Abbott Laboratories (NYSE:ABT) stock rose 3.71% (As on July 18, 11:22:35 AM UTC-4, Source: Google Finance) after the company provided its guidance for the third quarter slightly below consensus following a mixed earnings report for Q2 2025. ABT’s Diagnostics division generated ~$2.17B in sales with a ~1% YoY decline compared to $2.21B in the consensus, as the company’s COVID-19 testing-related sales fell ~16% YoY to $55M, missing the $63.5M mark projected by analysts. Meanwhile, the company’s Medical devices and Nutrition segments added $5.37B and $2.21B to the topline with ~13% YoY and ~3% YoY growth compared to $5.23B and $2.24B in Street forecasts, respectively. ABT’s diabetes products added $1.98B to the topline with ~20% YoY growth, exceeding the consensus of $1.93B as sales of continuous glucose monitors generated $1.9B with ~21% YoY growth. The company recorded $1.38B in sales from its Established pharmaceuticals division with a ~7% YoY growth, while Street forecasts suggested it would record $1.37B in sales for the quarter.

Moreover, Abbott’s diagnostics business in China was not as strong as expected. But he emphasized that the company saw improvement in the segment “everywhere else except China,” pointing to growth in the U.S., Europe and Latin America. Abbott is seeing strength in other areas, including its medical devices arm. According to Ford, that business has seen double-digit growth for several quarters. He attributed some of the progress to a “very rich pipeline” of devices, including those that help treat diabetes and heart issues.

ABT in the second quarter of FY25 has reported the adjusted earnings per share of $1.26, which is inline with the analysts’ estimates for the adjusted earnings per share of $1.26. The company had reported the adjusted revenue growth of 7 percent to $11.1 billion in the second quarter of FY25, beating the analysts’ estimates for revenue by $80 million. ABT’s adjusted operating margin for the quarter improved 100 bps from a year ago to 22.9%

The North Chicago, Illinois-based healthcare giant estimated its adjusted diluted earnings per share for Q3 could reach $1.28 – $1.32 compared to $1.33 in the consensus, its full-year outlook for adj. EPS stood at $5.10 – $5.20, in line with $5.16 projected by analysts. However, the company’s projection for 2025 organic sales growth at 6.0%–7.0%, including COVID-19 testing-related sales, fell short of the ~7.4% estimated by Wall Street analysts, according to Bloomberg data. The company projected its full-year adj. operating margin to reach nearly 23.5%.