ABTNEUTRAL

ABT Gross Margin Analysis

56.3%

Higher than 36% of Healthcare sector peers

Updated 3029h ago·SEC filings & market data

Key Takeaway

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.

Sector Performance

36th percentile

ABT

56.3%

Sector Median

68.4%

Sector Avg

-59.4%

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Deep Analysis

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 68.4%, placing it in the 36th percentile.

Who are ABT's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BLUE (68.4%), AMGN (68.2%), BSX (69.4%), TECH (66.9%), EXAS (70.1%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.