tapebrief
ABT · Q4 2025

ABT · Q1 2026 Earnings

Cautious

Abbott Laboratories

Reported April 16, 2026

30-second summary

30-second take: Abbott posted Q1 FY2026 revenue of $11.16B (+7.8% YoY) and adjusted EPS of $1.15 — exactly the midpoint of the prior $1.12–$1.18 guide — but cut FY2026 adjusted EPS to $5.38–$5.58 from $5.55–$5.80, a 3.6% midpoint reduction that management attributes entirely to $0.20 of Exact Sciences dilution. Comparable sales growth came in at 3.7% against a 6.5–7.5% FY guide that was restated this quarter onto a comparable basis (including Exact Sciences in both prior and current year), so the headline "reaffirmation" is not an apples-to-apples hold of the prior organic 6.5–7.5% guide; the ex-Exact Sciences implied organic rate is lower. The arithmetic still requires a sharp H2 acceleration that management says it has "clear visibility" to but has not yet earned. Devices (+8.5% comparable) and Established Pharma (+9.0% comparable) carried the print; Nutrition (-7.7% comparable), Rapid/Molecular Diagnostics (-9.6% comparable), and CGM comparable growth of just 7.6% are the soft spots underneath.

Headline numbers

EPS

Q1 FY2026

$1.15

Revenue

Q1 FY2026

$11.16B

+7.8% YoY

Gross margin

Q1 FY2026

52.4%

Operating margin

Q1 FY2026

12.0%

Key financials

Q1 FY2026
MetricQ1 FY2026YoYQ4 FY2025QoQ
Revenue$11.16B+7.8%$11.46B-2.6%
EPS$1.15—$1.50-23.3%
Gross margin52.4%—53.4%-100bps
Operating margin12.0%—19.6%-760bps

Guidance

Abbott lowered full-year 2026 EPS guidance by ~3.6% despite reaffirming comparable sales growth, signaling margin or operational headwinds; Exact Sciences acquisition dilution of $0.20/share partly explains the cut.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

MetricPeriodPrior guideActualΔResult
Adjusted Diluted EPSQ1 FY2026$1.12 to $1.18$1.15in-line (midpoint of guide)Beat

New guidance

MetricPeriodGuideYoY
Adjusted Diluted EPSQ2 FY2026$1.25 to $1.31+12-17% YoY

Changes to prior guidance

MetricPeriodPrior guideNew guideΔResult
Adjusted Diluted EPS
FY2026
$5.55 to $5.80$5.38 to $5.58–$0.17 to –$0.22 (midpoint down $0.195, or –3.6%)Lowered

Reaffirmed unchanged this quarter: Comparable Sales Growth (6.5% to 7.5%)

Segment KPIs

Q1 FY2026
SegmentQ1 FY2026YoY
Nutrition$2.017B-6.0%
Diagnostics$2.18B+6.1%
Core Laboratory Diagnostics$1.272B+8.1%
Rapid/Molecular Diagnostics$0.812B-7.4%
Established Pharmaceuticals$1.426B+13.2%
Medical Devices$5.539B+13.2%
Rhythm Management$0.684B+17.0%
Electrophysiology$0.788B+16.7%
Heart Failure$0.389B+14.6%
Vascular$0.777B+9.5%
Structural Heart$0.578B+9.0%
Neuromodulation$0.243B+6.8%
Diabetes Care$2.08B+13.8%

Other KPIs

Q1 FY2026
SegmentQ1 FY2026YoY
U.S.$4.274B+2.5%
International$6.89B+11.3%
Comparable Sales Growth3.7%—
Cologuard GrowthDouble-digit growth—
Continuous Glucose Monitor Growth14.2% reported / 7.6% comparable—
Full-Year 2026 Comparable Sales Growth Guidance6.5% to 7.5%—
Full-Year 2026 Adjusted EPS Guidance$5.38 to $5.58—
Q2 2026 Adjusted EPS Guidance$1.25 to $1.31—
Exact Sciences Acquisition Dilution$0.20 per share on full-year 2026 EPS—
Adjusted Non-GAAP EPS Growth (YoY)6%—

Management tone

Narrative arc: Q2 FY2025 device-and-margin confidence → Q3 FY2025 cautious execution → Q4 FY2025 nutrition reset → Q1 FY2026 visibility-dependent acceleration story.

The growth narrative quietly shifted from organic momentum to acquisition-supported confidence. Across Q2 and Q3 FY2025, management spoke of carrying momentum into 2026 on the strength of devices and CGM. This quarter, the press release statement that "the acquisition of Exact Sciences adds another high-growth business to the Abbott portfolio, further strengthening our confidence in delivering accelerating growth" reads as a meaningful tonal hand-off. Confidence is now anchored to inorganic addition rather than organic trajectory, and is paired with hedging language ("we remain confident in our expectation for an acceleration") rather than the declarative momentum framing of two quarters ago.

"Clear visibility" replaced "carrying momentum" — execution language replaced run-rate language. Q2 FY2025 framed 2026 as "momentum carrying into 2026." Q3 FY2025 framed it as "comfortable with consensus." Q1 FY2026 frames it as "we have clear visibility to the key drivers of that acceleration and are highly focused on executing on them." The progression — momentum → comfort → visibility-and-execution — is a steady de-escalation. Visibility-dependent stories carry execution risk that momentum-driven stories do not.

CGM was repositioned mid-quarter as "returning to" double-digit growth rather than sustaining it. Last quarter management framed CGM as still in early innings with ample TAM. This quarter, with Q1 CGM comparable growth at 7.6%, management says "we expect CGM to return to double-digit growth" in Q2 — a phrasing that implicitly concedes Q1 was a step down rather than a baseline. The explanation (international tender renewal delay, weaker respiratory comparisons) is plausible, but "return to" is a different posture than "sustain."

Nutrition language softened from "path is not sustainable" to "encouraged by the progress." One quarter ago management called the model structurally broken; this quarter the language is "while we are still early in the transition back toward a more sustainable balance between price and volume-driven growth, I'm encouraged by the progress we're making." The actuals partially support the softer tone — reported Nutrition narrowed from -8.9% to -6.0% — but "early in the transition" is now the prevailing frame for a category management said it would rebuild in six months. The recovery is on its expected slope but not faster than telegraphed.

A new defensive frame emerged: the financing cost surprise. Management described Q1 EPS as "consistent with our guidance, despite absorbing the impact of earlier than planned financing costs related to our acquisition of Exact Sciences." Burying the financing surprise inside the in-line print is itself the signal — Q1's $1.15 EPS midpoint hit was helped by something, and absorbed something. The framing is defensive.

Recurring themes management leaned on this quarter:

Exact Sciences integration and diagnostics portfolio expansionNutrition pricing actions and volume recovery trajectoryMedical devices outperformance in electrophysiology and rhythm managementSecond half acceleration expected across multiple segmentsPipeline advancement and clinical trial readinessFX headwinds absorbing but expected to moderate

Risks management surfaced:

Weaker than expected respiratory season impacting diagnostics demandInternational tender delay affecting CGM renewal processShelf restocking comparison headwinds in CGM from prior yearEarlier than planned acquisition financing costs impacting EPSMacro-driven uncertainty in nutrition pricing-volume transition

Q&A highlights

David Roman · Goldman Sachs

Request for detail on updated guidance philosophy, thought process for revised outlook, and assessment of whether guidance fully de-risks the business while capturing upside potential and contemplating downside risks.

Management explained guidance philosophy centered on transparency and providing apples-to-apples comparisons (folding in Exact Sciences on comparable basis similar to prior COVID and St. Jude approaches). On conservatism, management noted Q1 respiratory season was weaker than forecasted and prudently decided not to bake Q4 respiratory recovery into guidance despite manufacturing/distribution capability. Broke out three key growth drivers: sustaining growth in MedTech (low double digits) and pharma (above 7%), trajectory-changing businesses (diagnostics and nutrition), and Exact Sciences integration.

MedTech guidance: low double-digit growthPharma guidance: above 7% growthExact Sciences integrated on comparable basis for transparencyQ1 respiratory season weaker than forecast; Q4 respiratory recovery not baked into guidance

Larry Beagleson · Wells Fargo

Questions about CGM market saturation concerns, weak U.S. prescription trends, Libre growth outlook, and timing for type 2 non-insulin coverage, dual ketone sensor, and lactate sensor launches.

Management expressed strong bullish outlook on CGM market despite near-term prescription weakness, arguing weekly TRX data is myopic. Estimated 70-80 million people globally should be on CGM vs. current 10-12 million penetration. Highlighted multiple future catalysts: type 2 non-insulin Medicare coverage (expected soon, not quantified in guidance), international reimbursement expansion (6 of top 10 markets not yet covered), dual analyte system approval expected H2 2024 (~1 million new patients), and Libre 5 in development. Management views market as having $30-35 billion TAM with strong competitive positioning.

CGM TAM estimate: 70-80 million people globally vs. 10-12 million current penetrationType 2 non-insulin Medicare coverage: proposed language expected soon (timing not specified), potential to add ~10 million covered livesDual analyte system approval: expected H2 2024, opens ~1 million pump patients and 5 million SGLT2 usersReimbursement catalysts: 6 of top 10 international markets still in coverage evaluation process

Vijay Kumar · Evercore ISI

Questions on Exact Sciences integration plans, Cologuard growth sustainability, international expansion potential, and whether guidance conservatism on Cologuard is embedded given Exact Sciences' mid-teens growth outpacing comparable guidance of 6.5-7.5%.

Management outlined multi-pronged strategy for Exact Sciences: retained Jake Orville as new business leader (previously led Cologuard screening business) reporting directly to CEO; positioned acquisition as entry into high-growth cancer diagnostic space beyond single-product (therapy selection and MRD testing in addition to screening). Sustainability drivers: 50 million Americans not up-to-date on CRC screening, potential guideline lowering from age 45 to 40 (adding 20 million people), colonoscopy capacity bottleneck (fixed at 6 million/year), Cologuard 95% sensitivity equivalent to colonoscopy, 1,000-person sales force, rescreen business (25% of tests, 500k annual patients), and CareGap programs leveraging CMS star ratings. International expansion underway with focus on regulatory, KOL, and distribution development.

Cologuard addressable patients: 50 million Americans not up-to-date on screeningPotential guideline age lowering: 45 to 40, adding 20 million U.S. patientsColonoscopy capacity: fixed at 6 million/yearCologuard sensitivity: 95% (equivalent to colonoscopy)

Travis Steed · B of A Securities

Request for confidence indicators on nutrition business returning to growth in H2, volume recovery evidence, and strategic portfolio management thinking regarding nutrition's role.

Management confirmed volume recovery underway with targeted price reductions in Q4 2024, with pricing strategy differentiated by product and geography rather than uniform cuts. Cited Ensure adult nutrition as proof point showing volume growth post-price-pass-through to consumers. Acknowledged execution challenges and ongoing work (product launches, distribution expansion) but characterized early signs as 'on track' and 'encouraging.' On portfolio strategy, management stated never makes long-term decisions based on near-term challenges; nutrition recovery is focus while acknowledging ongoing quarterly portfolio evaluation with board at least annually for all businesses assessing market attractiveness, competitive position, expansion/maintenance/reduction decisions.

Price reduction strategy: targeted by product and geography, not uniform across portfolioEnsure product: volume growth observed across retailers post-price reductionBaseline for tracking: 2025 first half (excluding Q4 2024)Tracking frequency: monthly basis internally, weekly at team level

Josh Jennings · TD Cowan

Details requested on EP franchise including international Volt launch impact on ablation catheter share, U.S. Volt 2.0 timing and launch approach, and updated Abbott views on EP market growth, volumes, and pricing.

Management highlighted double-digit EP growth during window without PFA (now closed) with expectations rising. Volt (U.S.) and Tactiflex Dura (Europe) launches underway in limited market release phase. Feedback 'extremely favorable and positive,' aligning with two-year-old portfolio building expectations. Highlighted Volt differentiators: conscious sedation aspect, durability advantages seen in preliminary European Heart Rhythm Society data showing better lesion durability. TactiFlex feedback positive on ease-of-use and speed. Management expecting acceleration in EP growth by year-end exceeding market growth. Characterized market as mid-to-high teens growth; Abbott targeting outper

Answers to last quarter's watch list

Nutrition Q1 FY2026 volume response to promotional spend — Nutrition declined 6.0% reported / 7.7% comparable in Q1, narrowing from Q4 FY2025's -8.9% reported. The narrowing validates that the promotional shift is working directionally, but the segment is still deeply negative on a comparable basis and management characterized the transition as "early.".
Continue monitoring
Organic sales growth pacing toward 6.5–7.5% FY guide — Q1 comparable sales growth printed at 3.7%, well below the 5% threshold flagged and far below the FY midpoint of 7.0%. The FY guide range was reaffirmed but on a restated comparable basis that now includes Exact Sciences in both years, so the ex-Exact organic rate implied is lower than the prior 6.5–7.5% organic guide. Mathematically requires H2 comparable growth around 8.5–9%, a level Abbott has not recently printed.
Resolved negatively
CGM growth rate in Q1 FY2026 — CGM comparable growth was 7.6% in Q1, below the 12% threshold flagged. Reported growth of 14.2% benefits from FX. Management attributes the weakness to an international tender renewal delay and shelf restocking comparisons, and expects a return to double-digit growth in Q2.
Resolved negatively
Exact Sciences deal close and FY2026 EPS bridge disclosure — Deal closed March 23, 2026; financing costs hit earlier than planned, and management explicitly quantified $0.20 per share of FY2026 dilution from the acquisition. Comparable sales guide was restated to include Exact Sciences on a comparable basis. Status: Resolved positively (disclosure cleaner than expected, even though the dilution is real)
Non-insulin CGM coverage language from CMS — Management said proposed coverage language is expected "soon" with timing not specified; not incorporated in guidance. No decisive update this quarter.
Continue monitoring
Q1 FY2026 adjusted operating margin trajectory — Q1 adjusted operating margin printed at ~20.3% (gross 56.3% less R&D 6.7% less SG&A 29.3%). Tracking the 50–70bps FY expansion target requires H2 leverage but no longer looks like an anomaly. Status: On track

What to watch into next quarter

Q2 FY2026 comparable sales growth print vs. ~7% implied — With Q1 at 3.7% comparable and FY guided to 6.5–7.5% on a comparable basis, Q2 has to begin the acceleration in earnest. Anything below 5.5% comparable growth makes the FY guide arithmetically hard to defend even with a strong H2.

CGM comparable growth — does it actually return to double digits? — Management committed to "return to double-digit" in Q2. A print below 10% comparable would undermine the international tender explanation and reopen the structural CGM growth question.

Nutrition Q2 comparable YoY — Q1 comparable was -7.7%. Watch for further narrowing; failure to continue narrowing means the H2 recovery thesis is in jeopardy.

Ex-Exact Sciences organic disclosure — Given the basis restatement, the cleanest tell on underlying Abbott momentum is the implied ex-Exact organic growth rate. Watch for whether management quantifies it explicitly in Q2 or continues to frame everything on the comparable basis.

Exact Sciences contribution disclosure — With the deal closed and $0.20 of dilution explicitly called out, Q2 is the first quarter where Exact Sciences will be in the consolidated print for a full period. Watch for clean segment disclosure (revenue contribution, growth rate, margin impact) — the absence of clean disclosure would itself be a signal.

Structural Heart U.S. comparable — Q1 U.S. Structural Heart comparable was -3.6% on Mitral competitive intensity. Ford committed to high single-digit full-year growth; Q2 needs to show the U.S. trajectory bending back up for that commitment to be credible.

Electrophysiology growth rate as Volt scales — EP grew 12.5% comparable in Q1 with Volt still in limited market release. Sub-13% comparable in Q2 with broader launch would suggest competitive PFA dynamics are tighter than management's "complete portfolio" framing implies.

Sources

  1. Abbott Laboratories Q1 FY2026 Earnings Press Release, Exhibit 99.1 — https://www.sec.gov/Archives/edgar/data/1800/000162828026025365/abt-2026q1xexhibitx991.htm
  2. Abbott Laboratories Q1 FY2026 Earnings Call Transcript (April 16, 2026)
  3. Tapebrief Q4 FY2025 ABT brief (for prior guidance baseline and watch-list context)
  4. Tapebrief Q3 FY2025 ABT brief (for multi-quarter tone arc context)
  5. Tapebrief Q2 FY2025 ABT brief (for narrative arc anchor)

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