Abbott's 2Q26 exceeded expectations, management strongly defended the health of the medical device market and raised full-year guidance (Bernstein)
Abbott Laboratories (ABT.US)'s 2Q26 comparable revenue increased 4.8% to US$12.59 billion, slightly exceeding expectations, and its adjusted EPS was US$1.31, which significantly exceeded market expectations.
Abbott Laboratories (ABT.US)'s 2Q26 comparable revenue increased 4.8% to US$12.59 billion, slightly exceeding expectations, and its adjusted EPS was US$1.31, which significantly exceeded market expectations. The company raised its full-year EPS guidance and expects growth in the second half of the year to accelerate to approximately 8.7%, mainly driven by the four major segments of nutrition, electrophysiology, core laboratories, and cancer diagnosis. Management strongly dismissed concerns about a slowdown in the medical device market. There are widespread concerns about the slowdown in the medical device sector, but Abbott has effectively refuted this pessimistic narrative with a comprehensive earnings report that exceeded expectations and strong second-half guidance. One sentence conclusion: Abbott's financial report seems to be shouting to the entire market: "Who said my track is no longer good?" Its strong performance and accelerated guidance for the second half of the year have injected a shot in the arm for the entire medical device sector. Good/bad: Good for Abbott Laboratories (ABT.US) and the entire medical device sector (such as Medtronic, Boston Scientific, etc.). Market concerns about sector growth are widespread, and Abbott's strong performance may trigger a reassessment of the entire sector. Catalysts: 1) Quarterly results in the second half of the year, verifying the 8.7% growth target; 2) The continued performance of the four growth engines including electrophysiology and core laboratories; 3) The outlook for long-term growth trends on Investor Day.