These non-GAAP financial measures are reconciled with the comparable GAAP financial measures in our earnings news release and regulatory filings from today, which are available on our website at abbott.com. Unless otherwise noted, our commentary on sales growth refers to organic sales growth, which is defined in the press release issued earlier today. Our sales growth excluded COVID testing sales was 7.5% in the second quarter and 8% in the first half of the year. Our second quarter adjusted earnings per share of $1.26 exceeded the consensus estimate and reflects 11% growth versus the prior year and 16% growth on a sequential basis compared to the first quarter.
Growth in the quarter was driven by 6.5% growth in adult nutrition, where Abbott is the global market leader. Together, these represent a projected headwind of around $700 million or 750 basis points on the full year 2025 sales growth in diagnostics. Excluding China, Core Lab Diagnostics grew 8%, reflecting strong underlying demand in the markets around the world. These markets represent the most attractive areas of growth for branded generic medicines.
The growth in these markets is supported by favorable long-term healthcare, economic, and demographic trends, including higher birth rates, an expanding middle-class aging population, and growing demand for access to high-quality healthcare solutions. We serve this growing demand by offering a broad portfolio of branded generic medicines tailored to local conditions with a focus on key therapeutic areas. I'll wrap up with medical devices, where sales grew 12%, driven by double-digit growth in diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management. In diabetes care, sales of continuous glucose monitors were $1.9 billion in the quarter and grew 19.5%.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS | Q3 2025 | $1.28 to $1.32 (Initiated) |
| FX impact on reported sales | FY 2025 | Relatively neutral (Improved) |
| FX impact on reported sales | Q3 2025 | Approximately +2% favorable (Favorable) |
| Tariff impact | FY 2025 | Just under $200 million (Reduced) |
| Organic sales growth (full-year framework) | FY 2025 | High single-digit growth (Reaffirmed) |
| Metric | YoY | Note |
|---|---|---|
| Total company sales | +6.9% (or +7.5% excluding COVID testing) | Broad-based growth led by medical devices and pharma, partly offset by diagnostics declines. |
| Nutrition | +3.5% | Driven by 6.5% growth in adult nutrition on strong Ensure and Glucerna demand. |
| Diagnostics | -1.5% | Year-over-year decline in COVID testing sales and China volume-based procurement; Core Lab grew 8% excluding China. |
| Established Pharmaceuticals (EPD) | +~8% | Strong performance in the key 15 markets which surpassed $1 billion in quarterly sales for the first time. |
| Medical devices | +12% | Double-digit growth across diabetes care, heart failure, structural heart, electrophysiology, and cardiac rhythm management. |
| Diabetes care (CGM) | +19.5% | Strong Libre demand across intensive insulin, basal, and non-insulin user segments; U.S. Libre up nearly 26%. |
| Structural Heart | +12% | Continued TAVR share gains, strong TriClip adoption, and contributions from Amulet and MitraClip. |
| Cardiac rhythm management | +10% | Strong uptake of the AVEIR leadless pacemaker in single- and dual-chamber segments. |
| Heart failure | +14% | Double-digit growth in ventricular assist devices and CardioMEMS. |
| Vascular | +3.5% | Double-digit growth in vascular imaging and vessel closure products plus Esprit contributions. |
| Neuromodulation | +4% | Strong Eterna rechargeable spinal cord stimulation performance in international markets. |
| Adjusted gross margin | +100 bps to 57% of sales | Margin expansion versus prior year. |
| Adjusted operating margin | +100 bps to 22.9% of sales | Margin expansion versus prior year. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Diagnostics headwinds (COVID testing, China VBP, HIV funding) | China price impact already in guidance; volume recovery expected | Over $1 billion headwind; viewed as transitory and to be lapped in 2026 | Rising |
| Diabetes care / Libre and dual-analyte (ketone) sensor | Established Libre franchise across segments | Nearly 26% U.S. Libre growth; dual-analyte sensor seen as next-level catalyst for share gains | Rising |
| Electrophysiology and Volt PFA catheter | Faced a portfolio gap; mapping share gains | Double-digit EP growth with U.S. acceleration; Volt rolling out internationally | Rising |
| AVEIR leadless pacemaker / CRM | CRM growth 7% in 2023 and 2024 | 8% first-half growth, 10% this quarter; trained physicians up ~50%, implants per day doubled | Rising |
| Structural Heart (TAVR, mitral, Amulet) | Investing across mitral, tricuspid, TAVR | Navitor sales doubled over two years; Tendyne approved; doubling U.S. TAVR sales team | Rising |
| Tariffs and supply-chain mitigation | Discussed in April call | Impact reduced to under $200 million; multiple work streams and a new U.S. cardiovascular site planned | Steady |
| M&A strategy | — | Favorable environment; selective focus on diagnostics and devices with attractive returns | Steady |
| Biosimilars in emerging markets | — | 10 regulatory submissions completed; launches projected to begin in 2026 | Rising |
| 2026 outlook | — | Confident in high single-digit sales and double-digit EPS as diagnostics headwinds lap | Steady |