Abbott Laboratories
ABT · NYSE
Next quarter
Reports Oct 21, 2026.
Consensus is $1.43 EPS for Sep 2026 across 8 estimates, ranging $1.41 to $1.46.
ABT Jun 2026
- 2.34%
- +1.87%
- $1.28
- $1.31
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Highlights
- Adjusted earnings: Second-quarter adjusted diluted EPS was $1.31, ahead of the $1.28 consensus and up 4.0% from $1.26 a year ago; GAAP diluted EPS was $0.53 versus $1.01.
- Sales growth: Revenue rose 13.0% to $12.593 billion from $11.142 billion, including a 4.8% comparable increase excluding foreign exchange, Exact Sciences and the prior-year Structural Heart compensation payment.
- Guidance raised: Abbott increased full-year adjusted EPS guidance to $5.45-$5.60 from $5.38-$5.58 while maintaining comparable sales growth guidance of 6.5%-7.5%; third-quarter adjusted EPS guidance is $1.38-$1.46.
- Medical Devices: Sales increased 9.0% to $5.853 billion, or 8.4% on a comparable basis, led by Electrophysiology growth of 13.4%, Heart Failure growth of 8.7% and Diabetes Care growth of 9.0%.
- Exact Sciences: The March 23 acquisition contributed $811 million of comparable second-quarter sales and approximately $1.0 billion in first-half sales, but also drove higher amortization, integration costs and interest expense.
- Diagnostics: Reported sales surged 42.3% to $3.092 billion, while comparable sales grew 2.9%; Cologuard posted mid-teens growth, Core Laboratory grew 3.2%, and Rapid and Molecular Diagnostics declined 8.0%.
- Nutrition weakness: Nutrition sales fell 3.6% comparably to $2.144 billion, reflecting lower volumes and the effects of strategic pricing, although sales improved $127 million sequentially.
- Cash returns and leverage: Abbott returned $2.1 billion through dividends and repurchases, generated $3.803 billion of operating cash flow in the first half, and ended June with $32.608 billion of long-term debt after funding Exact Sciences largely with $20.0 billion of new debt.
- Charges and litigation: Specified items reduced second-quarter earnings by $1.362 billion after tax, including $658 million of intangible amortization and a $385 million legal reserve; Abbott also disclosed a $510 million accrued balance for legal proceedings.
Analysis
Abbott’s second quarter was an acquisition-adjusted growth print with a modest earnings beat and a higher full-year EPS floor. Adjusted diluted EPS of $1.31 exceeded the $1.28 consensus by 2.34% and increased 4.0% from $1.26 in the year-ago quarter. Revenue grew 13.0% to $12.593 billion from $11.142 billion, although comparable growth was 4.8% after excluding Exact Sciences, foreign exchange and the Structural Heart compensation effect. Sequentially, revenue rose from $11.16 billion in the first quarter, while adjusted EPS increased from approximately $1.15; GAAP EPS declined to $0.53 from $0.61 in the prior quarter and $1.01 a year earlier because of acquisition-related amortization, legal and other charges.
The core operating picture was led by Medical Devices, where comparable sales rose 8.4%, and by the newly acquired Exact Sciences business, which added $811 million of second-quarter sales on a comparable basis. Diagnostics’ headline growth therefore overstated its underlying momentum, with comparable growth of 2.9% and Rapid and Molecular Diagnostics down 8.0%. Nutrition remained the principal drag, falling 3.6% comparably, while Established Pharmaceuticals grew 8.7%. Abbott raised adjusted EPS guidance to $5.45-$5.60 but kept comparable sales guidance unchanged at 6.5%-7.5%, framing the quarter as a transition toward faster second-half growth while absorbing materially higher debt and amortization.
Core results and guidance
Abbott delivered revenue and adjusted earnings growth despite a sharply lower GAAP result. Reported revenue increased 13.0% to $12.593 billion, while comparable sales increased 4.8%. Adjusted operating performance was stronger than the statutory figures imply, with adjusted net earnings of $2.290 billion versus $2.213 billion a year ago. The company raised the full-year adjusted EPS range by lifting the low end to $5.45 from $5.38 and the high end to $5.60 from $5.58, while retaining comparable sales growth guidance of 6.5%-7.5%.
- GAAP distortion: GAAP net earnings fell 47.8% to $928 million, or $0.53 per diluted share, principally because specified items rose to $1.362 billion after tax from $434 million.
- Cost pressure: Operating earnings declined 17.5% to $1.693 billion. Interest expense rose to $299 million from $50 million, while SG&A increased 30.3% to $4.025 billion.
- Second-half setup: Management expects third-quarter adjusted EPS of $1.38-$1.46 and described sales and earnings growth as accelerating in the second half.
Exact Sciences integration
Exact Sciences was the defining change to Abbott’s portfolio and reported results. Acquired on March 23 for approximately $20.6 billion, the business contributed $811 million of second-quarter sales on Abbott’s comparable presentation and approximately $1.0 billion of first-half sales. The acquisition established Abbott’s Cancer Diagnostics business, including Cologuard, Oncotype DX and Cancerguard, but earnings contribution was not material in the period.
- Purchase accounting: The preliminary allocation included $12.8 billion of acquired intangible assets and $11.4 billion of goodwill.
- Earnings burden: Second-quarter intangible amortization increased to $658 million from $420 million, while acquisition-related costs and other specified items contributed to the $1.362 billion after-tax adjustment.
- Financing: Abbott issued $20.0 billion of long-term debt to fund the acquisition, assumed approximately $2.8 billion of Exact Sciences debt and ended June with $32.608 billion of long-term debt versus $12.929 billion at year-end 2025.
- Cancer diagnostics: Comparable Cancer Diagnostics sales were $919 million, up 13.3%, with mid-teens Cologuard growth supported by new and repeat users and updated colorectal screening guidelines.
Devices and diagnostics
Medical Devices supplied the strongest broad-based organic performance, while Diagnostics showed a large acquisition-driven increase but more limited underlying growth. Medical Devices sales rose 9.0% to $5.853 billion, or 8.4% comparably, with growth across electrophysiology, rhythm management, heart failure and diabetes care. Continuous glucose monitoring sales increased 9.5% comparably, and Abbott continued to advance its pipeline through the TECTONIC IVL trial, Libre Duo and electrophysiology programs.
- Electrophysiology: Sales increased 13.4% comparably, led by ablation catheters and related products; Abbott also presented new pulsed-field ablation and conduction-system pacing data.
- Diabetes Care: Sales grew 9.0% comparably to $2.188 billion, while continuous glucose monitor sales rose 9.5% comparably.
- Diagnostics underlying trend: Comparable Diagnostics sales rose 2.9% to $2.984 billion, with Core Laboratory up 3.2% but Rapid and Molecular Diagnostics down 8.0% because of lower respiratory-virus testing.
- Pipeline milestones: Abbott completed enrollment in its TECTONIC U.S. pivotal trial and submitted the Amulet 360 left atrial appendage device to the FDA.
Nutrition and pharmaceuticals
Nutrition remained the clearest operating weakness, while Established Pharmaceuticals continued to provide dependable international growth. Nutrition sales declined 3.6% comparably to $2.144 billion, with both pediatric and adult categories down and U.S. sales falling 9.0%. Management attributed the result to lower volumes and the effects of strategic pricing actions implemented in late 2025, though the business improved $127 million sequentially from the first quarter.
- Pediatric nutrition: Sales declined 3.1% comparably, including a 9.0% U.S. decline; international pediatric sales increased 6.4% comparably.
- Adult nutrition: Sales declined 4.0% comparably, with U.S. sales down 6.4% and international sales down 2.8%.
- Established Pharmaceuticals: Sales increased 8.7% comparably to $1.499 billion, led by 10.7% growth in Key Emerging Markets across Latin America and Asia Pacific.
Cash, capital and litigation
Abbott generated cash to support shareholder returns, but the Exact Sciences transaction materially changed its balance sheet and increased the importance of integration and deleveraging. First-half operating cash flow was $3.803 billion, up from $3.464 billion a year earlier, while cash and equivalents declined to $5.104 billion from $8.522 billion at December 31, 2025.
- Shareholder returns: Abbott returned $2.1 billion in the quarter through dividends and repurchases, including approximately 11.6 million shares repurchased for $1.0 billion in the first half; $5.6 billion remained available under the repurchase authorization.
- Dividend: The quarterly dividend was increased 6.8% to $0.63 per share, marking Abbott’s 54th consecutive year of dividend increases.
- Legal reserve: Second-quarter specified items included a $385 million reserve for an agreed-in-principle settlement subject to contingencies; the company reported approximately $510 million of accrued legal and environmental exposures at June 30.
- Formula litigation: A Missouri appeals court affirmed the $495 million NEC-related verdict in May, and Abbott is seeking review by the Supreme Court of Missouri.
