Shares of unvested restricted stock that contain non-forfeitable rights to dividends are treated as participating securities and are included in the computation of earnings per share under the two-class method. Under the two-class method, net earnings are allocated between common shares and participating securities. Net earnings allocated to common shares for the three months ended June 30, 2026, and 2025, were $0.9 billion and $1.8 billion, respectively, and for the six months ended June 30, 2026, and 2025, were $2.0 billion and $3.1 billion, respectively.

Other, net in Net Cash From Operating Activities in the Condensed Consolidated Statement of Cash Flows for the first six months of 2026 includes the payment of cash taxes of $856 million. The first six months of 2025 included $246 million of pension contributions and the payment of cash taxes of $945 million.

The following summarizes the activity for the first six months of 2026 related to the allowance for doubtful accounts as of June 30, 2026:


(in millions)
Allowance for Doubtful Accounts:
Balance at December 31, 2025	$	290
Provisions/charges to income	49
Amounts charged off and other deductions	(33)
Balance at June 30, 2026	$	306

The allowance for doubtful accounts reflects the current estimate of credit losses expected to be incurred over the life of the accounts receivable. Abbott considers various factors in establishing, monitoring, and adjusting its allowance for doubtful accounts, including the aging of the accounts and aging trends, the historical level of charge-offs, and specific exposures related to particular customers. Abbott also monitors other risk factors and forward-looking information, such as country risk, when determining credit limits for customers and establishing adequate allowances.


(in millions)	June 30, 2026		December 31, 2025
Long-term Investments:
Equity securities	$	747	$	597
Other	364		321
Total	$	1,111	$	918

The increase in Abbott’s long-term investments as of June 30, 2026, compared to December 31, 2025, primarily reflects non-marketable securities acquired in the Exact Sciences acquisition and other investment activity during the period.

Abbott’s equity securities as of June 30, 2026, include $328 million of investments in mutual funds that are held in a rabbi trust. These investments, which are specifically designated as available for the purpose of paying benefits under a deferred compensation plan, are not available for general corporate purposes and are subject to creditor claims in the event of insolvency.

Abbott holds certain investments as of June 30, 2026, including investments accounted for under the equity method with a carrying value of $161 million and other equity investments with a carrying value of $238 million that do not have a readily determinable fair value.