ABT · 10-Q · 2026Q2 · Full report
Operating Expense Trends
ABBOTT LABORATORIES · 2026-07-28 · Importance 79 · Surprise 66 · In source text
Second-quarter research and development expense increased 15.1% to $1.659 billion from $1.441 billion. Second-quarter selling, general, and administrative expense increased 30.2% to $4.025 billion from $3.091 billion, while six-month SG&A increased 26.2% to $7.765 billion from $6.152 billion. The increase in operating expenses coincided with the Exact Sciences acquisition, which added $1.0 billion of sales during the first six months and introduced acquired intangible-asset amortization. Abbott’s gross amortizable intangible assets increased $12.3 billion to $39.8 billion by June 30, 2026, and estimated 2026 amortization expense increased to approximately $2.6 billion.
Key facts
- SG&A expenses increased $934 million to $4.0 billion in the second quarter (30.3 percent) and increased $1.6 billion to $7.8 billion in the first six months (26.2 percent) in 2026, primarily due to the addition of Exact Sciences and related integration expenses.
- R&D expenses increased $218 million to $1.7 billion, or 15.1 percent, in the first six months of 2026 compared to the prior year.
- R&D expenses increased $167 million to $892 million, or 22.9 percent, in the second quarter of 2026 compared to the prior year.
- Other, net for the three and six months ended June 30, 2026 includes costs related to the acquisition of Exact Sciences, legal reserves, and restructuring charges.
- Abbott funds its domestic defined benefit plans according to U.S. IRS funding limitations; in the first six months of 2025, $ million was contributed to defined benefit plans (figure redacted in filing).
- Depreciation and additions to property and equipment amounts are presented by segment but numeric amounts are omitted in this MD&A section (blank tables).
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -6.7% | SG&A expenses increased $934 million to $4.0 billion in the second quarter (30.3 percent) and increased $1.6 billion to $7.8 billion in… |
| operating_income | negative | realized | -0.9% | R&D expenses increased $218 million to $1.7 billion, or 15.1 percent, in the first six months of 2026 compared to the prior year. |
| operating_income | negative | realized | -0.7% | R&D expenses increased $167 million to $892 million, or 22.9 percent, in the second quarter of 2026 compared to the prior year. |
| net_income | negative | realized | — | R&D expenses increased $218 million to $1.7 billion, or 15.1 percent, in the first six months of 2026 compared to the prior year. |