Abbott LaboratoriesABT -0.04%80 Gross Margin % is 56.20% as of Mar. 2026, which is 0% below its 10-year median of 56.41. GuruFocus rates ABT with a GF Score™ of 80/100 and a GF Value™ of $129.49 (Significantly Undervalued). Among 805 Medical Devices & Instruments companies, Abbott Laboratories ranks better than 57.02% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Abbott Laboratories had a gross margin of 56.20% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Abbott Laboratories Gross Margin % Related Terms
Abbott Laboratories Gross Margin % Historical Data
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The historical data trend for Abbott Laboratories's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Devices subindustry, Abbott Laboratories's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Abbott Laboratories Gross Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Abbott Laboratories (ABT) has a Gross Margin % of 56.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Abbott Laboratories and its competitors. This is near median its historical median of 56.41. Over the past decade, Abbott Laboratories' Gross Margin % has ranged from 54.70 to 58.53. According to the industry distribution chart, Abbott Laboratories ranks #346 out of 805 companies in the Medical Devices & Instruments industry, placing it in the top 43%.
Is Abbott Laboratories' Gross Margin % too high?
Abbott Laboratories' current Gross Margin % of 56.20% is near median its 10-year median of 56.41. Over the past 10 years, this metric has ranged from a low of 54.70 to a high of 58.53. The Medical Devices & Instruments industry median Gross Margin % is 52.07. Abbott Laboratories' value of 56.20% is 7.9% above this industry median. Based on the distribution chart, Abbott Laboratories ranks #346 out of 805 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Abbott Laboratories has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott Laboratories' Gross Margin % compare to SYK and MDT?
According to the Medical Devices & Instruments industry distribution chart, Abbott Laboratories ranks #346 out of 805 companies for Gross Margin %. This puts Abbott Laboratories in the upper half of its industry. The industry median Gross Margin % is 52.07. Abbott Laboratories' value of 56.20% is 7.9% above this benchmark. Historically, Abbott Laboratories' own Gross Margin % has ranged from 54.70 to 58.53 over the past decade. While the company's 10-year median is 56.41 vs. the industry median of 52.07, Abbott Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Medical Devices & Instruments company?
The median Gross Margin % among Medical Devices & Instruments companies is 52.07, based on 805 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abbott Laboratories's current Gross Margin % of 56.20% is 7.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Abbott Laboratories and its competitors. For the Medical Devices & Instruments industry, the median Gross Margin % is 52.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott Laboratories's current Gross Margin % is 56.20%, which is near median its own 10-year median of 56.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Abbott Laboratories (ABT) is currently considered Significantly Undervalued. The stock's GF Value™ is $129.49, compared to a current price of $90.49 — trading 30.1% below its estimated fair value. The current Gross Margin % is 56.20%, which is near median its 10-year median of 56.41 and 7.9% above the Medical Devices & Instruments industry median of 52.07. Abbott Laboratories' overall GF Score™ is 80/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Abbott Laboratories (ABT), the current Gross Margin % is 56.20% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Abbott Laboratories (ABT) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott Laboratories stock appears to be undervalued.
The current stock price of $90.49 is trading 30.1% below its estimated GF Value™ of $129.49.
GuruFocus considers Abbott Laboratories to be Significantly Undervalued.
Key valuation signals for ABT:
Gross Margin %: 56.20% (near median its 10-year median of 56.41)
GF Value™: $129.49 vs. price of $90.49 (30.1% below fair value)
Industry Position: 7.9% above the Medical Devices & Instruments median (#346 of 805)
No single metric tells the full story. See the ABT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs. Products include pacemakers, implantable cardioverter defibrillators, neuromodulation devices, coronary stents, catheters, infant formula, nutritional liquids for adults, continuous glucose monitors, and immunoassays and point-of-care diagnostic equipment. Abbott derives roughly 60% of sales outside the United States.
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