10-QPeriod: Q2 FY2026

ABBOTT LABORATORIES Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 28, 2026For Securities:ABT

Summary

Abbott Laboratories reported its financial results for the second quarter and first six months ended June 30, 2026. The company saw a significant increase in net sales, driven primarily by the acquisition of Exact Sciences Corporation on March 23, 2026. This strategic acquisition has bolstered Abbott's position in the cancer diagnostics market, adding key products like Cologuard® and Oncotype DX® to its portfolio. Despite the substantial impact of the Exact Sciences acquisition, which significantly increased goodwill and intangible assets, Abbott's core businesses also demonstrated resilience. Medical Devices and Established Pharmaceutical Products showed solid growth, while Nutritional Products experienced a slight decline. The company also faced increased interest expenses due to debt financing the acquisition, and higher R&D and SG&A expenses reflecting the integration of Exact Sciences and ongoing investments. Investors will be closely watching the integration progress and the realization of synergies from this major acquisition.

Key Highlights

  • 1Net sales increased by 13.0% (12.2% excluding foreign exchange) to $12.59 billion in Q2 2026 and by 10.5% (8.2% excluding foreign exchange) to $23.76 billion in the first six months of 2026, largely driven by the Exact Sciences acquisition.
  • 2The acquisition of Exact Sciences for approximately $20.6 billion was completed on March 23, 2026, significantly increasing goodwill to $35.2 billion and acquired intangible assets to $17.2 billion.
  • 3Diagnostic Products segment sales surged by 42.3% (41.3% excluding foreign exchange) in Q2 2026, primarily due to the inclusion of Exact Sciences' results in Cancer Diagnostics.
  • 4Medical Devices segment sales grew by 9.0% (7.9% excluding foreign exchange) in Q2 2026, led by double-digit growth in Electrophysiology, Rhythm Management, and Heart Failure.
  • 5Net earnings decreased significantly to $928 million ($0.53 per diluted share) in Q2 2026 from $1.78 billion ($1.01 per diluted share) in Q2 2025, primarily due to increased operating costs and interest expense related to the Exact Sciences acquisition.
  • 6Interest expense increased substantially due to $20.0 billion of long-term debt issued to finance the Exact Sciences acquisition.
  • 7The company repurchased approximately $1.0 billion of common shares in the first six months of 2026 and has $5.6 billion remaining under its share repurchase program.

Frequently Asked Questions

The primary driver for the increase in net sales was the acquisition of Exact Sciences Corporation, which was completed on March 23, 2026. This acquisition significantly boosted the Diagnostic Products segment, particularly the newly established Cancer Diagnostics business.

The acquisition significantly impacted the balance sheet, most notably with an increase in goodwill by $11.4 billion and acquired intangible assets by $12.3 billion in the first six months of 2026, bringing total goodwill to $35.2 billion and net intangible assets to $17.2 billion. This was financed primarily through $20.0 billion of long-term debt.

Net earnings decreased significantly to $928 million in the second quarter of 2026 from $1.78 billion in the prior year. This decline is primarily attributed to higher operating costs, including increased research and development and selling, general, and administrative expenses, largely due to the integration of Exact Sciences. Additionally, interest expenses have risen substantially due to the debt incurred for the acquisition.

Abbott is involved in several legal proceedings, including those related to infant formula and potential environmental liabilities. A notable item is a $495 million damages award in a Missouri state court related to infant formula, which is currently under appeal. The company estimates a potential loss range for all legal proceedings and environmental exposures from $120 million to $530 million, with an accrual of approximately $510 million recorded as of June 30, 2026. Management believes the ultimate disposition of most matters should not have a material adverse effect, except for certain specific proceedings.