Strong Financial Performance: Abbott reported a second quarter adjusted earnings per share (EPS) of $1.26, reflecting an 11% year-over-year growth and exceeding consensus estimates. Sales growth for the second quarter was up 6.9%, or 7.5% excluding COVID testing, with 8% growth for the first half of the year. Gross margin increased by 100 basis points to 57%.

Key Business Segment Insights: - Nutrition: Sales rose 3.5%, driven mainly by Adult Nutrition products Ensure and Glucerna. - Diagnostics: Sales declined 1.5%, with expected headwinds from COVID testing declines and volume-based procurement challenges in China, which caused significant impacts on full-year growth projections. - Established Pharmaceuticals (EP): Strong performance with nearly 8% growth, particularly in key emerging markets. - Medical Devices: Notable growth of 12%, driven primarily by diabetes care and heart failure management, including a 19.5% increase in sales of continuous glucose monitors.

Challenges and Risks: The company faces headwinds from a decline in COVID testing, estimated to impact diagnostics growth by $700 million or 750 basis points for the year. Additional risks include disruption in China¡¯s core lab market and ongoing issues with HIV testing funding affecting sales.