Abbott turned in a stronger than expected second quarter, allaying market concerns that subsidy cuts to the Affordable Care Act by the Trump administration would hurt medtech firms.
That worry was triggered by news that hospital operator HCA warned in its quarterly earnings Tuesday that is was seeing a shift in payers due to an increase in uninsured patients in the wake of the cuts.
However, Abbott’s quarterly results showed a 42% gain to reach $3.09 billion for its diagnostics division versus the same period last year, and medical devices increased 9% to $5.85 billion for the quarter.
Total sales for the quarter were $12.59 billion compared to $13 billion recorded during the same period last year, and its adjusted EPS came in at $1.31.
The quarterly results beat Wall Street expectations that pegged EPS at $1.28 and revenues of $12.52 billion.
“I think it’s (the HCA news) less of a concern for the companies… that are in the markets that we’re operating in,” Robert Ford, Abbott chair and CEO, said during a call with analysts, adding that the company is closely aligned with a number of major chronic conditions (diabetes, cardiovascular disease and cancer) that patients are “less likely to forego insurance” to continue treatment.
The company’s cancer diagnostics were propelled by “mid-teens” growth of its popular Cologuard colon cancer test that Abbott acquired in November 2025 as part of a $23 billion acquisition of Exact Sciences.
Additionally, the company raised its full-year EPS guidance to between $5.45 to $5.60 versus its previous guidance of $5.38 to $5.58. Abbott also shelled out $2.1 billion in dividend and share repurchases during the second quarter.
“We have momentum building across the portfolio and clear line of sight to the key drivers of sales growth acceleration that are forecasted in the second half,” Ford said. “Our continued focus on gross margin expansion gives us confidence in raising our full year EPS guidance.”