Abbott’s Selloff Puts Earnings Growth Under Scrutiny

Abbott Laboratories closed at $97.50 on October 2, down 22.18% so far in 2026, according to an Insider Monkey analysis published October 7. The article said the company’s reported sales growth outpaced comparable growth in its second quarter.

Abbott reported $12.59 billion in second-quarter revenue, up 13% from a year earlier, while comparable sales grew 4.8%. Insider Monkey attributed the difference in part to the Exact Sciences acquisition. Adjusted earnings rose 4% to $1.31 per share.

The company’s medical devices business made up more than 46% of revenue, the article said. It also described Abbott’s operations across diagnostics, medical devices, nutrition and pharmaceuticals, and cited the company’s record of 411 consecutive quarterly dividend payouts since 1924.

Insider Monkey said Abbott had $32.72 billion in debt as of the latest quarter. It also cited $9.91 billion in operating cash flow and $7.21 billion in levered free cash flow over the trailing 12 months.

The analysis called Abbott more reasonably valued after the decline, but said its appeal depends on whether earnings growth accelerates enough to support its valuation. It cited a forward price-to-earnings ratio of 17.09 and said reported growth had benefited from the acquisition.