I'll research ABT before writing the preview. Let me pull recent earnings materials, filings, and news.Let me read the Q1 2026 earnings call and release, and dig into the Exact Sciences deal news.Let me gather recent news, analyst sentiment on the Exact Sciences deal, and stock price performance.Let me get broader recent news and analyst sentiment context.Let me quickly check the Q4 2025 release for the original 2026 guidance framing.# Abbott Laboratories (ABT) — Q2 2026 Earnings Preview
Abbott heads into Q2 as a "show-me" story. Management has spent the last two calls promising a second-half growth acceleration, and Q2 is the first real proof point. The stock has been punished all year (down ~28% YTD vs. an ~10%+ gain for the S&P 500), reflecting skepticism on the Exact Sciences deal, softening CGM optics, and a still-declining Nutrition business. A clean quarter with visible re-acceleration could re-rate a name that now trades at a historically cheap ~16x forward EPS; another soft print risks confirming the bear case.
| Metric | Guidance / Context |
|---|---|
| Q2 adj. EPS (guided) | $1.25 – $1.31 (midpoint $1.28) |
| Street EPS | ~$1.28 |
| Street Q2 growth expectation | ~high-single/low-double-digit comparable sales growth (a big step-up from Q1's +3.7%) |
| FY26 comparable sales growth | 6.5% – 7.5% |
| FY26 adj. EPS | $5.38 – $5.58 (midpoint $5.48), includes $0.20 Exact Sciences dilution |
| Q1 2026 actual | Sales $11.16B (+7.8% reported / +3.7% comparable); adj. EPS $1.15 (+6%) — in line with the $1.12–$1.18 guide |
| 2025 baseline | Sales $44.3B; adj. EPS $5.15 (+10%) |
Key framing: In January, Abbott guided FY26 to 6.5–7.5% organic growth and $5.55–$5.80 EPS (10% growth). After Exact Sciences closed early (March 23), the framework shifted to a comparable basis (folding Exact into both years) and EPS was cut to $5.38–$5.58, entirely reflecting $0.20 of acquisition dilution. So the underlying earnings algorithm was preserved — the cut was deal financing, not a fundamental miss. That nuance matters for how the market reads any FY guidance update on Thursday.
Q1 CGM sales were $2.0B, up only ~7.5% comparable, dinged by an international tender-renewal delay and a tough restocking comparison. Management explicitly guided CGM back to double-digit growth in Q2 — anything less will reignite the "market saturation" bear thesis that has weighed on U.S. prescription-trend optics. Listen for: - Confirmation of the double-digit reacceleration. - Commentary on the CMS Type 2 non-insulin coverage catalyst (management expects proposed language "soon"; ~10M new covered lives; not in guidance). - Timing updates on the dual-analyte (ketone) sensor (2H26 approval expected) and international basal-coverage expansion.
Q1 was just +3.7% comparable. The whole bull case rests on acceleration toward/above the 6.5–7.5% range in 2H. Q2 is the bridge quarter. Watch whether the "trajectory-changing" businesses (Core Lab, Nutrition) show the promised inflection.
U.S. Nutrition fell 11.6% in Q1 (total Nutrition -7.7% comparable) as Abbott absorbed deliberate Q4 2025 price cuts meant to reignite volume. Management says early data (e.g., Ensure) shows volume responding as price flows through to shelves. Investors need evidence this is inflecting toward the expected 2H recovery, not deepening.
MedTech grew +8.5% comparable in Q1 with double-digit EP (+13%), Rhythm Management (+13%) and Heart Failure (+12%). Key watch items: - Electrophysiology / PFA: ramp of Volt (U.S.) and TactiFlex Duo (Europe) out of limited market release; management targets growing faster than the mid-to-high-teens market by year-end. - Structural Heart: the soft spot — U.S. down after the Amulet/LAAC transfer to EP, plus competitive pressure in mitral. Management flagged leadership changes and expects high-single-digit full-year growth; watch for U.S. execution improvement.
The bar for Q2 EPS ($1.28) is modest and management has a strong track record of at least hitting its own guide. The debate is entirely about quality and trajectory, not the headline print. The bull needs: (1) CGM back to double-digits, (2) Nutrition volumes visibly inflecting, (3) Core Lab/China stabilization holding, and (4) EP/PFA accelerating — collectively validating the second-half re-acceleration narrative. Deliver those, and a beaten-down, cheaply-valued stock has room to recover. Miss on CGM or Nutrition again, and the market's patience — already thin after two negative reactions this year — will be tested further. Given how weak the stock has traded into the print, expectations are low, which cuts both ways: less downside on an in-line quarter, but a real need for tangible 2H proof points to spark a re-rating.
Note: Figures above are drawn from Abbott's Q1 2026 and Q4 2025 earnings releases/calls and market data through July 15, 2026. Consensus/sentiment figures are as reported in pre-earnings news digests and should be confirmed against your own consensus source.