Beta Finch - S&P 100 - EN

More earnings analysis: https://betafinch.com
Groups: CHIPS (https://betafinch.com/groups/CHIPS)
──────────
**Beta Finch Podcast Script**

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

JORDAN: And I'm Jordan. Today we're diving into Applied Materials' Q2 2026 earnings - and wow, what a quarter this was.

ALEX: 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.

JORDAN: Absolutely. Now Alex, Applied Materials just posted some truly impressive numbers. We're talking record revenue of $7.91 billion - that's up 13% sequentially and 11% year-over-year.

ALEX: And it gets better. Their non-GAAP earnings per share hit $2.86, up 20% year-over-year. But Jordan, what really caught my attention was their gross margin crossing 50% for the first time in over 25 years.

JORDAN: That's huge! And CEO Gary Dickerson was pretty clear about what's driving this - it's all about AI. He mentioned that global token generation has increased more than threefold in just the past three months. That's an incredible acceleration.

ALEX: Right, and what's interesting is how AI demand is diversifying. Dickerson talked about "agentic AI" - these aren't just chatbots responding to queries, but AI systems that can plan, reason, and execute tasks autonomously. This is creating demand for more CPU-intensive computing, plus additional DRAM and NAND memory.

JORDAN: Which plays perfectly into Applied's sweet spot. CFO Brice Hill said they expect their semiconductor equipment business to grow more than 30% this calendar year. And get this - their customers are now providing 8-quarter rolling forecasts. That's unprecedented visibility for planning.

ALEX: That long-term visibility is fascinating. It tells us customers aren't just thinking quarters ahead - they're planning years out. Hill mentioned they're tracking over 100 factory projects globally and added more than 10 just in the last quarter.

JORDAN: And Applied is positioning itself right at the center of the most critical technologies. Dickerson said leading-edge foundry logic, DRAM, and advanced packaging will account for more than 80% of wafer fab equipment spending growth in 2026, with a similar profile expected in 2027.

ALEX: Let's talk about their new products. They announced two new solutions for gate-all-around transistors - the Trillium ALD system and a precision PECVD system. These are designed specifically for the complex requirements of AI chips.

JORDAN: The technical details are impressive, but what investors should understand is that these products command premium pricing because they solve critical problems that no one else can. That's how Applied's gross margins have expanded 800 basis points since 2013.

ALEX: Speaking of growth drivers, their Applied Global Services segment hit record revenue of $1.67 billion, up 17% year-over-year. Hill raised their long-term AGS growth expectation to mid-teens annually, potentially higher this year.

JORDAN: That's significant because services typically have higher margins and more predictable revenue streams. With over 35,000 chambers now connected to their AIx software platform, they're using AI to optimize customer operations and drive higher service revenues.

ALEX: Now let's talk about the elephant in the room - China. China represented 24% of their semiconductor systems and services revenue. There are ongoing export restrictions, but management seems confident in their guidance despite these headwinds.

JORDAN: The Q&A session revealed some interesting dynamics. When asked about pricing power given the tight equipment market, Dickerson emphasized they typically work on 2-3 year pricing contracts per project, so changes happen gradually. But their portfolio is getting more valuab

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: CHIPS (https://betafinch.com/groups/CHIPS)
──────────
# Beta Finch Podcast Script - Applied Materials Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we turn complex financial reports into conversations you can actually follow. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Applied Materials' Q1 2026 earnings call - that's AMAT for those keeping score at home.

**ALEX:** 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.

**JORDAN:** Thanks Alex. So Applied Materials - for folks who might not know - they're basically the behind-the-scenes heroes making the tools that manufacture semiconductors. Think of them as the company that makes the machines that make the chips.

**ALEX:** Exactly. And what's interesting about this quarter is we're seeing some really strong AI-driven demand flowing through to their business. CEO Gary Dickerson opened by highlighting "strong demand across AI, foundry-logic, and memory" with customers accelerating their technology roadmaps.

**JORDAN:** Right, and that's showing up in their financials. While they didn't give us specific revenue numbers in this transcript, CFO Brice Hill mentioned they delivered "strong revenue, margins, and cash flow" and that their backlog remains elevated with book-to-bill around unity.

**ALEX:** That book-to-bill metric is key for equipment companies like Applied Materials. When it's at or above 1.0, it means they're booking new orders at the same rate or faster than they're shipping products. It's a good leading indicator of future revenue.

**JORDAN:** What really caught my attention was the breadth of growth drivers they're seeing. It's not just one area - they mentioned AI, advanced packaging, HBM memory, and even improvements in both DRAM and NAND flash memory.

**ALEX:** HBM is High Bandwidth Memory, by the way - it's the super-fast memory that AI chips need to process all that data. Gary Dickerson specifically called out "strong pull for tools supporting HBM" with visibility extending through multiple quarters.

**JORDAN:** And here's something I found fascinating - they're not just riding the AI wave passively. When asked about advanced packaging, Dickerson talked about their "comprehensive toolset across wafer-level packaging, hybrid bonding, and inspection/metrology." They're positioning themselves across the entire value chain.

**ALEX:** That's Applied Materials' sweet spot - materials engineering. They keep emphasizing these complex new chip architectures like gate-all-around transistors and backside power delivery, which create "new materials and integration challenges" where their expertise becomes even more valuable.

**JORDAN:** Speaking of challenges, there was an interesting exchange about China and export controls. Dickerson said demand there "remains mixed by segment, with mature nodes steady and certain leading-edge areas impacted by restrictions." But they seem to be managing this well with their global footprint.

**ALEX:** Right, and what I appreciated was their transparency about supply chain issues. Brice Hill mentioned they're "expanding capacity in critical product lines" and that lead times are improving as they qualify additional suppliers. That's exactly what you want to hear from a company in this space.

**JORDAN:** The services business also looks solid. Hill talked about growth being "supported by our expanding installed base" and higher attachment to performance-based agreements. That's recurring revenue, which investors love because it's more predictable than equipment sales.

**ALEX:** Let's talk about what this means looking forward. One analyst asked about sustainability of AI

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: CHIPS (https://betafinch.com/groups/CHIPS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown of the companies moving the market. I'm Alex.

JORDAN: And I'm Jordan. Today we're digging into Analog Devices' fiscal Q3 2026 results — and Alex, this one's got a headline number that's hard to miss.

ALEX: Before we get into it — quick reminder for everyone listening. 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: Good. Now let's talk numbers. ADI just posted its first-ever $4 billion quarter — $4.02 billion in revenue, up 11% sequentially and 40% year over year. That's a big deal for a company this size.

ALEX: It really is. And it wasn't just one segment carrying the load — growth was broad-based. Industrial was up 53% year over year, automotive up 16%, communications up a massive 84%, and even consumer, which has been the laggard, grew 6%.

JORDAN: Communications is the one that jumps out to me. Data center now makes up 80% of that segment, and it grew over 100% year over year — both optical and power products doubled. That's the AI infrastructure story playing out in real numbers.

ALEX: Right, and it flowed straight to the bottom line. Gross margin hit 72.5%, operating margin was 50%, and EPS came in at a record $3.45 — up 68% from a year ago.

JORDAN: And the guidance for Q4 is even stronger. They're calling for $4.3 billion in revenue and gross margin jumping another 150 basis points to around 74% — levels we haven't seen since the 2022 peak. CFO Rich Puccio said that's coming from favorable mix, higher fixed-cost absorption, and — this caught my ear — price increases that haven't even fully kicked in yet.

ALEX: Let's talk strategy, because CEO Vincent Roche spent a lot of time on what he called the "grid-to-chip" story. Basically, ADI isn't just selling chips that go inside AI servers — they're positioning themselves across the entire power chain, from the electrical grid all the way down to the processor.

JORDAN: This is the part I found most compelling. Power, not compute, is now the bottleneck for AI. Roche made the point that going from 97% to 98% power conversion efficiency sounds trivial, but it cuts heat loss by roughly half — which matters enormously at data center scale. He even quantified it: their Empower acquisition, which lets them deliver power right into the processor package, can save about $30 million a year in a one-gigawatt data center.

ALEX: And on the optical side, they're riding the shift from 800-gigabit to 3.2-terabit networking speeds, with optical circuit switching revenue expected to roughly double this year — and double again in 2027.

JORDAN: The number that really stood out to me, though, was the SAM update — their addressable market for data center and energy by 2030 has more than doubled from what they projected just a year ago. That's not a small revision.

ALEX: Now, the Q&A had some great moments. Analysts kept pushing on one question: how much of this growth is secular versus just a cyclical upswing? Vivek Arya from Bank of America basically asked, "if I annualize your Q4 guide, that implies 20%-plus growth into fiscal 2027 — is that real?"

JORDAN: And Roche didn't shy away from it. He said he expects a "brisk growth year" in 2027, driven by the AI and defense super-cycles, Maxim acquisition synergies — which are on track to hit $1 billion-plus next year — and share gains across auto and consumer. He even said the analog industry, which historically grew mid-single digits, could sustain double-digit growth for years.

ALEX: There was a great historical callback too — an analyst from Evercore asked him to compare this to the late-'90s telecom buildout, which also had big secular promises that ulti

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: CHIPS (https://betafinch.com/groups/CHIPS)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown where we dive into the numbers that matter. I'm Alex, and I'm joined by my co-host Jordan to break down some truly impressive results from Analog Devices.

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.

Jordan, ADI just dropped some seriously impressive Q2 2026 numbers. What jumped out at you first?

JORDAN: Alex, these weren't just good results - they were record-breaking across the board. ADI posted $3.62 billion in revenue, which beat the high end of their guidance and represents 15% sequential growth and a massive 37% year-over-year jump. But here's what really caught my attention: their earnings per share hit $3.09, up 67% year-over-year. That's the kind of growth that makes investors sit up and take notice.

ALEX: Those are some serious numbers. And what's fascinating is that this growth isn't coming from just one area - it's broad-based. Can you break down where this strength is coming from?

JORDAN: Absolutely. The industrial segment, which now represents 50% of their revenue, was the real powerhouse - up 20% sequentially and 56% year-over-year. But what's really exciting is their data center business within communications. This segment grew over 90% year-over-year, and CEO Vincent Roche mentioned it's being driven equally by their optical and power portfolios. That's where the AI infrastructure boom is really showing up.

ALEX: Speaking of AI, they made a pretty significant strategic move during the quarter. Tell us about this Empower Semiconductor acquisition.

JORDAN: This is where things get really interesting from a technology standpoint. ADI is acquiring Empower Semiconductor for their integrated voltage regulator technology and silicon capacitors. Roche described this as the "final piece" of their comprehensive grid-to-core power platform. The compelling part? Empower's technology can allegedly reduce data center power consumption by 10-15% while shrinking power footprints by up to 4x. In an AI world where power efficiency is becoming critical, that's huge.

ALEX: And the timing seems perfect given what we're hearing about power constraints in data centers. What did management say about when this technology will start generating meaningful revenue?

JORDAN: Roche was pretty clear - they expect to see significant revenue starting in 2027. Right now, Empower has minimal revenue, but there are design wins already in the pipeline. The combination of Empower's cutting-edge tech with ADI's manufacturing scale and go-to-market capabilities should accelerate deployment significantly.

ALEX: Let's talk about their automotive business, because that's been a mixed bag across the semiconductor industry lately. How did ADI perform there?

JORDAN: This was actually one of the pleasant surprises. Auto revenue was up 8% sequentially and 2% year-over-year, which doesn't sound massive until you consider the broader auto semiconductor headwinds we've been seeing. What's really impressive is that their battery management systems for EVs returned to year-over-year growth for the first time in two years. CFO Richard Puccio mentioned they saw record performance in Europe and Japan, plus a material pickup in China during the back part of the quarter.

ALEX: That China recovery is interesting. Now, let's talk margins because 73% gross margin is pretty extraordinary. Is this sustainable?

JORDAN: That's the key question. The 73% gross margin was driven by favorable mix, higher utilization, and pricing actions. But Puccio was pretty candid that they're running factories near capacity, so there's limited upside from utiliza

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: CHIPS (https://betafinch.com/groups/CHIPS)
──────────
# Beta Finch Podcast Script - Analog Devices Q1 2026 Earnings

**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we cut through the noise to bring you the most important takeaways from quarterly reports. I'm Alex.

**JORDAN:** And I'm Jordan. Before we dive into today's earnings, I need to share an important 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.

**ALEX:** Thanks Jordan. Today we're breaking down Analog Devices' first quarter 2026 results, and wow - what a quarter this was. ADI absolutely crushed it across the board, with revenue hitting $3.16 billion, up 30% year-over-year and coming in at the high end of guidance.

**JORDAN:** That's right, Alex. And it wasn't just a revenue beat - earnings per share came in at $2.46, up 51% year-over-year, while operating margins expanded to 45.5%. But what really caught my attention was their guidance for Q2. They're projecting $3.5 billion in revenue, which would be about 11% sequential growth - way above their typical 4-5% seasonality.

**ALEX:** Absolutely massive guide. Now Jordan, let's talk about what's driving this performance because CEO Vincent Roche spent a lot of time on the call talking about their AI exposure. They mentioned that their automated test equipment and data center businesses now make up close to 20% of total revenue - that's over $2 billion on a run-rate basis.

**JORDAN:** That's a huge number, and here's the breakdown: about 40% of that AI-related revenue is from automated test equipment, or ATE, which grew about 40% last year and accelerated further in Q1. The remaining 60% is data center, split roughly equally between power management and optical connectivity solutions. Both segments are seeing what Roche called "substantial returns" from their AI investments.

**ALEX:** What I found fascinating was Roche's deep dive into their data center power story. He broke it down into two categories - power delivery, which he called "the vascular system," and power control, which he described as "the brain of the data center energy system." ADI's positioning themselves as essential to managing the massive power requirements of AI infrastructure.

**JORDAN:** Right, and this isn't just theoretical. CFO Richard Puccio mentioned that their data center business grew approximately 50% in fiscal 2025 and saw accelerated growth in the most recent quarter. When you combine that with the ATE growth, you're looking at some serious momentum in their highest-margin businesses.

**ALEX:** Now let's talk about the segment performance because it was pretty broad-based. Industrial, their largest segment at 47% of revenue, was up 38% year-over-year with all subsegments growing at least 25%. That includes record quarters for both ATE and aerospace & defense.

**JORDAN:** Communications was another standout, up 63% year-over-year, driven by that AI data center demand we mentioned plus a cyclical recovery in wireless. Even automotive, which has been a bit soft, still managed 8% year-over-year growth despite some tariff-related headwinds.

**ALEX:** Speaking of automotive, that was one of the more interesting parts of the Q&A. Management acknowledged they're seeing some sequential weakness there, calling it "flat to down" for Q2, largely due to what they called a "tariff and macro pull-in unwind." But they're confident about the second half of the year.

**JORDAN:** Yeah, and CFO Puccio was pretty clear that nothing's changed with their strong market position in automotive. They've been gaining significant content and share, particularly in Level 2+ ADAS systems, and they expect automotive to grow for the full fiscal year despite the firs

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: HEALTHCARE (https://betafinch.com/groups/HEALTHCARE), INCOME (https://betafinch.com/groups/INCOME)
──────────
Welcome to Beta Finch, your AI-powered earnings breakdown. Here's the Abbott Labs (ABT) Q2 2026 script.

---

**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.

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: HEALTHCARE (https://betafinch.com/groups/HEALTHCARE), INCOME (https://betafinch.com/groups/INCOME)
──────────
**BETA FINCH PODCAST SCRIPT**

---

**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 underp

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: HEALTHCARE (https://betafinch.com/groups/HEALTHCARE), INCOME (https://betafinch.com/groups/INCOME)
──────────
**Beta Finch Podcast Script: Abbott Laboratories Q4 2025 Earnings**

---

**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 tech

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: PHARMA (https://betafinch.com/groups/PHARMA)
──────────
ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. Today we're digging into AbbVie's second quarter 2026 results, and 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: And Alex, this was another really strong quarter for AbbVie. Let's just get right into the numbers.

ALEX: Yeah, so adjusted EPS came in at $3.65, which beat guidance by six cents. Total revenue was nearly $17 billion, up 10.2% year over year, and that beat expectations by $300 million. On the back of that, they raised full-year revenue guidance to about $67.6 billion — that's the second raise this year, $600 million total.

JORDAN: What jumps out to me is the breadth of the growth. It's not just one drug carrying the load. SKYRIZI, RINVOQ, and the entire neuroscience portfolio all grew north of 20%. SKYRIZI alone did $5.5 billion in the quarter, up 24%. RINVOQ crossed $2.5 billion, up almost 24%.

ALEX: And that's the story that matters most for AbbVie long-term — how well they've replaced the HUMIRA revenue. Speaking of which, HUMIRA sales were down 36% due to biosimilar competition, but that's expected and honestly just noise at this point given how much SKYRIZI and RINVOQ have scaled up.

JORDAN: Right, HUMIRA is basically a rounding error now compared to where the immunology franchise is headed. Immunology overall did $8.8 billion, up nearly 15%.

ALEX: Let's talk strategy, because the big headline this quarter was the announced acquisition of Apogee Therapeutics. This adds assets in dermatology, respiratory, and other inflammatory diseases — basically deepening that immunology pipeline for the 2030s and beyond.

JORDAN: It's a dilutive deal in the near term — CFO Scott Reents said it's adding about 14 cents of dilution to full-year EPS guidance, which actually more than offset the underlying business over-performance in the updated guidance. But management framed it as setting up growth well past SKYRIZI and RINVOQ's patent cliffs.

ALEX: Which, by the way, got some clarity on this call too. SKYRIZI's composition patent expires in 2033, but CEO Rob Michael pointed out regulatory data protection runs through 2031, and they don't expect biosimilar filings until the end of the decade. So that runway is longer than some investors might assume.

JORDAN: The other big strategic thread was dermatology — RINVOQ picked up European approvals in vitiligo and alopecia areata, and management now sees combined peak sales for those two indications approaching $2 billion, which is well above what they'd previously guided.

ALEX: There was a great exchange in the Q&A about that too — an analyst pushed on how crowded the vitiligo landscape is getting with other mechanisms coming in. Jeff Stewart's response was basically: these immunology markets keep proving to be way more expansive than people expect once a real systemic treatment shows up, and RINVOQ has the head start plus a decade of safety data behind it.

JORDAN: I also want to flag the SKYRIZI subcutaneous induction story in Crohn's disease — that's got an FDA decision expected this fall. Jeff said they expect a "meaningful acceleration" in SKYRIZI's growth once that's approved, partly because it lets physicians avoid juggling two different reimbursement channels. Management expects that benefit to really show up in early 2027.

ALEX: On the pipeline side, there's a lot cooking beyond immunology too. Parkinson's is shaping up as a real growth story — tavapadone has an FDA decision expected in Q3, and Vyalev is on track for blockbuster status this year. Management still sees the Parkinson's franchise collectively hitting more than $5 billion in peak sales.

JORDAN: Oncology got some att

This episode includes AI-generated content.

More earnings analysis: https://betafinch.com
Groups: PHARMA (https://betafinch.com/groups/PHARMA)
──────────
# Beta Finch Podcast Script: AbbVie Q1 2026 Earnings

**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 AbbVie's first quarter 2026 results.

**JORDAN**: Hey everyone! Before we jump in, we 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**: Absolutely. Now Jordan, AbbVie just delivered what I'd call a knockout quarter. They beat expectations across the board and raised guidance - what stood out to you first?

**JORDAN**: The numbers are impressive, Alex. They hit $2.65 in adjusted earnings per share, which was 7 cents above their guidance midpoint. But what really caught my eye was that revenue growth - 12.4% to $15 billion, beating expectations by $300 million. That's some serious momentum.

**ALEX**: And they're not just celebrating - they're doubling down. They raised their full-year EPS guidance by 12 cents to between $14.08 and $14.28. What's driving this confidence?

**JORDAN**: Two words: Skyrizi and immunology. Skyrizi alone pulled in $4.5 billion in sales, up over 29% operationally. CEO Robert Michael specifically called out the "momentum in immunology and neuroscience" with both segments gaining market share in growing markets. This isn't just about riding a wave - they're creating it.

**ALEX**: The Skyrizi story is fascinating because it shows how a well-positioned drug can dominate even in a competitive landscape. Jeff Stewart, their commercial head, mentioned they have "over 4x basically the in-play share" versus their next competitor. How sustainable is that kind of dominance?

**JORDAN**: That's the million-dollar question, Alex. They're facing new competition, including an oral competitor that launched recently. But Stewart seemed pretty confident during the Q&A, pointing to their head-to-head trials across five different mechanisms in psoriasis, superior durability data, and that convenient quarterly dosing. He even suggested the oral competition might expand the market rather than just steal share.

**ALEX**: Speaking of competition, one analyst specifically asked about competitive pressure, and I found Stewart's response really telling. He basically said their audit data shows NBRx - new prescriptions - hitting all-time highs despite having incredibly high market share already. That suggests real physician preference, not just early adoption.

**JORDAN**: Exactly. And they're not just defending Skyrizi - they're expanding it. The subcutaneous induction data for Crohn's disease looked impressive. Dr. Roopal Thakkar highlighted that in treatment-naive patients, 61% achieved endoscopic response and 73% achieved clinical remission. Those are some serious numbers.

**ALEX**: But here's where it gets really interesting - their combination strategy. Tell our listeners about this Skyrizi plus alpha-4 beta-7 antibody data.

**JORDAN**: This is potentially game-changing, Alex. In their platform study, the combination doubled the endoscopic remission rate compared to either drug alone - about 42% of patients at week 24. And remember, this was in severely refractory patients where 82% had failed advanced treatments. Thakkar called it "potentially transformative efficacy."

**ALEX**: The R&D pipeline seems to be the real story here. They're not just maintaining current success - they're building the next generation. What else caught your attention?

**JORDAN**: Their obesity program is heating up. The early data on ABBV-295, their long-acting amylin analog, showed nearly 10% weight loss in just 12 weeks. In a predominantly male, non-obese population, no less. With a 270-hour half-life, they're talking a

This episode includes AI-generated content.