Abbott Laboratories’ Quarterly Earnings Preview: What You Need to Know

With a market cap of $174.7 billion, Abbott Laboratories (ABT) is a diversified healthcare company that develops medical devices, diagnostics, nutrition products and pharmaceuticals. The Abbott Park, Illinois-based company operates in more than 160 countries and serves more than 2 billion people globally.

The company is expected to unveil its fiscal Q3 2026 results on Wednesday, Oct. 21, before the market opens. Ahead of the event, analysts forecast ABT to post an adjusted EPS of $1.43, a rise of 10% from $1.30 in the same quarter last year. It has surpassed or met Wall Street's bottom-line projections in the past four quarters.

For fiscal 2026, analysts expect the medical device maker to report adjusted EPS of $5.52, a 7.2% growth from $5.15 in fiscal 2025. Moreover, adjusted EPS is anticipated to increase 10.1% year over year to $6.08 in fiscal 2027.

ABT stock has decreased 26.2% over the past 52 weeks, lagging behind the broader S&P 500 Index's ($SPX) 14% rise and the State Street Health Care Select Sector SPDR ETF's (XLV) 21% return over the same period.

Abbott has lagged the broader market over the past year as weakness in its Nutrition and Diagnostics businesses, slower FreeStyle Libre growth, and continued pressure in China have weighed on performance. Investor concerns have also been heightened by the Exact Sciences acquisition, which added debt, interest expense and amortization costs, along with tariff and broader cost pressures. 

The stock has also faced a lingering overhang from the 2022 infant-formula recall and contamination investigation. Abbott recently agreed to pay $385 million to settle related claims after the temporary closure of its Sturgis, Michigan, facility and the recall of Similac and other formulas disrupted its infant-formula business, strained supply and created ongoing legal and reputational concerns, although the company maintains that the settlement does not constitute an admission of fault.

On the bright side, on Sept. 17, Abbott declared a quarterly dividend of $0.63 per share, payable Nov. 16, 2026. The payment marks its 411th consecutive quarterly dividend since 1924. Abbott has also increased its dividend for 54 consecutive years, earning it a place in the S&P 500 Dividend Aristocrats Index.

However, analysts' consensus rating on ABT stock is bullish, with a "Strong Buy" rating overall. Out of 29 analysts covering the stock, opinions include 21 "Strong Buys," two "Moderate Buys," and six "Holds." The average analyst price target is $121.15, suggesting a potential upside of 22.6% from current levels. 

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.