	1,387		3.2	5.8	5.8
Intl	2,909	—	—	2,909		2,784	—	2,784		4.5	4.5	10.5
Total Medical Devices	18,986	(57)	—	18,929		16,887	—	16,887		12.4	12.1	13.4
U.S.	8,788	(53)	—	8,735		7,696	—	7,696		14.2	13.5	13.5
Intl	10,198	(4)	—	10,194		9,191	—	9,191		11.0	10.9	13.3
Vascular	2,837	(57)	—	2,780		2,681	—	2,681		5.8	3.7	4.6
U.S.	1,056	(53)	—	1,003		978	—	978		8.0	2.5	2.5
Intl	1,781	(4)	—	1,777		1,703	—	1,703		4.6	4.4	5.8

(a)	Abbott completed the acquisition of CSI on April 27, 2023. For purposes of calculating organic sales growth, the impact from this acquired business has been excluded from January through April 2024.
(b)	Reflects the impact of discontinuing the ZonePerfect® product line in the Nutrition business. This action was initiated in March 2024.

 

Abbott Laboratories and Subsidiaries Details of Specified Items Fourth Quarter Ended December 31, 2024 (in millions, except per share data) (unaudited)
	Acquisition or Divestiture- related (a)		Restructuring and Cost Reduction Initiatives (b)		Intangible Amortization		Other (c)		Total Specifieds
Gross Margin	$                  —		$                  49		$                465		$                159		$                673
R&D	(1)		(20)		—		(38)		(59)
SG&A	(5)		(22)		—		6		(21)
Other (income) expense, net	(2)		—		—		22		20
Earnings before taxes	$                    8		$                  91		$                465		$                169		733
Taxes on Earnings (d)									7,613
Net Earnings									$           (6,880)
Diluted Earnings per Share									$             (3.93)

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."
a)	Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.
b)	Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)	Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products and intangible asset impairment charges.
d)	Reflects the net tax benefit associated with the specified items, including non-cash valuation allowance adjustments.

 

Abbott Laboratories and Subsidiaries Details of Specified Items Fourth Quarter Ended December 31, 2023 (in millions, except per share data) (unaudited)
	Acquisition or Divestiture- related (a)		Restructuring and Cost Reduction Initiatives (b)		Intangible Amortization		Other (c)		Total Specifieds
Gross Margin	$                    1		$                  29		$                481		$                    7		$                518
R&D	(6)		(4)		—		(68)		(78)
SG&A	(15)		(5)		—		(15)		(35)
Other (income) expense, net	(6)		—		—		(3)		(9)
Earnings before taxes	$                  28		$                  38		$                481		$                  93		640
Taxes on Earnings (d)									140
Net Earnings									$                500
Diluted Earnings per Share									$               0.28

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."
a)	Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as legal and other costs related to business acquisitions.
b)	Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)	Other includes incremental costs to comply with the MDR and IVDR requirements for previously approved products and charges for intangible asset impairments.
d)	Reflects the net tax benefit associated with the specified items.

 

Abbott Laboratories and Subsidiaries Details of Specified Items Twelve Months Ended December 31, 2024 (in millions, except per share data) (unaudited)
	Acquisition or Divestiture- related (a)		Restructuring and Cost Reduction Initiatives (b)		Intangible Amortization		Other (c)		Total Specifieds
Gross Margin	$                    2		$                125		$             1,878		$                208		$             2,213
R&D	(5)		(21)		—		(114)		(140)
SG&A	(37)		(39)		—		(41)		(117)
Other (income) expense, net	(155)		—		—		(8)		(163)
Earnings before taxes	$                199		$                185		$             1,878		$                371		2,633
Taxes on Earnings (d)									7,835
Net Earnings									$           (5,202)
Diluted Earnings per Share									$             (2.97)

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."
a)	Includes the loss on the sale of a non-core business. Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.
b)	Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)	Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment and intangible asset impairments.
d)	Reflects the net tax benefit associated with the specified items, including non-cash valuation allowance adjustments.

 

Abbott Laboratories and Subsidiaries Details of Specified Items Twelve Months Ended December 31, 2023 (in millions, except per share data) (unaudited)
	Acquisition or Divestiture- related (a)		Restructuring and Cost Reduction Initiatives (b)		Intangible Amortization		Other (c)		Total Specifieds
Gross Margin	$                  16		$                  80		$             1,966		$                  47		$             2,109
R&D	(19)		(9)		—		(194)		(222)
SG&A	(58)		(33)		—		(11)		(102)
Other (income) expense, net	40		—		—		(15)		25
Earnings before taxes	$                  53		$                122		$             1,966		$                267		2,408
Taxes on Earnings (d)									329
Net Earnings									$             2,079
Diluted Earnings per Share									$               1.18

The table above provides additional details regarding the specified items described on table titled "Non-GAAP Reconciliation of Financial Information."
a)	Acquisition-related expenses include legal and other costs related to business acquisitions as well as integration costs, which represent incremental costs directly related to integrating acquired businesses.
b)	Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)	Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for intangible asset impairments.
d)	Reflects the net tax benefit associated with the specified items.

 

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SOURCE Abbott

FAQ

What were Abbott's (ABT) Q4 2024 earnings per share?

Abbott reported Q4 2024 GAAP diluted EPS of $5.27 and adjusted diluted EPS of $1.34.

What is Abbott's (ABT) revenue guidance for 2025?

Abbott projects full-year 2025 organic sales growth to be in the range of 7.5% to 8.5%.

How much did Abbott's (ABT) Medical Devices segment grow in Q4 2024?

Abbott's Medical Devices segment increased 13.7% on a reported basis and 14.0% on an organic basis in Q4 2024.

What is Abbott's (ABT) projected EPS for 2025?

Abbott projects full-year 2025 adjusted diluted earnings per share of $5.05 to $5.25.

How did Abbott's (ABT) COVID-19 testing sales perform in Q4 2024?

Abbott's COVID-19 testing sales decreased to $176 million in Q4 2024 from $288 million in Q4 2023.