ABT · Earnings call · 2026Q3T · Full report

Capital Return Program

ABBOTT LABORATORIES · 2026-10-21 · Importance 26 · Surprise 24

Management said Abbott expects to grow its dividend next year and will have an opportunity for share buybacks. The company expects to make its last large tranche of debt paydown related to the St. Jude and Alere acquisitions in 2026, with few debt payments in the following couple of years. Management expects net debt to EBITDA to be around 2 times and said Abbott has capacity for M&A, with activity more likely to involve tuck-in deals than transformative acquisitions. Management said the nutrition separation would not constrain dividends, organic investment, or M&A.

Key facts

• Abbott expects to grow its dividend next year.
• Abbott expects the last large tranche of debt paydown related to the St. Jude and Alere acquisitions to occur this year, with very few debt payments in the following couple of years.
• Abbott expects net debt to EBITDA to be around 2 times and said it retained capacity for M&A.
• Abbott expects M&A to be more likely in the tuck-in range than transformative, while it focuses on Exact integration.
• Abbott said it has capacity for buybacks and expects the nutrition separation not to impede dividend growth, organic investment, or M&A.
• Abbott said its balance sheet was in very good shape and that it had substantial flexibility.