Abbott Laboratories third-quarter adjusted EPS rises to $1.42 as sales climb 14.5%

Abbott Laboratories (ABT) reported third-quarter 2026 net sales of $13,013 million, up 14.5% from a year earlier, in a news release the company issued Wednesday. Comparable sales growth, which includes Exact Sciences sales in both periods and excludes foreign exchange, was 7.0%.

The healthcare company acquired Exact Sciences, a cancer diagnostics company, on March 23, 2026. Its sales are included in the prior-year and current-year comparable figures.

Here's how the company did:

• Adjusted diluted EPS: $1.42 vs. $1.30 a year earlier
• GAAP diluted EPS: $0.53 vs. $0.94 a year earlier
• Net sales: $13,013 million vs. $11,369 million a year earlier
• Net earnings: $920 million vs. $1,644 million a year earlier
• Net earnings excluding specified items: $2,477 million vs. $2,278 million a year earlier

GAAP diluted earnings per share fell 43.6% from a year earlier, while adjusted diluted EPS rose 9.2%. Net earnings excluding specified items rose 8.7%.

Operating earnings were $1,358 million, down 34.0% from $2,057 million. Selling, general, and administrative expenses rose 39.8% to $4,266 million.

Amortization of intangible assets was $841 million, up from $420 million a year earlier. Interest expense, net, was $297 million, compared with $44 million.

The company excluded specified items that total net after-tax charges of $1.557 billion, or $0.89 per share. Those items include intangible amortization, legal settlements of approximately $670 million and other net expenses of $178 million.

The legal settlements relate to agreements to resolve the Gill case and necrotizing enterocolitis (NEC) claims asserted on behalf of approximately 2,000 additional infants.

The GAAP tax rate was 25.3%, compared with 24.6% a year earlier. Excluding specified items, the tax rate was 15.2%, compared with 16.5%.

Here's how Abbott's segments did during the quarter:

• Medical Devices: $5,826 million, up 6.9% reported and 7.8% comparable
• Diagnostics: $3,305 million, up 46.7% reported and 6.4% comparable
• Nutrition: $2,262 million, up 5.1% reported and 4.9% comparable
• Established Pharmaceuticals: $1,614 million, up 6.8% reported and 8.4% comparable

Medical Devices sales were led by double-digit growth in Electrophysiology and Rhythm Management. Electrophysiology sales were $873 million, up 15.0%, and Rhythm Management sales were $752 million, up 9.7%.

Diabetes Care sales were $2,185 million, up 6.2%. Sales of continuous glucose monitors grew 7.3% on a reported basis.

Diagnostics sales rose 46.7% to $3,305 million. Cancer Diagnostics, which now includes the Exact Sciences business, had sales of $968 million, with growth driven by Cologuard. Core Laboratory Diagnostics sales were $1,438 million, up 5.4%.

Nutrition sales rose 5.1% to $2,262 million, and Worldwide Pediatric sales grew nearly 9.0%. Sequentially, Nutrition sales increased $118 million from the second quarter.

Established Pharmaceuticals sales rose 6.8% to $1,614 million. Sales in Key Emerging Markets grew 9.0% on a reported basis, led by double-digit growth in India.

In August, the company announced FDA approval for Libre Duo, which it described as the world's first dual glucose-ketone biowearable sensor. In September, it announced FDA approval for the TactiFlex Duo Ablation Catheter, Sensor Enabled, and launched SimpleScreen CRC, a blood-based colorectal cancer screening test.

Robert B. Ford, chairman and chief executive officer of Abbott, said the company "delivered strong third-quarter results, reflecting balanced growth across our portfolio." He added, "With strong performance across multiple businesses and a robust pipeline of innovation, we are well-positioned to deliver sustainable growth in the years ahead."

For full-year 2026, the company projects comparable sales growth of approximately 6.0%. It reaffirmed the midpoint of its previously provided full-year adjusted EPS range and tightened the range to $5.50 to $5.55.

For the fourth quarter, Abbott projects adjusted diluted EPS of $1.62 to $1.67. The company said it cannot predict with reasonable certainty the timing and impact of restructuring, intangible asset impairments, acquisition-related expenses and foreign exchange, so it has not provided GAAP equivalents.

For the first nine months, net sales were $36,770 million, up 11.9%. GAAP diluted EPS was $1.67, down from $2.70, and adjusted EPS was $3.88, up 6.3% from $3.65.

Specified items for the nine months included approximately $400 million, including attorneys' fees and accrued interest, related to an agreement to resolve Department of Justice investigations and a civil qui tam lawsuit.

The board of directors declared a quarterly dividend of $0.63 per share on Sept. 17. The dividend is payable Nov. 16 to shareholders of record at the close of business on Oct. 15. The company has increased its dividend for 54 consecutive years.