Abbott Laboratories
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company offers generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, hypertriglyceridemia, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also provides laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion serology testing; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; and drug and alcohol test. In addition, the company offers pediatric and adult nutritional products and infant formula; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices. The company was formerly known as Abbott Alkaloidal Company and changed its name to Abbott Laboratories in 1915. Abbott Laboratories was founded in 1888 and is based in Abbott Park, Illinois.
What does it do?
Abbott Laboratories makes products that help doctors diagnose, treat, and monitor health conditions. Think of the rapid COVID tests you bought at the pharmacy — Abbott made a lot of those. They also make the FreeStyle Libre, a small sensor you wear on your arm that continuously tracks your blood sugar without finger pricks. Beyond that, they sell baby formula (Similac), heart devices, and generic medicines used in developing countries.
Abbott sits at the intersection of two of the biggest trends in healthcare: the global diabetes epidemic and the push for faster, cheaper diagnostics. With over 500 million people worldwide living with diabetes, demand for Abbott's glucose monitoring technology is structurally growing, not just cyclical. Investors also care because Abbott is one of the few healthcare companies with four distinct revenue streams, which makes it more resilient when one segment slows down.
How does it make money?
Abbott generated $44.3 billion in revenue in its latest fiscal year, up from $42.0 billion the prior year — that's about 5.5% growth. The biggest driver is Medical Devices, which includes the FreeStyle Libre glucose monitor and heart-related devices like stents and structural heart implants. Diagnostics brings in a significant chunk too, though this segment was inflated during COVID by test kit demand and has since normalized. Nutrition (Similac baby formula, Ensure adult nutrition shakes) and Established Pharmaceuticals round out the picture, with the pharma segment focused mainly on emerging markets.
Why do investors care?
The core growth story is FreeStyle Libre. It's already the world's best-selling continuous glucose monitor, and the addressable market keeps expanding as diabetes rates rise globally and more people in emerging markets get access to healthcare. Abbott is also investing heavily in its heart device portfolio — particularly structural heart and electrophysiology (treating abnormal heart rhythms) — which are fast-growing areas. For the thesis to work, FreeStyle Libre needs to keep gaining users, and Abbott's newer medical device launches need to compete effectively against rivals like Medtronic and Dexcom.
Deep Dive
MemberA full investor briefing on Abbott Laboratories — history, leadership, risks, and outlook.