Abbott ABT reported second-quarter 2026 adjusted earnings of $1.31 per share, up 4.0% year over year. The figure beat the Zacks Consensus Estimate by 2.34%.
Sales increased 13.0% year over year to $12.59 billion and surpassed the consensus mark by 0.91%. Comparable sales rose 4.8%, led by Medical Devices, while Cancer Diagnostics delivered double-digit growth.
Following the earnings announcement, ABT stock rose 3.2% in pre-market trading today.
ABT's Medical Devices Sustain Momentum
Medical Devices sales increased 9.0% year over year on a reported basis to $5.85 billion. Comparable sales rose 8.4%, reflecting broad-based demand across several cardiovascular and diabetes-care businesses.
Electrophysiology sales climbed 13.4% on a comparable basis, while Rhythm Management and Heart Failure advanced 9.5% and 8.7%, respectively. Diabetes Care sales grew 9.0%, supported by a 9.5% increase in continuous glucose monitor sales. Vascular sales rose 5.1%, while Structural Heart improved 5.7%.
Abbott's Diagnostics Get Acquisition Lift
Diagnostics sales surged 42.3% on a reported basis to $3.09 billion, reflecting the March 2026 acquisition of Exact Sciences. On a comparable basis, segment sales increased 2.9%.
Abbott Laboratories Price, Consensus and EPS Surprise
Abbott Laboratories price-consensus-eps-surprise-chart | Abbott Laboratories Quote
Cancer Diagnostics sales totaled $919 million and grew 13.3% on a comparable basis. Performance benefited from mid-teens Cologuard growth and contributions from precision oncology and international operations. Core Laboratory Diagnostics sales rose 3.2%, driven by strength in the United States and Latin America.
Rapid and Molecular Diagnostics sales declined 8.0% on a comparable basis. The decrease reflected lower respiratory virus testing revenues compared with the prior-year period.
ABT's Nutrition Pressure Persists
Nutrition sales declined 3.1% year over year on a reported basis to $2.14 billion. Comparable sales fell 3.6%, reflecting lower volumes and the impact of strategic pricing actions implemented in the fourth quarter of 2025.
Pediatric Nutrition sales decreased 3.1% on a comparable basis, while Adult Nutrition fell 4.0%. U.S. Nutrition remained particularly weak, with sales down 9.0%. However, total Nutrition revenues improved by $127 million sequentially from the first quarter, supported by pricing initiatives and new product launches.
Abbott's Pharma Growth Stays Broad
Established Pharmaceutical sales increased 8.4% on a reported basis to $1.50 billion. Comparable growth was 8.7%, extending the segment’s steady expansion across international markets.
Key Emerging Markets sales rose 10.7% on a comparable basis. Double-digit growth in several Latin American and Asia-Pacific countries supported the performance. Sales in other markets increased 2.1%.
Q2 Margin Details of Abbott
In the second quarter, adjusted gross profit rose 15.1% year over year to $7.31 billion. The adjusted gross margin expanded 107 basis points (bps) to 58.0%.
Adjusted selling, general and administrative expenses increased 16.4% year over year to $3.60 billion. Adjusted research and development expenses grew 23.0% to $867 million. The company reported an adjusted operating profit of $2.84 billion, up 11.4% year over year. The adjusted operating margin contracted 32 bps to 22.6%.
ABT’s 2026 & Q3 Financial Guidance
Abbott raised its full-year 2026 adjusted earnings guidance to a range of $5.45-$5.60 per share. The prior outlook called for adjusted earnings of $5.38-$5.58 per share. The Zacks Consensus Estimate for the same currently stands at $5.48.
The company reaffirmed its full-year comparable sales growth forecast of 6.5-7.5%.
For the third quarter, management expects adjusted earnings of $1.38-$1.46 per share. The Zacks Consensus Estimate for the same is projected at $1.42.
Our Take
Abbott exited the second quarter of 2026 with earnings and revenues beating respective estimates. Within Diagnostics, Core Laboratory results benefited from strong growth in the United States and Latin America. Cancer Diagnostics gained from increasing adoption of Cologuard among new and repeat users, driving Cancer Diagnostics results. Expansion of the adjusted gross margin in the quarter is also encouraging. Meanwhile, lower year-over-year sales volumes and the effect of strategic pricing actions weighed on Nutrition results.
Abbott also highlighted several pipeline developments. The company completed enrollment in its TECTONIC U.S. pivotal trial for coronary intravascular lithotripsy and submitted its Amulet 360 left atrial appendage device to the FDA. It also secured CE Mark approval for Libre Duo, a wearable sensor that monitors glucose and ketone levels.
ABT’s Zacks Rank & Key Picks
Abbott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are CVS Health CVS, Charles River Laboratories International CRL and Phibro Animal Health PAHC.
CVS Health, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.57, which surpassed the Zacks Consensus Estimate by 16.38%. Revenues of $100.43 billion beat the Zacks Consensus Estimate by 6.41%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVS has an earnings yield of 7% compared to the industry’s 4.2% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.79%.
Charles River Laboratories,carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $2.06, beating the Zacks Consensus Estimate by 5.1%. Revenues of $995.8 million topped the Zacks Consensus Estimate by 2.5%.
CRL has an earnings yield of 4.8% compared to the industry’s 4.3% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 9.31%.
Phibro Animal Health,carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2026 adjusted EPS of 64 cents, surpassing the Zacks Consensus Estimate by 5.92%. Revenues of $383.5 million topped the Zacks Consensus Estimate by 6.26%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.4% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 16.25%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abbott Laboratories (ABT): Free Stock Analysis Report
CVS Health Corporation (CVS): Free Stock Analysis Report
Charles River Laboratories International, Inc. (CRL): Free Stock Analysis Report
Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).