Didn't see the recovery in China we were expecting, says Abbott Labs CEO on lowering guidance

Financial Performance - The company delivered high single-digit sales growth [2] - EPS (Earnings Per Share) grew by 11%, exceeding expectations [2] - Gross margin expanded by 100 basis points (1%) [2] - The company maintains its 2026 guidance for high single-digit growth and double-digit EPS [5] Business Operations & Challenges - Diagnostics business experienced a setback due to a slower-than-expected recovery in China [3][4] - Revenue guidance for the diagnostics business was adjusted, delaying the China recovery from Q2 to Q4 [4] - Other regions showed recovery in the diagnostics business: United States grew 7%, Europe grew 8%, Latin America grew 16% [3] - The company is a $44.5 billion revenue business growing 7.5% to 8% [5] Market Outlook - Analysts have largely maintained their price targets and forecasts, suggesting the issue is an overreaction [5] - The fundamentals of the company's business remain intact despite the diagnostics challenges [5]