Jefferies recently lowered its price target for Abbott Laboratories (NYSE: ABT) to $145, down from a prior target of $149, while keeping a Buy rating on the healthcare stock. This adjustment followed Abbott’s fourth-quarter 2025 earnings report, which highlighted some revenue challenges despite meeting earnings expectations.
Abbott recorded quarterly sales of $11.5 billion, reflecting 3.8% organic growth but falling short of consensus analyst estimates of $11.8 billion. The main contributor to this shortfall was the Nutrition segment, which generated $1.94 billion in revenue, below the expected $2.2 billion. This underperformance in the Nutrition division drove the overall revenue miss for the quarter.
While revenue lagged, Abbott’s earnings per share stood at $1.50, consistent with market forecasts. The company also outlined its fiscal 2026 guidance, predicting organic sales growth between 6.5% and 7.5%. This guidance range slightly brackets the consensus growth estimate of 7.1%, indicating management’s cautious confidence in the coming year.
Projected earnings per share for fiscal 2026 are set between $5.55 and $5.80, encompassing the market consensus of $5.67. Such guidance suggests that Abbott expects to maintain steady profitability despite recent headwinds.
Jefferies described the quarterly results as "disappointing" given the revenue miss but highlighted the attractive current valuation of Abbott’s shares. The firm expressed confidence that the company’s fundamental growth drivers remain intact, anticipating a continuation of high-single-digit organic growth through 2026.
This mix of modest revenue challenges balanced by solid earnings and promising guidance positions Abbott as a company navigating a nuanced market environment. Investors and analysts are likely to continue monitoring how the Nutrition segment’s performance will influence overall growth trends in the coming quarters.
Overall, Abbott's financial update underscores areas of concern but also reflects resilience in earnings and a cautiously optimistic outlook for future expansion.