Abbott Laboratories (ABT) investor relations material

Executive summary

• Q3 net sales were $13.013B, up 14.5% reported and 7.0% comparable; adjusted diluted EPS rose 9.2% to $1.42.

• Plans call for a tax-free distribution of the nutrition business to shareholders by end-2027, subject to approvals, following a strategic review.

• Comparable sales grew across all four segments; management expects total sales growth to accelerate in 2027.

Financial highlights

• Q3 GAAP net earnings fell 44.1% to $920M; adjusted net earnings rose 8.7% to $2.477B.

• 9M sales were $36.770B, up 11.9% reported and 5.2% comparable; adjusted net earnings rose 5.9% to $6.789B.

• Adjusted gross margin was 57.2%, up 140 bps YoY; adjusted operating margin was 23.4%, up 40 bps.

• Adjusted R&D was 6.9% of sales and adjusted SG&A was 26.9% of sales.

• 9M adjusted diluted EPS rose 6.3% to $3.88; GAAP diluted EPS was $1.67 versus $2.70.

Outlook and guidance

• FY26 comparable sales growth is projected at ~6.0%; adjusted diluted EPS guidance was reaffirmed at $5.50–$5.55, with the range tightened.

• Q4 adjusted diluted EPS guidance is $1.62–$1.67; Q4 FX is expected to reduce sales by ~1%.

• Management expects total sales growth to accelerate in 2027, alongside EPS growth and gross-margin expansion, while taking a conservative approach to initial guidance.

• Excluding nutrition’s current profile, expected sales growth acceleration is 50–100 bps, gross-margin expansion >200 bps and operating-margin expansion ~100 bps.