ABBOTT LABORATORIES

Previous 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.

Current wording

The following tables detail sales by reportable segment for the three and nine months ended September 30. Percent changes are versus the prior year and are based on unrounded numbers.

Previous 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.

Current wording

The 14.8 percent increase in total net sales during the third 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. 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 unfavorably impacted by foreign exchange as the relatively stronger U.S. dollar decreased total international sales by 0.6 percent and total sales by 0.3 percent.

Previous wording

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 wording

The 10.5 percent increase in total net sales during the first nine 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. Sales of Diagnostic Products primarily increased as a result of the acquisition of Exact Sciences, while growth in Medical Devices and Established Pharmaceutical Products reflected higher sales of new and existing products. Abbott’s net sales were favorably impacted by changes in foreign exchange rates as the relatively weaker U.S. dollar increased total international sales by 2.3 percent and total sales by 1.4 percent.

Previous 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.

Current wording

The table below provides detail by sales category for the nine months ended September 30. Percent changes are versus the prior year and are based on unrounded numbers.

Previous 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.

Current wording

In the first nine months of 2026, total Established Pharmaceutical Products sales, excluding the impact of foreign exchange, increased 8.7 percent. Excluding the favorable effect of foreign exchange, sales in Key Emerging Markets for Established Pharmaceutical Products increased 10.4 percent in the first nine 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 3.6 percent in the first nine months of 2026.

Previous 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.

Current wording

Excluding the impact of foreign exchange, total Nutritional Products sales in the first nine months of 2026 decreased 2.1 percent, reflecting lower sales volumes across the adult nutritional and U.S. pediatric product portfolios.

Previous 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.

Current wording

In the first nine months of 2026, Diagnostic Products sales increased 30.8 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 $2.0 billion of sales from Exact Sciences, which are reported as Cancer Diagnostics.

Previous 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.

Current wording

In Core Laboratory, sales increased 4.0 percent in the first nine 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 international markets, including Latin America and Europe, partially offset by lower sales in China due to continued challenging market conditions. In Rapid and Molecular Diagnostics, sales decreased 5.4 percent in the first nine months of 2026, excluding the impact of foreign exchange, primarily reflecting lower demand for respiratory virus tests.

Previous 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.

Current wording

Excluding the impact of foreign exchange, total Medical Devices sales increased 7.8 percent in the first nine months of 2026, reflecting double‑digit growth in Electrophysiology and Rhythm Management, as well as high single-digit growth in Heart Failure and Diabetes Care. Diabetes Care sales increased 7.7 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 $6.2 billion and $5.6 billion in the first nine months of 2026 and 2025, respectively, and increased 8.3 percent, excluding the impact of foreign exchange.

Previous 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.

Current wording

In the first nine months of 2026, Electrophysiology sales increased 13.8 percent, excluding the impact of foreign exchange, primarily reflecting increased sales of ablation catheters and related portfolio products. In Rhythm Management, sales increased 10.6 percent, excluding the impact of foreign exchange, primarily due to growth in Aveir® leadless pacemakers. In Heart Failure, sales increased 8.9 percent, excluding the impact of foreign exchange, primarily reflecting growth across the portfolio of ventricular assist devices and related accessories. In Vascular, sales increased 5.2 percent, excluding the impact of foreign exchange, primarily reflecting growth in endovascular products.

Previous wording

In May 2026, Abbott announced it secured CE Mark for Libre® Duo, its dual glucose-ketone biowearable sensor.

Current wording

Abbott received several significant product approvals and launched new products in 2026. In May 2026, Abbott announced it secured CE Mark and in August 2026, Abbott announced U.S. Food and Drug Administration (FDA) approval for Libre® Duo, its dual glucose-ketone biowearable sensor. In August 2026, Abbott received CE Mark for its Amulet 360™ Left Atrial Appendage (LAA) Occluder, a device designed to reduce the risk of stroke in patients with atrial fibrillation (AFib). In August 2026, Abbott announced the launch of Similac® 360 Total Care® Made With Whole Milk, in the U.S., a commercially sterile, ready-to-feed liquid infant formula made with whole milk. In September 2026, Abbott announced FDA approval for its TactiFlex™ Duo Ablation Catheter, Sensor Enabled™, which delivers both pulsed field ablation (PFA) and radiofrequency (RF) energy to treat patients with AFib. In September 2026, Abbott launched SimpleScreen™ CRC, an FDA approved blood-based colorectal cancer screening test for adults age 45 and older who are at average risk for the disease.

Previous 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.

Current wording

The gross profit margin percentage was 50.3 percent and 51.7 percent for the third quarter and first nine months of 2026, respectively, compared to 51.7 percent and 52.4 percent for the third quarter and first nine months of 2025. The decrease in the third quarter and the first nine months of 2026 primarily reflects higher intangible amortization expense related to the Exact Sciences acquisition, as well as the unfavorable impact of higher costs and foreign exchange. These factors were partially offset by favorable business mix, including the addition of Exact Sciences, and continued margin improvement initiatives.

Previous 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.

Current wording

Research and development (R&D) expenses increased $154 million to $920 million, or 20.1 percent, in the third quarter of 2026 compared to the prior year, and increased $372 million to $2.6 billion, or 16.9 percent, in the first nine months of 2026 compared to the prior year. The increase in R&D expenses in the third quarter and the first nine 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 $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.

Current wording

Selling, general, and administrative (SG&A) expenses increased $1.2 billion to $4.3 billion in the third quarter, or 39.8 percent, and increased $2.8 billion to $12.0 billion, or 30.7 percent, in the first nine months of 2026. The increase primarily reflects the addition of the Exact Sciences business and related integration expenses, charges related to recent legal settlements, 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 $20.0 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®.

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 with 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. 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 preliminary allocation of the fair value of the Exact Sciences acquisition is shown in the table below. Allocation of the purchase price of the acquisition will be finalized when the valuation of assets and liabilities is completed and differences between the preliminary and final allocation could be material.

Current wording

The preliminary allocation of the fair value of the Exact Sciences acquisition is shown in the table below. During the third quarter of 2026, Abbott recorded measurement period adjustments, including a $3.2 billion increase in acquired intangible assets with a corresponding reduction to goodwill, which resulted in approximately $100 million of additional amortization expense recognized in the third quarter. Allocation of the purchase price of the acquisition will be finalized when the valuation of assets and liabilities is completed. The differences between the preliminary and final allocation could be material.

Previous 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.

Current wording

If the acquisition had occurred as of the beginning of 2025, unaudited pro forma consolidated net sales would have been approximately $12.2 billion and $35.2 billion for the three and nine months ended September 30, 2025, respectively. Unaudited pro forma earnings before taxes for the three months ended September 30, 2025, would have been approximately $1.6 billion, reflecting interest expense of $0.2 billion and amortization expense related to acquired intangible assets of $0.4 billion. Unaudited pro forma earnings before taxes for the nine months ended September 30, 2025, would have been approximately $3.7 billion, reflecting transaction-related expenses of $0.5 billion, interest expense of $0.7 billion, and amortization expense related to acquired intangible assets of $1.1 billion. Unaudited pro forma consolidated net sales would have been approximately $13.0 billion and $37.5 billion for the three and nine months ended September 30, 2026, respectively. Unaudited pro forma earnings before taxes would have been approximately $1.4 billion for the three months ended September 30, 2026. For the nine months ended September 30, 2026, unaudited pro forma earnings before taxes would have been approximately $4.1 billion, after the effect of interest expense of $0.2 billion, amortization expense related to acquired intangible assets of $0.3 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 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.

Current wording

In the first nine months of 2026, Abbott's condensed consolidated results include $2.0 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

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.

Current wording

Other (income) expense, net was income of $164 million in the third quarter of 2026, compared to income of $150 million in the third quarter of 2025, and income of $457 million in the first nine months of 2026, compared to income of $414 million in the first nine months of 2025. The higher income in the third quarter of 2026 primarily reflected income associated with the non-service cost components of net pension and post-retirement medical benefit costs. The higher income in the first nine 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.

Previous 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.

Current wording

Interest expense, net increased by $253 million to $297 million in the third quarter of 2026 and increased by $521 million to $664 million in the first nine months of 2026. In the third quarter and the first nine months of 2026, interest expense increased primarily due to interest on debt incurred related to the acquisition of Exact Sciences.

Previous 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.

Current wording

Taxes on earnings reflect the estimated annual effective rates and include charges for interest and penalties. In the first nine months of 2026 and 2025, taxes on earnings included $28 million and $91 million, respectively, in excess tax benefits associated with share-based compensation. In the first nine months of 2026 and 2025, taxes on earnings included approximately $540 million and $460 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 nine months of 2026 and 2025, taxes on earnings also included approximately $95 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

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.

Current wording

The decrease in cash and cash equivalents from $8.5 billion at December 31, 2025, to $4.1 billion at September 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, and fund payments related to dividends, legal settlements, share repurchases, and capital expenditures in the first nine months of 2026, partially offset by cash generated from operations.

Previous 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.

Current wording

Working capital was $7.3 billion at September 30, 2026, and $9.5 billion at December 31, 2025. The decrease in working capital in 2026 primarily reflects the reduction in cash, partially offset by increases in trade receivables and inventories and a decrease in the current portion of long-term debt.

Previous 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.

Current wording

In the Condensed Consolidated Statement of Cash Flows, Net cash from operating activities for the first nine months of 2026 totaled $5.5 billion, a decrease of approximately $700 million from the prior year. Cash flow from operating activities decreased during the period, primarily due to legal settlement payments, higher inventory levels, and cash payments related to the settlement of equity awards associated with the Exact Sciences acquisition. These factors were partially offset by lower pension contributions and lower cash taxes paid. In the first nine months of 2026, Net cash from operating activities included the payment of cash taxes of $1.3 billion. Net cash from operating activities in the first nine months of 2025 included pension contributions of $256 million and cash tax payments of $1.5 billion.

Previous 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.

Current wording

As part of the acquisition, Abbott assumed approximately $2.8 billion of Exact Sciences’ debt, nearly all of which has been repaid.

Previous wording

On September 15, 2025, Abbott repaid the $500 million outstanding principal amount of its 3.875% Notes upon maturity. On March 17, 2025, Abbott repaid the $1.0 billion outstanding principal amount of its 2.95% Notes upon maturity.

Current wording

On September 27, 2026, Abbott repaid the €1.14 billion outstanding principal amount on its 1.500% Notes upon maturity. The repayment equated to approximately $1.3 billion. On September 15, 2025, Abbott repaid the $500 million outstanding principal amount of its 3.875% Notes upon maturity. On March 17, 2025, Abbott repaid the $1.0 billion outstanding principal amount of its 2.95% Notes upon maturity.

Previous 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.

Current wording

In the first nine months of 2026, Abbott repurchased approximately 11.6 million of its common shares for $1.0 billion. As of September 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 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.

Current wording

In each of the first three 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 three quarters of 2025.