Shares of medical technology company Abbott Laboratories (ABT.US) are up around 4% after the company reported better-than-expected second-quarter 2026 results. Revenue increased 13% year-over-year to $12.6 billion, slightly exceeding analyst estimates, while both sales and adjusted earnings came in ahead of Wall Street consensus. Although reported net income fell by around 47% to $928 million and diluted GAAP EPS declined to $0.53, investors focused primarily on stronger performance across most business segments and the company's decision to raise its full-year earnings guidance.
Abbott now expects 2026 adjusted EPS of $5.45-$5.60, up from its previous guidance range of $5.38-$5.58, representing a $0.05 increase at the midpoint. At the same time, the company reaffirmed its comparable sales growth guidance of 6.5%-7.5%, signaling confidence in stronger revenue and earnings growth during the second half of the year.
- Second-quarter revenue reached $12.6 billion, rising 13% year-over-year on a reported basis and 4.8% on a comparable basis.
- Adjusted diluted EPS came in at $1.31, while reported GAAP diluted EPS declined to $0.53.
- Net earnings fell approximately 47% year-over-year to $928 million, highlighting the difference between reported and adjusted results.
- During the first six months of 2026, revenue increased 10.5% to $23.7 billion, while net earnings declined about 35.5% to $2 billion.
- Abbott raised its full-year adjusted EPS guidance to $5.45-$5.60, compared with its previous outlook of $5.38-$5.58.
- The company maintained its comparable sales growth guidance at 6.5%-7.5% for 2026.
- Abbott returned $2.1 billion to shareholders during the quarter through dividends and share repurchases.
- The company continues expanding its product pipeline, including Libre Duo, the TECTONIC coronary IVL system, and the Amulet 360 left atrial appendage device, which could support future growth.
For investors, the key takeaway is that despite weaker reported GAAP earnings, Abbott's underlying business remains solid. The higher earnings guidance suggests management is increasingly confident that revenue growth and profitability will accelerate during the second half of the year.
Abbott share price (D1 timeframe)
Abbott shares are trading near $93 ahead of the U.S. market open, suggesting bulls may attempt to push the stock above its 50-day EMA (orange line) for the first time in several months and potentially reverse the broader downtrend. Even after today's rally, the stock remains around 30% below its all-time high.
Source: xStation5
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