Health Care
Abbott Laboratories reported 13.0% net sales growth to $12.6B in Q2 2026, driven primarily by the $20.6B acquisition of Exact Sciences (now reported as Cancer Diagnostics within Diagnostic Products), alongside high single-digit growth in Medical Devices and Established Pharmaceutical Products, while gross margin slightly compressed to 52.5% due to acquisition-related intangible amortization.
Key risk: Ongoing IRS Tax Disputes (2017-2020 Tax Years)
Abbott has received multiple Statutory Notices of Deficiency (SNODs) from the IRS totaling over $1 billion in proposed adjustments for the 2017-2020 tax years, primarily related to income reallocation between U.S. entities and foreign affiliates. Abbott has filed petitions with the U.S. Tax Court contesting these assessments and believes the adjustments are without merit, but litigation outcomes remain uncertain.
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