Abbott beats Q2 estimates by 2.3%, raises full-year profit outlook

Abbott Laboratories reported Q2 earnings of $1.31 per share, topping the $1.28 consensus estimate by 2.3%.

The results were driven by strength across diagnostics and medical devices, with the company's newly added cancer diagnostics portfolio contributing following the Exact Sciences acquisition. Abbott also raised its full-year 2026 profit outlook, according to the company's statement.

Earnings per share of $1.31 compared with $1.26 in the same period a year ago, a year-over-year increase of 4%. Revenue topped the consensus estimate of $12.48 billion, which would have represented 12% growth from the prior year. The diagnostics segment was expected to post a 41.6% revenue increase, while medical devices were projected to grow 8.5%. The nutrition segment faced headwinds as Abbott transitions toward a more sustainable balance between price and volume-driven growth, with consensus estimating a 4.3% revenue decline.

Shares surged 13.8% to $101.56 in morning trading on July 16, the biggest single-day gain in years. The rally erased an 11.4% decline over the prior three months, when the stock had underperformed the broader medical products industry. Abbott trades at a forward price-to-earnings multiple of 15.9 times, below its historical median of 23.3 times.

The guidance raise signals management expects momentum to continue across core businesses, including electrophysiology, core lab diagnostics and established pharmaceuticals in emerging markets. Investors will watch the next earnings release on Oct. 21 for updated segment margins and the pace of the nutrition business turnaround.

This article is for informational purposes only and does not constitute investment advice.