Key Takeaways:
Abbott Laboratories reported adjusted EPS of $1.31, beating the $1.28 consensus, as diagnostics revenue surged 42.3% on the Exact Sciences acquisition.
"Our second-quarter results reflect the momentum we are building," Chairman and Chief Executive Officer Robert B. Ford said. "We expect this momentum to continue and drive accelerating sales and earnings growth in the second half of the year."
Revenue rose 13% to $12.59 billion, topping the $12.52 billion consensus. On a comparable basis — which adjusts for the Exact Sciences acquisition, foreign exchange, and a prior-year competitor compensation payment — sales grew 4.8%. GAAP net income fell to $928 million, or 53 cents a share, from $1.78 billion, or $1.01 a share, a year earlier, weighed down by $1.36 billion in after-tax charges tied to intangible amortization, acquisition costs, and legal reserves.
The company raised its full-year adjusted EPS guidance to $5.45 to $5.60, up from $5.38 to $5.58, while reaffirming comparable sales growth of 6.5% to 7.5%. Abbott projected third-quarter adjusted EPS of $1.38 to $1.46. The guidance raise signals management expects momentum to accelerate in the second half, with investors now watching for sustained margin expansion and FreeStyle Libre adoption trends.
Diagnostics led the quarter, with worldwide sales of $3.09 billion, up 42.3% on a reported basis. The March acquisition of Exact Sciences added $919 million in cancer diagnostics revenue, with Cologuard sales growing in the mid-teens on a comparable basis, benefiting from updated American Cancer Society screening guidelines. Core Laboratory diagnostics grew 3.2% on a comparable basis, driven by strength in the U.S. and Latin America. Rapid and Molecular Diagnostics declined 8% on a comparable basis as demand for respiratory virus tests continued to normalize.
Medical Devices, Abbott's largest segment, generated $5.85 billion in sales, up 9% reported and 8.4% on a comparable basis. Electrophysiology led with low-teens comparable growth, boosted by the Volt and TactiFlex Duo pulsed field ablation catheters. Diabetes Care sales rose 9% on a comparable basis, with continuous glucose monitor sales up 9.5%. Rhythm Management grew 9.5%, and Heart Failure rose 8.7%. Structural Heart comparable sales grew 5.7%, excluding the impact of the competitor compensation agreement that ended in the first quarter.
Established Pharmaceuticals delivered $1.5 billion in sales, up 8.7% on a comparable basis, led by double-digit growth across key emerging markets in Latin America and Asia Pacific. Nutrition remained the weak spot, with sales of $2.14 billion declining 3.6% on a comparable basis, reflecting lower sales volumes and the impact of strategic pricing actions implemented in the fourth quarter of 2025. Nutrition sales improved sequentially, rising $127 million from the first quarter.
Abbott returned $2.1 billion to shareholders in the second quarter through dividends and share repurchases. The company has increased its dividend for 54 consecutive years and remains a member of the S&P 500 Dividend Aristocrats Index.
The guidance raise suggests management sees the second-half acceleration as achievable, with new product launches in pulsed field ablation and the Libre Duo dual glucose-ketone sensor providing additional growth levers. Investors will focus on the pace of FreeStyle Libre international expansion and whether Nutrition can return to growth in the second half as pricing actions take full effect.
This article is for informational purposes only and does not constitute investment advice.
