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Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2025
OR
| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File No. 1-2189
ABBOTT LABORATORIES
| An Illinois Corporation | I.R.S. Employer Identification No. | ||||
| 36-0698440 |
100 Abbott Park Road
Abbott Park, Illinois 60064-6400
Telephone: (224) 667-6100
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
| Common Shares, Without Par Value | ABT | New York Stock Exchange NYSE Texas |
Indicate by check mark whether the registrant: (l) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of l934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large Accelerated Filer x | Accelerated Filer o | ||||
| Non-Accelerated Filer o | Smaller reporting company o | ||||
| Emerging growth company o |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of September 30, 2025, Abbott Laboratories had 1,738,871,947 common shares without par value outstanding.
Abbott Laboratories
Table of Contents
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited)
(dollars in millions except per share data; shares in thousands)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30 | September 30 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net sales | $ | 11,369 | $ | 10,635 | $ | 32,869 | $ | 30,976 | |||||||||||||||
| Cost of products sold, excluding amortization of intangible assets | 5,075 | 4,698 | 14,397 | 13,764 | |||||||||||||||||||
| Amortization of intangible assets | 420 | 470 | 1,260 | 1,413 | |||||||||||||||||||
| Research and development | 766 | 713 | 2,207 | 2,095 | |||||||||||||||||||
| Selling, general and administrative | 3,051 | 2,895 | 9,203 | 8,790 | |||||||||||||||||||
| Total operating cost and expenses | 9,312 | 8,776 | 27,067 | 26,062 | |||||||||||||||||||
| Operating earnings | 2,057 | 1,859 | 5,802 | 4,914 | |||||||||||||||||||
| Interest expense | 121 | 142 | 373 | 423 | |||||||||||||||||||
| Interest (income) | (77) | (91) | (230) | (253) | |||||||||||||||||||
| Net foreign exchange (gain) loss | (17) | (11) | (35) | (17) | |||||||||||||||||||
| Other (income) expense, net | (150) | (121) | (414) | (222) | |||||||||||||||||||
| Earnings before taxes | 2,180 | 1,940 | 6,108 | 4,983 | |||||||||||||||||||
| Taxes on earnings | 536 | 294 | 1,360 | 810 | |||||||||||||||||||
| Net Earnings | $ | 1,644 | $ | 1,646 | $ | 4,748 | $ | 4,173 | |||||||||||||||
| Basic Earnings Per Common Share | $ | 0.94 | $ | 0.94 | $ | 2.72 | $ | 2.39 | |||||||||||||||
| Diluted Earnings Per Common Share | $ | 0.94 | $ | 0.94 | $ | 2.70 | $ | 2.38 | |||||||||||||||
| Average Number of Common Shares Outstanding Used for Basic Earnings Per Common Share | 1,742,142 | 1,739,466 | 1,741,617 | 1,740,869 | |||||||||||||||||||
| Dilutive Common Stock Options | 7,219 | 8,131 | 7,544 | 8,565 | |||||||||||||||||||
| Average Number of Common Shares Outstanding Plus Dilutive Common Stock Options | 1,749,361 | 1,747,597 | 1,749,161 | 1,749,434 | |||||||||||||||||||
| Outstanding Common Stock Options Having No Dilutive Effect | 1,443 | 6,905 | 1,431 | 6,892 |
The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Comprehensive Income
(Unaudited)
(dollars in millions)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30 | September 30 | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net Earnings | $ | 1,644 | $ | 1,646 | $ | 4,748 | $ | 4,173 | |||||||||||||||
| Foreign currency translation gain (loss) adjustments, net of taxes of $(6) and $52 in 2025 and $— and $— in 2024 | (136) | 497 | 1,414 | 75 | |||||||||||||||||||
| Net actuarial gains (losses) and amortization of net actuarial losses and prior service costs and credits, net of taxes of $—and $— in 2025 and $— and $1 in 2024 | (11) | 14 | 45 | 25 | |||||||||||||||||||
| Net gains (losses) for derivative instruments designated as cash flow hedges, net of taxes of $8 and $(101) in 2025 and $(63) and $(6) in 2024 | 39 | (180) | (237) | (65) | |||||||||||||||||||
| Other comprehensive income (loss) | (108) | 331 | 1,222 | 35 | |||||||||||||||||||
| Comprehensive Income | $ | 1,536 | $ | 1,977 | $ | 5,970 | $ | 4,208 |
| September 30, 2025 | December 31, 2024 | ||||||||||
| Supplemental Accumulated Other Comprehensive Income (Loss) Information, net of tax: | |||||||||||
| Cumulative foreign currency translation (loss) adjustments | $ | (6,091) | $ | (7,505) | |||||||
| Net actuarial (losses) and prior service (costs) and credits | (566) | (611) | |||||||||
| Cumulative gains (losses) on derivative instruments designated as cash flow hedges | (27) | 210 | |||||||||
| Accumulated other comprehensive income (loss) | $ | (6,684) | $ | (7,906) |
The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Balance Sheet
(Unaudited)
(dollars in millions)
| September 30, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | 7,511 | $ | 7,616 | |||||||
| Short-term investments | 222 | 351 | |||||||||
| Trade receivables, less allowances of $490 in 2025 and $439 in 2024 | 8,138 | 6,925 | |||||||||
| Inventories: | |||||||||||
| Finished products | 4,130 | 3,700 | |||||||||
| Work in process | 961 | 840 | |||||||||
| Materials | 1,617 | 1,654 | |||||||||
| Total inventories | 6,708 | 6,194 | |||||||||
| Prepaid expenses and other receivables | 2,260 | 2,570 | |||||||||
| Total Current Assets | 24,839 | 23,656 | |||||||||
| Investments | 951 | 886 | |||||||||
| Property and equipment, at cost | 24,816 | 22,740 | |||||||||
| Less: accumulated depreciation and amortization | 13,312 | 12,082 | |||||||||
| Net property and equipment | 11,504 | 10,658 | |||||||||
| Intangible assets, net of amortization | 5,598 | 6,647 | |||||||||
| Goodwill | 23,971 | 23,108 | |||||||||
| Deferred income taxes and other assets | 17,318 | 16,459 | |||||||||
| $ | 84,181 | $ | 81,414 | ||||||||
| Liabilities and Shareholders’ Investment | |||||||||||
| Current Liabilities: | |||||||||||
| Trade accounts payable | $ | 4,123 | $ | 4,195 | |||||||
| Salaries, wages and commissions | 1,735 | 1,701 | |||||||||
| Other accrued liabilities | 5,880 | 5,143 | |||||||||
| Dividends payable | 1,030 | 1,024 | |||||||||
| Income taxes payable | 469 | 594 | |||||||||
| Current portion of long-term debt | 1,345 | 1,500 | |||||||||
| Total Current Liabilities | 14,582 | 14,157 | |||||||||
| Long-term debt | 11,596 | 12,625 | |||||||||
| Post-employment obligations, deferred income taxes and other long-term liabilities | 6,739 | 6,731 | |||||||||
| Commitments and Contingencies | |||||||||||
| Shareholders’ Investment: | |||||||||||
| Preferred shares, one dollar par value Authorized — 1,000,000 shares, none issued | — | — | |||||||||
| Common shares, without par value Authorized — 2,400,000,000 shares Issued at stated capital amount — Shares: 2025: 1,996,743,794; 2024: 1,991,472,630 | 25,412 | 25,153 | |||||||||
| Common shares held in treasury, at cost — Shares: 2025: 257,871,122; 2024: 259,774,639 | (16,877) | (16,844) | |||||||||
| Earnings employed in the business | 49,103 | 47,261 | |||||||||
| Accumulated other comprehensive income (loss) | (6,684) | (7,906) | |||||||||
| Total Abbott Shareholders’ Investment | 50,954 | 47,664 | |||||||||
| Noncontrolling interests | 310 | 237 | |||||||||
| Total Shareholders’ Investment | 51,264 | 47,901 | |||||||||
| $ | 84,181 | $ | 81,414 |
The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Shareholders’ Investment
(Unaudited)
(in millions except shares and per share data)
| Three Months Ended September 30 | |||||||||||
| 2025 | 2024 | ||||||||||
| Common Shares: | |||||||||||
| Balance at June 30 | |||||||||||
| Shares: 2025: 1,996,448,469; 2024: 1,990,029,292 | $ | 25,284 | $ | 24,858 | |||||||
| Issued under incentive stock programs | |||||||||||
| Shares: 2025: 295,325; 2024: 1,022,122 | 15 | 48 | |||||||||
| Share-based compensation | 120 | 117 | |||||||||
| Issuance of restricted stock awards | (7) | (3) | |||||||||
| Balance at September 30 | |||||||||||
| Shares: 2025: 1,996,743,794; 2024: 1,991,051,414 | $ | 25,412 | $ | 25,020 | |||||||
| Common Shares Held in Treasury: | |||||||||||
| Balance at June 30 | |||||||||||
| Shares: 2025: 255,988,730; 2024: 250,131,563 | $ | (16,610) | $ | (15,759) | |||||||
| Issued under incentive stock programs | |||||||||||
| Shares: 2025: 543,100; 2024: 545,287 | 36 | 35 | |||||||||
| Purchased | |||||||||||
| Shares: 2025: 2,425,492; 2024: 7,009,200 | (303) | (752) | |||||||||
| Balance at September 30 | |||||||||||
| Shares: 2025: 257,871,122; 2024: 256,595,476 | $ | (16,877) | $ | (16,476) | |||||||
| Earnings Employed in the Business: | |||||||||||
| Balance at June 30 | $ | 48,467 | $ | 38,354 | |||||||
| Net earnings | 1,644 | 1,646 | |||||||||
| Cash dividends declared on common shares (per share — 2025: $0.59; 2024: $0.55) | (1,030) | (958) | |||||||||
| Effect of common and treasury share transactions | 22 | 14 | |||||||||
| Balance at September 30 | $ | 49,103 | $ | 39,056 | |||||||
| Accumulated Other Comprehensive Income (Loss): | |||||||||||
| Balance at June 30 | $ | (6,576) | $ | (8,135) | |||||||
| Other comprehensive income (loss) | (108) | 331 | |||||||||
| Balance at September 30 | $ | (6,684) | $ | (7,804) | |||||||
| Noncontrolling Interests in Subsidiaries: | |||||||||||
| Balance at June 30 | $ | 264 | $ | 242 | |||||||
| Noncontrolling interests’ share of income, net of distributions and share repurchases | 46 | (10) | |||||||||
| Balance at September 30 | $ | 310 | $ | 232 |
The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Shareholders’ Investment
(Unaudited)
(in millions except shares and per share data)
| Nine Months Ended September 30 | |||||||||||
| 2025 | 2024 | ||||||||||
| Common Shares: | |||||||||||
| Balance at January 1 | |||||||||||
| Shares: 2025:1,991,472,630; 2024: 1,987,883,852 | $ | 25,153 | $ | 24,869 | |||||||
| Issued under incentive stock programs | |||||||||||
| Shares: 2025: 5,271,164; 2024: 3,167,562 | 290 | 148 | |||||||||
| Share-based compensation | 551 | 563 | |||||||||
| Issuance of restricted stock awards | (582) | (560) | |||||||||
| Balance at September 30 | |||||||||||
| Shares: 2025: 1,996,743,794; 2024: 1,991,051,414 | $ | 25,412 | $ | 25,020 | |||||||
| Common Shares Held in Treasury: | |||||||||||
| Balance at January 1 | |||||||||||
| Shares: 2025: 259,774,639; 2024: 253,807,494 | $ | (16,844) | $ | (15,981) | |||||||
| Issued under incentive stock programs | |||||||||||
| Shares: 2025: 4,514,000; 2024: 4,410,852 | 295 | 279 | |||||||||
| Purchased | |||||||||||
| Shares: 2025: 2,610,483; 2024: 7,198,834 | (328) | (774) | |||||||||
| Balance at September 30 | |||||||||||
| Shares: 2025: 257,871,122; 2024: 256,595,476 | $ | (16,877) | $ | (16,476) | |||||||
| Earnings Employed in the Business: | |||||||||||
| Balance at January 1 | $ | 47,261 | $ | 37,554 | |||||||
| Net earnings | 4,748 | 4,173 | |||||||||
| Cash dividends declared on common shares (per share — 2025: $1.77; 2024: $1.65) | (3,091) | (2,879) | |||||||||
| Effect of common and treasury share transactions | 185 | 208 | |||||||||
| Balance at September 30 | $ | 49,103 | $ | 39,056 | |||||||
| Accumulated Other Comprehensive Income (Loss): | |||||||||||
| Balance at January 1 | $ | (7,906) | $ | (7,839) | |||||||
| Other comprehensive income (loss) | 1,222 | 35 | |||||||||
| Balance at September 30 | $ | (6,684) | $ | (7,804) | |||||||
| Noncontrolling Interests in Subsidiaries: | |||||||||||
| Balance at January 1 | $ | 237 | $ | 224 | |||||||
| Noncontrolling interests’ share of income, net of distributions and share repurchases | 73 | 8 | |||||||||
| Balance at September 30 | $ | 310 | $ | 232 |
The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.
Abbott Laboratories and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(dollars in millions)
| Nine Months Ended September 30 | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash Flow From (Used in) Operating Activities: | |||||||||||
| Net earnings | $ | 4,748 | $ | 4,173 | |||||||
| Adjustments to reconcile net earnings to net cash from operating activities — | |||||||||||
| Depreciation | 1,064 | 998 | |||||||||
| Amortization of intangible assets | 1,260 | 1,413 | |||||||||
| Share-based compensation | 551 | 562 | |||||||||
| Trade receivables | (874) | (533) | |||||||||
| Inventories | (39) | (293) | |||||||||
| Other, net | (459) | (630) | |||||||||
| Net Cash From Operating Activities | 6,251 | 5,690 | |||||||||
| Cash Flow From (Used in) Investing Activities: | |||||||||||
| Acquisitions of property and equipment | (1,482) | (1,487) | |||||||||
| Acquisitions of businesses and technologies, net of cash acquired | (85) | — | |||||||||
| Proceeds from business dispositions | — | 1 | |||||||||
| Sales (purchases) of other investment securities, net | 46 | 9 | |||||||||
| Other | 12 | 5 | |||||||||
| Net Cash From (Used in) Investing Activities | (1,509) | (1,472) | |||||||||
| Cash Flow From (Used in) Financing Activities: | |||||||||||
| Net borrowings (repayments) of short-term debt and other | (44) | (126) | |||||||||
| Proceeds from issuance of long-term debt | 3 | 222 | |||||||||
| Repayments of long-term debt | (1,503) | (20) | |||||||||
| Purchases of common shares | (591) | (980) | |||||||||
| Proceeds from stock options exercised | 391 | 239 | |||||||||
| Dividends paid | (3,086) | (2,878) | |||||||||
| Other | (82) | — | |||||||||
| Net Cash From (Used in) Financing Activities | (4,912) | (3,543) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 65 | (13) | |||||||||
| Net Increase (Decrease) in Cash and Cash Equivalents | (105) | 662 | |||||||||
| Cash and Cash Equivalents, Beginning of Year | 7,616 | 6,896 | |||||||||
| Cash and Cash Equivalents, End of Period | $ | 7,511 | $ | 7,558 |
The accompanying notes to the condensed consolidated financial statements are an integral part of this statement.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 1 — Basis of Presentation
The accompanying unaudited, condensed consolidated financial statements have been prepared pursuant to rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnote disclosures normally included in audited financial statements. However, in the opinion of management, all adjustments (which include only normal adjustments) necessary to present fairly the results of operations, financial position and cash flows have been made. It is suggested that these statements be read in conjunction with the financial statements included in Abbott’s Annual Report on Form 10-K for the year ended December 31, 2024. The condensed consolidated financial statements include the accounts of the parent company and subsidiaries, after elimination of intercompany transactions.
Note 2 — New Accounting Standards
Recently Adopted Accounting Standards
In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the breadth and frequency of required segment disclosures. The guidance is required to be applied retrospectively to all periods presented in the financial statements. Abbott adopted the standard on January 1, 2024. The new standard did not have an impact on Abbott's consolidated financial statements, but required additional disclosures, retrospectively applied to all periods presented in Note 14 — Segment Information.
Recent Accounting Standards Not Yet Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income - Expense Disaggregation Disclosures, which requires an entity to disclose on an annual and interim basis, disaggregated information about specific income statement expense categories. The guidance should be applied prospectively with the option to apply the standard retrospectively. The standard becomes effective for Abbott for full year 2027 reporting. Abbott is currently evaluating the impact of this new standard on its consolidated financial statements.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires an entity to disclose annually additional information related to the company's income tax rate reconciliation and income taxes paid during the period. The guidance should be applied prospectively with the option to apply the standard retrospectively. The standard becomes effective for Abbott for full year 2025 reporting. Abbott is currently evaluating the impact of this new standard on its consolidated financial statements.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 3 — Revenue
Abbott’s revenues are derived primarily from the sale of a broad line of healthcare products under short-term receivable arrangements. Abbott has four reportable segments: Established Pharmaceutical Products, Nutritional Products, Diagnostic Products, and Medical Devices.
The following tables provide detail by sales category:
| Three Months Ended September 30, 2025 | Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||
| (in millions) | U.S. | Int’l | Total | U.S. | Int’l | Total | ||||||||||||||||||||||||||||||||
| Established Pharmaceutical Products — | ||||||||||||||||||||||||||||||||||||||
| Key Emerging Markets | $ | — | $ | 1,097 | $ | 1,097 | $ | — | $ | 994 | $ | 994 | ||||||||||||||||||||||||||
| Other | — | 414 | 414 | — | 412 | 412 | ||||||||||||||||||||||||||||||||
| Total | — | 1,511 | 1,511 | — | 1,406 | 1,406 | ||||||||||||||||||||||||||||||||
| Nutritional Products — | ||||||||||||||||||||||||||||||||||||||
| Pediatric Nutritionals | 520 | 457 | 977 | 568 | 387 | 955 | ||||||||||||||||||||||||||||||||
| Adult Nutritionals | 368 | 808 | 1,176 | 382 | 729 | 1,111 | ||||||||||||||||||||||||||||||||
| Total | 888 | 1,265 | 2,153 | 950 | 1,116 | 2,066 | ||||||||||||||||||||||||||||||||
| Diagnostic Products — | ||||||||||||||||||||||||||||||||||||||
| Core Laboratory | 366 | 998 | 1,364 | 332 | 982 | 1,314 | ||||||||||||||||||||||||||||||||
| Molecular | 36 | 95 | 131 | 37 | 91 | 128 | ||||||||||||||||||||||||||||||||
| Point of Care | 111 | 47 | 158 | 103 | 43 | 146 | ||||||||||||||||||||||||||||||||
| Rapid Diagnostics | 373 | 227 | 600 | 560 | 264 | 824 | ||||||||||||||||||||||||||||||||
| Total | 886 | 1,367 | 2,253 | 1,032 | 1,380 | 2,412 | ||||||||||||||||||||||||||||||||
| Medical Devices — | ||||||||||||||||||||||||||||||||||||||
| Rhythm Management | 350 | 336 | 686 | 288 | 309 | 597 | ||||||||||||||||||||||||||||||||
| Electrophysiology | 322 | 383 | 705 | 285 | 325 | 610 | ||||||||||||||||||||||||||||||||
| Heart Failure | 280 | 86 | 366 | 252 | 70 | 322 | ||||||||||||||||||||||||||||||||
| Vascular | 280 | 465 | 745 | 258 | 441 | 699 | ||||||||||||||||||||||||||||||||
| Structural Heart | 297 | 338 | 635 | 270 | 288 | 558 | ||||||||||||||||||||||||||||||||
| Neuromodulation | 196 | 58 | 254 | 190 | 46 | 236 | ||||||||||||||||||||||||||||||||
| Diabetes Care | 796 | 1,261 | 2,057 | 673 | 1,052 | 1,725 | ||||||||||||||||||||||||||||||||
| Total | 2,521 | 2,927 | 5,448 | 2,216 | 2,531 | 4,747 | ||||||||||||||||||||||||||||||||
| Other | 4 | — | 4 | 4 | — | 4 | ||||||||||||||||||||||||||||||||
| Total | $ | 4,299 | $ | 7,070 | $ | 11,369 | $ | 4,202 | $ | 6,433 | $ | 10,635 |
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 3 — Revenue (Continued)
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||
| (in millions) | U.S. | Int’l | Total | U.S. | Int’l | Total | ||||||||||||||||||||||||||||||||
| Established Pharmaceutical Products — | ||||||||||||||||||||||||||||||||||||||
| Key Emerging Markets | $ | — | $ | 3,121 | $ | 3,121 | $ | — | $ | 2,910 | $ | 2,910 | ||||||||||||||||||||||||||
| Other | — | 1,033 | 1,033 | — | 1,016 | 1,016 | ||||||||||||||||||||||||||||||||
| Total | — | 4,154 | 4,154 | — | 3,926 | 3,926 | ||||||||||||||||||||||||||||||||
| Nutritional Products — | ||||||||||||||||||||||||||||||||||||||
| Pediatric Nutritionals | 1,695 | 1,377 | 3,072 | 1,646 | 1,377 | 3,023 | ||||||||||||||||||||||||||||||||
| Adult Nutritionals | 1,105 | 2,334 | 3,439 | 1,115 | 2,146 | 3,261 | ||||||||||||||||||||||||||||||||
| Total | 2,800 | 3,711 | 6,511 | 2,761 | 3,523 | 6,284 | ||||||||||||||||||||||||||||||||
| Diagnostic Products — | ||||||||||||||||||||||||||||||||||||||
| Core Laboratory | 1,049 | 2,850 | 3,899 | 969 | 2,879 | 3,848 | ||||||||||||||||||||||||||||||||
| Molecular | 111 | 265 | 376 | 112 | 272 | 384 | ||||||||||||||||||||||||||||||||
| Point of Care | 315 | 133 | 448 | 308 | 133 | 441 | ||||||||||||||||||||||||||||||||
| Rapid Diagnostics | 1,093 | 664 | 1,757 | 1,386 | 762 | 2,148 | ||||||||||||||||||||||||||||||||
| Total | 2,568 | 3,912 | 6,480 | 2,775 | 4,046 | 6,821 | ||||||||||||||||||||||||||||||||
| Medical Devices — | ||||||||||||||||||||||||||||||||||||||
| Rhythm Management | 994 | 950 | 1,944 | 851 | 915 | 1,766 | ||||||||||||||||||||||||||||||||
| Electrophysiology | 943 | 1,091 | 2,034 | 841 | 983 | 1,824 | ||||||||||||||||||||||||||||||||
| Heart Failure | 824 | 249 | 1,073 | 733 | 215 | 948 | ||||||||||||||||||||||||||||||||
| Vascular | 831 | 1,381 | 2,212 | 787 | 1,325 | 2,112 | ||||||||||||||||||||||||||||||||
| Structural Heart | 868 | 980 | 1,848 | 761 | 876 | 1,637 | ||||||||||||||||||||||||||||||||
| Neuromodulation | 565 | 171 | 736 | 563 | 142 | 705 | ||||||||||||||||||||||||||||||||
| Diabetes Care | 2,338 | 3,527 | 5,865 | 1,899 | 3,043 | 4,942 | ||||||||||||||||||||||||||||||||
| Total | 7,363 | 8,349 | 15,712 | 6,435 | 7,499 | 13,934 | ||||||||||||||||||||||||||||||||
| Other | 12 | — | 12 | 11 | — | 11 | ||||||||||||||||||||||||||||||||
| Total | $ | 12,743 | $ | 20,126 | $ | 32,869 | $ | 11,982 | $ | 18,994 | $ | 30,976 |
Products sold by the Diagnostics segment include various types of diagnostic tests to detect the COVID-19 coronavirus. In the third quarter of 2025 and 2024, COVID-19 testing-related sales totaled $69 million and $265 million, respectively. In the first nine months of 2025 and 2024, Abbott’s COVID-19 testing-related sales totaled $208 million and $571 million, respectively.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 3 — Revenue (Continued)
Remaining Performance Obligations
As of September 30, 2025, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) was $6.0 billion in the Diagnostic Products segment and $436 million in the Medical Devices segment. Abbott expects to recognize revenue on approximately 54 percent of these remaining performance obligations over the next 24 months, approximately 17 percent over the subsequent 12 months and the remainder thereafter.
These performance obligations primarily reflect the future sale of reagents/consumables in contracts with minimum purchase obligations, extended warranty or service obligations related to previously sold equipment, and remote monitoring services related to previously implanted devices. Abbott has applied the practical expedient described in FASB Accounting Standards Codification (ASC) 606-10-50-14 and has not included remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above.
Other Contract Assets and Liabilities
Abbott discloses Trade receivables separately in the Condensed Consolidated Balance Sheet at the net amount expected to be collected. Contract assets primarily relate to Abbott’s conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and the end of the period, as well as the changes in the balance, were not significant.
Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. Abbott’s contract liabilities arise primarily in the Medical Devices segment when payment is received upfront for various multi-period extended service arrangements.
Changes in the contract liabilities during the period are as follows:
| (in millions) | ||||||||
| Contract Liabilities: | ||||||||
| Balance at December 31, 2024 | $ | 568 | ||||||
| Unearned revenue from cash received during the period | 382 | |||||||
| Revenue recognized related to contract liability balance | (300) | |||||||
| Balance at September 30, 2025 | $ | 650 |
Note 4 — Supplemental Financial Information
Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Net earnings allocated to common shares for the three months ended September 30, 2025, and 2024, were $1.6 billion and for the nine months ended September 30, 2025, and 2024, were $4.7 billion and $4.2 billion, respectively.
In the second quarter of 2024, Abbott sold a non-core business related to its Established Pharmaceutical Products segment. Abbott recorded a loss of $143 million on the sale in Other (income) expense, net in its Condensed Consolidated Statement of Earnings. Net assets, which primarily related to inventory and net property and equipment and had a carrying value of $28 million, were included in the sale. The loss on the sale also included $116 million of cumulative foreign currency translation adjustment previously recorded in Accumulated other comprehensive income (loss), net of tax.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 4 — Supplemental Financial Information (Continued)
Other, net in Net Cash From Operating Activities in the Condensed Consolidated Statement of Cash Flows for the first nine months of 2025 includes $256 million of pension contributions and the payment of cash taxes of $1.5 billion. The first nine months of 2024 included $298 million of pension contributions and the payment of cash taxes of $1.2 billion.
The following summarizes the activity for the first nine months of 2025 related to the allowance for doubtful accounts as of September 30, 2025:
| (in millions) | ||||||||
| Allowance for Doubtful Accounts: | ||||||||
| Balance at December 31, 2024 | $ | 247 | ||||||
| Provisions/charges to income | 70 | |||||||
| Amounts charged off and other deductions | (25) | |||||||
| Balance at September 30, 2025 | $ | 292 |
The Allowance for Doubtful Accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances.
The components of long-term investments are as follows:
| (in millions) | September 30, 2025 | December 31, 2024 | ||||||||||||
| Long-term Investments: | ||||||||||||||
| Equity securities | $ | 633 | $ | 553 | ||||||||||
| Other | 318 | 333 | ||||||||||||
| Total | $ | 951 | $ | 886 |
The increase in Abbott’s Long-term Investments as of September 30, 2025, versus the balance as of December 31, 2024, primarily relates to additional investments and earnings from equity method investments, partially offset by the impairment of certain securities.
Abbott’s equity securities as of September 30, 2025, include $325 million of investments in mutual funds that are held in a rabbi trust. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.
Abbott also holds certain investments as of September 30, 2025, with a carrying value of $163 million that are accounted for under the equity method of accounting and other equity investments with a carrying value of $118 million that do not have a readily determinable fair value.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 5 — Changes In Accumulated Other Comprehensive Income (Loss)
The changes in Accumulated other comprehensive income (loss), net of tax, are as follows:
| Three Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||
| Cumulative Foreign Currency Translation (Loss) Adjustments | Net Actuarial (Losses) and Prior Service (Costs) and Credits | Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Balance at June 30 | $ | (5,955) | $ | (6,926) | $ | (555) | $ | (1,365) | $ | (66) | $ | 156 | ||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | (136) | 497 | (11) | 14 | 28 | (148) | ||||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income | — | — | — | — | 11 | (32) | ||||||||||||||||||||||||||||||||
| Net current period comprehensive income (loss) | (136) | 497 | (11) | 14 | 39 | (180) | ||||||||||||||||||||||||||||||||
| Balance at September 30 | $ | (6,091) | $ | (6,429) | $ | (566) | $ | (1,351) | $ | (27) | $ | (24) |
| Nine Months Ended September 30 | ||||||||||||||||||||||||||||||||||||||
| Cumulative Foreign Currency Translation (Loss) Adjustments | Net Actuarial (Losses) and Prior Service (Costs) and Credits | Cumulative Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
| Balance at January 1 | $ | (7,505) | $ | (6,504) | $ | (611) | $ | (1,376) | $ | 210 | $ | 41 | ||||||||||||||||||||||||||
| Other comprehensive income (loss) before reclassifications | 1,414 | (41) | 45 | 19 | (186) | (3) | ||||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income | — | 116 | — | 6 | (51) | (62) | ||||||||||||||||||||||||||||||||
| Net current period comprehensive income (loss) | 1,414 | 75 | 45 | 25 | (237) | (65) | ||||||||||||||||||||||||||||||||
| Balance at September 30 | $ | (6,091) | $ | (6,429) | $ | (566) | $ | (1,351) | $ | (27) | $ | (24) |
The reclassification of $116 million out of Accumulated other comprehensive income (loss) in the nine months ended September 30, 2024, is included in the loss related to the sale of a non-core business included in Other (income) expense, net. Reclassified amounts for cash flow hedges are recorded as Cost of products sold. Net actuarial losses and prior service cost are included as a component of net periodic benefit costs; see Note 12 — Post-Employment Benefits for additional details.
Note 6 — Goodwill and Intangible Assets
The total amount of goodwill reported was $24.0 billion at September 30, 2025, and $23.1 billion at December 31, 2024. The amount of goodwill related to reportable segments at September 30, 2025, was $2.7 billion for the Established Pharmaceutical Products segment, $285 million for the Nutritional Products segment, $3.6 billion for the Diagnostic Products segment, and $17.4 billion for the Medical Devices segment. Foreign currency translation adjustments increased goodwill by $815 million in the first nine months of 2025. There were no reductions of goodwill relating to impairments in the first nine months of 2025.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 6 — Goodwill and Intangible Assets (Continued)
The gross amount of amortizable intangible assets, primarily product rights and technology, was $27.5 billion as of September 30, 2025, and $27.1 billion as of December 31, 2024. Accumulated amortization was $22.8 billion and $21.3 billion as of September 30, 2025, and December 31, 2024, respectively. In the first nine months of 2025, intangible assets, net of amortization, increased $76 million due to foreign currency translation. Abbott’s estimated annual amortization expense for intangible assets is approximately $1.7 billion in 2025, $1.5 billion in 2026, $1.2 billion in 2027, $0.7 billion in 2028 and $0.6 billion in 2029.
Indefinite-lived intangible assets, which relate to in-process research and development (IPR&D), were $894 million and $784 million as of September 30, 2025, and December 31, 2024, respectively.
Note 7 — Restructuring Plans
In 2025, Abbott management approved plans to streamline operations in order to reduce costs and improve efficiencies in its diagnostic and medical devices businesses. In the nine months ended September 30, 2025, Abbott recorded employee related severance and other charges of $197 million, of which $100 million was recorded in Cost of products sold, $38 million was recorded in Research and development, and $59 million was recorded in Selling, general, and administrative. Payments related to these actions totaled $57 million in the first nine months of 2025 and the remaining liabilities totaled $140 million at September 30, 2025. In addition, in the first nine months of 2025, Abbott recognized asset impairment charges of $25 million related to these restructuring plans.
In 2024 and 2023, Abbott management approved plans to restructure or streamline various operations in order to reduce costs in its medical devices, diagnostic, nutritional, and established pharmaceutical businesses, including the discontinuation of its ZonePerfect® product line in 2024. In addition, Abbott recognized asset impairment charges of $22 million related to these restructuring plans in the first nine months of 2024. The following summarizes the activity related to these restructuring actions and the status of the related accruals as of September 30, 2025:
| (in millions) | Total | |||||||
| Accrued balance at December 31, 2024 | $ | 118 | ||||||
| Payments and other adjustments | (69) | |||||||
| Accrued balance at September 30, 2025 | $ | 49 |
Note 8 — Incentive Stock Programs
In the first nine months of 2025, Abbott granted 1,482,667 stock options, 364,498 restricted stock awards, and 4,397,394 restricted stock units under its incentive stock program. At September 30, 2025, 51 million shares were reserved for future grants. Information regarding the number of options outstanding and exercisable at September 30, 2025, is as follows:
| Outstanding | Exercisable | |||||||||||||
| Number of shares | 22,690,333 | 19,485,032 | ||||||||||||
| Weighted average remaining life (years) | 4.7 | 4.1 | ||||||||||||
| Weighted average exercise price | $ | 90.17 | $ | 84.79 | ||||||||||
| Aggregate intrinsic value (in millions) | $ | 995 | $ | 958 |
The total unrecognized share-based compensation cost at September 30, 2025, amounted to $577 million, which is expected to be recognized over the next three years.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 9 — Debt and Lines of Credit
On September 15, 2025, Abbott repaid the $500 million outstanding principal amount of its 3.875% Notes upon maturity. On March 17, 2025, Abbott repaid the $1.0 billion outstanding principal amount of its 2.95% Notes upon maturity.
Note 10 — Financial Instruments, Derivatives and Fair Value Measures
Certain Abbott foreign subsidiaries enter into foreign currency forward exchange contracts to manage exposures to changes in foreign exchange rates, primarily for anticipated intercompany purchases by those subsidiaries whose functional currencies are not the U.S. dollar. These contracts, with gross notional amounts totaling $7.2 billion at September 30, 2025, and $7.0 billion at December 31, 2024, are designated as cash flow hedges of the variability of the cash flows due to changes in foreign exchange rates and are recorded at fair value. Accumulated gains and losses as of September 30, 2025, will be included in Cost of products sold at the time the products are sold, generally through the next twelve to eighteen months.
Abbott enters into foreign currency forward exchange contracts to manage currency exposures for foreign currency denominated third-party trade payables and receivables, and for intercompany loans and trade accounts payable where the receivable or payable is denominated in a currency other than the functional currency of the entity. For intercompany loans, the contracts require Abbott to sell or buy foreign currencies, primarily European currencies, in exchange for primarily U.S. dollars and other European currencies. For intercompany and trade payables and receivables, the currency exposures are primarily the U.S. dollar and European currencies. At September 30, 2025, and December 31, 2024, Abbott held the gross notional amounts of $12.7 billion and $16.2 billion, respectively, of such foreign currency forward exchange contracts.
Abbott has designated a yen-denominated, 5-year term loan of $619 million and $583 million as of September 30, 2025, and December 31, 2024, respectively, as a hedge of the net investment in certain foreign subsidiaries. The change in the value of the debt, which is due to changes in foreign exchange rates, is recorded in Accumulated other comprehensive income (loss), net of tax.
Abbott is a party to interest rate hedge contracts with a notional amount totaling $1.2 billion at September 30, 2025, and $2.2 billion at December 31, 2024, to manage its exposure to changes in the fair value of fixed-rate debt. The decrease from December 31, 2024, was due to the maturity of $1.0 billion of interest rate hedge contracts in conjunction with long-term debt, both of which matured in March 2025. These contracts are designated as fair value hedges of the variability of the fair value of fixed-rate debt due to changes in the long-term benchmark interest rates. The effect of the hedge is to change a fixed-rate interest obligation to a variable rate for that portion of the debt. Abbott records the contracts at fair value and adjusts the carrying amount of the fixed-rate debt by an offsetting amount.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)
The following table summarizes the amounts and location of certain derivative and non-derivative financial instruments as of September 30, 2025, and December 31, 2024:
| Fair Value - Assets | Fair Value - Liabilities | |||||||||||||||||||||||||||||||||||||
| (in millions) | September 30, 2025 | December 31, 2024 | Balance Sheet Caption | September 30, 2025 | December 31, 2024 | Balance Sheet Caption | ||||||||||||||||||||||||||||||||
| Interest rate swaps designated as fair value hedges: | ||||||||||||||||||||||||||||||||||||||
| Non-current | $ | — | $ | — | Deferred income taxes and other assets | $ | 34 | $ | 51 | Post-employment obligations, deferred income taxes and other long-term liabilities | ||||||||||||||||||||||||||||
| Current | — | 1 | Prepaid expenses and other receivables | — | — | Other accrued liabilities | ||||||||||||||||||||||||||||||||
| Foreign currency forward exchange contracts: | ||||||||||||||||||||||||||||||||||||||
| Hedging instruments | 30 | 243 | Prepaid expenses and other receivables | 247 | 19 | Other accrued liabilities | ||||||||||||||||||||||||||||||||
| Others not designated as hedges | 25 | 147 | Prepaid expenses and other receivables | 57 | 112 | Other accrued liabilities | ||||||||||||||||||||||||||||||||
| Debt designated as a hedge of net investment in a foreign subsidiary | — | — | n/a | 619 | 583 | Long-term debt | ||||||||||||||||||||||||||||||||
| $ | 55 | $ | 391 | $ | 957 | $ | 765 |
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)
The following table summarizes the activity for foreign currency forward exchange contracts designated as cash flow hedges and certain other derivative financial instruments, as well as the amounts and location of income (expense) and gain (loss) reclassified into income.
| Gain (loss) Recognized in Other Comprehensive Income (loss) | Income (expense) and Gain (loss) Reclassified into Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | Income Statement Caption | |||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency forward exchange contracts designated as cash flow hedges | $ | 33 | $ | (199) | $ | (270) | $ | 39 | $ | (13) | $ | 42 | $ | 74 | $ | 85 | Cost of products sold | |||||||||||||||||||||||||||||||||||||||
| Debt designated as a hedge of net investment in a foreign subsidiary | 16 | (73) | (36) | (26) | — | — | — | — | n/a | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest rate swaps designated as fair value hedges | n/a | n/a | n/a | n/a | — | 24 | 17 | 28 | Interest expense |
Gains of $9 million and losses of $89 million were recognized in the three months ended September 30, 2025, and 2024, respectively, related to foreign currency forward exchange contracts not designated as a hedge. Gains of $44 million and $46 million were recognized in the nine months ended September 30, 2025, and 2024, respectively, related to foreign currency forward exchange contracts not designated as a hedge. These amounts are reported in the Condensed Consolidated Statement of Earnings on the Net foreign exchange (gain) loss line.
The carrying values and fair values of certain financial instruments as of September 30, 2025, and December 31, 2024, are shown in the following table. The carrying values of all other financial instruments approximate their estimated fair values. The counterparties to financial instruments consist of select major international financial institutions. Abbott does not expect any losses from non-performance by these counterparties.
| September 30, 2025 | December 31, 2024 | |||||||||||||||||||||||||
| (in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||
| Long-term Investment Securities: | ||||||||||||||||||||||||||
| Equity securities | $ | 633 | $ | 633 | $ | 553 | $ | 553 | ||||||||||||||||||
| Other | 318 | 318 | 333 | 333 | ||||||||||||||||||||||
| Total Long-term Debt | (12,941) | (12,839) | (14,125) | (13,710) | ||||||||||||||||||||||
| Foreign Currency Forward Exchange Contracts: | ||||||||||||||||||||||||||
| Receivable position | 55 | 55 | 390 | 390 | ||||||||||||||||||||||
| (Payable) position | (304) | (304) | (131) | (131) | ||||||||||||||||||||||
| Interest Rate Hedge Contracts: | ||||||||||||||||||||||||||
| Receivable position | — | — | 1 | 1 | ||||||||||||||||||||||
| (Payable) position | (34) | (34) | (51) | (51) |
The fair value of the debt was determined based on significant other observable inputs, including current interest rates.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 10 — Financial Instruments, Derivatives and Fair Value Measures (Continued)
The following table summarizes the bases used to measure certain assets and liabilities at fair value on a recurring basis in the balance sheet:
| Basis of Fair Value Measurement | ||||||||||||||||||||||||||
| (in millions) | Outstanding Balances | Quoted Prices in Active Markets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||||||
| September 30, 2025: | ||||||||||||||||||||||||||
| Equity securities | $ | 352 | $ | 352 | $ | — | $ | — | ||||||||||||||||||
| Foreign currency forward exchange contracts | 55 | — | 55 | — | ||||||||||||||||||||||
| Total Assets | $ | 407 | $ | 352 | $ | 55 | $ | — | ||||||||||||||||||
| Fair value of hedged long-term debt | $ | 1,126 | $ | — | $ | 1,126 | $ | — | ||||||||||||||||||
| Interest rate swap derivative financial instruments | 34 | — | 34 | — | ||||||||||||||||||||||
| Foreign currency forward exchange contracts | 304 | — | 304 | — | ||||||||||||||||||||||
| Contingent consideration related to business combinations | 1 | — | — | 1 | ||||||||||||||||||||||
| Total Liabilities | $ | 1,465 | $ | — | $ | 1,464 | $ | 1 | ||||||||||||||||||
| December 31, 2024: | ||||||||||||||||||||||||||
| Equity securities | $ | 323 | $ | 323 | $ | — | $ | — | ||||||||||||||||||
| Interest rate swap derivative financial instruments | 1 | — | 1 | — | ||||||||||||||||||||||
| Foreign currency forward exchange contracts | 390 | — | 390 | — | ||||||||||||||||||||||
| Total Assets | $ | 714 | $ | 323 | $ | 391 | $ | — | ||||||||||||||||||
| Fair value of hedged long-term debt | $ | 2,096 | $ | — | $ | 2,096 | $ | — | ||||||||||||||||||
| Interest rate swap derivative financial instruments | 51 | — | 51 | — | ||||||||||||||||||||||
| Foreign currency forward exchange contracts | 131 | — | 131 | — | ||||||||||||||||||||||
| Contingent consideration related to business combinations | 38 | — | — | 38 | ||||||||||||||||||||||
| Total Liabilities | $ | 2,316 | $ | — | $ | 2,278 | $ | 38 |
The fair value of foreign currency forward exchange contracts is determined using a market approach, which utilizes values for comparable derivative instruments. The fair value of debt was determined based on the face value of the debt adjusted for the fair value of the interest rate swaps, which is based on a discounted cash flow analysis using significant other observable inputs. The fair value of the contingent consideration was determined based on independent appraisals at the time of acquisition, adjusted for the time value of money and other changes in fair value. The decrease in the amount of contingent consideration from December 31, 2024, reflects a contingent consideration payment related to a previous business combination.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 11 — Litigation and Environmental Matters
Abbott has been identified as a potentially responsible party for investigation and cleanup costs at a number of locations in the United States and Puerto Rico under federal and state remediation laws and is investigating potential contamination at a number of company-owned locations. Abbott has recorded an estimated cleanup cost for each site for which management believes Abbott has a probable loss exposure. No individual site cleanup exposure is expected to exceed $4 million, and the aggregate cleanup exposure is not expected to exceed $10 million.
Abbott has been named as a defendant in a number of lawsuits alleging that its preterm infant formula and human milk fortifier products that contain cow’s milk ingredients cause an intestinal disease known as necrotizing enterocolitis (NEC) and inadequately warn about the risk of NEC. These lawsuits claim that certain preterm infants suffered injury or death as a result of contracting NEC. Two cases have gone to trial. In a Missouri state case, a jury awarded a plaintiff $495 million in damages. In a second Missouri state court case, a jury found in Abbott’s favor, and the judge later ordered a new trial in that matter. The two Missouri cases are on appeal. In the first three federal Multidistrict Litigation (MDL) “bellwether” cases, the U.S. District Court for the Northern District of Illinois granted summary judgment in favor of Abbott. The plaintiff in the first case has filed an appeal. Abbott stands by its products and the information it provided about them. Abbott does not believe that it is probable that a material loss will be incurred related to these lawsuits and therefore, no reserves have been recorded. Given the uncertainty as to the possible outcome in each of these lawsuits, Abbott is unable to reasonably estimate a range of possible loss related to these lawsuits.
Abbott is involved in various claims and legal proceedings, and Abbott estimates the range of possible loss for its legal proceedings and environmental exposures to be from approximately $5 million to $15 million. The recorded accrual balance at September 30, 2025, for these proceedings and exposures was approximately $10 million. This accrual represents management’s best estimate of probable loss, as defined by FASB ASC No. 450, “Contingencies.” Within the next year, legal proceedings may occur that may result in a change in the estimated loss accrued by Abbott. While it is not feasible to predict the outcome of all such proceedings and exposures with certainty, management believes that their ultimate disposition should not have a material adverse effect on Abbott’s financial position, cash flows, or results of operations, except for the cases discussed in the second paragraph of this note, the resolution of which could be material to Abbott's financial position, cash flows or results of operations.
Note 12 — Post-Employment Benefits
Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Condensed Consolidated Statement of Earnings. Net costs recognized for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans are as follows:
| Defined Benefit Plans | Medical and Dental Plans | |||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||
| Service cost - benefits earned during the period | $ | 55 | $ | 61 | $ | 162 | $ | 182 | $ | 11 | $ | 9 | $ | 32 | $ | 29 | ||||||||||||||||||||||||||||||||||
| Interest cost on projected benefit obligations | 124 | 118 | 369 | 352 | 17 | 13 | 51 | 40 | ||||||||||||||||||||||||||||||||||||||||||
| Expected return on plan assets | (282) | (263) | (841) | (788) | (7) | (6) | (20) | (18) | ||||||||||||||||||||||||||||||||||||||||||
| Net amortization of: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Actuarial loss, net | 2 | 6 | 6 | 18 | — | — | — | (1) | ||||||||||||||||||||||||||||||||||||||||||
| Prior service cost (credit) | — | — | 1 | 1 | (2) | (3) | (7) | (10) | ||||||||||||||||||||||||||||||||||||||||||
| Net cost (credit) | $ | (101) | $ | (78) | $ | (303) | $ | (235) | $ | 19 | $ | 13 | $ | 56 | $ | 40 |
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 12 — Post-Employment Benefits (Continued)
Abbott funds its domestic defined benefit plans according to U.S. Internal Revenue Service (IRS) funding limitations. International pension plans are funded according to similar regulations. In the first nine months of 2025 and 2024, $256 million and $298 million, respectively, were contributed to defined benefit plans. In the first nine months of 2025 and 2024, $75 million and $28 million were contributed, respectively, to the post-employment medical and dental plans.
Note 13 — Taxes on Earnings
Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first nine months of 2025 and 2024, taxes on earnings include $91 million and $44 million, respectively, in excess tax benefits associated with share-based compensation. In the first nine months of 2025, taxes on earnings includes approximately $460 million of tax expense related to a deferred tax asset that was recognized as a significant non-cash tax benefit in a prior year. In the first nine months of 2025 and 2024, taxes on earnings also included approximately $90 million of net tax benefit and $35 million of net tax expense, respectively, as the result of the resolution of various tax positions related to prior years.
In September 2023, Abbott received a Statutory Notice of Deficiency (SNOD) from the IRS for the 2019 Federal tax year in the amount of $417 million. The primary adjustments proposed in the SNOD relate to the reallocation of income between Abbott’s U.S. entities and its foreign affiliates. Abbott believes that the income reallocation adjustments proposed in the SNOD are without merit, in part because certain adjustments contradict methods that were agreed to with the IRS in prior audit periods. The SNOD also contains other proposed adjustments that Abbott believes are erroneous and unsupported. Abbott filed a petition with the U.S. Tax Court contesting the SNOD in December 2023.
In June 2024, Abbott received a SNOD from the IRS for the 2017 and 2018 Federal tax years in the amount of $192 million. The matters proposed in the 2017/2018 SNOD are substantially similar to the income allocation adjustments included in the 2019 SNOD. Abbott filed a petition in September 2024 with the U.S. Tax Court contesting the 2017/2018 SNOD in a manner consistent with its petition for the 2019 SNOD.
In October 2024, Abbott received a SNOD from the IRS for the 2020 Federal tax year assessing an additional $443 million of income tax. The primary adjustments proposed in the SNOD are substantially similar to the income allocation adjustments included in the 2017/2018 and 2019 SNODs. Abbott believes that the income reallocation adjustments proposed in the SNOD are without merit. The SNOD also contains other proposed adjustments and omissions that Abbott believes are erroneous and unsupported. In addition to the tax assessment for the 2020 tax year, the 2020 SNOD also contested a deduction for which an estimated $440 million cash tax benefit would be available in a different taxable year as allowed under applicable U.S. tax law. Abbott filed a petition with the U.S. Tax Court contesting the SNOD in December 2024.
Abbott intends to vigorously defend its filing positions through ongoing discussions with the IRS, the IRS independent appeals process, and/or through litigation, as necessary. Abbott reserves for uncertain tax positions related to unresolved matters with the IRS and other taxing authorities. Abbott continues to believe that its reserves for uncertain tax positions are appropriate.
The Organization for Economic Cooperation & Development (OECD) has proposed a two-pillared plan for a revised international tax system. Pillar 1 proposes to reallocate taxing rights among the jurisdictions in which in-scope multinational corporations operate. Pillar 2 proposes to assess a 15 percent minimum tax on the earnings of in-scope multinational corporations on a country-by-country basis. Numerous countries have enacted legislation to adopt the Pillar 2 model rules. The enactment of current Pillar 2 model rules did not and is not projected to have a material impact to Abbott's consolidated financial statements. Abbott continues to monitor the Pillar 1 and Pillar 2 developments.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 14 — Segment Information
Abbott’s principal business is the discovery, development, manufacture, and sale of a broad line of healthcare products. Abbott’s products are generally sold directly to retailers, wholesalers, hospitals, healthcare facilities, laboratories, physicians’ offices, and government agencies throughout the world.
Abbott’s reportable segments are as follows:
Established Pharmaceutical Products — International sales of a broad line of branded generic pharmaceutical products.
Nutritional Products — Worldwide sales of a broad line of adult and pediatric nutritional products.
Diagnostic Products — Worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories, and alternate-care testing sites. For segment reporting purposes, the Core Laboratory Diagnostics, Rapid Diagnostics, Molecular Diagnostics, and Point of Care Diagnostics businesses are aggregated and reported as the Diagnostic Products segment.
Medical Devices — Worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation, and diabetes care products. For segment reporting purposes, the Rhythm Management, Electrophysiology, Heart Failure, Vascular, Structural Heart, Neuromodulation, and Diabetes Care businesses are aggregated and reported as the Medical Devices segment.
Abbott’s underlying accounting records are maintained on a legal entity basis for government and public reporting requirements. Segment disclosures are on a performance basis consistent with internal management reporting. The chief operating decision maker (CODM) at Abbott is the Chief Executive Officer (CEO). The CODM primarily considers sales and operating margin to assess the performance of segments and to allocate resources, where segment operating margin profitability includes cost of products sold and operating expenses. The cost of some corporate functions and the cost of certain employee benefits are charged to segments at predetermined rates that approximate cost. Remaining costs, if any, are not allocated to segments. In addition, intangible asset amortization is not allocated to operating segments, and intangible assets and goodwill are not included in the measure of each segment’s assets.
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 14 — Segment Information (Continued)
The following segment information has been prepared in accordance with the internal accounting policies of Abbott, as described above, and is not presented in accordance with generally accepted accounting principles applied to the consolidated financial statements.
| Net Sales to External Customers | Cost of Products Sold | Research and Development | Selling, General and Administrative | Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Established Pharmaceuticals | $ | 1,511 | $ | 1,406 | $ | (714) | $ | (644) | $ | (42) | $ | (46) | $ | (364) | $ | (336) | $ | 391 | $ | 380 | ||||||||||||||||||||||||||||||||||||||||||
| Nutritionals | 2,153 | 2,066 | (1,223) | (1,151) | (55) | (53) | (515) | (550) | 360 | 312 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diagnostics | 2,253 | 2,412 | (1,290) | (1,280) | (150) | (165) | (413) | (409) | 400 | 558 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medical Devices | 5,448 | 4,747 | (1,767) | (1,605) | (462) | (408) | (1,390) | (1,221) | 1,829 | 1,513 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 11,365 | $ | 10,631 | $ | (4,994) | $ | (4,680) | $ | (709) | $ | (672) | $ | (2,682) | $ | (2,516) | $ | 2,980 | $ | 2,763 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 11,369 | $ | 10,635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate functions and plan benefit costs | (84) | (140) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest expense | (44) | (51) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation (a) | (120) | (117) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of Intangible assets | (420) | (470) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other, net (b) | (132) | (45) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings before Taxes | $ | 2,180 | $ | 1,940 |
| Net Sales to External Customers | Cost of Products Sold | Research and Development | Selling, General and Administrative | Operating Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Established Pharmaceuticals | $ | 4,154 | $ | 3,926 | $ | (1,914) | $ | (1,819) | $ | (127) | $ | (131) | $ | (1,078) | $ | (1,014) | $ | 1,035 | $ | 962 | ||||||||||||||||||||||||||||||||||||||||||
| Nutritionals | 6,511 | 6,284 | (3,502) | (3,387) | (161) | (158) | (1,676) | (1,677) | 1,172 | 1,062 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diagnostics | 6,480 | 6,821 | (3,666) | (3,671) | (455) | (482) | (1,228) | (1,206) | 1,131 | 1,462 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Medical Devices | 15,712 | 13,934 | (5,123) | (4,779) | (1,293) | (1,155) | (4,062) | (3,620) | 5,234 | 4,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 32,857 | $ | 30,965 | $ | (14,205) | $ | (13,656) | $ | (2,036) | $ | (1,926) | $ | (8,044) | $ | (7,517) | $ | 8,572 | $ | 7,866 | ||||||||||||||||||||||||||||||||||||||||||
| Other | 12 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 32,869 | $ | 30,976 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate functions and plan benefit costs | (177) | (286) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest expense | (143) | (170) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based compensation (a) | (551) | (562) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of Intangible assets | (1,260) | (1,413) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other, net (b) | (333) | (452) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings before Taxes | $ | 6,108 | $ | 4,983 |
| (a) | Approximately 45 percent of the annual net cost of share-based awards will typically be recognized in the first quarter due to the timing of the granting of share-based awards. | ||||
| (b) | Other, net for the three and nine months ended September 30, 2025 and 2024, includes charges related to restructurings. For the nine months ended September 30, 2025, Other, net includes a fair value adjustment to a contingent consideration. Other, net for the three and nine months ended September 30, 2024, includes charges related to impairment of IPR&D and costs related to business integration. Other, net for the nine months ended September 30, 2024, includes a loss on the divestiture of a non-core business. |
Abbott Laboratories and Subsidiaries
Notes to the Condensed Consolidated Financial Statements
September 30, 2025
(Unaudited)
Note 14 — Segment Information (Continued)
| Depreciation | Additions to Property and Equipment | |||||||||||||||||||||||||
| Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Established Pharmaceuticals | $ | 28 | $ | 23 | $ | 38 | $ | 52 | ||||||||||||||||||
| Nutritionals | 47 | 38 | 71 | 106 | ||||||||||||||||||||||
| Diagnostics | 136 | 129 | 168 | 183 | ||||||||||||||||||||||
| Medical Devices | 97 | 87 | 140 | 151 | ||||||||||||||||||||||
| Total Reportable Segments | 308 | 277 | 417 | 492 | ||||||||||||||||||||||
| Other | 63 | 54 | 70 | 77 | ||||||||||||||||||||||
| Total | $ | 371 | $ | 331 | $ | 487 | $ | 569 |
| Depreciation | Additions to Property and Equipment | |||||||||||||||||||||||||
| Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||
| Established Pharmaceuticals | $ | 76 | $ | 71 | $ | 110 | $ | 118 | ||||||||||||||||||
| Nutritionals | 133 | 116 | 231 | 282 | ||||||||||||||||||||||
| Diagnostics | 397 | 387 | 469 | 475 | ||||||||||||||||||||||
| Medical Devices | 279 | 261 | 441 | 444 | ||||||||||||||||||||||
| Total Reportable Segments | 885 | 835 | 1,251 | 1,319 | ||||||||||||||||||||||
| Other | 179 | 163 | 192 | 194 | ||||||||||||||||||||||
| Total | $ | 1,064 | $ | 998 | $ | 1,443 | $ | 1,513 |
| Total Assets | ||||||||||||||
| (in millions) | As of September 30, 2025 | As of December 31, 2024 | ||||||||||||
| Established Pharmaceuticals | $ | 3,730 | $ | 3,087 | ||||||||||
| Nutritionals | 4,891 | 4,404 | ||||||||||||
| Diagnostics | 8,201 | 7,678 | ||||||||||||
| Medical Devices | 10,576 | 9,472 | ||||||||||||
| Total Reportable Segment Assets | $ | 27,398 | $ | 24,641 | ||||||||||
| Cash and investments | 8,684 | 8,853 | ||||||||||||
| Goodwill and intangible assets | 29,569 | 29,755 | ||||||||||||
| All other (c) | 18,530 | 18,165 | ||||||||||||
| Total Assets | $ | 84,181 | $ | 81,414 |
| (c) | As of September 30, 2025, and December 31, 2024, all other includes the long-term assets associated with the defined benefit plans and certain deferred tax assets. |
Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations