$ABT · ABBOTT LABORATORIES
Abbott's 10-Q for Q3 FY2026 shows net sales of $13.013B, up 14.5% YoY, but net earnings dropped to $920M ($0.53 diluted EPS) from $1,644M ($0.94) a year earlier. Operating earnings fell to $1,358M from $2,057M as amortization of intangibles nearly doubled to $841M and interest expense rose to $350M from $121M. The balance sheet reflects a large acquisition: goodwill jumped to $32.6B from $24.0B and long-term debt to $29.5B from $9.9B, with $20.1B spent on business acquisitions in the nine months.
- Revenue rose 14.5% YoY to $13.013B, led by Diagnostic Products up 46.7% to $3,305M.
- Net earnings fell 44% to $920M; diluted EPS dropped to $0.53 from $0.94.
- Amortization of intangibles nearly doubled to $841M; interest expense rose to $350M from $121M.
- Goodwill rose to $32.6B and long-term debt to $29.5B after $20.1B in acquisitions.
- Abbott plans a tax-free spin-off of its Nutrition business by end of 2027.
Shares closed +5.59% at $115.51, but extended-hours trading slipped to $114.25 (-1.09% vs close), suggesting the EPS decline tempered the revenue-driven rally.
A major acquisition-driven quarter shows Abbott growing the top line while earnings compress sharply, with a Nutrition spin-off reshaping the portfolio.
Diagnostics strength (up 46.7%) contrasts with a softer medtech backdrop, while the Nutrition spin-off mirrors broader healthcare portfolio-simplification trends.
Rising amortization and interest expense from the $20.1B acquisition program are compressing earnings; the Nutrition spin-off remains subject to regulatory approvals and board sign-off.