ABT · 8-K · 20260716PR048377

Income Tax Rate Changes

ABBOTT LABORATORIES · 2026-07-16 · Importance 65 · Surprise 82 · No source text

Second-quarter GAAP taxes increased 60.8% year over year to $596 million from $371 million, and the reported tax rate rose to 39.1% from 17.3%. The second-quarter 2026 tax expense included approximately $110 million from resolving prior-year tax positions and approximately $240 million of adjustments related to a previously recognized non-cash deferred tax benefit. Excluding specified items, the second-quarter tax rate was 15.2%, compared with 16.5% in 2025. First-half GAAP taxes increased 17.5% to $968 million, and the reported tax rate rose to 32.5% from 21.0%, while the adjusted rate was 15.2%.

Key facts

• Taxes on earnings for 2Q26: $596 million, a 60.8% increase versus 2Q25. source
• 2Q26 Taxes on Earnings includes recognition of approximately $110 million of net tax expense related to resolution of various prior-year tax positions and approximately $240 million in adjustments related to prior recognition of a significant non-cash deferred tax benefit. source
• 2Q26 pre-tax income excluding specified items: $2,701 million with taxes on earnings $411 million, implying a tax rate of 15.2%. source
• 2Q26 as-reported tax rate: 39.1% (pre-tax income $1,524 million; taxes on earnings $596 million). source

Impact estimates