10-Q · April 29, 2026
Abbott Laboratories reported a solid performance in Q1 2026, with revenue increasing 7.8% year-over-year to $11.16 billion, surpassing consensus estimates. EPS also beat expectations at $1.15, up from $0.76 in Q1 2025,…
Earnings analysis · 10-Q
ABT earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Abbott delivered strong Q2 revenue growth of 13.0% to $12.593 billion, led by the Exact Sciences acquisition in Diagnostics and continued Medical Devices momentum; diluted EPS was $1.31. However, gross margin slipped to…
Read full summary
Abbott delivered strong Q2 revenue growth of 13.0% to $12.593 billion, led by the Exact Sciences acquisition in Diagnostics and continued Medical Devices momentum; diluted EPS was $1.31. However, gross margin slipped to 52.5% and acquisition-related amortization, integration costs, and interest expense weighed on profitability. The balance sheet reflects the acquisition: Abbott issued $20.0 billion of long-term debt, cash fell to $5.1 billion, and working capital fell to $6.7 billion, although first-half operating cash flow improved to $3.8 billion.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.31
- Gross margin
- 52.5%
What stood out
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Double-digit sales growth
Second-quarter net sales rose 13.0% year over year to $12.593 billion, and increased 12.2% excluding foreign exchange. Revenue also rose approximately $1.429 billion, or 12.8%, from first-quarter 2026 sales of approximately $11.164 billion implied by six-month sales of $23.757 billion.
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Exact Sciences lifts diagnostics
Diagnostics sales increased 42.3% to $3.092 billion, principally reflecting Exact Sciences. The acquired Cancer Diagnostics business contributed approximately $1.0 billion of sales from the March 23, 2026 acquisition date through June 30.
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Devices sustain broad growth
Medical Devices sales grew 9.0% to $5.853 billion in Q2. For the first half, Diabetes Care grew 8.2% excluding FX and CGM-system sales reached $4.1 billion, while Electrophysiology grew 13.0% excluding FX.
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Operating cash flow improved
Operating cash flow for the first six months increased $339 million year over year to $3.8 billion. The increase reflected favorable receivables movement, lower pension contributions, and lower cash taxes paid.
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Capital returns remain meaningful
Abbott repurchased 11.6 million shares for $1.0 billion in the first half and raised the quarterly dividend to $0.63 per share, a 6.8% increase from $0.59. The repurchase authorization had $5.6 billion remaining at June 30.
What to watch
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Acquisition costs pressure profitability
Gross margin declined 20 basis points year over year to 52.5% from 52.7%, driven primarily by higher Exact Sciences intangible amortization and higher costs. Q2 SG&A also increased $934 million, or 30.3%, to $4.0 billion, including integration costs and higher legal reserves.
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Nutrition volumes remain weak
Nutrition was the sole declining reportable segment, with Q2 sales down 3.1% to $2.144 billion. First-half U.S. Pediatric Nutritionals declined 11.9% and U.S. Adult Nutritionals declined 7.8%, reflecting lower volumes.
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Testing demand and China headwinds
Rapid and Molecular Diagnostics sales fell 8.8% excluding FX in the first half, to $1.567 billion, as a weaker respiratory-virus season reduced test demand. Core Laboratory growth of 3.2% excluding FX was also partly constrained by challenging China market conditions.
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Leverage and liquidity absorbed by deal
The Exact Sciences acquisition required approximately $20.0 billion of new long-term debt and lifted Q2 net interest expense by $249 million to $299 million. Cash declined from $8.5 billion at December 31, 2025 to $5.1 billion, while working capital fell from $9.5 billion to $6.7 billion.
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Infant-formula verdict affirmed
Legal-proceedings disclosure was updated: the Missouri Court of Appeals affirmed the $495 million Gill infant-formula verdict in May 2026, and Abbott is seeking review by the Missouri Supreme Court. This is a material adverse development versus the previously disclosed appeal.
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No new Item 1A, but tax disputes persist
No new standalone Item 1A risk factors were added; the filing incorporates the 2025 10-K risk factors by reference. Tax litigation remains notable, including IRS notices of $417 million for 2019, $192 million for 2017/2018, and $443 million for 2020.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management stated it expects to maintain an investment-grade credit rating; ratings at June 30, 2026 were A+ from S&P and Aa3 from Moody’s.
Earlier filings 4
10-K · February 20, 2026
Abbott presents a diversified healthcare model across four reportable segments and announced a definitive agreement (Nov 19, 2025) to acquire Exact Sciences to enter the cancer diagnostics market. Full-year 2025 revenue…
10-Q · April 30, 2025
Abbott reported Q1 net sales of $10,358 million, up $394 million (+4.0%) versus the prior-year quarter (Q1 2024: $9,964 million), with operating earnings of $1,693 million and diluted EPS of $0.76 (Q1 2024: $0.70).…
10-Q · November 1, 2023
Abbott reported Q3 net sales of $10,143 million, down 2.6% year-over-year, with operating earnings of $1,647 million (operating margin ~16.2%) and diluted EPS of $0.82 (up $0.01 vs prior year). Performance was mixed by…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.