Abbott Laboratories NYSE: ABT reported second-quarter 2026 comparable sales growth of 4.8% and adjusted earnings per share of $1.31, with Chairman and Chief Executive Officer Robert Ford saying results marked an acceleration from the prior two quarters.
The company reaffirmed its full-year comparable sales growth guidance of 6.5% to 7.5% and raised its adjusted EPS guidance range to $5.45 to $5.60. Chief Financial Officer Phil Boudreau said Abbott expects third-quarter adjusted EPS of $1.38 to $1.46.
Ford said Abbott entered the second half of the year with “momentum building across the portfolio” and “clear line of sight” to the drivers behind expected sales growth acceleration. He said the company’s focus on gross margin expansion supported the higher earnings outlook.
Margins Improve as Sales Growth Accelerates
Boudreau said second-quarter adjusted gross margin was 58.0% of sales, up 100 basis points from the prior year. He attributed the improvement to favorable business mix within Abbott’s legacy portfolio, the addition of Exact Sciences, operational improvements and disciplined execution of margin expansion initiatives.
Adjusted research and development expense was 6.9% of sales, while adjusted selling, general and administrative expense was 28.6% of sales. Foreign exchange had a favorable 0.8% year-over-year impact on second-quarter sales, slightly better than Abbott expected in April. Based on current rates, Boudreau said the company expects foreign exchange to have a positive impact of about 1% on full-year sales, including an expected negative impact of about 1% in the third quarter.
Diagnostics and Nutrition Show Mixed Trends
In diagnostics, Ford said Abbott’s core laboratory business reflected strong demand for testing, which he described as a useful indicator of broader healthcare activity. U.S. core laboratory sales grew 7.5%, and Ford said the company continued to post strong performance in Latin America. During the question-and-answer session, he said hospital lab testing within Abbott’s U.S. core lab business was up 13% in the quarter.
Rapid and molecular diagnostics sales declined 8%, driven by an expected drop in respiratory virus testing following a weaker-than-normal season that ended during the quarter.
Cancer diagnostics sales grew 13%, supported by mid-teens growth in Cologuard, contributions from precision oncology and international growth. Ford said Abbott continues to expect cancer diagnostics growth in the second half to exceed first-half growth, helped by care gap programs, recently launched tests and international adoption. He also noted that the American Cancer Society updated its colorectal cancer screening guidelines in May, reaffirming Cologuard and Cologuard Plus as preferred screening options.
Nutrition sales came in slightly ahead of Abbott’s expectations for the second straight quarter, according to Ford. Sales increased sequentially by $125 million, supported by improving trends in both pediatric and adult nutrition. International pediatric nutrition returned to positive growth, rising 6.5% in the quarter. In the U.S. pediatric business, Ford said Abbott exited the quarter with the full benefit of recent WIC contract wins in its run rate and is now the market leader in both WIC and non-WIC segments.
In adult nutrition, Ford said the company continued to see positive volume trends after price actions taken late last year. U.S. retail consumption of Ensure rose by double digits compared with levels exiting last year. Abbott is also seeing contributions from new versions of Ensure featuring higher protein, lower sugar and updated labeling and packaging.
Medical Devices Growth Led by EP, Rhythm Management and Diabetes Care
Medical devices sales grew 8.5%, with Abbott’s cardiovascular device portfolio also up 8.5%. Ford said growth was led by low-teens growth in electrophysiology and high-single-digit growth in rhythm management and heart failure.
In electrophysiology, Ford said the second quarter marked the beginning of an acceleration in the business. Abbott launched its next-generation Volt pulsed field ablation catheter, commonly called Volt 2.0, in the U.S. in May and expects to move from limited market release to full market release in the third quarter. Internationally, the rollout of Volt and TactiFlex Duo is gaining traction, with growth of more than 20% in Europe.
Rhythm management sales grew 9.5%, supported by expanded use of the AVEIR pacemaker across single- and dual-chamber segments and broader international adoption. Heart failure sales grew 9%, led by double-digit growth in the U.S. from Abbott’s heart assist devices.
In diabetes care, continuous glucose monitoring sales exceeded $2 billion and grew 9.5%. Abbott received CE mark in May for Libre Duo, which Ford described as the world’s first dual glucose-ketone wearable sensor. The company plans to begin the international rollout in the fall and bring the product to the U.S. after FDA approval.
Pipeline Updates Include New Launches and Clinical Trials
Ford highlighted several pipeline milestones, including completion of patient enrollment in the TECTONIC coronary intravascular lithotripsy pivotal trial and completion of Abbott’s FDA submission for approval of its new Amulet 360 left atrial appendage device.
He said Abbott expects to launch Amulet 360, Libre Duo, its coronary IVL product and TactiFlex Duo PFA catheter in the U.S. over the next 12 months. The company also remains on track to begin patient enrollment in the fourth quarter for several clinical trials, including studies for a balloon-expandable TAVR valve, a leadless conduction system pacing device using the AVEIR platform, a mitral replacement valve developed after Abbott’s acquisition of Cephea Valve Technologies, a peripheral IVL device developed after the acquisition of CSI and a wearable continuous lactate monitoring sensor intended to reduce sepsis risk after hospital discharge.
Management Addresses Demand, CGM Reimbursement and 2027 Setup
During the call’s Q&A session, Ford said Abbott is not seeing signs of weakening procedure volumes in its businesses, despite investor concerns tied to hospital-sector preannouncements and possible Medicaid disenrollment. He said Medicare, not Medicaid, is the larger payer for many medical device procedures, including more than two-thirds of Abbott’s U.S. cardiovascular business. He also said demand for high-acuity, life-saving products is “very inelastic.”
Ford said 80% of Abbott’s expected second-half growth acceleration is expected to come from four areas: nutrition, electrophysiology, core laboratory and cancer diagnostics.
On continuous glucose monitoring, Ford said Abbott remains bullish on the market, estimating that 75 million to 80 million people globally could realistically use CGM, compared with about 15 million today. He said reimbursement expansion is the most immediate driver of adoption, and Abbott is in discussions with about a dozen countries on introducing or expanding coverage. In the U.S., he said broader type 2 diabetes coverage could unlock about 10 million Medicare beneficiaries and accelerate commercial insurance coverage, though he did not provide a specific timing forecast.
Looking beyond 2026, Ford declined to provide specific 2027 guidance but said Abbott continues to target high-single-digit top-line growth and double-digit earnings growth. He described 7% sales growth as a sustainable target for the company, supported by its mix of nutrition, diagnostics, established pharmaceuticals and medical technology businesses.
About Abbott Laboratories NYSE: ABT
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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Abbott Laboratories, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abbott Laboratories wasn't on the list.
While Abbott Laboratories currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
MarketBeat just released its list of the 7 hottest IPOs expected to hit Wall Street in 2026. See which companies are preparing to go public and why investors are watching closely.
Get This Free Report
