Beta Finch - Abbott - ABT - EN

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

**JORDAN:** And I'm Jordan. We've got a genuinely big one today — Abbott Laboratories dropped some major news alongside their Q3 numbers.

**ALEX:** We'll get to that in a second, but first — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** With that out of the way, Alex, let's start with the headline because it's not every day a 138-year-old company announces it's splitting itself in two.

**ALEX:** Right — Abbott announced it's spinning off its entire nutrition business into a standalone, publicly traded company by the end of 2027. We're talking about Similac, PediaSure, Ensure, Glucerna, Pedialyte — the whole $8.5 billion nutrition empire, 16,000 employees, 14 manufacturing sites. CEO Robert Ford said this would actually be the largest pure-play healthy nutrition company in the world, and they expect it to qualify for S&P 500 inclusion on its own.

**JORDAN:** And the CEO pick is interesting too — Daniel Salvadori, who's run their Established Pharma and Nutrition division, is taking the reins of the new company. Ford called his team "battle-tested," which, if you've followed Abbott's infant formula saga the last few years — recalls, litigation, supply shortages — that's not an exaggeration.

**ALEX:** The strategic logic here is basically: nutrition used to be a healthcare-professional-driven category, now it's a consumer wellness category, and those two worlds need different playbooks, different investment cycles, different marketing muscle. Ford's view is both companies do better focused and independent rather than living under one roof.

**JORDAN:** And for shareholders, it's structured as a tax-free spin — you'll own shares of both companies when it's done. Abbott's also planning to have the new nutrition company raise some debt, with proceeds flowing back to Abbott, and both companies will maintain investment-grade ratings.

**ALEX:** What's the math on what's left behind? Because that's really the investor question here.

**JORDAN:** Right, this is the key number. CFO Phil Boudreau said stripping nutrition out of the current portfolio, Abbott's remaining business — MedTech, Diagnostics, Established Pharma — would see sales growth accelerate by 50 to 100 basis points, gross margin expand by over 200 basis points, and operating margin up roughly 100 basis points. So the pitch is: a leaner, faster-growing, higher-margin Abbott emerges on the other side.

**ALEX:** Now let's talk actual Q3 results, because they were solid. Sales grew 7%, EPS grew 9% — both numbers accelerating from the first half of the year. Adjusted EPS came in at $1.42, right in line with guidance and consensus.

**JORDAN:** Breaking it down by segment — Diagnostics grew 6.5%, with Core Lab up 5.5% on strong demand across the U.S., Europe, Japan, and Latin America. But the real story there is Cancer Diagnostics, up 14%, largely thanks to the Exact Sciences integration — that's Cologuard. They also just launched their first blood-based colorectal cancer screening test in September, making Abbott the only company offering both stool-based and blood-based options.

**ALEX:** Nutrition — even as it heads for the exit — actually had a good quarter. Sales up 5%, broad-based across all four categories. Pediatric nutrition was the standout at 9% growth, helped by those WIC contract wins that let Abbott reclaim market leadership.

**JORDAN:** Medical Devices grew 8%, led by electrophysiology and rhythm management, both posting double-digit growth. The Volt PFA catheter is gaining serious traction after its

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Welcome to Beta Finch, your AI-powered earnings breakdown. Here's the Abbott Labs (ABT) Q2 2026 script.

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, joined as always by Jordan, and today we're digging into Abbott Laboratories' second quarter 2026 results. Before we jump in, quick disclaimer — this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks, Alex. And there's a lot to like in this print. Let's start with the headline numbers.

**ALEX:** Right, so Abbott posted sales growth of 4.8% for the quarter — that's an acceleration from the last two quarters — and adjusted EPS of $1.31, which beat both the midpoint of their guidance and consensus estimates.

**JORDAN:** And here's the part investors really zeroed in on — Abbott didn't just reaffirm full-year sales guidance of 6.5% to 7.5%, they actually raised their EPS guidance range to $5.45 to $5.60. CEO Robert Ford was pretty clear that gross margin expansion is doing a lot of the heavy lifting there — margins came in at 58%, up 100 basis points year-over-year.

**ALEX:** Let's talk segments, because there's a real story of divergence here. Medical devices grew 8.5%, led by electrophysiology — that's the heart rhythm and ablation business — which grew in the low teens. EPD, their emerging markets pharma division, grew 9%, powered by India, Latin America, and Southeast Asia.

**JORDAN:** Diagnostics was mixed. Core lab was strong, U.S. up 7.5%. But rapid and molecular diagnostics — that's respiratory testing — declined 8% because it was just a weak flu and respiratory virus season. That's expected and temporary though, not a demand problem.

**ALEX:** And then nutrition — this is the comeback story of the quarter. Sales came in ahead of expectations for the second straight quarter, up sequentially by $125 million. Ensure retail consumption in the U.S. is up double digits.

**JORDAN:** Yeah, that's the price increases from late last year finally working through the system — volumes are responding well now that consumers have adjusted. Management is now framing nutrition as a sustainable 2-4% grower going forward.

**ALEX:** Let's get into the strategic stuff, because there's a lot of pipeline news. Abbott completed enrollment in its coronary IVL trial, filed with the FDA for the Amulet 360 left atrial appendage device, and got a CE mark in Europe for Libre Duo — which is notable, it's the world's first dual glucose-ketone monitoring sensor, designed to help prevent diabetic ketoacidosis.

**JORDAN:** The CGM story is worth sitting with for a second. Diabetes care crossed $2 billion in quarterly sales, growing 9.5%. Now, one analyst on the call kind of poked at that number as "only" 9.5%, and Ford pushed back — reasonably, I'd say. He pointed out there's 75 to 80 million people globally who could realistically use a CGM, and only 15 million currently do. Growth right now is basically waiting on reimbursement expansion, especially the big one: U.S. Type 2 non-insulin Medicare coverage, which could unlock roughly 10 million beneficiaries. Ford said that could happen this fall but wouldn't pin down an exact date.

**ALEX:** They're also planning a fifth manufacturing facility for CGM sensors — a billion-dollar investment — because they expect to hit capacity limits at their current facility within a couple years. That's a pretty strong signal of how bullish they are on long-term demand.

**JORDAN:** One theme that came up repeatedly in the Q&A was this investor worry about decelerating hospital procedure volumes — tied to ACA enrollment changes and Medicaid dynamics.

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**BETA FINCH PODCAST SCRIPT**

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and I'm here with my co-host Jordan to dive into Abbott Laboratories' Q1 2026 earnings call. Jordan, this was a pretty significant quarter for Abbott - they just closed their acquisition of Exact Sciences back in March.

**JORDAN**: Absolutely, Alex. And before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX**: Thanks for that reminder. So let's talk numbers first. Abbott reported adjusted earnings per share of $1.15 for Q1, which was right in line with their guidance despite some headwinds. Revenue-wise, they're now reporting what they call "comparable growth" of 3.7%, which includes Exact Sciences in both current and prior year numbers.

**JORDAN**: That comparable growth metric is really interesting, Alex. CEO Robert Ford explained they're doing this to give investors a cleaner apples-to-apples view of the combined business. It's similar to what they did during COVID when they separated out COVID sales, or when they acquired St. Jude. The goal is transparency.

**ALEX**: Right, and looking forward, they've updated their full-year guidance to 6.5% to 7.5% comparable sales growth. But here's what caught my attention - their adjusted EPS guidance midpoint dropped from $5.68 to $5.48. That $0.20 dilution is directly from the Exact Sciences acquisition, which was expected.

**JORDAN**: Let's break down the business segments because there were some really interesting dynamics. Medical Devices was the star performer with 8.5% growth. The Electrophysiology business grew 13%, and get this - they had earlier-than-planned approvals for two new pulsed field ablation catheters.

**ALEX**: Those PFA catheters are a big deal, Jordan. The Volt PFA catheter helped drive 14% growth in the U.S., while the TactiFlex Duo catheter contributed to mid-teens growth in Europe. Ford seemed pretty bullish about acceleration in the EP business as these launches broaden.

**JORDAN**: And speaking of acceleration, the continuous glucose monitoring business had some interesting dynamics. CGM sales were $2 billion but only grew 7.5% due to an international tender delay and some tough comparisons from last year's shelf restocking. But management expects a return to double-digit growth in Q2.

**ALEX**: That's a key point. During the Q&A, Ford was asked about concerns that the CGM market might be saturated. His response was fascinating - he said they estimate 70 to 80 million people globally should be on CGM, but the current market is only 10 to 12 million people. That's massive underpenetration.

**JORDAN**: He also mentioned some upcoming catalysts, including expected CMS coverage for type 2 non-insulin patients, which could add close to 10 million people who currently don't have coverage. Ford was very clear he hadn't baked that into guidance, so it could be upside if it materializes.

**ALEX**: Now let's talk about the Exact Sciences integration. This was really the elephant in the room. Ford named Jake Orville to lead that business, reporting directly to him. The Cologuard business grew 13% on a comparable basis, with mid-teens growth of the core Cologuard product.

**JORDAN**: What struck me was Ford's long-term vision here. He doesn't see this as just a one-product deal, but as a beachhead into the entire cancer diagnostics space - screening, therapy selection, and MRD testing. He pointed out that about 50 million Americans aren't up to date with colorectal cancer screening.

**ALEX**: And internationally, Ford said it's very underpenetrated. Abbott brings established regulatory and distribution relationships that could really accelerate international expansion. He even mentioned traveling to

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**Beta Finch Podcast Script: Abbott Laboratories Q4 2025 Earnings**

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**ALEX:** Welcome back to Beta Finch, your AI-powered earnings breakdown where we dive deep into the numbers that move markets. I'm Alex, and as always, I'm joined by my co-host Jordan. Today we're unpacking Abbott's fourth quarter 2025 results, and folks, there's quite a story here.

Before we jump in, I need to share our standard disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

Now Jordan, Abbott just reported their Q4 numbers, and CEO Robert Ford had some interesting things to say about the year ahead. What caught your attention first?

**JORDAN:** Alex, the headline numbers tell a tale of two companies, honestly. On one hand, you've got Abbott delivering on their original double-digit EPS growth target with adjusted earnings per share hitting $1.50 – that's 12% growth year-over-year. But then there's this nutrition business headwind that's creating some near-term challenges.

**ALEX:** Right, and let's talk about that guidance because it's pretty telling. For 2026, Abbott is projecting organic sales growth of 6.5% to 7.5% – so 7% at the midpoint – and they're calling for 10% growth in adjusted EPS. That EPS growth is solid, but that revenue guidance seems a bit more cautious than what some were expecting.

**JORDAN:** Exactly, and Ford was pretty transparent about why. The nutrition business is essentially going through what he called a "transition back to a more sustainable volume-driven business." Here's what's fascinating – Abbott has been raising prices to offset post-pandemic commodity cost increases, but now those higher prices are actually suppressing demand as consumers become more price-sensitive.

**ALEX:** It's like a classic consumer goods dilemma, right? You raise prices to maintain margins, but eventually you price yourself out of volume growth. Ford mentioned they started implementing "price and promotion initiatives" in Q4 to try to reignite volume growth. How big of an impact is this having on the overall company?

**JORDAN:** Well, nutrition is a meaningful piece of Abbott's portfolio, but what I found encouraging is how Ford framed the rest of the business. He said a "significant majority of the company" is either maintaining high single-digit growth or actually accelerating. The medical devices segment, for example, grew 10.5% in the quarter.

**ALEX:** And that medical devices growth is really impressive when you dig into the details. Continuous glucose monitors grew 17% for the full year, exceeding $7.5 billion in sales. That's the third consecutive year their CGM business has grown by more than a billion dollars. Jordan, when an analyst asked about CGM growth expectations, Ford had a pretty confident response.

**JORDAN:** He did! Ford pushed back on the narrative that the CGM market is slowing down, saying "I don't consider growing a billion dollars every single year and doing it four years in a row to be slowing down." He sees continued penetration opportunities across all patient groups – intensive insulin users, basal insulin users, and non-insulin users. Plus, there's potential for expanded reimbursement coverage for non-insulin Type 2 diabetes patients.

**ALEX:** Speaking of new products, Abbott got FDA approval for their BOLT PFA catheter in December and CE Mark approval for their Tactiflex Duo ablation catheter. Ford seemed pretty excited about their electrophysiology portfolio positioning.

**JORDAN:** Absolutely. He made this great point about how three years ago, there were concerns that Abbott's EP franchise would struggle without PFA technology, but they've maintained double-digit growth even without those products. Now with Volt launching in the US and Tactiflex Duo internationally, Ford said "I do

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