Abbott Laboratories

What they do

Abbott discovers, develops, manufactures, and sells a broad line of healthcare products across four reportable segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Its products include continuous glucose monitoring systems, diagnostic testing platforms, pediatric and adult nutrition, and branded generic pharmaceuticals sold primarily in emerging markets. International markets comprise 61% of consolidated net sales.

Revenue drivers

• Medical Devices — Largest segment with Q2 2026 sales of $5,853 million; includes Diabetes Care (CGM sales of $7.6 billion in 2025), Heart Failure, Electrophysiology, Structural Heart, and Rhythm Management; grew 9.0% reported in Q2 2026.
• Diagnostic Products — Q2 2026 sales of $3,092 million, up 42.3% reported due to Exact Sciences acquisition; includes Alinity, ARCHITECT, Cell-Dyn systems and molecular diagnostics; routine testing growth partially offset by COVID-19 test decline.
• Nutritional Products — Q2 2026 sales of $2,144 million, down 3.1% reported; includes pediatric and adult nutrition; U.S. sales declined 9.0% due to lower volumes.
• Established Pharmaceutical Products — Q2 2026 sales of $1,499 million, up 8.4% reported; branded generics sold outside the U.S. in emerging markets; includes gastroenterology, women's health, cardiovascular, and respiratory products.

Recent performance

In Q2 2026, Abbott reported net sales of $12,593 million, up 13.0% reported and 4.8% comparable versus Q2 2025. GAAP diluted EPS was $0.53, down from $1.02, while adjusted diluted EPS was $1.31. Operating earnings fell to $1,693 million from $2,052 million, impacted by Exact Sciences-related amortization and higher SG&A. First-half 2026 net earnings were $2,005 million versus $3,104 million in the prior year.

Strategy

Abbott completed the acquisition of Exact Sciences on March 23, 2026, entering the cancer diagnostics market. The company plans to fund the transaction with cash and debt, with a $20 billion bridge facility as backup. Management emphasizes new product launches and indication expansions across Medical Devices, including PFA, TMVR, and CGM. They also highlight digital health solutions and expansion of diagnostic menus.

Risks

• Global supply chain disruptions — Abbott's large and complex supply chain could be disrupted by inflationary pressures, labor shortages, or other macroeconomic conditions, impacting costs and availability of materials.
• Acquisition integration risk — The Exact Sciences acquisition may not achieve expected benefits, could require significant resources, and may incur unknown liabilities or integration difficulties.
• COVID-19 testing decline — Continued lower demand for COVID-19 tests has pressured Diagnostics segment sales and operating margins.
• China market conditions — Challenging market conditions, including volume-based procurement programs, have negatively affected Diagnostics sales.

Outlook

Management reaffirmed full-year 2026 comparable sales growth guidance of 6.5% to 7.5%. They raised adjusted diluted EPS guidance to $5.45-$5.60, up from the prior range of $5.38-$5.58. They expect accelerating sales and earnings growth in the second half of 2026.