Abbott Laboratories
Abbott makes medical devices, diagnostics, nutrition products, and generic drugs worldwide.
The call
Abbott sits at the top of medtech on scale and reimbursement ties, with NEC litigation and CGM competition as the two things worth watching.
Abbott makes medical devices like continuous glucose monitors, diagnostic test kits, nutritional products, and pharmaceuticals sold globally to hospitals and consumers. It is hard to replace because hospitals and doctors have been using Abbott products for decades, regulators require lengthy approvals for new competitors, and insurance companies have long-term contracts with Abbott. The biggest risk is that lawsuits over infant formula could cost Abbott billions of dollars and distract management from running the business.
Why
01
AI pressure: None apparent. Abbott builds AI into its own products, like the Libre Assist app, rather than facing an AI rival eating its device or lab base. Could AI do the core job? Unlikely.
02
Bigger players: Dexcom (G7 continuous glucose monitor). Dexcom's CGM is live and growing fast, but Abbott's Libre still leads on installed base and reimbursement reach. Could a giant copy it? No, they are blocked.
03
What protects it. FDA clearances, payer reimbursement deals in 40+ countries, and a 7 million plus Libre user base clinicians already prescribe.
What would change this call
Outcome of Abbott's Missouri Supreme Court appeal on the $495M NEC verdict. Shows whether NEC litigation damages will compound toward the tens-of-billions downgrade threshold.
Verdict in the Inman v. Mead Johnson federal bellwether trial. Signals whether federal NEC litigation trajectory is worsening for Abbott and peers.
Dexcom's reported CGM market share versus Abbott's Libre in 2026 earnings. Shows whether Dexcom is actually taking installed-base share from Abbott's CGM lead.
Verdict in the Inman v. Mead Johnson federal bellwether trial. Signals whether federal NEC litigation trajectory is worsening for Abbott and peers.
Dexcom's reported CGM market share versus Abbott's Libre in 2026 earnings. Shows whether Dexcom is actually taking installed-base share from Abbott's CGM lead.
Key numbers
- FY2025 revenue $44.3B, 6.7% organic growth
- Q2 2026 revenue $12.59B, adjusted EPS $1.31
- FreeStyle Libre: over 7 million users, 60+ countries
Named risks
- NEC infant-formula litigation with ~810 pending federal cases and verdicts up to $495M could compound.
- Missouri Supreme Court appeal outcome on $495M verdict remains unresolved as of mid-2026.
- US Structural Heart mitral segment execution issues could delay promised year-end 2026 growth recovery.
- Exact Sciences integration causing near-term EPS dilution of about $0.20.
- Q4 2025 revenue miss triggered ~9.4% pre-market stock drop, showing guidance-sensitivity.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Medtronic | contesting | Medtronic $34.76B vs Abbott $44.33B revenue in 2025, both top-tier medtech oligopolists |
| J&J MedTech | contesting | J&J MedTech segment $33.8B vs Abbott $44.33B revenue in 2025 |
| Dexcom | gaining on | Dexcom $4.51B revenue in 2025, fastest-growing medtech peer in CGM, though smaller than Abbott's Libre base |
| Danaher (diagnostics) | contesting | Danaher ~$10.2B diagnostics revenue, pending Masimo acquisition, per 2026-06-22 industry report |
| Reckitt/Mead Johnson (Enfamil) | contesting | Co-defendant with Abbott in NEC infant-formula litigation as of 2026 |
Questions people ask
- Is Abbott Laboratories profitable in 2026?
- Yes. Abbott reported Q2 2026 revenue of $12.59B and adjusted EPS of $1.31, beating estimates, and raised full-year 2026 EPS guidance to $5.45-$5.60 on July 16, 2026, building on FY2025 EPS of $5.15.
- Who is Abbott Laboratories' biggest competitor?
- Medtronic ($34.76B revenue in 2025) and J&J MedTech ($33.8B) are Abbott's closest broad-portfolio rivals, but Dexcom ($4.51B revenue, 2025) is the fastest-growing threat specifically in CGM, though Abbott's 7+ million Libre users give it the installed-base lead.
- Could AI replace Abbott Laboratories' business?
- Unlikely to replace its core. Abbott's moat is physical hardware and regulation: FDA-cleared devices, 40+ country CGM reimbursement deals, and patented biosensor materials. Abbott itself deployed generative AI via Libre Assist in January 2026 to deepen stickiness, not replace devices.
- Who owns Abbott Laboratories?
- Abbott is publicly traded on the NYSE under ticker ABT with no controlling parent, widely held by institutional and retail shareholders, and had a market cap of roughly $175.4 billion as of July 20, 2026, per gurufocus.com.
- Did Abbott Laboratories have layoffs in 2026?
- No layoffs are documented; company-reported headcount rose to 115,000 as of December 31, 2025, up from 114,000 in 2024, and grew further with the March 2026 Exact Sciences acquisition adding roughly 7,000 employees.
- Is Abbott losing CGM market share to Dexcom?
- Not by scale as of 2025-2026: Dexcom is growing faster off a smaller base ($4.51B revenue in 2025) but Abbott's FreeStyle Libre holds a larger installed base of 7 to 8 million users across 60+ countries with reimbursement in 40+ countries.
Timeline
- 2026-07-16Q2 2026 revenue $12.59B, EPS $1.31 beats estimates; full-year EPS guidance raised to $5.45-$5.60
- 2026-07-06Fourth federal NEC bellwether trial (Inman v. Mead Johnson) began in MDL No. 3026
- 2026-05-05Missouri Court of Appeals affirmed $495M NEC verdict; Abbott seeking Supreme Court review
- 2026-04-09Abbott hit with $53M verdict in Chicago state-court NEC baby formula trial
- 2026-03-23Abbott completed ~$21B acquisition of Exact Sciences, adding Cologuard cancer diagnostics
- 2026-03-12FreeDM2 RCT data presented showing Libre CGM improves HbA1c in Type 2 diabetics
- 2026-01-22FY2025 results: $44.3B revenue, $5.15 adjusted EPS, dividend raised 6.8% to $0.63/quarter
- 2026-01-05Launched AI-powered Libre Assist meal-guidance feature at CES
- 2025-11Abbott announced agreement to acquire Exact Sciences for ~$21B
Revision history
20 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Top Medical Device Companies of 2025 (2026-03-11)
- Abbott 2025 Results (2026-01-22)
- Revenue miss overshadows EPS growth (2026-01-22)
- Abbott Reports Second-Quarter 2026 Results (2026-07-16)
- Abbott Q2 Earnings & Revenues Top Estimates (2026-07-16)
- Abbott Reports Second-Quarter 2026 Results and Raises Full-Year EPS Guidance (2026-07-16)
- Abbott's new Libre Assist app feature tackles a top need (2026-01-05)
- Abbott completes acquisition of Exact Sciences (2026-03-23)
- Revenue miss overshadows EPS growth (2026-01-22)
- gurufocus.com (2026-07-20)
- Abbott Laboratories Number of Employees 1993-2025 (2026-07-16)
- Abbott Laboratories Number of Employees 2026 (2026-06-29)