TD Cowen reiterates Buy on Abbott after Q2 beat
Abbott Laboratories reported Q2 adjusted EPS of $1.31, beating estimates, with revenue rising 13% to $12.59 billion. The company raised its full-year 2026 adjusted earnings guidance to $5.45–$5.60 per share. Analysts from BTIG, Evercore ISI, RBC Capital, and TD Cowen have responded with ratings and price targets.
*this image is generated using AI for illustrative purposes only.
Abbott Laboratories reported upbeat second-quarter results and raised its full-year adjusted earnings outlook, prompting several analysts to increase their price targets. Adjusted earnings came in at $1.31 per share, topping the analyst consensus estimate of $1.28. Revenue increased 13% year over year to $12.59 billion, ahead of analysts’ expectations of $12.50 billion. On a comparable basis, sales rose 4.8%. Chairman and CEO Robert B. Ford stated that the results reflect momentum the company is building, which it expects to continue driving accelerating sales and earnings growth in the second half of the year.
Abbott raised its full-year 2026 adjusted earnings guidance to a range of $5.45 to $5.60 per share from its prior forecast of $5.38 to $5.58. The updated range brackets the analyst consensus estimate of $5.49 per share. The company reaffirmed its expectation for comparable sales growth of 6.5% to 7.5% for the year. For the third quarter, Abbott forecast adjusted earnings of $1.38 to $1.46 per share, compared with the Wall Street estimate of $1.42 per share.
Analyst Reactions
Following the earnings announcement, multiple analysts revised their ratings and price targets for Abbott stock.
| Firm | Analyst | Rating | Price Target Change |
|---|---|---|---|
| BTIG | Marie Thibault | Buy | $131 → $134 |
| Evercore ISI Group | Vijay Kumar | Outperform | $112 → $120 |
| RBC Capital | Shagun Singh | Outperform | Maintained at $130 |
| TD Cowen | Joshua Jennings | Buy | Maintained at $115 |
Second-Quarter Financial Highlights
The following table summarises key income statement metrics for the second quarter ended June 30, 2026, compared with the prior-year period ($ in millions, except per share data):
| Metric: | 2Q26 | 2Q25 | Change (%) |
|---|---|---|---|
| Net Sales: | $12,593 | $11,142 | +13.0% |
| Total Operating Cost and Expenses: | $10,900 | $9,090 | +19.9% |
| Operating Earnings: | $1,693 | $2,052 | (17.5%) |
| Earnings Before Taxes: | $1,524 | $2,150 | (29.1%) |
| Net Earnings (GAAP): | $928 | $1,779 | (47.8%) |
| Net Earnings (excl. Specified Items): | $2,290 | $2,213 | +3.5% |
| Diluted EPS (GAAP): | $0.53 | $1.01 | n/m |
| Adjusted Diluted EPS: | $1.31 | $1.26 | +4.0% |
The GAAP net earnings decline reflects net after-tax charges of $1.362 billion, or $0.78 per share, for intangible amortization, acquisition-related charges, legal reserves, investment impairments, and other net expenses.
Second-Quarter Sales by Segment
The table below presents second-quarter 2026 reported sales by business segment ($ in millions):
| Segment: | U.S. | International | Total Reported | Reported % Change | Comparable % Change |
|---|---|---|---|---|---|
| Nutrition: | 871 | 1,273 | 2,144 | (3.1%) | (3.6%) |
| Diagnostics: | 1,660 | 1,432 | 3,092 | +42.3% | +2.9% |
| Established Pharmaceuticals: | — | 1,499 | 1,499 | +8.4% | +8.7% |
| Medical Devices: | 2,680 | 3,173 | 5,853 | +9.0% | +8.4% |
| Total Company: | 5,216 | 7,377 | 12,593 | +13.0% | +4.8% |
Diagnostics worldwide sales increased 42.3% on a reported basis and 2.9% on a comparable basis. The large reported increase reflects the inclusion of Exact Sciences (Cancer Diagnostics), acquired on March 23, 2026. Medical Devices worldwide sales increased 9.0% on a reported basis and 8.4% on a comparable basis.
How will the integration of Exact Sciences impact Abbott's profit margins in the second half of the year?
What specific strategies will Abbott employ to reverse the declining sales trend in its Nutrition segment?
Is the 19.9% rise in operating costs sustainable, or will expense management be a priority moving forward?
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