Abbott rose about 1 percent today, its fourth straight day of gains, and is now trading at a new recent high. We think this is mostly the whole market moving higher today, though recent news about an AI partnership with Google has helped keep the momentum going.
Our view
The business is performing well and the recent boost to its profit goals shows its high-tech medical devices are finding plenty of demand. If you already own it, there is nothing to do here but sit tight and let the growth play out.
Abbott and Google partner to add AI coaching to glucose monitors
Abbott is launching a multi-year partnership with Google to combine data from its Lingo wearable with Google’s artificial intelligence. Lingo is a continuous glucose monitor, a small sensor worn on the arm that tracks blood sugar levels in real-time. While these devices were originally for people with diabetes, Abbott is now marketing them to a broader audience to help track how nutrition, exercise, and stress impact their bodies.
The two companies will run a large research study to build AI coaching features into the Google Health app and future Lingo products. This matters because it helps Abbott move beyond just selling hardware and into providing personalized health advice. If the company can make its monitors a standard tool for general wellness, it opens up a much larger market than medical use alone.
UBS lowered its target price from $135 to $125 while keeping its buy rating. This follows the company's recent quarterly report and reflects a slightly more conservative outlook on how fast the stock will rise. Even with the lower target, the firm still sees about 17 percent upside from the current price.
FDA approves blood test for colon cancer screening
The FDA approved Freenome's blood-based screening test for colorectal cancer, and Abbott has the rights to sell it in the U.S. This gives doctors a simpler alternative to traditional stool tests or colonoscopies for the millions of Americans who are behind on their screenings.
This is a win for Abbott's diagnostics arm. Because the test is now supported by Medicare and major cancer guidelines, it should see steady adoption and help the company maintain its lead in the medical testing market.
Cyber incidents at diagnostics unit do not affect operations
The company is looking into two cyber incidents involving its cancer diagnostics business and an internal portal. While hackers gained unauthorized access to some systems, Abbott says its day-to-day operations were not affected. For now, this looks like a minor security matter rather than a threat to the business.
Abbott beats expectations and raises full-year profit goals
Abbott reported a strong second quarter, with adjusted earnings of $1.31 per share topping the $1.28 analysts expected. Total revenue reached about 12.6 billion dollars, a 13 percent increase over last year. The stock rose about 11 percent on the news as the company also raised its profit forecast for the full year.
The growth was led by the medical device unit, particularly heart-related products and glucose monitors. This shift toward high-tech medical tools is exactly what we want to see, as those products generally earn higher profits than the company's older business lines. Management's decision to raise guidance suggests they see this momentum continuing through the end of 2026.
Most analysts have maintained their positive outlook on Abbott Labs following a steady stream of research updates throughout the summer. Currently, 31 of 41 analysts rate the stock a buy, with an average target price suggesting 12% upside.
Average target$123.64+12%vs $110.72 today
TodayAvg price
Low $92High $145
Strong Buy41 analysts
0Bearish
10Neutral
31Bullish
FirmRatingPrice TargetDate
Wolfe Research
Outperform
$130
8/13/2026
UBS
Buy
$135→$125
7/28/2026
Benchmark Co.
Buy
$120
7/20/2026
Piper Sandler
Overweight
$115→$118
7/17/2026
BTIG
Buy
$134
7/16/2026
Evercore ISI
Outperform
$120→$112
7/6/2026
Robert W. Baird
Outperform
$121
6/30/2026
Daiwa
Neutral
$92
4/22/2026
Barclays
Overweight
$144→$143
4/20/2026
UBS
Buy
$132→$115
4/17/2026
Piper Sandler
Overweight
$135→$115
4/17/2026
Stifel Nicolaus
Buy
$145→$120
4/17/2026
Abbott Laboratories earnings
The company has beaten analyst profit targets for eight straight quarters. Management has a clear habit of setting a bar they know they can clear, making their forecasts very reliable.
Earnings history
EstimateBeatMiss
Abbott Laboratories past earnings results
Expected
Actual
Surprise
EPS
$1.28
$1.31
+2.3%
Revenue
$12.52B
$12.59B
+0.6%
Key highlights
Earnings outlook raised: The company increased its full year profit forecast to a range of $5.45 to $5.60 per share, up from the previous high end of $5.58. This suggests management is confident that sales will continue to accelerate after returning $2.1 billion to shareholders this quarter.
Medical device growth solid: Medical device sales grew 8.4% this quarter, led by a 13.4% jump in the electrophysiology business which treats heart rhythm problems. This segment remains a core driver for the company, helping to offset a 3.6% decline in the nutrition division where sales volumes were lower than last year.
Exact Sciences acquisition integration: Total diagnostics revenue jumped 42.3% to $3.09 billion following the purchase of Exact Sciences in March. On a comparable basis, which includes the acquisition in both years, cancer diagnostic sales grew 13.3% as the Cologuard screening test added more new and repeat users.
Diabetes tech momentum: Sales of continuous glucose monitors, which help people track their blood sugar, grew 9.5% to reach a $4.38 billion annual run rate. The company also secured European approval for Libre Duo, the first sensor that tracks both glucose and ketones to help manage diabetes complications.
Pharmaceuticals growing abroad: The established pharmaceuticals division, which sells branded generic medicines in international markets, grew sales by 8.7% to $1.50 billion. Growth was strongest in key emerging markets like Latin America and Asia Pacific, where sales rose 10.7% compared to the same period last year.
Our take: A strong quarter that shows the benefits of a diverse healthcare portfolio. While the nutrition business is still recovering from lower volumes, the high growth in heart devices and the smooth addition of Exact Sciences more than filled the gap. This steady execution supports the long term case for holding the stock.
Abbott Laboratories’s next earnings date
Q3 2026
OCT
21
Expectation
EPS
$1.42
Revenue
$12.99B
Metrics we are tracking
Metric
Expectations
Status
MedTech Organic Growth
Sustaining above 10% annual growth for the segment
8.4% YoY in Q2 2026
FreeStyle Libre Sales
Reaching $10 billion in annual revenue by 2028
$8.75B annual run rate in Q2 2026
Diagnostics Operating Margin
Staying above 20% despite international pricing pressure
13.3% in Q2 2026
Free Cash Flow Yield
Remaining above 4.5% to support the growing dividend
4.7% as of FY2025
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