Abbott earnings for the third quarter of 2026 showed higher sales and adjusted profit but a sharp decline in GAAP earnings. The healthcare company reported revenue of $13.013 billion, up 14.5%, for the quarter ended September 30. Adjusted diluted earnings per share rose 9.2% to $1.42, while GAAP diluted EPS fell to $0.53 from $0.94 a year earlier.
Key Takeaways
- Comparable sales rose 7.0%, below reported growth of 14.5%, on an acquisition-adjusted basis that also excludes currency effects and certain payments.
- GAAP net earnings fell 44.1% to $920 million, while adjusted net earnings increased 8.7% to $2.477 billion.
- Abbott maintained the midpoint of its annual adjusted EPS outlook and narrowed the range to $5.50–$5.55.
Table of Contents
- Abbott earnings diverge on reported and adjusted measures
- Acquisition changes the sales comparison
- Product approvals broaden the portfolio
- Annual outlook retains its midpoint
- Conclusion
Abbott earnings diverge on reported and adjusted measures
Abbott's third-quarter results announcement, issued October 21, 2026, showed that the gap between GAAP and adjusted earnings widened substantially. The company excluded $1.557 billion in net after-tax charges from adjusted results, compared with $634 million in the prior-year quarter.
The 2026 exclusions covered intangible amortization, legal settlements, acquisitions, restructuring actions and other net expenses. They amounted to $0.89 per share, versus $0.36 a year earlier, making the distinction between reported and adjusted performance particularly important this quarter.
Operating earnings declined 34.0% to $1.358 billion as total operating costs and expenses rose 25.2%, faster than sales. Selling, general and administrative expenses increased 39.8%, while intangible amortization roughly doubled to $841 million. Net interest expense also rose to $297 million from $44 million.
| Item | Details |
|---|---|
| Medical Devices | Q3 sales: $5.826 billion; reported growth: 6.9%; comparable growth: 7.8%. |
| Diagnostics | Q3 sales: $3.305 billion; reported growth: 46.7%; comparable growth: 6.4%. |
| Nutrition | Q3 sales: $2.262 billion; reported growth: 5.1%; comparable growth: 4.9%. |
| Established Pharmaceuticals | Q3 sales: $1.614 billion; reported growth: 6.8%; comparable growth: 8.4%. |
Acquisition changes the sales comparison
Abbott completed its acquisition of Exact Sciences on March 23, 2026, and now presents that business within Cancer Diagnostics. Its comparable sales measure includes Exact Sciences in both the current and prior-year periods, excludes foreign-exchange effects and removes certain Structural Heart compensation payments.
That methodology helps explain why reported Diagnostics growth of 46.7% was much stronger than comparable growth of 6.4%. Across Abbott as a whole, comparable sales growth was 7.0%, compared with reported growth of 14.5%.
Cancer Diagnostics generated $968 million in quarterly sales and grew 13.8% on a comparable basis, supported by Cologuard and contributions from precision oncology and international operations. Within Medical Devices, electrophysiology grew 15.5% on a comparable basis, while continuous glucose monitor sales increased 7.7%.
Product approvals broaden the portfolio
Abbott highlighted several regulatory and commercial milestones during the quarter. In August, it announced FDA approval for Libre Duo, a sensor that measures glucose and ketone levels, and CE Mark for its Amulet 360 left atrial appendage occluder.
In September, the company announced FDA approval for its TactiFlex Duo ablation catheter, designed to deliver both pulsed field and radiofrequency energy for atrial fibrillation treatment. It also launched SimpleScreen CRC, an FDA-approved blood-based colorectal cancer screening test for average-risk adults aged 45 and older.
Annual outlook retains its midpoint
Abbott projected approximately 6.0% comparable sales growth for full-year 2026. It reaffirmed the midpoint of its previously issued adjusted diluted EPS guidance while tightening the range to $5.50–$5.55. Fourth-quarter adjusted diluted EPS is forecast at $1.62–$1.67.
These are management forecasts, not completed results. Abbott did not provide corresponding forward-looking GAAP measures, saying it could not reasonably predict the timing and impact of items including acquisition expenses, restructuring, impairments and foreign exchange.
Separately, the company's previously declared quarterly dividend of $0.63 per share is payable November 16, 2026, to shareholders of record on October 15.
Conclusion
Abbott's quarter combined broad comparable sales growth with higher adjusted earnings, but substantially larger exclusions accompanied a decline in GAAP profit. The next scheduled shareholder payment is the November 16 dividend; management's fourth-quarter adjusted EPS target remains $1.62–$1.67.
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