We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should You Buy, Hold or Sell Abbott Stock Post-Q3 Earnings?
Read MoreHide Full Article
Key Takeaways
Abbott's Q3 2026 sales rose 14.5% to $13.01 billion, while adjusted EPS increased 9.2%.
ABT's Nutrition separation, rising Volt PFA adoption and cancer diagnostics launches support growth.
Abbott narrowed 2026 sales growth guidance to 6% amid Electrophysiology and Diabetes Care headwinds.
Abbott (ABT - Free Report) delivered a stronger top- and bottom-line performance in the third quarter of 2026. Sales increased 14.5% year over year to $13.01 billion and surpassed the Zacks Consensus Estimate by 0.3%. Adjusted earnings per share (EPS) of $1.42 rose 9.2% from the prior-year quarter but fell short of the consensus mark by 0.7%. Among segments, Established Pharmaceuticals (“EPD”) delivered broad-based growth across geographies and therapeutic areas. Medical Devices benefited from double-digit growth in Electrophysiology and Rhythm Management, while Diagnostics gained from strong Core Laboratory testing demand and continued momentum in Cancer Diagnostics.
Alongside the quarterly results, Abbott also announced plans to separate its global Nutrition business into an independent, publicly traded company following a comprehensive strategic review. The move is designed to give each business greater strategic and operational focus, improve resource allocation and enhance commercial and R&D execution. The transaction is expected to be completed by the end of 2027, subject to customary conditions and final approval by Abbott's Board of Directors.
After the separation, Abbott expects to have approximately $42 billion in sales and leading positions across cardiovascular and neuromodulation devices, biowearables, laboratory, point-of-care and cancer diagnostics, and established medicines.
ABT Stock’s Price Performance
Abbott’s stock has gained 6.7% since the release of third-quarter 2026 earnings on Oct. 21. Over the past six months, shares have risen 28.4%, outpacing the broader Medical sector and the S&P 500. The stock also fared much better than peers Intuitive Surgical (ISRG - Free Report) and ResMed (RMD - Free Report) , whose shares gained 2.8% and 18%, respectively.
Image Source: Zacks Investment Research
Abbott’s Q3: Quick Segmental Recap
Within Diagnostics, Core Lab sales grew 5.5% year over year, driven by strong performance in the United States, Europe, Japan, and Latin America. Management noted that testing data from thousands of instruments across the United States and global markets continued to point to healthy, stable demand in the third quarter, consistent with the trend observed in July. Meanwhile, Cancer diagnostics growth of 14% was led by Cologuard, with contributions from Abbott’s Precision Oncology and international businesses.
EPD sales grew 8.5%, driven by continued strength in emerging markets. Abbott's broad portfolio of prescription and over-the-counter medicines posted double-digit growth in several countries across Asia, Latin America and the Middle East.
Medical Devices sales increased 8% in the quarter, reflecting broad-based growth across the portfolio. Abbott's Electrophysiology business saw growth in the mid-to-high teens, excluding Left Atrial Appendage (LAA), with U.S. growth exceeding 20%. Increasing adoption of the Volt PFA catheter supported performance, with uptake accelerating in September after its full U.S. market release in mid-August. International growth also gained pace, driven by continued market share gains in Europe, stronger demand for the new PFA catheters and growth across other product categories.
Rhythm Management sales rose 10%, led by the expanding adoption of Aveir single- and dual-chamber pacemakers across U.S. and international markets. In Diabetes Care, third-quarter continuous glucose monitoring sales increased 8% year over year.
Nutrition sales grew 5%, with growth across all four categories: U.S. pediatric, international pediatric, U.S. adult and international adult. Management attributed the performance to a more balanced growth strategy, with a sustainable mix of volume- and price-driven growth.
How Abbott’s 2026 Guidance Looks Now?
Abbott reaffirmed the midpoint of 2026 adjusted EPS guidance but narrowed the range to $5.50-$5.55. The company now expects comparable sales growth of approximately 6%, down from its earlier forecast of 6.5-7.5%.
Image Source: Zacks Investment Research
CEO Robert Ford attributed the revised sales outlook mainly to near-term headwinds in Electrophysiology, driven by ongoing LAA market dynamics. Abbott also experienced a slowdown in U.S. orders after receiving the CE Mark for its new Amulet 360 LAA device, with some accounts appearing to be delaying purchases ahead of its availability.
In Diabetes Care, growth is also expected to moderate to the low-to-mid-single-digit range in the coming quarters. Management cited slower penetration of the Type 2 diabetes market without significant new reimbursement expansion, along with increased pricing pressure in international markets amid rising competition. The planned Nutrition business separation will have no impact on Abbott's 2026 guidance.
ABT Stock’s Valuation
From a valuation standpoint, Abbott trades at 18.24X forward five-year earnings, below its median of 22.93X and the sector average of 22.20X.
Image Source: Zacks Investment Research
Meanwhile, peers, which include Intuitive Surgical and ResMed, trade at higher forward earnings multiples of 42.85X and 19.06X, respectively.
Abbott Expands Cancer Diagnostics With New Wins
Abbott’s Cancer Diagnostics business is emerging to be an important growth engine. In late September, the company announced the U.S. commercial launch of SimpleScreen, a blood-based colorectal cancer (CRC) screening test developed and manufactured by Freenome for adults aged 45 and older who are at average risk for the disease. SimpleScreen joins Cologuard Plus in Abbott’s CRC screening portfolio, providing another option for people who might otherwise go unscreened.
Abbott is also preparing to bring Cologuard Plus to select European markets after receiving CE Mark approval under the European Union’s In Vitro Diagnostic Medical Devices Regulation. The rollout will vary by country, depending on local health care pathways, reimbursement and operational readiness. In addition, the company announced the commercial availability of its next-generation Oncodetect molecular residual disease test, aiming to provide molecular insights during and after cancer treatment.
End Note
Abbott’s broad-based growth in the third quarter of 2026 highlights the strength of its diversified healthcare portfolio. Growth across EPD and Medical Devices reflected strength in emerging markets, rising Volt PFA adoption and continued international momentum. Its planned Nutrition separation marks a strategic shift, allowing both companies to pursue distinct growth and value-creation strategies. New product launches and regulatory approvals are expanding Abbott’s Cancer Diagnostics portfolio and market reach. However, near-term headwinds in Electrophysiology and Diabetes Care have led management to lower its 2026 sales growth forecast.
The stock has outpaced key benchmarks and peers over the past six months and remains less expensive than the broader Medical sector. Considering these factors, ABT stock appears to be a worthwhile option to hold on to. Prospective investors may want to wait for a more favorable entry point.
View the Zacks #1 Rank List
Image: Bigstock
Should You Buy, Hold or Sell Abbott Stock Post-Q3 Earnings?
Key Takeaways
Abbott (ABT - Free Report) delivered a stronger top- and bottom-line performance in the third quarter of 2026. Sales increased 14.5% year over year to $13.01 billion and surpassed the Zacks Consensus Estimate by 0.3%. Adjusted earnings per share (EPS) of $1.42 rose 9.2% from the prior-year quarter but fell short of the consensus mark by 0.7%. Among segments, Established Pharmaceuticals (“EPD”) delivered broad-based growth across geographies and therapeutic areas. Medical Devices benefited from double-digit growth in Electrophysiology and Rhythm Management, while Diagnostics gained from strong Core Laboratory testing demand and continued momentum in Cancer Diagnostics.
Alongside the quarterly results, Abbott also announced plans to separate its global Nutrition business into an independent, publicly traded company following a comprehensive strategic review. The move is designed to give each business greater strategic and operational focus, improve resource allocation and enhance commercial and R&D execution. The transaction is expected to be completed by the end of 2027, subject to customary conditions and final approval by Abbott's Board of Directors.
After the separation, Abbott expects to have approximately $42 billion in sales and leading positions across cardiovascular and neuromodulation devices, biowearables, laboratory, point-of-care and cancer diagnostics, and established medicines.
ABT Stock’s Price Performance
Abbott’s stock has gained 6.7% since the release of third-quarter 2026 earnings on Oct. 21. Over the past six months, shares have risen 28.4%, outpacing the broader Medical sector and the S&P 500. The stock also fared much better than peers Intuitive Surgical (ISRG - Free Report) and ResMed (RMD - Free Report) , whose shares gained 2.8% and 18%, respectively.
Image Source: Zacks Investment Research
Abbott’s Q3: Quick Segmental Recap
Within Diagnostics, Core Lab sales grew 5.5% year over year, driven by strong performance in the United States, Europe, Japan, and Latin America. Management noted that testing data from thousands of instruments across the United States and global markets continued to point to healthy, stable demand in the third quarter, consistent with the trend observed in July. Meanwhile, Cancer diagnostics growth of 14% was led by Cologuard, with contributions from Abbott’s Precision Oncology and international businesses.
EPD sales grew 8.5%, driven by continued strength in emerging markets. Abbott's broad portfolio of prescription and over-the-counter medicines posted double-digit growth in several countries across Asia, Latin America and the Middle East.
Medical Devices sales increased 8% in the quarter, reflecting broad-based growth across the portfolio. Abbott's Electrophysiology business saw growth in the mid-to-high teens, excluding Left Atrial Appendage (LAA), with U.S. growth exceeding 20%. Increasing adoption of the Volt PFA catheter supported performance, with uptake accelerating in September after its full U.S. market release in mid-August. International growth also gained pace, driven by continued market share gains in Europe, stronger demand for the new PFA catheters and growth across other product categories.
Rhythm Management sales rose 10%, led by the expanding adoption of Aveir single- and dual-chamber pacemakers across U.S. and international markets. In Diabetes Care, third-quarter continuous glucose monitoring sales increased 8% year over year.
Nutrition sales grew 5%, with growth across all four categories: U.S. pediatric, international pediatric, U.S. adult and international adult. Management attributed the performance to a more balanced growth strategy, with a sustainable mix of volume- and price-driven growth.
How Abbott’s 2026 Guidance Looks Now?
Abbott reaffirmed the midpoint of 2026 adjusted EPS guidance but narrowed the range to $5.50-$5.55. The company now expects comparable sales growth of approximately 6%, down from its earlier forecast of 6.5-7.5%.
Image Source: Zacks Investment Research
CEO Robert Ford attributed the revised sales outlook mainly to near-term headwinds in Electrophysiology, driven by ongoing LAA market dynamics. Abbott also experienced a slowdown in U.S. orders after receiving the CE Mark for its new Amulet 360 LAA device, with some accounts appearing to be delaying purchases ahead of its availability.
In Diabetes Care, growth is also expected to moderate to the low-to-mid-single-digit range in the coming quarters. Management cited slower penetration of the Type 2 diabetes market without significant new reimbursement expansion, along with increased pricing pressure in international markets amid rising competition. The planned Nutrition business separation will have no impact on Abbott's 2026 guidance.
ABT Stock’s Valuation
From a valuation standpoint, Abbott trades at 18.24X forward five-year earnings, below its median of 22.93X and the sector average of 22.20X.
Image Source: Zacks Investment Research
Meanwhile, peers, which include Intuitive Surgical and ResMed, trade at higher forward earnings multiples of 42.85X and 19.06X, respectively.
Abbott Expands Cancer Diagnostics With New Wins
Abbott’s Cancer Diagnostics business is emerging to be an important growth engine. In late September, the company announced the U.S. commercial launch of SimpleScreen, a blood-based colorectal cancer (CRC) screening test developed and manufactured by Freenome for adults aged 45 and older who are at average risk for the disease. SimpleScreen joins Cologuard Plus in Abbott’s CRC screening portfolio, providing another option for people who might otherwise go unscreened.
Abbott is also preparing to bring Cologuard Plus to select European markets after receiving CE Mark approval under the European Union’s In Vitro Diagnostic Medical Devices Regulation. The rollout will vary by country, depending on local health care pathways, reimbursement and operational readiness. In addition, the company announced the commercial availability of its next-generation Oncodetect molecular residual disease test, aiming to provide molecular insights during and after cancer treatment.
End Note
Abbott’s broad-based growth in the third quarter of 2026 highlights the strength of its diversified healthcare portfolio. Growth across EPD and Medical Devices reflected strength in emerging markets, rising Volt PFA adoption and continued international momentum. Its planned Nutrition separation marks a strategic shift, allowing both companies to pursue distinct growth and value-creation strategies. New product launches and regulatory approvals are expanding Abbott’s Cancer Diagnostics portfolio and market reach. However, near-term headwinds in Electrophysiology and Diabetes Care have led management to lower its 2026 sales growth forecast.
The stock has outpaced key benchmarks and peers over the past six months and remains less expensive than the broader Medical sector. Considering these factors, ABT stock appears to be a worthwhile option to hold on to. Prospective investors may want to wait for a more favorable entry point.
Currently, Abbott carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.