Abbott LaboratoriesABT -0.04%80 Operating Margin % is 12.05% as of Mar. 2026, which is 24% below its 10-year median of 15.82. GuruFocus rates ABT with a GF Score™ of 80/100 and a GF Value™ of $129.49 (Significantly Undervalued). Among 816 Medical Devices & Instruments companies, Abbott Laboratories ranks better than 81.25% on this metric.
Abbott Laboratories operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Abbott Laboratories's Operating Margin % or its related term are showing as below:
ABT'
s Operating Margin % Range Over the Past 10 Years
Min: 5.71 Med: 15.82 Max: 19.56
Current: 17.07
ABT's Operating Margin % is ranked better than 81.25% of 816
companies
in the Medical Devices & Instruments industry
Industry Median: 3.465
vs ABT: 17.07
Abbott Laboratories's 5-Year Average Operating Margin % Growth Rate was 0.20% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Abbott Laboratories Operating Margin % Related Terms
Abbott Laboratories Operating Margin % Historical Data
* Premium members only.
The historical data trend for Abbott Laboratories's Operating 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.
ABT vs SYK, MDT, BSX: Operating Margin % Comparison
For the Medical Devices subindustry, Abbott Laboratories's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Abbott Laboratories's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Abbott Laboratories's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Abbott Laboratories's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Abbott Laboratories (ABT) has a Operating Margin % of 12.05% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Abbott Laboratories and its competitors. This is 24% below median its historical median of 15.82. Over the past decade, Abbott Laboratories' Operating Margin % has ranged from 5.71 to 19.56. According to the industry distribution chart, Abbott Laboratories ranks #153 out of 816 companies in the Medical Devices & Instruments industry, placing it in the top 18.7%.
Is Abbott Laboratories' Operating Margin % too high?
Abbott Laboratories' current Operating Margin % of 12.05% is 24% below median its 10-year median of 15.82. Over the past 10 years, this metric has ranged from a low of 5.71 to a high of 19.56. The Medical Devices & Instruments industry median Operating Margin % is 3.47. Abbott Laboratories' value of 12.05% is 247.8% above this industry median. Based on the distribution chart, Abbott Laboratories ranks #153 out of 816 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to SYK and MDT?
According to the Medical Devices & Instruments industry distribution chart, Abbott Laboratories ranks #153 out of 816 companies for Operating Margin %. This places Abbott Laboratories in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.47. Abbott Laboratories' value of 12.05% is 247.8% above this benchmark. Historically, Abbott Laboratories' own Operating Margin % has ranged from 5.71 to 19.56 over the past decade. While the company's 10-year median is 15.82 vs. the industry median of 3.47, 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 Operating Margin % for a Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abbott Laboratories's current Operating Margin % of 12.05% is 247.8% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Abbott Laboratories and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott Laboratories's current Operating Margin % is 12.05%, which is 24% below median its own 10-year median of 15.82. 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 Operating Margin % is 12.05%, which is 24% below median its 10-year median of 15.82 and 247.8% above the Medical Devices & Instruments industry median of 3.47. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Abbott Laboratories (ABT), the current Operating Margin % is 12.05% 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:
Operating Margin %: 12.05% (24% below median its 10-year median of 15.82)
GF Value™: $129.49 vs. price of $90.49 (30.1% below fair value)
Industry Position: 247.8% above the Medical Devices & Instruments median (#153 of 816)
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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