Abbott Laboratories (NYSE:ABT) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Abbott Laboratories shares jumped after the company reported better-than-expected quarterly results, opening well above the prior close and trading higher on heavy volume.
• The company posted adjusted EPS of $1.31, topping estimates, while revenue rose 13% year over year to $12.51 billion, showing solid operational growth.
• Abbott also raised its full-year 2026 EPS guidance to $5.45-$5.60 and pointed to strong demand for heart devices as a key driver of future growth.

Abbott Laboratories (NYSE:ABT - Get Free Report) shares gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $89.27, but opened at $95.29. Abbott Laboratories shares last traded at $100.4150, with a volume of 6,088,884 shares changing hands.

The healthcare product maker reported $1.31 earnings per share for the quarter, beating analysts' consensus estimates of $1.28 by $0.03. Abbott Laboratories had a net margin of 13.90% and a return on equity of 17.62%. The company had revenue of $12.51 billion for the quarter, compared to the consensus estimate of $12.52 billion. During the same period last year, the company posted $1.26 EPS. The firm's quarterly revenue was up 13.0% compared to the same quarter last year. Abbott Laboratories has set its Q3 2026 guidance at 1.380-1.46 EPS and its FY 2026 guidance at 5.450-5.60 EPS.

Abbott Laboratories Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Wednesday, July 15th will be paid a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Wednesday, July 15th. Abbott Laboratories's dividend payout ratio (DPR) is presently 70.59%.

Key Abbott Laboratories News

Here are the key news stories impacting Abbott Laboratories this week:

• Positive Sentiment: Abbott raised its full-year 2026 adjusted EPS guidance to $5.45-$5.60, slightly above prior expectations, signaling confidence in earnings momentum. Abbott Reports Second-Quarter 2026 Results and Raises Full-Year EPS Guidance
• Positive Sentiment: Second-quarter adjusted EPS of $1.31 beat analyst estimates, while revenue grew 13% year over year, showing continued operating strength. Abbott Press Release
• Positive Sentiment: Management also raised its outlook on strong demand for heart devices, a key driver of second-half growth and a bullish signal for investors. Reuters: Abbott raises 2026 profit forecast on heart device strength
• Neutral Sentiment: Reported profit fell to $928 million from $1.78 billion a year earlier, but that decline appears to reflect comparison factors more than a deterioration in the core business. WSJ: Abbott Laboratories Sales Rise on Diagnostics Growth
• Neutral Sentiment: Abbott’s Q3 EPS guidance of $1.38-$1.46 was roughly in line with analyst expectations, suggesting no major surprise in near-term outlook beyond the full-year raise.

Analyst Ratings Changes

Several research analysts have commented on ABT shares. Argus cut their target price on Abbott Laboratories from $140.00 to $125.00 and set a "buy" rating on the stock in a report on Tuesday, April 21st. Bank of America decreased their price target on shares of Abbott Laboratories from $120.00 to $102.00 in a research note on Friday, June 12th. Barclays lowered their target price on Abbott Laboratories from $144.00 to $143.00 and set an "overweight" rating on the stock in a research report on Monday, April 20th. Benchmark lowered their target price on shares of Abbott Laboratories from $145.00 to $120.00 and set a "buy" rating on the stock in a report on Friday, April 17th. Finally, Daiwa Securities Group cut Abbott Laboratories from an "outperform" rating to a "neutral" rating and set a $92.00 price objective on the stock. in a research note on Wednesday, April 22nd. Three analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Abbott Laboratories currently has an average rating of "Moderate Buy" and a consensus target price of $117.61.

Insider Transactions at Abbott Laboratories

In other Abbott Laboratories news, CFO Philip P. Boudreau acquired 2,200 shares of the stock in a transaction that occurred on Thursday, April 23rd. The shares were bought at an average price of $91.50 per share, for a total transaction of $201,300.00. Following the completion of the transaction, the chief financial officer owned 2,200 shares of the company's stock, valued at approximately $201,300. This represents a ∞ increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Daniel J. Starks bought 10,000 shares of Abbott Laboratories stock in a transaction that occurred on Monday, April 27th. The shares were acquired at an average price of $92.65 per share, with a total value of $926,500.00. Following the completion of the transaction, the director owned 6,751,103 shares of the company's stock, valued at $625,489,692.95. This represents a 0.15% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.46% of the company's stock.

Institutional Trading of Abbott Laboratories

Large investors have recently modified their holdings of the business. J. Stern & Co. LLP increased its holdings in shares of Abbott Laboratories by 12,439.6% in the 4th quarter. J. Stern & Co. LLP now owns 39,319,009 shares of the healthcare product maker's stock worth $4,926,279,000 after buying an additional 39,005,451 shares during the last quarter. Norges Bank bought a new stake in shares of Abbott Laboratories in the 4th quarter valued at about $2,938,892,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Abbott Laboratories by 217.0% during the first quarter. Arrowstreet Capital Limited Partnership now owns 5,522,222 shares of the healthcare product maker's stock valued at $566,967,000 after purchasing an additional 3,780,402 shares during the period. Assenagon Asset Management S.A. boosted its position in Abbott Laboratories by 303.0% during the 1st quarter. Assenagon Asset Management S.A. now owns 4,429,571 shares of the healthcare product maker's stock valued at $454,784,000 after buying an additional 3,330,368 shares during the period. Finally, Ninety One UK Ltd bought a new stake in shares of Abbott Laboratories in the fourth quarter worth about $336,815,000. Institutional investors own 75.18% of the company's stock.

Abbott Laboratories Trading Up 11.8%

The stock has a market capitalization of $173.82 billion, a P/E ratio of 27.95, a price-to-earnings-growth ratio of 1.53 and a beta of 0.61. The stock has a 50-day moving average price of $89.33 and a two-hundred day moving average price of $102.36. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.01 and a current ratio of 1.39.

About Abbott Laboratories

Abbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.

In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.

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