ABT to Report Q2 Earnings: CGM and Cardiac Devices in Focus

Abbott Laboratories (ABT) is set to report Q2 2025 earnings, with Zacks Consensus Estimates projecting revenues of $11.07 billion (+6.7% YoY) and EPS of $1.25 (+9.6% YoY). The Medical Devices segment is anticipated to be a primary growth driver, expected to increase 10.9% year-over-year, largely due to strong adoption of continuous glucose monitoring (CGM) systems and advancements in cardiac devices like the Tendyne TMVR and AVEIR pacemaker. While the Diagnostics segment may see an impact from declining COVID-19 testing revenues, the Established Pharmaceuticals (EPD) and Nutrition segments are also forecast to contribute positively. Given ABT's Zacks Rank #2 and positive Earnings ESP, the company has a higher probability of surpassing these estimates, extending its historical trend of beating consensus.

Analysis

Abbott Laboratories is positioned for a strong Q2 2025 earnings report, with consensus estimates pointing to a 6.7% year-over-year revenue increase to $11.07 billion and a 9.6% rise in EPS to $1.25. The primary growth catalyst is the Medical Devices segment, which is projected to grow by a robust 10.9% YoY. This performance is driven by the significant adoption of its continuous glucose monitoring (CGM) systems, which surged 20% in the prior quarter, alongside contributions from new product launches and approvals, including the Tendyne TMVR system and the AVEIR leadless pacemaker. This strength is expected to more than compensate for the stagnation in the Diagnostics division, where revenues are forecast to grow just 0.1% as declining demand for COVID-19 tests masks underlying growth in core lab and routine testing. Complementing the outlook are solid growth expectations for the Established Pharmaceuticals and Nutrition segments, at 6.1% and 4.3% respectively, with a new strategic focus on biosimilars. The company's history of beating earnings estimates for four consecutive quarters, combined with a Zacks Rank #2 (Buy) and a positive Earnings ESP of +0.96%, signals a high probability of another positive surprise.

Key Decisions for Investors

• Given the strong growth forecasts, particularly in the high-margin Medical Devices segment, and a quantitative model suggesting a high probability of an earnings beat, investors could view the current setup as favorable ahead of the report.
• Post-earnings, focus should be on management's guidance for the Medical Devices division to confirm sustained momentum in CGM sales and the adoption rates of new cardiac products, as this segment is critical to the company's growth thesis.
• Investors should also monitor the performance of the Diagnostics segment to ensure that growth in its core business is sufficient to fully offset the secular decline in COVID-19 testing revenue and support the overall diversified growth story.