Abbott Laboratories delivered second-quarter results that exceeded Wall Street projections and boosted its full-year earnings forecast, propelling ABT shares up approximately 4% during premarket hours Thursday.
The healthcare giant reported adjusted earnings per share of $1.31, surpassing analyst expectations of $1.28. Quarterly revenue climbed 13% compared to the prior-year period, reaching $12.59 billion and exceeding the consensus estimate of $12.52 billion.
The standout performance came from the diagnostics division. Revenue in this business segment skyrocketed 42% to $3.09 billion, topping projections of $3.02 billion — representing the first time in six quarters that diagnostics has exceeded analyst forecasts.
ABBOTT $ABT Q2’26 EARNINGS HIGHLIGHTS
Revenue: $12.59B (Est. $12.48B)
; +13.0% YoY
FY26 Guide:
— Wall St Engine (@wallstengine) July 16, 2026
A substantial portion of this growth stemmed from recently integrated Exact Sciences products, including Cologuard, a colorectal cancer screening solution, and Oncotype DX, a breast cancer diagnostic test. Cologuard delivered mid-teens percentage growth, benefiting from an increasing number of both first-time and repeat users.
The strong diagnostics performance is allowing Abbott to compensate for the ongoing decline in COVID-19 testing revenue, which had previously been a significant revenue driver in earlier periods.
The medical devices division generated $5.85 billion in sales, reflecting 9% growth and slightly exceeding the $5.82 billion analyst projection. Abbott’s electrophysiology and structural heart businesses are viewed as more stable compared to competitors grappling with reduced surgical procedure volumes and increasing numbers of uninsured patients.
The Diabetes Care unit, featuring FreeStyle Libre and Lingo continuous glucose monitoring systems, recorded a 10.5% revenue increase to $2.19 billion. J.P. Morgan analyst Robbie Marcus observed that the worldwide CGM market has stabilized into an 8%–12% growth trajectory, with Abbott likely positioned in the 8%–10% range moving forward.
The nutrition business represented a challenge — this division experienced a 3.1% revenue decline attributed to reduced volumes and recent price adjustments.
Abbott increased its full-year adjusted earnings per share projection to a range of $5.45–$5.60, up from the previous guidance of $5.38–$5.58. The company maintained its comparable sales growth outlook at 6.5%–7.5%.
Looking to the third quarter, Abbott projected adjusted EPS between $1.38 and $1.46, versus the analyst consensus of $1.42 — positioning the midpoint approximately in line with Wall Street expectations.
On a reported basis, net income declined to $928 million, or $0.53 per share, down from $1.78 billion, or $1.01 per share, in the year-ago quarter, primarily due to acquisition-related expenses and other non-recurring charges.
The established pharmaceuticals division contributed to the overall revenue outperformance with sales growth exceeding 8%.
The diagnostics segment’s outperformance — its first beat in six quarters — resulted directly from the completed Exact Sciences acquisition, providing Abbott with a fresh growth catalyst as its traditional testing operations continue to contract.
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