ABT · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
ABBOTT LABORATORIES · 2026-07-28 · Importance 39 · Surprise 50 · From source text
Abbott’s gross profit margin was 52.5% in the second quarter and first six months of 2026, down from 52.7% in both 2025 periods. The 20-basis-point decline primarily reflected higher intangible amortization expense related to the Exact Sciences acquisition and higher costs. Favorable business mix from adding Exact Sciences, margin-improvement initiatives, and foreign exchange partially offset the margin pressure.
Key facts
- Abbott’s estimated annual amortization expense for intangible assets: approximately $2.6 billion in 2026, $2.3 billion in 2027, $1.8 billion in 2028, $1.7 billion in 2029, and $1.5 billion in 2030.
- Gross amount of amortizable intangible assets at June 30, 2026: $39.8 billion and at December 31, 2025: $27.6 billion; gross amortizable intangible assets increased by $12.3 billion in the first six months of 2026 due to the Exact Sciences acquisition.
- Accumulated amortization of intangible assets at June 30, 2026: $24.3 billion and at December 31, 2025: $23.3 billion.
- The gross profit margin percentage was 52.5 percent for the second quarter of 2026 and the first six months of 2026, compared to 52.7 percent for the second quarter and the first six months of 2025.
- The decrease in gross profit margin in Q2 and the first six months of 2026 primarily reflects higher intangible amortization expense related to the Exact Sciences acquisition and the unfavorable impact of higher costs, partially offset by favorable business mix, margin improvement initiatives, and foreign exchange.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | realized | +11.3% | Gross amount of amortizable intangible assets at June 30, 2026: $39.8 billion and at December 31, 2025: $27.6 billion; gross amortizable… |
| operating_income | negative | committed | -9.3% | Abbott’s estimated annual amortization expense for intangible assets: approximately $2.6 billion in 2026, $2.3 billion in 2027, $1.8… |
| operating_income | negative | committed | -8.2% | Abbott’s estimated annual amortization expense for intangible assets: approximately $2.6 billion in 2026, $2.3 billion in 2027, $1.8… |
| operating_income | negative | committed | -6.4% | Abbott’s estimated annual amortization expense for intangible assets: approximately $2.6 billion in 2026, $2.3 billion in 2027, $1.8… |
| operating_income | negative | committed | -6.1% | Abbott’s estimated annual amortization expense for intangible assets: approximately $2.6 billion in 2026, $2.3 billion in 2027, $1.8… |
| operating_income | negative | committed | -5.4% | Abbott’s estimated annual amortization expense for intangible assets: approximately $2.6 billion in 2026, $2.3 billion in 2027, $1.8… |
| operating_income | negative | realized | -4.2% | Accumulated amortization of intangible assets at June 30, 2026: $24.3 billion and at December 31, 2025: $23.3 billion. |
| assets | negative | realized | -0.9% | Accumulated amortization of intangible assets at June 30, 2026: $24.3 billion and at December 31, 2025: $23.3 billion. |