Abbott Q1 Profit Up, Margins Rise, Guidance Held

Abbott Laboratories reported strong first-quarter 2025 results, achieving $10.4 billion in sales with 6.9% organic growth and double-digit earnings growth, leading to a notable rise in its stock price. Medical device revenue grew by 9.9%, especially in diabetes care, while Nutrition and Established Pharmaceuticals segments performed robustly. Diagnostics sales declined due to lower COVID-19 testing and challenges in China. The company reaffirmed its full-year EPS guidance of $5.05–$5.25 and announced $500 million in manufacturing and R&D investments in Illinois and Texas to strengthen domestic operations. Abbott's gross and operating margins expanded, benefiting from efficiency gains and product mix optimization. Analysts noted Abbott's resilience amid macroeconomic and trade headwinds but flagged risks such as competitive pressures, tax rate increases, and global pricing trends.