Abbott (ABT) Q3 2026: Strong Sales Growth, EPS Guidance Tightened — Positive Outlook: Slides 1.1% at Open — Post-Earnings Analysis

Abbott reported a robust third quarter for 2026, with reported sales growth of $1.9 billion or +14.5% YoY. This performance reflects a solid demand across its diverse product portfolio, particularly in the diagnostics and medical devices segments.

Key Financial Metrics

• Total Sales: $13.3 billion, up from $11.3 billion in Q3 2025.
• GAAP Diluted EPS: $0.53, down from $0.94 in Q3 2025, a decrease of -43.6%.
• Adjusted Diluted EPS: $1.42, up from $1.30 in Q3 2025, an increase of +9.2%.
• Comparable Sales Growth: 7.0%.

Analyst View

This quarter can be viewed positively for shareholders despite the decline in GAAP EPS. The adjusted EPS growth indicates that Abbott is effectively managing its operational costs and benefiting from its strategic investments. The strong sales growth of 14.5% demonstrates robust demand, particularly in the diagnostics segment, which saw a staggering 46.7% increase in sales. This performance is encouraging, especially as Abbott reaffirms its full-year adjusted diluted EPS guidance range of $5.50 to $5.55.

Segment Performance

• Nutrition: Sales increased 5.1% YoY, driven by a 7.9% increase in the U.S. market.
• Diagnostics: Sales surged 46.7% YoY, with comparable sales growth of 6.4%.
• Established Pharmaceuticals: Reported a 6.8% increase in sales.
• Medical Devices: Sales grew 6.9% YoY, with notable growth in Electrophysiology and Rhythm Management.

Dividend and Guidance

Abbott declared its 411th consecutive quarterly dividend of $0.63 per share, payable on November 16, 2026. This consistent dividend payout underscores Abbott's commitment to returning value to shareholders.

The company has also tightened its full-year 2026 adjusted diluted EPS guidance to a range of $5.50 to $5.55, projecting a comparable sales growth of approximately 6.0% for the full year.

Forward Catalyst

Investors should closely monitor Abbott's upcoming product launches and regulatory approvals, particularly in the diagnostics and medical devices segments. The recent FDA approvals for innovative products like the Libre® Duo and TactiFlex™ Duo Ablation Catheter could drive future growth. Additionally, the performance of the newly launched Similac® 360 Total Care® Made With Whole Milk infant formula will be crucial in assessing the nutrition segment's trajectory.

In summary, while the decline in GAAP EPS may raise concerns, the overall growth in sales and adjusted EPS, coupled with a strong product pipeline, positions Abbott favorably for the future.

Condensed Consolidated Statement of Earnings

Note: All amounts are in millions.

Condensed Consolidated Balance Sheets

Note: All amounts are in millions.

Quarterly Earnings — Revenue vs. Estimate

Revenue vs. Estimate — 5 Quarters

EPS vs. Estimate — 5 Quarters

Analyst Ratings & Price Targets

Wall Street analysts have shown mixed but generally positive sentiment toward Abbott Laboratories (ABT) in recent months, with three upgrades and one downgrade since April 2026. Barclays and Robert W. Baird initiated coverage with Overweight and Outperform ratings, targeting $120 and $121, respectively, while Wolfe Research and Redburn upgraded the stock to Outperform and Buy, lifting price targets to $130 and $127. The lone downgrade came from Daiwa Securities, which moved to Neutral with a $92 target. The consensus price target of approximately $122 suggests a modest upside from Abbott’s current trading level, reflecting cautious optimism amid broader market uncertainty. The range of targets—from $92 to $145—highlights divergent views on near-term growth drivers, though the majority of recent revisions skew bullish. Analysts appear to favor Abbott’s diversified healthcare portfolio and steady earnings trajectory.

Technical Analysis — 90-Day Price Chart

Abbott Laboratories (ABT) trades at $100.51, slightly above its 20-day SMA ($100.36) but below the 50-day SMA ($104.91), suggesting near-term consolidation within a broader downtrend. The 200-day SMA ($104.21) remains a key resistance level. The RSI at 62.6 is neutral but nearing overbought territory, indicating potential short-term upside exhaustion. Volume surged to 22.8M shares vs. the 20-day average of 9.8M, signaling heightened interest, possibly near support. The stock hovers near the midpoint of its 52-week range ($86.06-$116.62), with the lower bound offering strong support and the upper bound acting as resistance. A sustained break above the 50-day SMA could signal trend reversal, while failure risks a retest of $86.06. Current technicals reflect cautious optimism amid mixed momentum signals.