--- title: "Is Abbott Laboratories Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/abbott-laboratories-stock publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: stock ticker: ABT exchange: NYSE last_reviewed: 2026-06-15 data_as_of: 2026-03-31 standards_disagree: false authorities_with_position: 3 authority_agreement: unanimous --- # Is Abbott Laboratories Stock Halal? **Authority consensus:** All 3 halal screening authorities with a published position rate Abbott Laboratories halal. **Verdict: Halal** (Generally permissible) Abbott Laboratories (ABT) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 22.2% of market cap and cash plus interest-bearing securities 4.7% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence Abbott is a diversified healthcare company — medical devices (including its continuous glucose monitors), diagnostics, nutrition (Similac, Ensure), and branded generic pharmaceuticals. Crucially, none of those segments is conventional insurance, which is the activity that disqualifies a healthcare giant like UnitedHealth. Abbott's mix is permissible, and it passes the AAOIFI financial screens: interest-bearing debt around 22% of market cap, cash near 5%, and impermissible income about 0.5% of revenue. Screeners including Zoya and Musaffa rate Abbott compliant. Its debt ratio is a touch higher than the cleanest names in the sector, so the usual discipline applies — re-check quarterly since the ratio moves with the share price — but there is no business-activity concern. Purify the small share of dividends attributable to incidental interest income. ## Business activity screen Result: Pass Abbott Laboratories is a diversified healthcare company spanning medical devices, diagnostics, established (branded generic) pharmaceuticals, and nutrition products. These are permissible healthcare activities and do not include conventional insurance. Abbott passes the business-activity screen — its segments are medical devices, diagnostics, nutrition, and branded generic pharmaceuticals, none of which is conventional insurance or banking. Interest-bearing debt is about 22% of market cap, cash roughly 5%, and impermissible income about 0.5% of revenue — inside AAOIFI limits. Incidental interest income should be purified. ## Financial ratio screen (AAOIFI) Data as of: 2026-03-31 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 22.2% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 4.7% | < 30% | Pass | | Impermissible income / total revenue | 0.5% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it screens across Shariah standards All three mainstream bases below reach the same conclusion for this company. | Standard | Debt | Cash & interest securities | Limit / basis | Result | |---|---|---|---|---| | AAOIFI (our standard) | 22.2% | 4.7% | < 30% of market cap | Pass | | Dow Jones Islamic / S&P Shariah threshold | 22.2% | 4.7% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 30.8% | 6.6% | < 33.33% of total assets | Pass | HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded); the < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **Zoya**: Rates ABT Shariah-compliant under its AAOIFI-based methodology. ([source](https://zoya.finance/stocks/abt)) - **Musaffa**: Classifies ABT as HALAL under its AAOIFI-based screen. ([source](https://musaffa.com/stock/ABT/)) ## Purification Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures. ## Sources - ABT latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Abbott%20Laboratories&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Abbott Laboratories 10-K filings (SEC EDGAR) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=ABT&type=10-K) - Zoya — ABT Shariah-compliant (https://zoya.finance/stocks/abt) - Musaffa — ABT HALAL (https://musaffa.com/stock/ABT/) ## Frequently asked questions ### Is Abbott Laboratories (ABT) stock halal? Yes, under our AAOIFI-based methodology Abbott Laboratories passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-03-31). Check the dated ratio table before investing; ratios move with the share price. ### Does Abbott Laboratories pass the AAOIFI financial ratio screen? As of 2026-03-31: interest-bearing debt is 22.2% of market cap (limit < 30%); cash plus interest-bearing securities is 4.7% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is Abbott Laboratories held in halal ETFs like SPUS or HLAL? Check the scholar/screener positions and sources on this page for current SPUS, HLAL, Zoya, and Musaffa statuses. ### Do I need to purify dividends from Abbott Laboratories? Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income. ## Related verdicts - [Is Apple Stock Halal?](https://www.halalwallet.ca/is-it-halal/apple-stock.md) — Halal - [Is Meta Platforms Stock Halal?](https://www.halalwallet.ca/is-it-halal/meta-platforms-stock.md) — Halal - [Is Microsoft Stock Halal?](https://www.halalwallet.ca/is-it-halal/microsoft-stock.md) — Halal - [Is NVIDIA Stock Halal?](https://www.halalwallet.ca/is-it-halal/nvidia-stock.md) — Halal - [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal - [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md