Post-Employment Benefits

12 Months Ended

Dec. 31, 2025

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Information for Abbott’s major defined benefit plans and post-employment medical and dental benefit plans is as follows:


	Defined Benefit Plans				Medical and Dental Plans
(in millions)	2025		2024		2025		2024
Projected benefit obligations, January 1	$	9,450	$	10,030	$	1,166	$	1,181
Service cost — benefits earned during the year	216		242		43		39
Interest cost on projected benefit obligations	493		469		68		54
(Gains) losses, primarily changes in discount rates, plan design changes, law changes and differences between actual and estimated healthcare costs	(95)		(763)		186		(33)
Benefits paid	(433)		(398)		(78)		(73)
Other, including foreign currency translation	249		(130)		1		(2)
Projected benefit obligations, December 31	$	9,880	$	9,450	$	1,386	$	1,166
Plan assets at fair value, January 1	$	14,143	$	13,085	$	277	$	288
Actual return (loss) on plan assets	1,891		1,259		53		26
Company contributions	309		349		86		36
Benefits paid	(433)		(398)		(78)		(73)
Other, including foreign currency translation	337		(152)		—		—
Plan assets at fair value, December 31	$	16,247	$	14,143	$	338	$	277
Projected benefit obligations less (greater) than plan assets, December 31	$	6,367	$	4,693	$	(1,048)	$	(889)
Long-term assets	$	7,490	$	5,724	$	—	$	—
Short-term liabilities	(44)		(38)		(2)		(2)
Long-term liabilities	(1,079)		(993)		(1,046)		(887)
Net asset (liability)	$	6,367	$	4,693	$	(1,048)	$	(889)
Amounts Recognized in Accumulated Other Comprehensive Income (loss):
Actuarial (gains) losses, net	$	(156)	$	772	$	188	$	29
Prior service costs (credits)	4		5		1		(8)
Total	$	(152)	$	777	$	189	$	21

The $95 million of defined benefit plan gains in 2025 that decreased the projected benefit obligations primarily reflect the favorable impact of actual asset returns in excess of expected returns and the year-over-year increase in discount rates used to measure the obligations. The $186 million of medical and dental plan loss that increased the projected benefit obligations primarily reflects higher claims. The $763 million of defined benefit plan gains and $33 million of medical and dental plan gains in 2024 that decreased the projected benefit obligations primarily reflect the year-over-year increase in the discount rates used to measure the obligations. The projected benefit obligations for non-U.S. defined benefit plans were $2.4 billion and $2.3 billion at December 31, 2025, and 2024, respectively. The accumulated benefit obligations for all defined benefit plans were $9.2 billion and $8.7 billion at December 31, 2025, and 2024, respectively.

For plans where the projected benefit obligations exceeded plan assets at December 31, 2025 and 2024, the projected benefit obligations and the aggregate plan assets were as follows:


(in millions)	2025		2024
Projected benefit obligation	$	1,275	$	1,180
Fair value of plan assets	152		149

For plans where the accumulated benefit obligations exceeded plan assets at December 31, 2025, and 2024, the aggregate accumulated benefit obligations, the projected benefit obligations and the aggregate plan assets were as follows:


(in millions)	2025		2024
Accumulated benefit obligation	$	1,196	$	1,112
Projected benefit obligation	1,275		1,180
Fair value of plan assets	152		149

Retirement plans consist of defined benefit, defined contribution, and medical and dental plans. Net periodic benefit costs, other than service costs, are recognized in the Other (income) expense, net line of the Consolidated Statement of Earnings. The components of the net periodic benefit cost as of December 31 were as follows:


	Defined Benefit Plans						Medical and Dental Plans
(in millions)	2025		2024		2023		2025		2024		2023
Service cost — benefits earned during the year	$	216	$	242	$	230	$	43	$	39	$	38
Interest cost on projected benefit obligations	493		469		455		68		54		59
Expected return on plans’ assets	(1,124)		(1,050)		(971)		(27)		(24)		(23)
Amortization of actuarial losses (gains)	8		24		11		—		(2)		(2)
Amortization of prior service costs (credits)	1		1		1		(9)		(13)		(13)
Total net cost (income)	$	(406)	$	(314)	$	(274)	$	75	$	54	$	59

In addition, approximately $15 million of income was recognized in 2023 related to the curtailment of a non-U.S. defined benefit plan.

Other comprehensive income (loss) for each respective year includes the amortization of actuarial losses (gains) and prior service costs (credits) as noted in the previous table. Other comprehensive income (loss) for each respective year also includes: net actuarial gains of $861 million for defined benefit plans and a loss of $160 million for medical and dental plans in 2025; net actuarial gains of $971 million for defined benefit plans and a gain of $36 million for medical and dental plans in 2024, and net actuarial gains of $182 million for defined benefit plans and a loss of $33 million for medical and dental plans in 2023. The net actuarial gains in 2025 related to defined benefit plans are primarily due to the favorable impact of actual asset returns in excess of expected returns and the year-over-year increase in discount rates. The net actuarial loss in 2025 related to medical and dental plans is primarily due to higher claims. The net actuarial gains in 2024 related to defined benefit plans are primarily due to the favorable impact of actual asset returns in excess of expected returns and the year-over-year increase in discount rates. The net actuarial gain in 2024 related to medical and dental plans is primarily due to the year-over-year increase in discount rates.

The weighted average assumptions used to determine benefit obligations for defined benefit plans and medical and dental plans are as follows:


	2025		2024		2023
Discount rate	5.5	%	5.4	%	4.8	%
Expected aggregate average long-term change in compensation	4.6	%	4.6	%	4.6	%

The weighted average assumptions used to determine the net cost for defined benefit plans and medical and dental plans are as follows:


	2025		2024		2023
Discount rate	5.4	%	4.8	%	5.0	%
Expected return on plan assets	7.6	%	7.6	%	7.6	%
Expected aggregate average long-term change in compensation	4.6	%	4.6	%	4.5	%

The assumed healthcare cost trend rates for medical and dental plans at December 31 were as follows:


	2025		2024		2023
Healthcare cost trend rate assumed for the next year	9	%	8	%	8	%
Rate that the cost trend rate gradually declines to	5	%	5	%	5	%
Year that rate reaches the assumed ultimate rate	2033		2031		2029

The discount rates used to measure liabilities were determined based on high-quality fixed income securities that match the duration of the expected retiree benefits. The healthcare cost trend rates represent Abbott’s expected annual rates of change in the cost of healthcare benefits and are forward projections of healthcare costs as of the measurement date.

The following table summarizes the bases used to measure the defined benefit and medical and dental plan assets at fair value:


			Basis of Fair Value Measurement
(in millions)	Outstanding Balances		Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs		Measured at NAV (j)
December 31, 2025
Equities:
U.S. large cap (a)	$	4,323	$	3,072	$	—	$	—	$	1,251
U.S. mid and small cap (b)	952		941		—		4		7
International (c)	3,696		604		—		—		3,092
Fixed income securities:
U.S. government securities (d)	485		7		463		—		15
Corporate debt instruments (e)	1,775		127		1,213		—		435
Non-U.S. government securities (f)	783		61		3		—		719
Other (g)	999		362		180		—		457
Absolute return funds (h)	2,136		404		—		—		1,732
Cash and Cash Equivalents	396		16		—		—		380
Other (i)	1,040		—		3		—		1,037
	$	16,585	$	5,594	$	1,862	$	4	$	9,125
December 31, 2024
Equities:
U.S. large cap (a)	$	3,873	$	2,714	$	—	$	—	$	1,159
U.S. mid and small cap (b)	918		909		—		1		8
International (c)	2,827		518		—		—		2,309
Fixed income securities:
U.S. government securities (d)	441		7		420		—		14
Corporate debt instruments (e)	1,558		120		1,032		—		406
Non-U.S. government securities (f)	627		43		2		—		582
Other (g)	916		335		175		—		406
Absolute return funds (h)	1,814		283		—		—		1,531
Cash and Cash Equivalents	314		16		—		—		298
Other (i)	1,132		7		—		—		1,125
	$	14,420	$	4,952	$	1,629	$	1	$	7,838

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(a)A mix of index funds and actively managed equity accounts that are benchmarked to various large cap indices.

(b)A mix of index funds and actively managed equity accounts that are benchmarked to various mid and small cap indices.

(c)A mix of index funds and actively managed pooled investment funds that are benchmarked to various non-U.S. equity indices in both developed and emerging markets.

(d)A mix of index funds and actively managed accounts that are benchmarked to various U.S. government bond indices.

(e)A mix of index funds and actively managed accounts that are benchmarked to various corporate bond indices.

(f)Primarily United Kingdom, Canada, Japan and Eurozone government bonds.

(g)Primarily asset backed securities, bank loans, interest rate swap positions and diversified fixed income vehicles benchmarked to SOFR, Sterling Overnight Interbank Average (SONIA), or EURIBOR.

(h)Primarily hedge funds and funds invested by managers that have a global mandate with the flexibility to allocate capital broadly across a wide range of asset classes and strategies, including but not limited to equities, fixed income, commodities, interest rate futures, currencies, and other securities to outperform an agreed upon benchmark with specific return and volatility targets.

(i)Primarily investments in private funds, such as private equity, private credit, private real estate, and private energy funds.

(j)Investments measured at fair value using the net asset value (NAV) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

Equities that are valued using quoted prices are valued at the published market prices. Equities in a common collective trust or a registered investment company are valued at the NAV provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund minus its liabilities. For approximately half of these funds, investments may be redeemed once per week or month, with a required 2 to 30 day notice period. For the remaining funds, daily redemption of an investment is allowed. Fixed income securities that are valued using significant other observable inputs are valued at prices obtained from independent financial service industry recognized vendors. Abbott did not have any unfunded commitments related to fixed income funds at December 31, 2025, and 2024. Fixed income securities in a common collective trust or a registered investment company are valued at the NAV provided by the fund administrator. For the majority of these funds, investments may be redeemed either weekly or monthly, with a required 2 to 60 day notice period. For the remaining funds, investments may be generally redeemed daily.

Absolute return funds are valued at the NAV provided by the fund administrator. Abbott did not have any unfunded commitments related to absolute return funds at December 31, 2025, and 2024. Investments in these funds may be generally redeemed monthly or quarterly with required notice periods ranging from 5 to 90 days. For approximately $350 million of the absolute return funds, redemptions are subject to a 25 percent gate and $60 million is subject to a lock until 2028. All private funds are valued at the NAV provided by the fund on a one-quarter lag adjusted for known cash flows and significant events through the reporting date. Investments in the private funds cannot be redeemed but the funds will make distributions through liquidation. The estimate of the liquidation period for each fund ranges from 2026 to 2035. Abbott’s unfunded commitment in these funds was $630 million and $540 million as of December 31, 2025, and 2024, respectively.

The investment mix of equity securities, fixed income, and other asset allocation strategies is based upon achieving a desired return, as well as balancing higher return, more volatile equity securities with lower return, and less volatile fixed income securities. Investment allocations are made across a range of markets, industry sectors, capitalization sizes, and in the case of fixed income securities, maturities, and credit quality. The plans do not directly hold any securities of Abbott. There are no known significant concentrations of risk in the plans’ assets. Abbott’s medical and dental plans’ assets are invested in a similar mix as the pension plan assets. The actual asset allocation percentages at year end are consistent with the company’s targeted asset allocation percentages.

The plans’ expected return on assets, as shown above, is based on management’s expectations of long-term average rates of return to be achieved by the underlying investment portfolios. In establishing this assumption, management considers historical and expected returns for the asset classes in which the plans are invested, as well as current economic and capital market conditions.

Abbott funds its domestic pension plans according to U.S. Internal Revenue Service (IRS) funding limitations. International pension plans are funded according to similar regulations. Abbott funded $309 million in 2025 and $349 million in 2024 and 2023 to pension plans. Abbott expects to contribute approximately $85 million to its pension plans in 2026.

Total benefit payments expected to be paid to participants, which include payments funded from company assets, as well as paid from the plans, are as follows:


(in millions)	Defined Benefit Plans		Medical and Dental Plans
2026	$	447	$	76
2027	466		81
2028	489		86
2029	515		91
2030	540		95
2031 to 2035	3,077		544

The Abbott Stock Retirement Plan is the principal defined contribution plan. Abbott’s contributions to this plan were $256 million in 2025, $207 million in 2024, and $199 million in 2023.

ABBOTT LABORATORIES 10-K