Key Highlights
- Shares of ABT climbed approximately 4% in premarket hours following stronger-than-expected Q2 results
- Q2 adjusted earnings per share reached $1.31, surpassing Wall Street’s $1.28 projection
- Second-quarter revenue climbed 13% year-over-year to $12.59 billion, fueled by a 42% surge in diagnostics
- Annual adjusted EPS forecast increased to $5.45–$5.60 from the previous $5.38–$5.58 range
- Diagnostics segment exceeded expectations for the first time in six quarters, powered by Exact Sciences integration
Abbott Laboratories delivered second-quarter results that exceeded Wall Street projections and increased its annual profit forecast, propelling ABT shares up approximately 4% during premarket hours on Thursday.
The healthcare giant reported adjusted earnings per share of $1.31, surpassing analyst expectations of $1.28. Quarterly revenue increased 13% from the prior year to reach $12.59 billion, slightly above the $12.52 billion consensus projection.
The standout performance came from the diagnostics division. Revenue in this segment surged 42% to $3.09 billion, exceeding the $3.02 billion estimate — representing the first time diagnostics topped forecasts in six quarters.
A substantial portion of this growth stemmed from the newly integrated Exact Sciences portfolio, which includes Cologuard, a colorectal cancer screening solution, and Oncotype DX, a breast cancer diagnostic test. Cologuard delivered mid-teens percentage growth, supported by an expanding user base of both first-time and repeat customers.
The strong diagnostics performance is helping Abbott compensate for the continued decline in COVID-19 testing revenue, which had been a significant contributor in previous years.
Medical Device Division Maintains Momentum
The medical devices business generated $5.85 billion in sales, representing 9% growth and narrowly beating the $5.82 billion forecast. Abbott’s electrophysiology and structural heart portfolios are demonstrating greater resilience compared to competitors dealing with reduced surgical procedure volumes and increasing numbers of uninsured patients.
The Diabetes Care division, featuring the FreeStyle Libre and Lingo continuous glucose monitoring systems, recorded a 10.5% revenue increase to $2.19 billion. J.P. Morgan analyst Robbie Marcus observed that the worldwide CGM market has stabilized within an 8%–12% growth corridor, with Abbott positioned in the 8%–10% range moving forward.
Nutrition represented the sole underperforming area — this segment experienced a 3.1% revenue decline attributed to reduced volumes and recent price adjustments.
Improved Annual Forecast
Abbott elevated its full-year adjusted EPS projection to $5.45–$5.60, an increase from the previous $5.38–$5.58 guidance range. The company maintained its comparable sales growth outlook of 6.5%–7.5%.
For the third quarter, Abbott projected adjusted EPS between $1.38 and $1.46, versus the analyst consensus of $1.42 — positioning the midpoint approximately in line with Street expectations.
On a GAAP basis, net income declined to $928 million, equivalent to $0.53 per share, compared with $1.78 billion, or $1.01 per share, in the year-ago period, due to acquisition-related expenses and other non-recurring charges.
Established pharmaceuticals revenue advanced more than 8%, contributing to the overall top-line outperformance.
The diagnostics outperformance — the first in six quarters — resulted directly from the completed Exact Sciences transaction, providing Abbott with a fresh growth catalyst as its traditional testing operations continue to contract.
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