ABBOTT LABORATORIES
For the period ended Jun 30, 2026. Filed Jul 28, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Jul 28, 2026
ABT$109.93-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001628280-26-028357
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0001628280-26-050134
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 47 previous paragraphs and 49 current paragraphs.
21 unchanged; 25 reworded; 3 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
The 8.2 percent increase in total net sales during the first six months of 2026, excluding the impact of foreign exchange, reflected higher sales in Diagnostic Products, Medical Devices, and Established Pharmaceutical Products, partially offset by lower sales in Nutritional Products. Diagnostic Products sales increased as a result of the acquisition of Exact Sciences, while sales in Medical Devices and Established Pharmaceutical Products were driven by higher sales of existing products. Abbott’s net sales were favorably impacted by changes in foreign exchange rates in the first six months as the relatively weaker U.S. dollar increased total international sales by 3.8 percent and total sales by 2.3 percent.
Current report
In May 2026, Abbott announced it secured CE Mark for Libre® Duo, its dual glucose-ketone biowearable sensor.
Current report
Other (income) expense, net was income of $134 million in the second quarter of 2026, compared to income of $137 million in the second quarter of 2025, and income of $293 million in the first six months of 2026, compared to income of $264 million in the first six months of 2025. The lower income in the second quarter of 2026 primarily reflected higher investment impairments, partially offset by higher income from the non-service cost components of net pension and post-retirement medical benefit costs. The higher income in the first six months of 2026 primarily reflected higher income associated with the non-service cost components of net pension and post-retirement medical benefit costs and unfavorable fair value adjustments of contingent consideration liabilities in the prior year that did not reoccur.
Removed paragraphs (1)
Previous report
Other (income) expense, net increased from $127 million of income in the first quarter of 2025 to $159 million of income in the first quarter of 2026. The increase in the first quarter of 2026 reflects a prior year change in fair value of contingent consideration liabilities that did not repeat, higher income associated with the non-service cost components of net pension, and post-retirement medical benefits costs.
Reworded paragraphs (25)
Previous wording
The following tables detail sales by reportable segment for the three months ended March 31. Percent changes are versus the prior year and are based on unrounded numbers.
Current wording
The following tables detail sales by reportable segment for the three and six months ended June 30. Percent changes are versus the prior year and are based on unrounded numbers.
Previous wording
The 3.8 percent increase in total net sales during the first quarter of 2026, excluding the impact of foreign exchange, primarily reflected higher product sales in the Medical Devices and Established Pharmaceutical Products segments. Nutritional Products sales primarily declined due to lower sales volumes compared to the prior year. Diagnostic Products sales reflect the acquisition of Exact Sciences Corporation (Exact Sciences), which was completed on March 23, 2026, with sales from the acquisition reported in the Diagnostic Products segment as Cancer Diagnostics from the date of acquisition. On a reported basis, net sales were favorably impacted by foreign exchange as the relatively weaker U.S. dollar increased total international sales by 6.7 percent and total sales by 4.0 percent.
Current wording
The 12.2 percent increase in total net sales during the second quarter of 2026, excluding the impact of foreign exchange, was driven by the acquisition of Exact Sciences Corporation (Exact Sciences) and high single-digit growth in Medical Devices and Established Pharmaceutical Products, partially offset by lower sales in Nutritional Products. The Exact Sciences acquisition was completed on March 23, 2026, and its results are reported within the Diagnostic Products segment as Cancer Diagnostics from the date of acquisition. On a reported basis, net sales were favorably impacted by foreign exchange as the relatively weaker U.S. dollar increased total international sales by 1.3 percent and total sales by 0.8 percent.
Previous wording
The table below provides detail by sales category for the three months ended March 31. Percent changes are versus the prior year and are based on unrounded numbers.
Current wording
The table below provides detail by sales category for the six months ended June 30. Percent changes are versus the prior year and are based on unrounded numbers.
Previous wording
In the first three months of 2026, total Established Pharmaceutical Products sales, excluding the impact of foreign exchange, increased 9.0 percent. Excluding the favorable effect of foreign exchange, sales in Key Emerging Markets for Established Pharmaceutical Products increased 9.4 percent in the first three months of 2026, led by double-digit growth in several countries across the Latin America and Asia Pacific regions. Other Emerging Markets, excluding the effect of foreign exchange, increased 7.9 percent in the first three months of 2026.
Current wording
In the first six months of 2026, total Established Pharmaceutical Products sales, excluding the impact of foreign exchange, increased 8.9 percent. Excluding the favorable effect of foreign exchange, sales in Key Emerging Markets for Established Pharmaceutical Products increased 10.1 percent in the first six months of 2026, led by double-digit growth in several countries across the Latin America and Asia Pacific regions. Other Emerging Markets, excluding the effect of foreign exchange, increased 4.9 percent in the first six months of 2026.
Previous wording
Excluding the impact of foreign exchange, total Nutritional Products sales in the first three months of 2026 decreased 7.7 percent. The decline primarily reflected lower sales volumes across both pediatric and adult nutritional product portfolios in the U.S. and internationally.
Current wording
Excluding the impact of foreign exchange, total Nutritional Products sales in the first six months of 2026 decreased 5.6 percent, reflecting lower sales volumes across the adult nutritional and U.S. pediatric product portfolios.
Previous wording
In the first three months of 2026, Diagnostic Products sales increased 2.5 percent, excluding the impact of foreign exchange. Growth in Core Laboratory and the inclusion of Exact Sciences' results were partially offset by a decline in Rapid and Molecular Diagnostics. Cancer Diagnostics results include Exact Sciences' net sales of $96 million from the acquisition date of March 23, 2026.
Current wording
In the first six months of 2026, Diagnostic Products sales increased 22.4 percent, excluding the impact of foreign exchange. The inclusion of Exact Sciences and growth in Core Laboratory were partially offset by a decline in Rapid and Molecular Diagnostics. From the acquisition date of March 23, 2026, Diagnostic Products results included approximately $1.0 billion of sales from Exact Sciences, which are reported as Cancer Diagnostics.
Previous wording
In Core Laboratory, sales increased 3.3 percent in the first three months of 2026, excluding the impact of foreign exchange, reflecting continued growth of diagnostic test sales on the Alinity® platform across the U.S., Europe, and Latin America, partially offset by lower sales in China due to continued challenging market conditions. In Rapid and Molecular Diagnostics, sales decreased 9.6 percent in the first three months of 2026, excluding the impact of foreign exchange, primarily reflecting lower demand for respiratory virus tests due to a weaker respiratory virus season compared to the prior year.
Current wording
In Core Laboratory, sales increased 3.2 percent in the first six months of 2026, excluding the impact of foreign exchange, reflecting continued growth of diagnostic test sales on the Alinity® platform across the U.S. and Latin America, partially offset by lower sales in China due to continued challenging market conditions. In Rapid and Molecular Diagnostics, sales decreased 8.8 percent in the first six months of 2026, excluding the impact of foreign exchange, primarily reflecting lower demand for respiratory virus tests due to a weaker respiratory virus season compared to the prior year.
Previous wording
Excluding the impact of foreign exchange, total Medical Devices sales increased 8.1 percent in the first three months of 2026, led by double‑digit growth in Rhythm Management, Electrophysiology, and Heart Failure. Diabetes Care sales increased 7.4 percent, excluding the impact of foreign exchange, driven by continued growth in Abbott’s continuous glucose monitoring (CGM) systems in the U.S. and internationally. CGM systems sales totaled $2.0 billion and $1.7 billion in the first three months of 2026 and 2025, respectively, and increased 7.6 percent excluding the impact of foreign exchange.
Current wording
Excluding the impact of foreign exchange, total Medical Devices sales increased 8.0 percent in the first six months of 2026, led by double‑digit growth in Electrophysiology, Rhythm Management, and Heart Failure. Diabetes Care sales increased 8.2 percent, excluding the impact of foreign exchange, driven by continued growth in Abbott’s continuous glucose monitoring (CGM) systems in the U.S. and internationally. CGM systems sales totaled $4.1 billion and $3.6 billion in the first six months of 2026 and 2025, respectively, and increased 8.6 percent excluding the impact of foreign exchange.
Previous wording
In Rhythm Management, sales increased 12.5 percent in the first three months of 2026, excluding the impact of foreign exchange, primarily due to growth in Aveir® leadless pacemakers. In Electrophysiology, sales increased 12.5 percent, excluding the impact of foreign exchange, primarily reflecting higher procedure volumes and increased demand for ablation catheters. In Heart Failure, sales increased 12.2 percent, excluding the impact of foreign exchange, primarily reflecting growth across the portfolio of ventricular assist devices and related accessories. In Structural Heart, sales increased 3.6 percent, excluding the impact of foreign exchange, primarily reflecting growth in Navitor® and MitraClip®products, partially offset by the completion of payments related to a multi‑year agreement with a competitor.
Current wording
In Rhythm Management, sales increased 10.9 percent in the first six months of 2026, excluding the impact of foreign exchange, primarily due to growth in Aveir® leadless pacemakers. In Electrophysiology, sales increased 13.0 percent, excluding the impact of foreign exchange, primarily reflecting increased sales of ablation catheters and related portfolio products. In Heart Failure, sales increased 10.4 percent, excluding the impact of foreign exchange, primarily reflecting growth across the portfolio of ventricular assist devices and related accessories. In Vascular, sales increased 5.0 percent, excluding the impact of foreign exchange, primarily reflecting growth in endovascular products.
Previous wording
The gross profit margin percentage was 52.4 percent for the first quarter of 2026, compared to 52.8 percent for the first quarter of 2025. The decrease in the first three months of 2026 reflects the unfavorable impact of higher costs and foreign exchange, partially offset by the impact of margin improvement initiatives.
Current wording
The gross profit margin percentage was 52.5 percent for the second quarter of 2026 and the first six months of 2026, compared to 52.7 percent for the second quarter and the first six months of 2025. The decrease in the second quarter and the first six months of 2026 primarily reflects higher intangible amortization expense related to the Exact Sciences acquisition and the unfavorable impact of higher costs, partially offset by favorable business mix, including the addition of Exact Sciences, continued margin improvement initiatives, and foreign exchange.
Previous wording
Research and development (R&D) expenses increased $51 million to $767 million, or 7.2 percent, in the first quarter of 2026 compared to the prior year. The increase in R&D expenses in the first three months of 2026 was primarily driven by higher spending on development programs across multiple businesses.
Current wording
Research and development (R&D) expenses increased $167 million to $892 million, or 22.9 percent, in the second quarter of 2026 compared to the prior year, and increased $218 million to $1.7 billion, or 15.1 percent, in the first six months of 2026 compared to the prior year. The increase in R&D expenses in the second quarter and the first six months of 2026 primarily reflects the addition of the Exact Sciences business, as well as continued investment in development programs across multiple businesses.
Previous wording
Selling, general, and administrative (SG&A) expenses increased $679 million to $3.7 billion, or 22.2 percent, in the first quarter of 2026 primarily due to the acquisition and integration of Exact Sciences, including stock-based compensation expense resulting from the cash out of equity awards related to the acquisition. Higher SG&A expenses also reflect increased selling and marketing spending to drive growth across various businesses, as well as the unfavorable impact of foreign exchange.
Current wording
Selling, general, and administrative (SG&A) expenses increased $934 million to $4.0 billion in the second quarter, or 30.3 percent, and increased $1.6 billion to $7.8 billion, or 26.2 percent, in the first six months of 2026, primarily due to the addition of the Exact Sciences business and related integration expenses, as well as higher legal reserves, increased selling and marketing spend to drive growth across various businesses, and the unfavorable impact of foreign exchange.
Previous wording
On March 23, 2026, Abbott completed the acquisition of Exact Sciences for approximately $20.6 billion. The acquisition was funded primarily through the issuance of $20 billion of long-term debt in March 2026, with the remainder funded by cash on hand. Under the terms of the agreement, Abbott paid $105 per common share in cash. As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, of which $1.4 billion was repaid in March 2026. The remaining debt is expected to be repaid in 2026. The acquisition of Exact Sciences is expected to establish Abbott's position in the cancer diagnostics market and expands its portfolio to include products such as Cologuard®, Oncotype DX®, and Cancerguard®.
Current wording
On March 23, 2026, Abbott completed the acquisition of Exact Sciences for approximately $20.6 billion. The acquisition was funded primarily through the issuance of $20.0 billion of long-term debt in March 2026, with the remainder funded by cash on hand. Under the terms of the agreement, Abbott paid $105 per common share in cash. As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, nearly all of which was repaid as of June 30, 2026. The acquisition of Exact Sciences has established Abbott's position in the cancer diagnostics market and expands its portfolio to include products such as Cologuard®, Oncotype DX®, and Cancerguard®.
Previous wording
The goodwill is primarily attributable to future growth opportunities, assembled workforce, potential future technologies, and other intangible assets that do not qualify for separate recognition, as well as expected synergies from combining operations. The acquired net tangible assets consist primarily of property, plant, and equipment, trade accounts receivable, trade accounts payable, other current liabilities, and other non-current liabilities.
Current wording
The goodwill is primarily attributable to future growth opportunities, assembled workforce, potential future technologies, and other intangible assets that do not qualify for separate recognition, as well as expected synergies from combining operations. The acquired net tangible assets consist primarily of property and equipment, trade accounts receivable, trade accounts payable, other current liabilities, and other non-current liabilities.
Previous wording
If the acquisition had occurred as of the beginning of 2025, unaudited pro forma consolidated net sales for the three months ended March 31, 2025, would have been approximately $11.1 billion. Unaudited pro forma earnings before taxes for the three months ended March 31, 2025, would have been approximately $0.7 billion, reflecting transaction-related costs of approximately $0.5 billion, interest expense of approximately $0.2 billion, and amortization expense related to acquired intangible assets of approximately $0.2 billion. Unaudited pro forma consolidated net sales for the three months ended March 31, 2026, would have been approximately $11.9 billion. Unaudited pro forma earnings before taxes for the three months ended March 31, 2026, would have been approximately $1.4 billion, reflecting interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.2 billion, and excluding transaction-related expenses of $0.5 billion that were directly attributable to the acquisition. The unaudited pro forma information is not necessarily indicative of the consolidated results of operations that would have been realized had the Exact Sciences acquisition been completed as of the beginning of 2025, nor is it intended to be indicative of future results of operations of the combined entity.
Current wording
If the acquisition had occurred as of the beginning of 2025, unaudited pro forma consolidated net sales would have been approximately $11.9 billion and $23.0 billion for the three and six months ended June 30, 2025, respectively. Unaudited pro forma earnings before taxes for the three months ended June 30, 2025, would have been approximately $1.6 billion, reflecting interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.3 billion. Unaudited pro forma earnings before taxes for the six months ended June 30, 2025, would have been approximately $2.3 billion, reflecting transaction-related costs of approximately $0.5 billion, interest expense of approximately $0.5 billion, and amortization expense related to acquired intangible assets of approximately $0.5 billion. Unaudited pro forma consolidated net sales would have been approximately $12.6 billion and $24.5 billion for the three and six months ended June 30, 2026, respectively. Unaudited pro forma earnings before taxes would have been approximately $1.6 billion and $2.9 billion for the three and six months ended June 30, 2026, respectively, after giving effect to interest expense of approximately $0.2 billion and amortization expense related to acquired intangible assets of approximately $0.2 billion, and excluding transaction-related expenses of $0.5 billion that were directly attributable to the acquisition. The unaudited pro forma information is not necessarily indicative of the consolidated results of operations that would have been realized had the Exact Sciences acquisition been completed as of the beginning of 2025, nor is it intended to be indicative of future results of operations of the combined entity.
Previous wording
In the first quarter of 2026, Abbott's consolidated results include $96 million of net sales related to Exact Sciences. Earnings of Exact Sciences included in Abbott's consolidated financial statements since the acquisition date are not material to Abbott's consolidated earnings.
Current wording
In the first six months of 2026, Abbott's condensed consolidated results include $1.0 billion of net sales related to Exact Sciences. Earnings of Exact Sciences included in Abbott's condensed consolidated financial statements since the acquisition date are not material to Abbott's consolidated net earnings.
Previous wording
Interest expense, net increased by $19 million to $68 million in the first quarter of 2026 primarily due to interest on debt related to the acquisition of Exact Sciences, partially offset by interest income on bond proceeds and prior year debt repayments.
Current wording
Interest expense, net increased by $249 million to $299 million in the second quarter of 2026 and increased by $268 million to $367 million in the first six months of 2026. In the second quarter and the first six months of 2026, interest expense increased primarily due to interest on debt incurred related to the acquisition of Exact Sciences, partially offset by the benefit of prior year debt repayments and interest income earned on bond proceeds during the first quarter of 2026.
Previous wording
Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first three months of 2026 and 2025, taxes on earnings include $17 million and $73 million, respectively, in excess tax benefits associated with share-based compensation. In the first three months of 2026 and 2025, taxes on earnings includes approximately $200 million of tax expense related to a deferred tax asset that was recognized as a significant non-cash tax benefit in a prior year. In the first three months of 2026, taxes on earnings also included approximately $50 million of net tax benefit as the result of the resolution of various tax positions related to prior years.
Current wording
Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first six months of 2026 and 2025, taxes on earnings included $18 million and $84 million, respectively, in excess tax benefits associated with share-based compensation. In the first six months of 2026 and 2025, taxes on earnings included approximately $440 million and $300 million, respectively, of tax expense related to a deferred tax asset that was recognized as a significant non-cash tax benefit in a prior year. In the first six months of 2026 and 2025, taxes on earnings also included approximately $60 million of net tax expense and $90 million of net tax benefit, respectively, primarily as the result of the resolution of various tax positions related to prior years.
Previous wording
In September 2023, Abbott received a Statutory Notice of Deficiency (SNOD) from the U.S. Internal Revenue Service (IRS) for the 2019 Federal tax year in the amount of $417 million. The primary adjustments proposed in the SNOD relate to the reallocation of income between Abbott’s U.S. entities and its foreign affiliates. Abbott believes that the income reallocation adjustments proposed in the SNOD are without merit, in part because certain adjustments contradict methods that were agreed to with the IRS in prior audit periods. The SNOD also contains other proposed adjustments that Abbott believes are erroneous and unsupported. Abbott filed a petition with the U.S. Tax Court contesting the SNOD in December 2023.
Current wording
In September 2023, Abbott received a Statutory Notice of Deficiency (SNOD) from the IRS for the 2019 Federal tax year in the amount of $417 million. The primary adjustments proposed in the SNOD relate to the reallocation of income between Abbott’s U.S. entities and its foreign affiliates. Abbott believes that the income reallocation adjustments proposed in the SNOD are without merit, in part because certain adjustments contradict methods that were agreed to with the IRS in prior audit periods. The SNOD also contains other proposed adjustments that Abbott believes are erroneous and unsupported. Abbott filed a petition with the U.S. Tax Court contesting the SNOD in December 2023.
Previous wording
The decrease in cash and cash equivalents from $8.5 billion at December 31, 2025, to $6.8 billion at March 31, 2026, reflects the use of cash to fund the cash portion of the acquisition of Exact Sciences and the repayment of $1.4 billion of debt assumed as part of the acquisition, as well as the payment of dividends and capital expenditures in the first three months of 2026, partially offset by cash generated from operations.
Current wording
The decrease in cash and cash equivalents from $8.5 billion at December 31, 2025, to $5.1 billion at June 30, 2026, primarily reflects the use of cash to fund the cash portion of the acquisition of Exact Sciences and repay the $2.8 billion of debt assumed in the acquisition, as well as the payment of dividends, share repurchases, and capital expenditures in the first six months of 2026, partially offset by cash generated from operations.
Previous wording
Working capital was $7.1 billion at March 31, 2026, and $9.5 billion at December 31, 2025. The decrease in working capital in 2026 primarily reflects the reduction in cash to fund the cash portion of the Exact Sciences acquisition and the repayment of $1.4 billion of debt assumed as part of the acquisition, as well as an increase in the current portion of long-term debt.
Current wording
Working capital was $6.7 billion at June 30, 2026, and $9.5 billion at December 31, 2025. The decrease in working capital in 2026 primarily reflects the reduction in cash to fund the cash portion of the Exact Sciences acquisition and the repayment of $2.8 billion of debt assumed as part of the acquisition, as well as an increase in other accrued liabilities, partially offset by increases in trade receivables and inventories.
Previous wording
In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first three months of 2026 totaled $1.3 billion, a decrease of $102 million from the prior year. Cash flow from operating activities decreased during the period, primarily due to the cash out of equity awards related to the acquisition of Exact Sciences, partially offset by a decrease in trade receivables. In the first three months of 2026, Net cash from operating activities included the payment of cash taxes of $266 million. Net cash from operating activities in the first three months of 2025 included $235 million of pension contributions and the payment of cash taxes of $255 million.
Current wording
In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first six months of 2026 totaled $3.8 billion, an increase of $339 million from the prior year. Cash flow from operating activities increased during the period, primarily due to a favorable movement in trade receivables, lower pension contributions and lower cash taxes paid, partially offset by the cash payments related to the settlement of equity awards associated with the Exact Sciences acquisition. In the first six months of 2026, Net cash from operating activities included the payment of cash taxes of $856 million. Net cash from operating activities in the first six months of 2025 included pension contributions of $246 million and the cash tax payments of $945 million.
Previous wording
As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, of which $1.4 billion was repaid in March 2026. The remaining debt is expected to be repaid in 2026.
Current wording
As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, nearly all of which has been repaid as of June 30, 2026.
Previous wording
In October 2024, the board of directors authorized the repurchase of up to $7 billion of Abbott common shares, from time to time (the "2024 repurchase program"). As of March 31, 2026, $6.7 billion remains available for repurchase under the 2024 repurchase program.
Current wording
In the first six months of 2026, Abbott repurchased approximately 11.6 million of its common shares for $1.0 billion. As of June 30, 2026, $5.6 billion remains available for repurchase under the share repurchase program authorized by the board of directors in October 2024.
Previous wording
In the first quarter of 2026, Abbott declared a quarterly dividend of $0.63 per share on its common shares, which represents an increase of 6.8 percent over the $0.59 per share dividend declared in the first quarter of 2025.
Current wording
In each of the first two quarters of 2026, Abbott declared a quarterly dividend of $0.63 per share on its common shares, which represents an increase of 6.8 percent over the $0.59 per share dividend declared in each of the first two quarters of 2025.