Abbott Laboratories experienced a significant surge, with its shares rising approximately 4%, following a better-than-expected performance in the second quarter of 2026. The medical technology company reported $12.6 billion in revenue, marking a 13% year-over-year increase and slightly surpassing analyst estimates. Both sales and adjusted earnings per share (EPS) of $1.31 also came in ahead of Wall Street consensus. Although reported net income decreased by about 47% to $928 million, and diluted GAAP EPS fell to $0.53, investors focused on the strong performance across most business segments.
The company responded to its robust Q2 results by raising its full-year adjusted EPS guidance for 2026. The new forecast is set between $5.45 and $5.60, an increase from the previous range of $5.38 to $5.58, representing a $0.05 midpoint increase. Despite the revised profit outlook, Abbott affirmed its comparable sales growth guidance of 6.5% to 7.5% for the year, indicating management's confidence in an acceleration of revenue and earnings growth during the second half of 2026.
This positive outlook follows an earlier adjustment in April 2026, when Abbott had cut its full-year profit forecast to account for the impact of its $21 billion acquisition of Exact Sciences, a cancer-screening company, completed in March 2026. That acquisition aimed to bolster its diagnostics business, which had faced challenges along with its nutrition segment. Medical Devices, led by Electrophysiology, Heart Failure, and Rhythm Management, showed strong growth, with sales up 13.2% on a reported basis. Diagnostics also rose 6.1% with the Exact Sciences addition, while Nutrition declined 6%. The company returned $2.1 billion to shareholders through dividends and share repurchases during the quarter, and continues to expand its product pipeline with innovations like Libre Duo and the TECTONIC coronary IVL system.
