ABTNEUTRAL

Gross Margin

56.3%

Higher than 31% of Healthcare sector peers

Updated 1928h ago

Sector Performance

31th percentile

ABT

56.3%

Sector Median

69.8%

Sector Avg

-24.1%

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Deep Analysis

Abbott Laboratories’ gross margin of 56.3% means that for every dollar of revenue, the company keeps $0.563 after paying the direct costs of producing its medical devices, diagnostics, and pharmaceuticals.

This is below the Healthcare sector median of 59.2%, placing ABT at the 47th percentile among its peers — slightly below average. The metric has been perfectly stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%. The combination of a below-median level and a flat trend suggests limited pricing power or cost advantage compared to peers, but no immediate erosion of profitability. This does not introduce a clear risk of margin compression, yet it also offers no upside catalyst from margin improvement. The stable but mediocre gross margin supports the overall NEUTRAL verdict, as it provides neither a strong reason to overweight nor underweight the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about ABT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ABT's Gross Margin compare to its sector?

ABT's Gross Margin of 56.3% compares to a Healthcare sector median of 69.8%, placing it in the 31th percentile.

Who are ABT's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BMY (70.2%), AMGN (68.2%), TDOC (67.8%), TECH (66.9%), RMD (62.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.