Oppenheimer has revised its price target for Abbott Laboratories (NYSE: ABT) down to $132.00 from the previous $140.00 after analyzing the company’s fourth-quarter financial performance, though it continues to recommend the stock as an Outperform. Over the past week, Abbott has experienced a notable drop in its share price, tumbling nearly 11% and approaching its 52-week low of $105.78, as tracked by InvestingPro. Despite the recent stock weakness, valuation metrics suggest the shares remain undervalued in view of the company’s fundamentals.
During the fourth quarter, Abbott reported revenue of $11.46 billion, marking an organic growth of 3.0% year-over-year but missing expectations set by both Oppenheimer and market consensus, which hovered around $11.8 billion. The company’s GAAP earnings per share stood at $1.01, falling short of analyst forecasts ranging between $1.16 and $1.22. For the full year, Abbott accomplished $44.33 billion in revenue, paired with a robust gross profit margin of 56.71%, signaling solid underlying profitability.
Revenue from the Medical Devices segment amounted to $5.68 billion, reflecting a healthy 10.4% organic growth rate. In regulatory developments, Abbott achieved FDA approval for the VOLT-PFA device in December 2025 and initiated a limited market release within the United States. Additionally, the firm has submitted a dual-analyte sensor application to the FDA, with potential approval anticipated in the first half of 2026. Positioned within the Healthcare Equipment & Supplies industry, Abbott’s financial health remains strong, characterized by cash flow sufficiency to service interest obligations and a conservative debt load.
Looking ahead to fiscal 2026, Abbott projects organic growth in the range of 6.5% to 7.5%, alongside adjusted earnings per share expected between $5.55 and $5.80. The guidance for the first quarter anticipates adjusted EPS of $1.12 to $1.18, which slightly trails the consensus estimate of $1.20. Abbott’s current price-to-earnings ratio stands at 32.45, which InvestingPro assesses as undervalued relative to projected near-term earnings growth. The company also boasts a long-standing dividend tradition, having paid dividends for 56 consecutive years and raised them for 12 straight years, reflecting disciplined financial management.
Oppenheimer’s updated outlook factors in an anticipated reduction in headwinds outside the MedTech sector, more favorable year-over-year comparisons in fiscal 2026, and acceleration in top-line growth to low double digits. Improvements in EBIT margins are also expected. Furthermore, Abbott is progressing toward completing its acquisition of Exact Sciences, which may bolster its business profile.
Additional financial information from Abbott's Q4 2025 release indicates total revenue of $11.46 billion, lower than the projected $11.8 billion, with an EPS of $1.50 meeting expectations. The primary cause of the revenue shortfall was a weaker performance in the Nutrition segment, which posted $1.94 billion in sales, below the consensus point of $2.2 billion. These factors prompted several analyst firms to adjust their price targets: Wells Fargo cut its target to $122 citing nutritional segment challenges while maintaining an Overweight rating; Raymond James lowered its target to $130 describing the results as "soft" but kept an Outperform rating; Jefferies reduced its target to $145, noting the Nutrition segment shortfall but retaining a Buy rating. This array of responses highlights ongoing sector challenges as Abbott seeks to meet market expectations.
Investors looking for comprehensive analysis can refer to Abbott’s Pro Research Report, which offers in-depth data and actionable intelligence. This resource transforms complex financial information into clear insights, including ProTips and key metrics, supporting more informed investment decisions in the healthcare and medical technology sectors.