Abbott Laboratories (ABT) delivered a solid start to 2025, showcasing broad-based strength across its healthcare portfolio in the first quarter. Total worldwide sales reached $10.36 billion, marking a 4.0% year-over-year increase on a reported basis and 6.9% growth organically. Excluding COVID-19 testing, organic growth was even stronger at 8.3%. The company’s bottom line also reflected healthy momentum, with GAAP diluted EPS rising 8.6% to $0.76 and adjusted diluted EPS climbing 11.2% to $1.09. Net earnings grew 8.2% to $1.33 billion on a GAAP basis, while adjusted net earnings increased 10.9% to $1.92 billion.

Abbott also saw margin expansion, with adjusted gross margin improving to 57.1%—a 140 basis point increase year-over-year—and adjusted operating margin rising to 21.0%, up 130 basis points. These gains reflect improved product mix and operational efficiency.

Performance across business segments was led by Medical Devices, which posted $4.90 billion in sales, up 12.6% organically, fueled by strong U.S. demand (+15.0%) and solid global growth. Standouts included the FreeStyle Libre platform in Diabetes Care, along with robust contributions from Structural Heart, Electrophysiology, and Vascular businesses. Nutrition also delivered a strong quarter, with organic growth of 6.8%, bolstered by 10.4% organic growth in the U.S., particularly in pediatric and adult nutrition led by Ensure® and Glucerna® brands.

Established Pharmaceuticals reported 7.8% organic growth, with double-digit increases in several key emerging markets. Meanwhile, Diagnostics declined 4.9% organically, primarily due to the anticipated drop in COVID-19 testing sales, which fell to $84 million from $204 million a year ago. Excluding these tests, the Diagnostics segment grew 0.5% organically, supported by modest growth in Core Laboratory Diagnostics.

CEO Robert Ford emphasized the strength of Abbott’s diversified model, crediting it for delivering “top-tier sales and EPS growth” amid ongoing macroeconomic pressures. The company reaffirmed its full-year guidance, projecting 7.5% to 8.5% organic sales growth, adjusted operating margin of 23.5% to 24.0%, and adjusted EPS of $5.05 to $5.25, with Q2 guidance between $1.23 and $1.27.

In line with its commitment to innovation, Abbott highlighted several recent milestones, including CE Mark approval for the Volt™ PFA System and progress on the TECTONIC trial for its Coronary IVL System. The company also declared its 405th consecutive quarterly dividend of $0.59 per share, marking 53 consecutive years of dividend increases.

With momentum in high-growth areas like Medical Devices and continued margin improvement, Abbott enters the rest of 2025 well-positioned to deliver on its full-year outlook and sustain long-term value creation.