Abbott Q2 Profit Plunges, Lifts FY26 Adj. EPS View, Backs Sales Forecast; Stock Up 11%

(RTTNews) - Shares of Abbott Laboratories were gaining around 11 percent in the early morning trading on the NYE, after the medical devices and health care company on Thursday said it has raised fiscal 2026 adjusted earnings outlook, despite reporting sharply lower profit in its second quarter. The firm recorded higher net sales in the quarter and maintained fiscal 2026 comparable sales view.

Robert Ford, chairman and chief executive officer, Abbott, said, "Our second-quarter results reflect the momentum we are building. We expect this momentum to continue and drive accelerating sales and earnings growth in the second half of the year."

Looking ahead for the third quarter, Abbott projects adjusted earnings per share of $1.38 to $1.46.

Further, for fiscal 2026, the company now expects adjusted earnings per share of $5.45 to $5.60, compared to previous range of $5.38 to $5.58.

Abbott continues to project full-year 2026 comparable sales growth of 6.5 percent to 7.5 percent.

In the second quarter, net earnings declined 47.8 percent to $928 million from last year's $1.78 billion. Earnings per share fell to $0.53 from $1.01 a year earlier.

Adjusted earnings were $2.29 billion or $1.31 per share for the period, compared to $2.21 billion or $1.26 per share in the previous year.

Operating earnings declined 17.5 percent year-over-year to $1.69 billion, as total operating cost and expenses climbed 20 percent to $10.90 billion.

The company's net sales, however, grew 13.0 percent to $12.593 billion from $11.142 billion last year. Comparable sales growth was 4.8 percent.

In the quarter, U.S. sales climbed 22 percent from last year to $5.22 billion, and International sales increased 7.5 percent to $7.38 billion.

Worldwide Nutrition sales decreased 3.1 percent on a reported basis and 3.6 percent on a comparable basis.

Worldwide Diagnostics sales increased 42.3 percent on a reported basis to $3.09 billion, mainly with strong growth in US. The increase was 2.9 percent on a comparable basis in the second quarter.

The company noted that worldwide Core Laboratory Diagnostics results were driven by strong growth in the U.S. and Latin America, and Cancer Diagnostics results were driven by mid-teens growth of Cologuard.

Meanwhile, Rapid and Molecular Diagnostics results reflected lower sales of respiratory virus tests compared to the prior year.

Abbott's Established Pharmaceuticals division, which provides off-patent, branded generic drugs to emerging markets, recorded sales growth of 8.4 percent on a reported basis and 8.7 percent on a comparable basis.

Worldwide Medical Devices sales increased 9.0 percent on a reported basis to $5.85 billion, and the growth was 8.4 percent on a comparable basis, led by low-teens growth in Electrophysiology and high-single-digit growth in Rhythm Management, Diabetes Care, and Heart Failure.

In the ealy morning trading on the NYSE, the shares were at $99.28, up 11.1 percent, extending the 1.1 percent gain on Wednesday's regular trading close.

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