Abbott Laboratories (ABT) Q1 2026 earnings summary

Executive summary

• First-quarter 2026 sales reached $11.16 billion, up 7.8% reported and 3.7% on a comparable basis, driven by strong growth in Medical Devices and Established Pharmaceuticals, partially offset by a decline in Nutrition.

• Completed the $20.6 billion acquisition of Exact Sciences, expanding into cancer diagnostics and integrating $96 million of net sales from the acquisition date.

• Adjusted diluted EPS was $1.15, up 6% year-over-year, consistent with guidance despite higher financing costs and integration expenses; GAAP diluted EPS was $0.61.

• Over 200 ongoing clinical trials, with notable positive results in diabetes and cardiac device studies; strategic collaborations and new product launches in cardiovascular and diabetes care.

• Operating earnings were $1.35 billion, down from $1.69 billion in Q1 2025, reflecting higher SG&A and integration costs.

Financial highlights

• Net sales reached $11.16 billion, up from $10.36 billion in Q1 2025; GAAP sales increased 7.8% year-over-year.

• Adjusted EPS was $1.15; adjusted gross margin was 56.3% of sales; adjusted R&D was 6.7% and SG&A was 29.3% of sales.

• Gross margin was 52.4% in Q1 2026, slightly down from 52.8% in Q1 2025 due to higher costs and FX impacts.

• Net cash from operating activities was $1.3 billion, down $102 million year-over-year, reflecting acquisition-related cash outflows.

• Medical Devices sales were $5.5B, Diagnostics $2.2B, Nutrition $2.0B, and Established Pharmaceuticals $1.4B.

Outlook and guidance

• Full-year 2026 comparable sales growth projected at 6.5% to 7.5%, including Exact Sciences.

• Adjusted diluted EPS guidance for 2026 is $5.38 to $5.58, reflecting $0.20 dilution from the Exact Sciences acquisition.

• Q2 2026 adjusted diluted EPS guidance set at $1.25 to $1.31; CGM expected to return to double-digit growth in Q2.

• Growth acceleration expected in the second half, driven by nutrition, electrophysiology, and Core Lab diagnostics.

• Expectation to maintain investment grade debt ratings following the Exact Sciences acquisition.