ABBOTT LABORATORIES
For the period ended Oct 21, 2026. Filed Oct 21, 2026.
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Oct 21, 2026 · Filed Oct 21, 2026
Contents
EX-99.1 · NOTES:
NOTES:
See tables on page 13 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
1)2026 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense primarily as a result of the resolution of various tax positions related to prior years. 2026 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
2025 Taxes on Earnings includes approximately $160 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
2)2026 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.557 billion, or $0.89 per share, for intangible amortization, legal settlements, acquisitions, restructuring actions, and other net expenses.
2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $634 million, or $0.36 per share, for intangible amortization, charges related to restructuring and cost reduction initiatives, and other net expenses.
Condensed Consolidated Statement of Earnings
| 9M26 · 9M25 · % Change | ||||||
|---|---|---|---|---|---|---|
| Net Sales | $36,770 | $32,869 | 11.9 | |||
| Cost of products sold, excluding amortization expense | 15,843 | 14,397 | 10.0 | |||
| Amortization of intangible assets | 1,921 | 1,260 | 52.4 | |||
| Research and development | 2,579 | 2,207 | 16.9 | |||
| Selling, general, and administrative | 12,031 | 9,203 | 30.7 | |||
| Total Operating Cost and Expenses | 32,374 | 27,067 | 19.6 | |||
| Operating Earnings | 4,396 | 5,802 | (24.2) | |||
| Interest expense, net | 664 | 143 | n/m | |||
| Net foreign exchange (gain) loss | (15) | (35) | n/m | |||
| Other (income) expense, net | (457) | (414) | 10.2 | |||
| Earnings before taxes | 4,204 | 6,108 | (31.2) | |||
| Taxes on earnings | 1,279 | 1,360 | (6.0) | 1) | ||
| Net Earnings | $2,925 | $4,748 | (38.4) | |||
| Net Earnings excluding Specified Items, as described below | $6,789 | $6,410 | 5.9 | 2) | ||
| Diluted Earnings per Common Share | $1.67 | $2.70 | (38.1) | |||
| Diluted Earnings per Common Share,excluding Specified Items, as described below | $3.88 | $3.65 | 6.3 | 2) | ||
| Average Number of Common Shares OutstandingPlus Dilutive Common Stock Options | 1,743 | 1,749 | ||||
NOTES:
See tables on page 14 for an explanation of certain non-GAAP financial information.
n/m = Percent change is not meaningful.
See footnotes on the following page.
1)2026 Taxes on Earnings includes the recognition of approximately $95 million of net tax expense primarily as a result of the resolution of various tax positions related to prior years. 2026 Taxes on Earnings also includes approximately $540 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $460 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
2)2026 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $3.864 billion, or $2.21 per share, for intangible amortization, legal settlements, acquisitions, restructuring actions, and other net expenses.
2025 Net Earnings and Diluted Earnings per Common Share, excluding Specified Items, excludes net after-tax charges of $1.662 billion, or $0.95 per share, for intangible amortization, charges related to investment impairments, charges related to restructuring and cost reduction initiatives, expenses associated with acquisitions, and other net expenses.
Non-GAAP Reconciliation of Financial Information
| 3Q26 | |||
|---|---|---|---|
| As Reported (GAAP) | Specified Items | As Adjusted | |
| Intangible Amortization | $841 | $(841) | $— |
| Gross Margin | 6,544 | 904 | 7,448 |
| R&D | 920 | (28) | 892 |
| SG&A | 4,266 | (761) | 3,505 |
| Other (income) expense, net | (164) | 4 | (160) |
| Earnings before taxes | 1,231 | 1,689 | 2,920 |
| Taxes on Earnings | 311 | 132 | 443 |
| Net Earnings | 920 | 1,557 | 2,477 |
| Diluted Earnings per Share | $0.53 | $0.89 | $1.42 |
Specified items reflect intangible amortization expense of $841 million, legal settlements of approximately $670 million and other net expenses of $178 million associated with acquisitions, restructuring actions, and other net expenses. See page 18 for additional details regarding specified items.
| 3Q25 | |||
|---|---|---|---|
| As Reported (GAAP) | Specified Items | As Adjusted | |
| Intangible Amortization | $420 | $(420) | $— |
| Gross Margin | 5,874 | 470 | 6,344 |
| R&D | 766 | (36) | 730 |
| SG&A | 3,051 | (47) | 3,004 |
| Other (income) expense, net | (150) | 5 | (145) |
| Earnings before taxes | 2,180 | 548 | 2,728 |
| Taxes on Earnings | 536 | (86) | 450 |
| Net Earnings | 1,644 | 634 | 2,278 |
| Diluted Earnings per Share | $0.94 | $0.36 | $1.30 |
Specified items reflect intangible amortization expense of $420 million and other net expenses of $128 million associated with restructuring actions, costs associated with acquisitions, and other net expenses. See page 19 for additional details regarding specified items.
Non-GAAP Reconciliation of Financial Information
| 9M26 | |||
|---|---|---|---|
| AsReported (GAAP) | Specified Items | AsAdjusted | |
| Intangible Amortization | $1,921 | $(1,921) | $— |
| Gross Margin | 19,006 | 2,033 | 21,039 |
| R&D | 2,579 | (77) | 2,502 |
| SG&A | 12,031 | (1,662) | 10,369 |
| Other (income) expense, net | (457) | (30) | (487) |
| Earnings before taxes | 4,204 | 3,802 | 8,006 |
| Taxes on Earnings | 1,279 | (62) | 1,217 |
| Net Earnings | 2,925 | 3,864 | 6,789 |
| Diluted Earnings per Share | $1.67 | $2.21 | $3.88 |
Specified items reflect intangible amortization expense of $1.921 billion, legal settlements of approximately $1.070 billion and other net expenses of $811 million associated with acquisitions, restructuring actions, and other net expenses. See page 20 for additional details regarding specified items.
| 9M25 | |||
|---|---|---|---|
| AsReported (GAAP) | Specified Items | AsAdjusted | |
| Intangible Amortization | $1,260 | $(1,260) | $— |
| Gross Margin | 17,212 | 1,396 | 18,608 |
| R&D | 2,207 | (83) | 2,124 |
| SG&A | 9,203 | (58) | 9,145 |
| Other (income) expense, net | (414) | (31) | (445) |
| Earnings before taxes | 6,108 | 1,568 | 7,676 |
| Taxes on Earnings | 1,360 | (94) | 1,266 |
| Net Earnings | 4,748 | 1,662 | 6,410 |
| Diluted Earnings per Share | $2.70 | $0.95 | $3.65 |
Specified items reflect intangible amortization expense of $1.260 billion and other net expenses of $308 million associated with restructuring actions, acquisitions, investment impairment charges, and other net expenses. See page 21 for additional details regarding specified items.
A reconciliation of the third-quarter tax rates for 2026 and 2025 is shown below:
| ($ in millions) · Pre-TaxIncome · Taxes onEarnings · TaxRate | ||||
|---|---|---|---|---|
| As reported (GAAP) | $1,231 | $311 | 25.3% | 1) |
| Specified items | 1,689 | 132 | ||
| Excluding specified items | $2,920 | $443 | 15.2% | |
| ($ in millions) · Pre-TaxIncome · Taxes onEarnings · TaxRate | ||||
|---|---|---|---|---|
| As reported (GAAP) | $2,180 | $536 | 24.6% | 2) |
| Specified items | 548 | (86) | ||
| Excluding specified items | $2,728 | $450 | 16.5% | |
1)2026 Taxes on Earnings includes the recognition of approximately $35 million of net tax expense primarily as a result of the resolution of various tax positions related to prior years. 2026 Taxes on Earnings also includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
2)2025 Taxes on Earnings includes approximately $160 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
A reconciliation of the year-to-date tax rates for 2026 and 2025 is shown below:
| ($ in millions) · Pre-TaxIncome · Taxes onEarnings · TaxRate | ||||
|---|---|---|---|---|
| As reported (GAAP) | $4,204 | $1,279 | 30.4% | 3) |
| Specified items | 3,802 | (62) | ||
| Excluding specified items | $8,006 | $1,217 | 15.2% | |
| ($ in millions) · Pre-TaxIncome · Taxes onEarnings · TaxRate | ||||
|---|---|---|---|---|
| As reported (GAAP) | $6,108 | $1,360 | 22.3% | 4) |
| Specified items | 1,568 | (94) | ||
| Excluding specified items | $7,676 | $1,266 | 16.5% | |
3)2026 Taxes on Earnings includes the recognition of approximately $95 million of net tax expense primarily as a result of the resolution of various tax positions related to prior years. 2026 Taxes on Earnings also includes approximately $540 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
4)2025 Taxes on Earnings includes the recognition of approximately $90 million of net tax benefit as a result of the resolution of various tax positions related to prior years. 2025 Taxes on Earnings also includes approximately $460 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
Non-GAAP Revenue Reconciliation
($ in millions)
| 3Q26 · 3Q25 · % Change vs. 3Q25 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP | |||||||||
| Abbott Reported | Foreign exchange | Comparable Revenue | Abbott Reported | Impact of acquisition (a) | Impact of multi-year agreement (b) | Comparable Revenue | Reported | Comparable | |
| Total Company | 13,013 | 40 | 13,053 | 11,369 | 851 | (23) | 12,197 | 14.5 | 7.0 |
| U.S. | 5,504 | — | 5,504 | 4,299 | 824 | (23) | 5,100 | 28.0 | 7.9 |
| Intl | 7,509 | 40 | 7,549 | 7,070 | 27 | — | 7,097 | 6.2 | 6.4 |
| Total Diagnostics | 3,305 | (2) | 3,303 | 2,253 | 851 | — | 3,104 | 46.7 | 6.4 |
| U.S. | 1,853 | — | 1,853 | 886 | 824 | — | 1,710 | 109.2 | 8.4 |
| Intl | 1,452 | (2) | 1,450 | 1,367 | 27 | — | 1,394 | 6.2 | 4.0 |
| Total Cancer Diagnostics | 968 | — | 968 | — | 851 | — | 851 | n/a | 13.8 |
| U.S. | 938 | — | 938 | — | 824 | — | 824 | n/a | 13.9 |
| Intl | 30 | — | 30 | — | 27 | — | 27 | n/a | 12.1 |
| Total Medical Devices | 5,826 | 22 | 5,848 | 5,448 | — | (23) | 5,425 | 6.9 | 7.8 |
| U.S. | 2,687 | — | 2,687 | 2,521 | — | (23) | 2,498 | 6.6 | 7.6 |
| Intl | 3,139 | 22 | 3,161 | 2,927 | — | — | 2,927 | 7.2 | 8.0 |
| Total Structural Heart* | 592 | 4 | 596 | 580 | — | (23) | 557 | 1.9 | 6.9 |
| U.S. | 228 | — | 228 | 256 | — | (23) | 233 | (11.1) | (2.3) |
| Intl | 364 | 4 | 368 | 324 | — | — | 324 | 12.2 | 13.5 |
| * | Abbott's Amplatzer Amulet Left Atrial Appendage Occluder device and related accessories were transferred from Structural Heart to Electrophysiology on January 1, 2026. As a result, $55 million of sales in the third quarter of 2025 were moved from Structural Heart to Electrophysiology. |
|---|---|
| a) | The adjustment includes historical sales for Exact Sciences prior to the acquisition date. Exact Sciences was acquired by Abbott on March 23, 2026. |
| b) | Reflects the impact of compensation payments that Abbott's Structural Heart business received as part of a multi-year agreement with a competitor. The final payment under this agreement was recognized in the first quarter of 2026. |
Non-GAAP Revenue Reconciliation
($ in millions)
| 9M26 · 9M25 · % Change vs. 9M25 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP | |||||||||||
| Abbott Reported | Impact of acquisition (a) | Impact of multi-year agreement (b) | Foreign exchange | Comparable Revenue | Abbott Reported | Impact of acquisition (a) | Impact of multi-year agreement (b) | Comparable Revenue | Reported | Comparable | |
| Total Company | 36,770 | 706 | (8) | (460) | 37,008 | 32,869 | 2,369 | (69) | 35,169 | 11.9 | 5.2 |
| U.S. | 14,994 | 681 | (8) | — | 15,667 | 12,743 | 2,294 | (69) | 14,968 | 17.7 | 4.7 |
| Intl | 21,776 | 25 | — | (460) | 21,341 | 20,126 | 75 | — | 20,201 | 8.2 | 5.7 |
| Total Diagnostics | 8,577 | 706 | — | (100) | 9,183 | 6,480 | 2,369 | — | 8,849 | 32.4 | 3.8 |
| U.S. | 4,418 | 681 | — | — | 5,099 | 2,568 | 2,294 | — | 4,862 | 72.0 | 4.9 |
| Intl | 4,159 | 25 | — | (100) | 4,084 | 3,912 | 75 | — | 3,987 | 6.3 | 2.4 |
| Total Cancer Diagnostics | 1,983 | 706 | — | (1) | 2,688 | — | 2,369 | — | 2,369 | n/a | 13.5 |
| U.S. | 1,921 | 681 | — | — | 2,602 | — | 2,294 | — | 2,294 | n/a | 13.5 |
| Intl | 62 | 25 | — | (1) | 86 | — | 75 | — | 75 | n/a | 15.0 |
| Total Medical Devices | 17,218 | — | (8) | (284) | 16,926 | 15,712 | — | (69) | 15,643 | 9.6 | 8.2 |
| U.S. | 7,890 | — | (8) | — | 7,882 | 7,363 | — | (69) | 7,294 | 7.1 | 8.1 |
| Intl | 9,328 | — | — | (284) | 9,044 | 8,349 | — | — | 8,349 | 11.7 | 8.3 |
| Total Structural Heart* | 1,767 | — | (8) | (31) | 1,728 | 1,692 | — | (69) | 1,623 | 4.4 | 6.5 |
| U.S. | 677 | — | (8) | — | 669 | 753 | — | (69) | 684 | (10.2) | (2.3) |
| Intl | 1,090 | — | — | (31) | 1,059 | 939 | — | — | 939 | 16.1 | 12.8 |
| * | Abbott's Amplatzer Amulet Left Atrial Appendage Occluder device and related accessories were transferred from Structural Heart to Electrophysiology on January 1, 2026. As a result, $156 million of sales in the first nine months of 2025 were moved from Structural Heart to Electrophysiology. |
|---|---|
| a) | The adjustment includes historical sales for Exact Sciences prior to the acquisition date. Exact Sciences was acquired by Abbott on March 23, 2026. |
| b) | Reflects the impact of compensation payments that Abbott's Structural Heart business received as part of a multi-year agreement with a competitor. The final payment under this agreement was recognized in the first quarter of 2026. |
Third Quarter Ended September 30, 2026
| Acquisition or Divestiture- related (a) · Restructuring and Cost Reduction Initiatives (b) · Intangible Amortization · Other (c) · Total Specifieds | ||||||
|---|---|---|---|---|---|---|
| Gross Margin | $10 | $29 | $841 | $24 | $904 | |
| R&D | (7) | (5) | — | (16) | (28) | |
| SG&A | (47) | (20) | — | (694) | (761) | |
| Other (income) expense, net | (8) | (1) | — | 13 | 4 | |
| Earnings before taxes | $72 | $55 | $841 | $721 | 1,689 | |
| Taxes on Earnings (d) | 132 | |||||
| Net Earnings | $1,557 | |||||
| Diluted Earnings per Share | $0.89 | |||||
The table above provides additional details regarding the specified items described on page 13.
a)Acquisition-related expenses include integration costs that represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans.
c)Other primarily includes approximately $670 million related to agreements entered into to resolve the Gill case and the necrotizing enterocolitis (NEC) claims asserted on behalf of approximately 2,000 additional infants, as well as incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products.
d)Reflects the net tax benefit associated with the specified items and recognition of a tax expense as a result of the resolution of various tax positions related to prior years. Taxes on Earnings includes approximately $100 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
Third Quarter Ended September 30, 2025
| Acquisition or Divestiture- related (a) · Restructuring and Cost Reduction Initiatives (b) · Intangible Amortization · Other (c) · Total Specifieds | ||||||
|---|---|---|---|---|---|---|
| Gross Margin | $— | $44 | $420 | $6 | $470 | |
| R&D | — | (19) | — | (17) | (36) | |
| SG&A | (9) | (43) | — | 5 | (47) | |
| Other (income) expense, net | 7 | — | — | (2) | 5 | |
| Earnings before taxes | $2 | $106 | $420 | $20 | 548 | |
| Taxes on Earnings (d) | (86) | |||||
| Net Earnings | $634 | |||||
| Diluted Earnings per Share | $0.36 | |||||
The table above provides additional details regarding the specified items described on page 13.
a)Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)Other includes incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products.
d)Reflects the net tax benefit associated with the specified items. Taxes on Earnings includes approximately $160 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
Nine Months Ended September 30, 2026
| Acquisition or Divestiture- related (a) · Restructuring and Cost Reduction Initiatives (b) · Intangible Amortization · Other (c) · Total Specifieds | ||||||
|---|---|---|---|---|---|---|
| Gross Margin | $44 | $40 | $1,921 | $28 | $2,033 | |
| R&D | (18) | (15) | — | (44) | (77) | |
| SG&A | (533) | (54) | — | (1,075) | (1,662) | |
| Other (income) expense, net | (9) | (4) | — | (17) | (30) | |
| Earnings before taxes | $604 | $113 | $1,921 | $1,164 | 3,802 | |
| Taxes on Earnings (d) | (62) | |||||
| Net Earnings | $3,864 | |||||
| Diluted Earnings per Share | $2.21 | |||||
The table above provides additional details regarding the specified items described on page 14.
a)Acquisition-related expenses include stock-based compensation recognized as expense from equity awards accelerated in connection with the Exact Sciences acquisition, integration costs that represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions, including inventory step-up amortization.
b)Restructuring and cost reduction initiative expenses include severance, outplacement and other direct costs associated with specific restructuring plans.
c)Other primarily includes approximately $670 million related to agreements entered into to resolve the Gill case and the NEC claims asserted on behalf of approximately 2,000 additional infants; approximately $400 million, including attorneys' fees and accrued interest, related to an agreement to resolve the United States Department of Justice (DOJ) investigations and the civil qui tam lawsuit brought by certain relators and joined by the DOJ and Attorneys General of several states; as well as incremental costs to comply with the European Union's Medical Device Regulations (MDR) and In Vitro Diagnostics Medical Device Regulations (IVDR) requirements for previously approved products.
d)Reflects the net tax benefit associated with the specified items and recognition of a tax expense as a result of the resolution of various tax positions related to prior years. Taxes on Earnings includes approximately $540 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
Nine Months Ended September 30, 2025
| Acquisition or Divestiture- related (a) · Restructuring and Cost Reduction Initiatives (b) · Intangible Amortization · Other (c) · Total Specifieds | ||||||
|---|---|---|---|---|---|---|
| Gross Margin | $1 | $125 | $1,260 | $10 | $1,396 | |
| R&D | (1) | (42) | — | (40) | (83) | |
| SG&A | (15) | (49) | — | 6 | (58) | |
| Other (income) expense, net | (18) | — | — | (13) | (31) | |
| Earnings before taxes | $35 | $216 | $1,260 | $57 | 1,568 | |
| Taxes on Earnings (d) | (94) | |||||
| Net Earnings | $1,662 | |||||
| Diluted Earnings per Share | $0.95 | |||||
The table above provides additional details regarding the specified items described on page 14.
a)Acquisition-related expenses include integration costs, which represent incremental costs directly related to integrating acquired businesses, as well as other costs related to business acquisitions.
b)Restructuring and cost reduction initiative expenses include severance, outplacement, and other direct costs associated with specific restructuring plans and cost reduction initiatives.
c)Other includes incremental costs to comply with the MDR and IVDR regulations for previously approved products and charges for investment impairments.
d)Reflects the net tax benefit associated with the specified items and recognition of a tax benefit as a result of the resolution of various tax positions related to prior years. Taxes on Earnings includes approximately $460 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.