Abbott Labs Stock Drops 4.01% Despite 7.4% Revenue Surge

On July 17, 2025, Abbott Laboratories' stock price experienced a significant drop of 4.01% during pre-market trading, following the release of its second-quarter financial results.

Abbott Laboratories reported a 7.4% increase in revenue for the second quarter, reaching $11.42 billion, which surpassed analysts' expectations of $11.07 billion. The company's earnings per share (EPS) also showed strong growth, with adjusted diluted EPS of $1.26, up from $1.14 in the previous year. This performance was driven by robust sales growth across various segments, including Nutrition, Diagnostics, Established Pharmaceuticals, and Medical Devices.

The company's Nutrition segment saw a 2.9% increase in reported sales, with strong growth in Adult Nutrition products such as Ensure and Glucerna. The Diagnostics segment, however, faced challenges due to the decline in COVID-19 testing-related sales, resulting in a 1.0% decrease in reported sales. Despite this, Core Laboratory Diagnostics sales increased by 2.2% on a reported basis. The Established Pharmaceuticals segment continued to perform well, with a 6.9% increase in reported sales, driven by strong growth in key emerging markets.

Abbott Laboratories also highlighted several key developments in its pipeline and product portfolio. The company completed enrollment ahead of schedule in its FlexPulse U.S. IDE trial for the TactiFlex Duo Pulsed Field Ablation (PFA) System, which is designed to treat heart rhythm disorders. Additionally, Abbott announced FDA approval for its Tendyne transcatheter mitral valve replacement (TMVR) system, a first-of-its-kind device for treating mitral valve disease. The company also plans to develop a new cardiovascular device manufacturing facility in Georgia, to be completed by 2028.