ABT · 10-Q · 2026Q2

ABBOTT LABORATORIES

Filed 2026-07-28 · Healthcare

Ranked Events

• Exact Sciences AcquisitionImportance 94 · Surprise 100
  Abbott completed its acquisition of Exact Sciences on March 23, 2026, for approximately $20.6 billion, paying $105 per common share in cash. Abbott funded approximately $20.0 billion with long-term debt and the…
• Operating Cash Flow and CapexImportance 94 · Surprise 100
  Net cash from operating activities increased 9.8% to $3.803 billion for the first six months of 2026 from $3.464 billion. Investing activities used $20.997 billion, including $19.962 billion for acquisitions of…
• Debt and Liquidity PositionImportance 94 · Surprise 100
  Abbott issued $20.0 billion of long-term debt in March 2026 to finance the Exact Sciences acquisition. Long-term debt increased to $29.603 billion at June 30, 2026 from $9.896 billion at December 31, 2025, while total…
• Operating Expense TrendsImportance 79 · Surprise 66
  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,…
• Capital Return ProgramImportance 77 · Surprise 82
  Abbott repurchased $1.225 billion of common shares during the first six months of 2026, purchasing 11.753 million shares compared with 0.185 million shares in the prior-year period. Treasury shares increased to 267.907…
• Interest Expense IncreaseImportance 71 · Surprise 82
  Net interest expense increased by $268 million, or approximately 271%, to $367 million in the first six months of 2026. The increase primarily reflected interest on debt incurred to finance the Exact Sciences…
• Liquidity and Cash PositionImportance 66 · Surprise 74
  Cash and cash equivalents declined from $8.5 billion at December 31, 2025, to $5.1 billion at June 30, 2026. The $3.4 billion decrease primarily reflected cash funding for the Exact Sciences acquisition, repayment of…
• Regulatory RiskImportance 65 · Surprise 60
  Abbott is contesting IRS Statutory Notices of Deficiency totaling $1.052 billion for the 2017–2020 federal tax years, primarily involving proposed reallocations of income between U.S. entities and foreign affiliates.…
• Diagnostic Market DemandImportance 61 · Surprise 66
  Diagnostic Products sales increased 22.4% excluding foreign exchange in the first six months of 2026, with growth from Exact Sciences and Core Laboratory partly offset by Rapid and Molecular Diagnostics weakness. Exact…
• Income Tax Rate ChangesImportance 60 · Surprise 74
  First-half 2026 tax expense included $440 million related to a deferred tax asset that had generated a significant non-cash tax benefit in a prior year, compared with $300 million in the first half of 2025. Excess tax…
• Operating Margin DriversImportance 58 · Surprise 40
  Six-month operating earnings declined 18.9% to $3.038 billion from $3.745 billion, reducing operating margin to 12.8% from 17.4%. Second-quarter operating earnings declined 17.5% to $1.693 billion from $2.052 billion,…
• Revenue Performance and MixImportance 58 · Surprise 40
  Second-quarter 2026 net sales increased 13.0% to $12.593 billion, or 12.2% excluding foreign exchange, with U.S. sales rising 22.0% to $5.216 billion and international sales rising 7.5% to $7.377 billion. Six-month net…
• Order Backlog and Book-to-BillImportance 56 · Surprise 24
  Abbott had $6.2 billion of estimated future revenue tied to unsatisfied or partially unsatisfied performance obligations in the Diagnostic Products segment as of June 30, 2026. These obligations primarily relate to…
• Medical Device DemandImportance 49 · Surprise 32
  Medical Devices sales increased 8.0% excluding foreign exchange in the first six months of 2026. Electrophysiology grew 13.0%, primarily from increased ablation catheter and related portfolio sales, while Rhythm…
• Supply Chain and InventoryImportance 48 · Surprise 40
  Total inventories increased 12.7% to $7.315 billion at June 30, 2026, from $6.488 billion at December 31, 2025, exceeding the materiality threshold and indicating a significant build in materials and finished products.…
• FX / Currency HeadwindsImportance 43 · Surprise 32
  Abbott’s cumulative foreign-currency translation loss was $6.26 billion at June 30, 2026, compared with $5.93 billion at December 31, 2025. Foreign-currency translation adjustments produced a $1.55 billion net-of-tax…
• Gross Margin DriversImportance 39 · Surprise 50
  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…
• OECD Global Minimum TaxImportance 37 · Surprise 42
  The OECD’s Pillar 2 proposal would impose a 15 percent minimum tax on in-scope multinational companies on a country-by-country basis, and numerous countries have enacted related legislation. On January 5, 2026, the…
• Product Liability LawsuitImportance 37 · Surprise 42
  Abbott faces lawsuits in the United States alleging that preterm infant formula and human milk fortifier containing cow’s milk ingredients cause necrotizing enterocolitis and lacked adequate warnings. The first three…
• Product Launch and TransitionImportance 36 · Surprise 50
  Abbott announced in May 2026 that it secured CE Mark for Libre Duo, a dual glucose-ketone biowearable sensor. The launch expands Abbott’s diabetes-care sensor portfolio beyond its existing continuous glucose monitoring…

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Revenue by Geography (in millions)