These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Unless otherwise noted, our commentary on sales growth refers to comparable sales growth. Our definition of comparable sales growth can be found on page two of our press release issued earlier today. A reconciliation table containing the data needed to calculate comparable sales growth can be found on pages 16 and 17.
Diagnostic test results inform approximately 70% of all healthcare decisions, making testing volumes a reliable barometer of overall healthcare activity and demand. Our test volume data, that's sourced directly from our diagnostic instruments located across the United States and around the world, continues to reflect strong and stable demand for testing. We view this as a positive indication of the durable underlying demand for healthcare, not just in the U.S., but globally. This durable demand was evident in our core laboratory results this quarter, where U.S.
business grew 7.5% and we continued our track record of strong performance across Latin America. In pediatric nutrition, our international business was the first of our nutrition businesses to transition back to delivering positive growth, delivering growth of 6.5% in the quarter. In the U.S., retail consumption of Ensure has increased double digits compared to consumption levels exiting last year, and achieved the highest year-over-year consumption growth in the past year and a half. Overall, I remain encouraged by the progress we are making and confident in our outlook for the second half of the year.
| Metric | Period | Current guidance |
|---|---|---|
| Comparable sales growth | FY2026 | 6.5%-7.5% (reaffirmed) |
| Adjusted EPS | FY2026 | $5.45-$5.60 (raised) |
| Adjusted EPS | Q3 2026 | $1.38-$1.46 |
| Foreign exchange | FY2026 | ~+1% on full-year sales (~-1% impact on Q3 sales) |
| Cancer diagnostics growth | H2 2026 | Second half higher than first half; Exact Sciences on track for mid-teens full-year growth |
| Long-term sales growth target | 2027+ | ~7% top-line, high-single-digit / double-digit EPS reaffirmed as sustainable |
| Metric | YoY | Note |
|---|---|---|
| Total comparable sales | +4.8% | Acceleration from low-single-digit prior quarters, building each month; FX added 0.8%. |
| Medical devices | +8.5% | Cardiovascular led by low-teens EP, high-single-digit rhythm management/heart failure, and CGM above $2B up 9.5%. |
| Cancer diagnostics | +13% | Mid-teens Cologuard growth on new and repeat users plus precision oncology and international contributions. |
| Core laboratory diagnostics (U.S.) | +7.5% (hospital labs +13%) | Durable, stable testing demand; U.S. core lab accelerated over the last two quarters. |
| Established Pharmaceuticals (EPD) | +9% | Broad-based emerging-market growth across India, Latin America, and Southeast Asia. |
| Diabetes care (CGM) | +9.5% (>$2B) | Continued penetration of an eligible reimbursed base; plateaued pending reimbursement expansions. |
| Rapid & molecular diagnostics | -8% | Anticipated decline in respiratory-virus testing after a weaker-than-normal season. |
| Adjusted gross margin | +100 bps to 58.0% | Favorable mix including Exact Sciences plus operational improvements and margin-expansion initiatives. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Procedure-volume durability | Investor concern over decelerating U.S. procedure volumes | CEO Robert Ford argued med-tech/diagnostics did not benefit from ACA/Medicaid expansion and won't see downside from disenrollment (Medicare drives two-thirds of U.S. cardio); high-acuity demand is inelastic and diagnostic testing volumes remain strong and stable as a forward-looking barometer. | — |
| Second-half acceleration drivers | Low-single-digit growth in prior quarters | About 80% of the second-half lift comes from four businesses -- nutrition, electrophysiology, core lab, and cancer diagnostics -- each entering H2 with momentum and clear line of sight to drivers. | — |
| CGM reimbursement expansion | Penetrating an eligible reimbursed base | Only 15 million of 75-80 million potential CGM users are on the technology; U.S. type 2 non-insulin coverage (could unlock ~10 million Medicare beneficiaries, a multi-billion-dollar, possibly-this-fall opportunity) plus international basal expansions would sharply accelerate growth; Abbott is planning a fifth ~$1 billion manufacturing facility. | — |
| Electrophysiology portfolio strategy | Building the PFA/mapping portfolio | Volt 2.0 moving from limited to full U.S. release in Q3 with strong ASC-adoption feedback; strategy is to sell the entire procedure (catheters, mapping, ancillaries) rather than a single product, with a PFA pipeline through 2029 and an LAA (Amulet 360) device moved into the EP business. | — |
| Cancer-screening franchise (Exact Sciences) | Recently acquired; care-gap ramp | Integration going well; care-gap programs (tied to HEDIS/CMS Star ratings) ramp in H2, Cologuard-to-Cologuard Plus mix is a tailwind, and adding a future blood test would make Abbott the only company with best-in-class stool and blood screening (blood as a funnel into higher-sensitivity Cologuard). | — |
| Structural heart recovery | U.S. mitral underperformance flagged in January | Ford expects a return to mid-to-high single-digit growth by year-end via personnel and go-to-market changes (not price or product); international structural heart grew double digits (TAVR +30% in H1), and the Cephea mitral replacement valve is entering trials with high long-term promise. | — |