ABT

ABBOTT LABORATORIES

HealthcareCIK 0000001800

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Market Cap
$178.83B
P/E (TTM)
28.4x
Rev Growth (TTM)
+6.6%
Net Margin (TTM)
14.0%
FCF Yield (TTM)
4.1%
FCF Margin (TTM)
16.3%

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LATEST EARNINGS

Q1 2026
3 months ago
View source
Revenue
$11.16B
+7.8%
Net Income
$1.08B
-18.7%
EPS
$0.61
-20.0%
Gross
52.4% -0.4%
Operating
12.1% -4.3%
Net
9.7% -3.1%
  • Total reported sales increased 7.8% to $11.164 billion.
  • Comparable sales growth of 3.7% reflects underlying business performance.
  • Medical Devices segment sales increased 13.2% on a reported basis and 8.5% on a comparable basis, led by double-digit growth in Electrophysiology, Heart Failure, and Rhythm Management.
  • Established Pharmaceuticals sales increased 13.2% on a reported basis and 9.0% on a comparable basis, driven by Key Emerging Markets.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$7.4B
Q1 '26
$916M-65%
Q4 '25
$2.6B+15%
FCF Margin
TTM16.3%
Q1 '268.2%-64%
Sector: 0.0%Top 10%
OCF Margin21.0%
OCF/NI1.50x
CapEx Coverage4.5x
FCF Yield4.1%
FCF Growth (2Y)+3%
Cash Conversion Cycle
189 days
DSO: 64+DIO: 125DPO: 0

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.8%
Div Yield2.3%
+
Buyback (TTM)0.4%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)2.3%
FCF Payout Ratio56.8%
Free Cash Flow (TTM)$7.4B
Stock Repurchases (TTM)$793.0M
Capital Return / FCF67.5%
Est. Dividends Paid (TTM)$4.2B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
8.9%
Stable
-0.1% YoY-4.7%
P25MedianP75
75th pctl (med: -0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
13.2%
8Q: 14.2%
Asset Turnover
0.51x
8Q: 0.54x
Leverage (1+D/E)
1.65x
D/E: 0.65x
DuPont: 11.2%8.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
3.89x
8Q:3.98x
-31.5%
Invested Cap Turn
0.83x
8Q:0.85x
-3.5%
CapEx Intensity
3.8%
8Q:4.1%
CapEx/Depreciation
0.66x
Depreciation Rate Trend
⚠ Declining -2.2%
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
28.4x
Volatile
8Q: 136.9x+4144%
Multiple expansion without fundamental improvement
High PEG ratio (4.3x) suggests expensive for growth
Valuation Lenses
Earnings
28.4x
vs sector
Cash Flow
25.3x
EV/FCF vs
Growth-Adj
4.3xPEG
Expensive for growth
Quality-Adj
3.2P/E per %ROIC
ROIC: 8.9%
Shareholder Returns
Dividend
2.3%
Buyback
0.4%
Total Yield
2.8%
Market Cap$178.83B
EV$186.81B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
77/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
12.3%
8Q:
Return on Invested Capital (ROIC)Top 25%
8.9%
8Q:
-4.7%
vs Sector:-0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 13.2%
Asset Turnover: 0.51x

Earnings Quality

Cash Conversion

1.50x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin56.3%

Capital Efficiency

Invested Capital Turnover0.83x

Working Capital

Cash Conversion Cycle189 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
58/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
6.6%
OpInc Growth YoY
-20.6%
EPS Growth YoY
-53.0%
FCF 3Y CAGR
2.6%

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
56.3%
Operating
17.1%
Top 25% in sector
Net
14.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+2.4 pts
FCF: 16.3% | Net: 14.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $26.75B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.65x
Balance sheet risk & solvency analysis