ABT · Q2 FY2026
ABBOTT LABORATORIES Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $11.164B | $11.140B (yr ago) | Beat |
| EPS | $0.61 | $1.01 (yr ago) | Miss |
| Free Cash Flow | $0.916B | $1.540B (yr ago) | Miss |
| Gross Margin | 39.4% | Not disclosed (yr ago) | Miss |
| Operating Margin | 12.0% | 18.4% (yr ago) | Miss |
What changed
Revenue was essentially flat year over year, but profitability deteriorated: operating margin fell to 12.0% from 18.4%, EPS declined 39.6%, and free cash flow declined 40.5%. Net debt also increased to $22.8B from $4.4B at FY2025, materially changing the balance-sheet profile.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We establish an initial fair value of $104 per share: stable revenue and trailing free cash flow support the valuation, but the margin contraction and higher net debt prevent a premium conclusion.