Abbott Laboratories

Q2 performance beat & guidance raised (core message) - Sales: +4.8% comparable in Q2 (noted as acceleration vs prior two quarters). - EPS (adjusted): $1.31, exceeding the midpoint of guidance and consensus. - Gross margin: 58.0% of sales, +100 bps YoY, driven by mix (incl. Exact Sciences), and operational margin initiatives. - Full-year outlook updated: Reaffirmed comparable sales growth guidance: 6.5% to 7.5%. - Full-year EPS guidance raised: $5.45 to $5.60.

Second-half acceleration drivers (why management expects 6.5%–7.5% to hold) - Management said 80% of the second-half “lift” is a “trajectory shift” from four areas: - Nutrition (running slightly ahead of expectations; benefits from pricing actions, execution, and innovation like new Ensure formulations). - Electrophysiology / EP (notably Bolt PFA transitioning from limited to full release; and Tactiflex Duo rollout). - Core Lab (offsetting China VBP pressure; expects China decline to be much lower—mid single digits vs ~30% earlier decline). - Cancer Diagnostics (especially Cologuard momentum and CareGap ramp in the back half). - Q3 EPS guidance: $1.38 to $1.46 (implies continued strength).

Diagnostics demand and “procedure volume” risk reassessment - Investors asked about potential US hospital/procedure volume deceleration (industry concern). - Abbott’s stance: not seeing evidence of a decline; diagnostics volumes (including forward-looking views via instruments) remain strong/stable. - US Core Lab growth: +7.5% in Q2; within it, hospital lab testing/instruments +13%. - Rapid/molecular diagnostics: -8%, attributed to expected seasonal respiratory test weakness (weaker-than-normal season ending in Q2). - Overall message: Abbott views demand as supported by chronic disease exposure and Medicare-weighted device demand, not Medicaid/ACA-driven “spike” dynamics.