What Management Said
Read the full Q2 2026 transcript ↗These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Unless otherwise noted, our commentary on sales growth refers to comparable sales growth. Our definition of comparable sales growth can be found on page two of our press release issued earlier today. A reconciliation table containing the data needed to calculate comparable sales growth can be found on pages 16 and 17.
Diagnostic test results inform approximately 70% of all healthcare decisions, making testing volumes a reliable barometer of overall healthcare activity and demand. Our test volume data, that's sourced directly from our diagnostic instruments located across the United States and around the world, continues to reflect strong and stable demand for testing. We view this as a positive indication of the durable underlying demand for healthcare, not just in the U.S., but globally. This durable demand was evident in our core laboratory results this quarter, where U.S.
business grew 7.5% and we continued our track record of strong performance across Latin America. In pediatric nutrition, our international business was the first of our nutrition businesses to transition back to delivering positive growth, delivering growth of 6.5% in the quarter. In the U.S., retail consumption of Ensure has increased double digits compared to consumption levels exiting last year, and achieved the highest year-over-year consumption growth in the past year and a half. Overall, I remain encouraged by the progress we are making and confident in our outlook for the second half of the year.
What went well
- Comparable sales growth accelerated to 4.8%, a step-up from low-single-digit growth in the prior two quarters, with the growth rate building each month of the quarter.
- Adjusted EPS of $1.31 exceeded the midpoint of guidance and consensus, and Abbott raised full-year adjusted EPS guidance to $5.45-$5.60 while reaffirming 6.5%-7.5% comparable sales growth.
- Adjusted gross margin expanded 100 basis points year-over-year to 58.0%, driven by favorable business mix (including the Exact Sciences addition) and disciplined margin-expansion initiatives, underpinning the EPS raise.
- Medical devices grew 8.5%, led by low-teens electrophysiology growth (Volt PFA and TactiFlex Duo drove >20% EP growth in Europe) and continuous glucose monitoring sales exceeding $2 billion, up 9.5%.
- Cancer diagnostics grew 13% on mid-teens Cologuard growth, reinforced by the American Cancer Society reaffirming Cologuard and Cologuard Plus as preferred colorectal screening options in May.
- Nutrition beat expectations for a second straight quarter (up ~$125 million sequentially), with Abbott regaining U.S. pediatric market leadership in both WIC and non-WIC segments and Ensure U.S. retail consumption up double digits.
What went wrong
- Rapid and molecular diagnostics sales declined 8% on an anticipated drop in respiratory-virus testing following a weaker-than-normal season that concluded in the quarter.
- Reported (non-comparable) results carried a temporary China headwind, where volume-based procurement (VBP) drove a sizable core-lab decline for several quarters (around 30%), though this is now moderating to a mid-single-digit decline.
- Structural heart, particularly the U.S. mitral franchise, continued to underperform on increased competitive intensity -- described as a commercial-execution issue, not price or product -- with recovery to mid-to-high single-digit growth expected only by year-end.
- Diabetes CGM growth of 9.5%, while solid, has plateaued at the ~8-9% level pending major reimbursement expansions (notably U.S. type 2 non-insulin coverage), the timing of which management cannot forecast precisely.
- Foreign exchange is expected to turn into roughly a 1% headwind on third-quarter sales despite a ~1% full-year tailwind.
Guidance Changes
| Metric | Period | Current guidance |
|---|---|---|
| Comparable sales growth | FY2026 | 6.5%-7.5% (reaffirmed) |
| Adjusted EPS | FY2026 | $5.45-$5.60 (raised) |
| Adjusted EPS | Q3 2026 | $1.38-$1.46 |
| Foreign exchange | FY2026 | ~+1% on full-year sales (~-1% impact on Q3 sales) |
| Cancer diagnostics growth | H2 2026 | Second half higher than first half; Exact Sciences on track for mid-teens full-year growth |
| Long-term sales growth target | 2027+ | ~7% top-line, high-single-digit / double-digit EPS reaffirmed as sustainable |
Performance Breakdown
| Metric | YoY | Note |
|---|---|---|
| Total comparable sales | +4.8% | Acceleration from low-single-digit prior quarters, building each month; FX added 0.8%. |
| Medical devices | +8.5% | Cardiovascular led by low-teens EP, high-single-digit rhythm management/heart failure, and CGM above $2B up 9.5%. |
| Cancer diagnostics | +13% | Mid-teens Cologuard growth on new and repeat users plus precision oncology and international contributions. |
| Core laboratory diagnostics (U.S.) | +7.5% (hospital labs +13%) | Durable, stable testing demand; U.S. core lab accelerated over the last two quarters. |
| Established Pharmaceuticals (EPD) | +9% | Broad-based emerging-market growth across India, Latin America, and Southeast Asia. |
| Diabetes care (CGM) | +9.5% (>$2B) | Continued penetration of an eligible reimbursed base; plateaued pending reimbursement expansions. |
| Rapid & molecular diagnostics | -8% | Anticipated decline in respiratory-virus testing after a weaker-than-normal season. |
| Adjusted gross margin | +100 bps to 58.0% | Favorable mix including Exact Sciences plus operational improvements and margin-expansion initiatives. |
Earnings Call Themes & Trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Procedure-volume durability | Investor concern over decelerating U.S. procedure volumes | CEO Robert Ford argued med-tech/diagnostics did not benefit from ACA/Medicaid expansion and won't see downside from disenrollment (Medicare drives two-thirds of U.S. cardio); high-acuity demand is inelastic and diagnostic testing volumes remain strong and stable as a forward-looking barometer. | — |
| Second-half acceleration drivers | Low-single-digit growth in prior quarters | About 80% of the second-half lift comes from four businesses -- nutrition, electrophysiology, core lab, and cancer diagnostics -- each entering H2 with momentum and clear line of sight to drivers. | — |
| CGM reimbursement expansion | Penetrating an eligible reimbursed base | Only 15 million of 75-80 million potential CGM users are on the technology; U.S. type 2 non-insulin coverage (could unlock ~10 million Medicare beneficiaries, a multi-billion-dollar, possibly-this-fall opportunity) plus international basal expansions would sharply accelerate growth; Abbott is planning a fifth ~$1 billion manufacturing facility. | — |
| Electrophysiology portfolio strategy | Building the PFA/mapping portfolio | Volt 2.0 moving from limited to full U.S. release in Q3 with strong ASC-adoption feedback; strategy is to sell the entire procedure (catheters, mapping, ancillaries) rather than a single product, with a PFA pipeline through 2029 and an LAA (Amulet 360) device moved into the EP business. | — |
| Cancer-screening franchise (Exact Sciences) | Recently acquired; care-gap ramp | Integration going well; care-gap programs (tied to HEDIS/CMS Star ratings) ramp in H2, Cologuard-to-Cologuard Plus mix is a tailwind, and adding a future blood test would make Abbott the only company with best-in-class stool and blood screening (blood as a funnel into higher-sensitivity Cologuard). | — |
| Structural heart recovery | U.S. mitral underperformance flagged in January | Ford expects a return to mid-to-high single-digit growth by year-end via personnel and go-to-market changes (not price or product); international structural heart grew double digits (TAVR +30% in H1), and the Cephea mitral replacement valve is entering trials with high long-term promise. | — |
Q&A Summary
Robbie Marcus (JPMorgan) asked about the health of U.S. procedure volumes given negative hospital-sector pre-announcements, and about confidence in the forecast H2 acceleration.
Ford said concerns tied to ACA/Medicaid disenrollment are a flawed assumption for med-tech/diagnostics (which did not benefit from expansion), as Medicare drives most device demand and high-acuity care is inelastic; diagnostic testing volumes remain strong even in high-disenrollment states. On acceleration, he expressed high confidence, citing Q2 momentum and four key drivers (nutrition, EP, core lab, cancer diagnostics) providing ~80% of the H2 lift.
Larry Biegelsen (Wells Fargo) asked about Libre/CGM U.S. and international trends, the outlook, and timing for the U.S. dual glucose-ketone sensor and type 2 non-insulin coverage.
Ford remained very bullish, noting only 15M of 75-80M potential users are on CGM; reimbursement expansion (U.S. type 2, possibly this fall, unlocking ~10M Medicare beneficiaries, plus international basal coverage) is the biggest accelerant but hard to time to a quarter, keeping growth at ~8-9% until then; the U.S. dual glucose-ketone sensor is in advanced final-stage discussions, and Abbott is planning a fifth ~$1B sensor facility.
Vijay Kumar (Evercore ISI) asked about visibility into the Exact Sciences care-gap ramp and whether Abbott will lead the blood-based CRC screening market.
Ford confirmed confidence in mid-teens full-year Exact Sciences growth (H2 higher than H1) as care-gap volumes tied to HEDIS/Star ratings ramp in the second half; new Cologuard users are exceeding targets and the rescreen funnel is expanding. He reframed the blood question, saying Abbott aims to lead screening overall -- offering best-in-class stool and blood tests -- using blood as a funnel into higher-sensitivity Cologuard given blood's weaker precancerous detection.
Matt Taylor (Jefferies) asked about EP market dynamics, share aspirations, and durability of above-market growth into next year.
Ford declined specific share targets but expects to outperform the market and capture share, with early signs in Q2; Volt moves to full U.S. release with strong ASC/mapping-integration feedback, TactiFlex Duo drove 20% EP growth in Europe, and the strategy of selling the entire procedure plus a PFA pipeline through 2029 and the new LAA device should carry momentum into 2027.
Travis Steed (BofA) and Josh Jennings (TD Cowen) asked about the 2027 portfolio setup and when structural heart recovers.
Ford called ~7% top-line growth a sustainable target (nutrition 2-4%, diagnostics 7-8%, EPD 7-9%, med-tech 8-10%) without giving 2027 guidance, and said structural heart should return to mid-to-high single-digit growth by year-end via commercial-execution fixes, with the Cephea mitral valve a potential major long-term driver.
Joanne Wuensch (Citi) and Marie Thibault (BTIG) asked for a nutrition 'state of the union' and about appetite in the LAA closure market ahead of Amulet 360.
Ford said nutrition is tracking ahead of plan (international pediatric back to growth, WIC leadership regained, Ensure consumption up double digits) supporting a 2-4% range with possible upside. On LAA, a $2B market where a competitor holds ~90% share, Abbott is focused on share capture, citing fantastic Amulet 360 feedback and a seamless implant experience, positioning it as an EP growth driver for 2027 and beyond.
More on Abbott Laboratories
Reported 2026-07-16 · figures from the Abbott Laboratories Q2 2026 earnings call.
See how Top Bucket AI works for your firm
Request DemoTop Bucket AI Research
Stay ahead of private markets
Research and market intelligence for private-markets professionals.
✓
You're subscribed.
Thanks for signing up.