Abbott Laboratories (ABT) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call shows strong growth in key segments like Electrophysiology and Heart Failure, supported by product innovations and international expansion. Despite some challenges in CGM and Nutrition, the company has a diversified portfolio and strategic plans for growth. The Q&A reveals a cautious but optimistic outlook, with management addressing concerns and highlighting opportunities in underpenetrated markets. Overall, the positive growth drivers and strategic focus outweigh the conservative guidance, leading to a positive sentiment.
Key Financial Performance
Adjusted Earnings Per Share (EPS) $1.15, grew 6% year-over-year. Growth was achieved despite absorbing the impact of earlier-than-planned financing costs related to the acquisition of Exact Sciences and a weaker-than-expected respiratory season.
Diagnostics Sales Increased 2% on a comparable basis. Core Lab Diagnostics grew 3%, driven by growth in the U.S., Europe, and Latin America. Rapid and Molecular Diagnostics sales declined 10% due to lower demand for respiratory virus testing caused by a weaker respiratory season. Cancer diagnostics sales grew 13%, driven by mid-teens growth of Cologuard and high-teens growth in international markets.
Nutrition Sales Slightly ahead of expectations. Lower sales volumes compared to the prior year and the effect of strategic pricing actions implemented in Q4 2025 were noted. Early data indicates volume growth is beginning to follow pricing actions.
Pharmaceutical (EPD) Sales Increased 9%. Growth was broad-based across markets, including double-digit growth in several countries in Latin America and Asia Pacific. Demand was supported by favorable long-term healthcare economic and demographic trends.
Medical Devices Sales Grew 8.5%. Growth was led by strong performance in cardiovascular device businesses, including double-digit growth in Electrophysiology (13%), Heart Failure (12%), and Rhythm Management (13%). Electrophysiology growth was driven by new product launches, while Heart Failure growth was supported by market-leading heart assist devices.
Continuous Glucose Monitoring (CGM) Sales $2 billion, grew 7.5%. Growth was impacted by a delay in the renewal process related to an international tender and challenging comparisons to the prior year due to shelf restocking dynamics in early 2025.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
PFA catheters: Earlier-than-planned approval and launch of 2 new PFA catheters.
Left Atrial Appendage device trial: Completion of patient enrollment in the catalyst trial.
Extravascular ICD product: Initiation of development activities to bring an implantable extravascular ICD product to market.
Libre for Type 2 diabetes: Positive results from a trial showing benefits for people with Type 2 diabetes on basal insulin therapy, including reductions in HbA1c and increased time in healthy glucose range.
New technologies pipeline: Includes a balloon expandable TAVR valve, a leadless conduction system pacing device, a mitral replacement valve, a peripheral IVL device, and a wearable continuous lactate monitoring sensor for sepsis.
Exact Sciences acquisition: Completion of acquisition, adding a high-growth cancer diagnostics business to Abbott's portfolio, expected to contribute $3 billion in incremental sales in 2026.
Core Lab Diagnostics: Sales increased 3%, driven by growth in the U.S., Europe, and Latin America.
Cancer diagnostics: Sales grew 13%, driven by mid-teens growth of Cologuard and high-teens growth in international markets.
EPD Pharmaceutical business: Sales increased 9%, with double-digit growth in several countries across Latin America and Asia Pacific regions.
Nutrition: Sales slightly ahead of expectations, with strategic pricing actions showing early signs of reaccelerating volume growth.
Electrophysiology: Growth of 13%, driven by new catheter launches in the U.S. and Europe.
Rhythm Management: Sales grew 13%, marking the third consecutive quarter of double-digit growth.
Heart Failure: Growth of 12%, driven by market-leading heart assist devices.
Diabetes Care: Continuous glucose monitoring sales grew 7.5%, with expectations for double-digit growth in the next quarter.
Growth strategy in Nutrition: Underway and on track with expectations.
Integration of Exact Sciences: Successfully integrating the acquisition to strengthen long-term sustainable growth.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Respiratory Virus Testing Demand: Sales in the Rapid and Molecular Diagnostics business declined by 10% due to lower demand for respiratory virus testing, attributed to a weaker respiratory season compared to the previous year.
Nutrition Sales Volume: Lower sales volumes in the Nutrition segment compared to the prior year, coupled with the effects of strategic pricing actions, indicate challenges in balancing price and volume-driven growth.
Continuous Glucose Monitoring (CGM) Sales: Growth in CGM sales was impacted by a delay in the renewal process related to an international tender and challenging comparisons to the previous year's shelf restocking dynamics.
Exact Sciences Acquisition Costs: The acquisition of Exact Sciences led to earlier-than-planned financing costs, which impacted adjusted earnings per share.
Foreign Exchange Impact: While foreign exchange had a favorable impact on sales in the first quarter, fluctuations in currency exchange rates remain a potential risk to financial performance.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Revenue Growth: Abbott expects full-year 2026 sales growth of 6.5% to 7.5% on a comparable basis, including the full-year sales of Exact Sciences in both the prior and current year.
Earnings Per Share (EPS) Guidance: The full-year adjusted EPS guidance midpoint is $5.48, reflecting $0.20 of dilution related to the Exact Sciences acquisition.
Diagnostics Segment: Core Lab Diagnostics is expected to drive higher growth in the second half of 2026 compared to the first half, supported by improving market conditions and new product launches.
Electrophysiology Business: Growth in the Electrophysiology business is expected to accelerate as the company broadens the launch of its Volt PFA and TactiFlex Duo catheters.
Continuous Glucose Monitoring (CGM): CGM sales are expected to return to double-digit growth in the second quarter of 2026.
Nutrition Segment: Growth is expected to improve over the course of 2026, driven by strategic pricing actions and the launch of several new products.
Exact Sciences Acquisition: The acquisition is forecasted to add approximately $3 billion of incremental sales in 2026 and accelerate Abbott's long-term sales growth rate.
Foreign Exchange Impact: Foreign exchange is expected to have a favorable impact of approximately 1% on full-year reported sales in 2026.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Can you elaborate on the updated guidance philosophy and the thought process behind the revised outlook?
A:The guidance philosophy is to provide clear, transparent, and detailed breakdowns of performance, as seen in past practices like separating COVID sales and integrating acquisitions like St. Jude. The revised outlook is slightly conservative, factoring in weaker-than-expected respiratory seasons and cautious assumptions about Q4 respiratory performance. Key growth drivers include medtech and pharma businesses, trajectory-changing businesses like Diagnostics and Nutrition, and the integration of Exact Sciences.
Q:How is the company addressing concerns about deceleration in organic growth for the Abbott business?
A:The company believes the integration of Exact Sciences provides a clearer view of the new Abbott portfolio. Growth in medtech and pharma remains strong, while trajectory-changing businesses like Diagnostics and Nutrition are recovering. The diversified portfolio ensures overall financial commitments are met despite challenges in specific areas.
Q:What is the outlook for the CGM market and Libre growth?
A:The CGM market is underpenetrated, with an estimated 70-80 million potential users globally compared to the current 10-12 million. Catalysts for growth include reimbursement expansions, international market opportunities, and product innovations like the dual-analyte system. Libre growth is expected to accelerate, supported by these factors and ongoing innovation.
Q:What are the plans for sustaining growth in the Cologuard business and the Exact Sciences integration?
A:The integration of Exact Sciences is progressing well, with a focus on expanding Cologuard's reach domestically and internationally. Growth drivers include underpenetrated markets, potential guideline changes, and unique assets like a large sales force and rescreen programs. International expansion and leveraging Abbott's global infrastructure are key strategies.
Q:What is the outlook for the Structural Heart business and Left Atrial Appendage Closure (LAAC)?
A:The Structural Heart business is expected to grow in high single digits for the year, with strong international performance. The LAAC device has been moved to the Electrophysiology business to better align resources. Competitive intensity in the mitral space is being addressed with leadership changes and improved execution.
Q:What is the strategy for the Nutrition business and its role in the portfolio?
A:The Nutrition business is recovering, with targeted price adjustments leading to volume growth in key products like Ensure. The company is focused on returning the business to historical growth rates while continuously evaluating the portfolio for value creation. The diversity of the business model remains a strategic advantage.
Q:What are the macroeconomic impacts on the business, including the Middle East conflict and oil costs?
A:The company has not seen significant impacts from the Middle East conflict or oil costs but is monitoring the situation closely. Teams are focused on gross margin improvement and ensuring product availability in affected regions. The business is built to withstand such events.
Q:What is the status of the Electrophysiology (EP) franchise and the Volt launch?
A:The EP franchise is performing well, with the Volt and TactiFlex Duo launches in limited market release phases. Feedback has been positive, highlighting features like conscious sedation and durable lesions. The company expects to grow faster than the market by year-end, supported by a comprehensive and differentiated portfolio.
Q:What is the trajectory of the Core Lab business by geography?
A:The Core Lab business is stabilizing, with flat sales in China after significant declines last year. The U.S. and Europe are performing well, with high renewal and win rates. The business is expected to grow mid-single digits for the year, with potential upside from strategic initiatives.
Q:Review of Unclear Management Responses
A:Management avoided providing specific timelines for certain catalysts, such as the CMS type 2 non-insulin coverage proposal and the approval of the dual-analyte system. Additionally, responses to questions about macroeconomic impacts and the Middle East conflict were general and lacked detailed data or projections.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
America Asia
America Sales
Appendage device
Asia Pacific
Atrial Appendage
CGM digit
CSI lactate
Core Lab
Diagnostics sale
Electrophysiology
Exact Sciences
Heart Failure
Lab Diagnostics
Medical Devices
Nutrition
PFA catheter
achievement
acquisition Exact
addition
announcement
cancer diagnostics
catheter launch
comparison
completion
effect
health care
monitoring
pricing action
sale Page
sale basis
season
therapy
track record
trend
ABT Transcript
Abbott Laboratories (ABT) Q1 2026 Earnings Call Transcript
Positive4-16
The earnings call shows strong growth in key segments like Electrophysiology and Heart Failure, supported by product innovations and international expansion. Despite some challenges in CGM and Nutrition, the company has a diversified portfolio and strategic plans for growth. The Q&A reveals a cautious but optimistic outlook, with management addressing concerns and highlighting opportunities in underpenetrated markets. Overall, the positive growth drivers and strategic focus outweigh the conservative guidance, leading to a positive sentiment.
Abbott Laboratories (ABT) Q4 2025 Earnings Call Transcript
Positive1-22
Abbott's earnings call reflects strong financial performance with double-digit EPS growth and improved margins. Despite slightly lower revenue growth guidance, the company anticipates recovery in the Nutrition segment and sustained growth across other divisions. Positive product developments, particularly in Medical Devices and Diagnostics, coupled with strategic initiatives, bolster a positive outlook. The Q&A session reveals confidence in overcoming short-term challenges and executing long-term growth strategies, contributing to an overall positive sentiment.
Abbott Laboratories (ABT) Q3 2025 Earnings Call Transcript
Positive10-15
The earnings call summary and Q&A indicate strong growth prospects in diabetes care and heart failure, with positive developments in new product launches like the dual-analyte sensor and AVEIR pacemaker. Despite headwinds in diagnostics and China's market, the company's strategic focus on innovation and expansion in high-growth segments like Structural Heart and EP suggest a positive outlook. However, the lack of detailed guidance on CMS coverage and tariff impacts introduces some uncertainty, but overall, the sentiment leans towards a positive stock price movement.
Abbott Laboratories (ABT) Q2 2025 Earnings Call Transcript
Positive7-17
Abbott's earnings call highlights strong financial performance, with high single-digit sales growth and double-digit EPS growth. The company is optimistic about future growth, driven by new product developments and market opportunities. Despite some headwinds, such as reduced COVID testing sales and challenges in China, Abbott is strategically positioned for continued success. The positive sentiment from analysts during the Q&A session reinforces this outlook, particularly in diabetes, CRM, and biosimilars. Overall, the sentiment leans positive, with potential for stock price appreciation in the near term.
ABT Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
