Abbott Laboratories Q2 Earnings Call Highlights

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Abbott beat expectations in Q2 , reporting 4.8% comparable sales growth and adjusted EPS of $1.31. Management said results showed an acceleration from prior quarters and raised full-year adjusted EPS guidance to $5.45 to $5.60.

Margins improved , with second-quarter adjusted gross margin rising to 58.0% of sales, up 100 basis points year over year. Abbott cited better product mix, the Exact Sciences addition, operational improvements and margin initiatives as key drivers.

Growth was broad in medical devices and diagnostics, while nutrition stayed strong . Medical devices rose 8.5% led by electrophysiology, rhythm management, heart failure and CGM, while diagnostics showed strong core lab and cancer testing but weaker rapid/molecular sales due to lower respiratory virus testing.

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Abbott Laboratories (NYSE:ABT) reported second-quarter 2026 comparable sales growth of 4.8% and adjusted earnings per share of $1.31, with Chairman and Chief Executive Officer Robert Ford saying results marked an acceleration from the prior two quarters.

The company reaffirmed its full-year comparable sales growth guidance of 6.5% to 7.5% and raised its adjusted EPS guidance range to $5.45 to $5.60. Chief Financial Officer Phil Boudreau said Abbott expects third-quarter adjusted EPS of $1.38 to $1.46.

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Ford said Abbott entered the second half of the year with "momentum building across the portfolio" and "clear line of sight" to the drivers behind expected sales growth acceleration. He said the company's focus on gross margin expansion supported the higher earnings outlook.

Boudreau said second-quarter adjusted gross margin was 58.0% of sales, up 100 basis points from the prior year. He attributed the improvement to favorable business mix within Abbott's legacy portfolio, the addition of Exact Sciences, operational improvements and disciplined execution of margin expansion initiatives.

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Adjusted research and development expense was 6.9% of sales, while adjusted selling, general and administrative expense was 28.6% of sales. Foreign exchange had a favorable 0.8% year-over-year impact on second-quarter sales, slightly better than Abbott expected in April. Based on current rates, Boudreau said the company expects foreign exchange to have a positive impact of about 1% on full-year sales, including an expected negative impact of about 1% in the third quarter.

In diagnostics, Ford said Abbott's core laboratory business reflected strong demand for testing, which he described as a useful indicator of broader healthcare activity. U.S. core laboratory sales grew 7.5%, and Ford said the company continued to post strong performance in Latin America. During the question-and-answer session, he said hospital lab testing within Abbott's U.S. core lab business was up 13% in the quarter.

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Rapid and molecular diagnostics sales declined 8%, driven by an expected drop in respiratory virus testing following a weaker-than-normal season that ended during the quarter.

Cancer diagnostics sales grew 13%, supported by mid-teens growth in Cologuard, contributions from precision oncology and international growth. Ford said Abbott continues to expect cancer diagnostics growth in the second half to exceed first-half growth, helped by care gap programs, recently launched tests and international adoption. He also noted that the American Cancer Society updated its colorectal cancer screening guidelines in May, reaffirming Cologuard and Cologuard Plus as preferred screening options.

Nutrition sales came in slightly ahead of Abbott's expectations for the second straight quarter, according to Ford. Sales increased sequentially by $125 million, supported by improving trends in both pediatric and adult nutrition. International pediatric nutrition returned to positive growth, rising 6.5% in the quarter. In the U.S. pediatric business, Ford said Abbott exited the quarter with the full benefit of recent WIC contract wins in its run rate and is now the market leader in both WIC and non-WIC segments.