VALUATION HIGHLIGHTS

1. Medical Devices constitute 52% of the Trefis price estimate for Abbott Labs's stock.
2. Diagnostics constitute 22% of the Trefis price estimate for Abbott Labs's stock.
3. Nutritionals constitute 14% of the Trefis price estimate for Abbott Labs's stock.

WHAT HAS CHANGED?

Latest Earnings: Second Quarter Fiscal 2026

Abbott Labs reported total revenue of $12.59 billion, representing a 13.0% increase on a reported basis, along with adjusted diluted earnings per share of $1.31, exceeding market expectations. Primary drivers of this growth included double-digit gains within the Medical Devices segment, specifically led by a 13.4% expansion in Electrophysiology on a comparable basis, alongside strong performance in Cancer Diagnostics which grew 13.3%.

Note: Abbott Labs's Q2 FY'26 ended on June 30, 2026.

Full-Year Guidance Raised Following Strong Momentum

Following the robust performance across its device and diagnostics portfolios, Abbott raised its full-year 2026 adjusted diluted earnings per share guidance to a range of $5.45 to $5.60, up from the previous forecast of $5.38 to $5.58, while reaffirming its organic sales growth targets.

POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE

Below are key drivers of Abbott Labs's value that present opportunities for upside or downside to the current Trefis price estimate:

Medical Devices

• Pulsed Field Ablation Adoption: The rollout of the Volt Pulsed Field Ablation system in the United States and international markets serves as a massive catalyst. If market share acquisition outpaces the current Trefis estimate, it will provide substantial upside to segment revenues.
• Continuous Glucose Monitoring Expansion: The expanding global footprint of the FreeStyle Libre franchise and the CE Mark approval of Libre Duo provide steady growth. Accelerating patient enrollment and onboarding could lift long-term diagnostic and device growth rates above current baselines.

For additional details, select a division from the interactive Trefis split for Abbott Labs at the top of the page.

BUSINESS SUMMARY

Abbott Labs develops, manufactures, and markets a diversified healthcare portfolio spanning medical devices, diagnostic instruments, nutritional products, and established branded generic pharmaceuticals globally.

SOURCES OF VALUE

The Medical Devices segment stands out as the primary source of value due to its technological leadership and high switching costs in structural heart and diabetes care.

Dominant Diabetes Care Ecosystem

The FreeStyle Libre platform maintains a massive global installed patient base, generating highly predictable, recurring high-margin revenue from continuous glucose monitor sensors.

Advanced Electrophysiology Portfolio

Abbott secures durable hospital network integration and high product margins through its advanced mapping systems and newly launched pulsed field ablation catheters.

KEY TRENDS

Shift Toward Decentralized Biowearables

The medical device sector is rapidly moving toward continuous monitoring technologies and dual-analytic biowearables, positioning consumer-facing diagnostics for sustained volume expansion.

Strategic High-Growth Portfolio Prioritization

Management is continuously focusing capital allocation on specialized medical technology segments, expanding manufacturing capacity for high-margin portfolios while moving away from volatile legacy divisions.