Abbott Trims 2026 Profit Forecast Following Exact Sciences Acquisition

Abbott Laboratories has revised its 2026 profit outlook downward due to the financial impact of its $23 billion acquisition of Exact Sciences, the company announced on April 16, 2026. The medical device maker now expects adjusted earnings per share to range between $5.38 and $5.58 for the full year 2026, down from its previous forecast of $5.55 to $5.80 per share.

The revision reflects a 20-cent-per-share headwind from the Exact Sciences deal, which closed earlier in 2026. Despite the near-term profit pressure, Abbott CEO Robert Ford emphasized that the acquisition adds a high-growth cancer diagnostics business to the company’s portfolio, citing contributions from Exact’s flagship Cologuard colorectal cancer test and Oncotype DX breast cancer test.

Abbott’s first-quarter 2026 results, released concurrently with the forecast revision, showed modest beats on both earnings, and revenue. On an adjusted basis, the company reported profit per share of $1.15, surpassing the analysts’ estimate of $1.14. Total revenue reached $11.16 billion, exceeding the consensus forecast of $11 billion.

Strength in Abbott’s medical devices segment, particularly its diabetes care business, helped offset challenges elsewhere. Quarterly sales in the medical devices segment grew 13.2% to $5.54 billion, driven by demand for continuous glucose monitors, which saw sales increase 14.2% year-over-year. The diagnostics segment too posted growth, with sales rising 6.1% to $2.0 billion.

While the Exact Sciences acquisition represents one of Abbott’s largest deals to date, the company views it as a strategic move into the rapidly expanding cancer diagnostics market. The integration is expected to help offset revenue declines from legacy COVID-19 testing products and provide long-term growth opportunities.

Key Takeaways

• Abbott’s 2026 adjusted EPS forecast lowered to $5.38-$5.58 from $5.55-$5.80 due to Exact Sciences acquisition impact.
• The deal imposes a 20-cent-per-share headwind on 2026 profitability.
• First-quarter 2026 adjusted EPS came in at $1.15 vs. $1.14 estimate; revenue at $11.16B vs. $11B estimate.
• Medical devices segment sales grew 13.2% to $5.54B, with continuous glucose monitor sales up 14.2%.
• Diagnostics segment sales increased 6.1% to $2.0B, bolstered by Exact Sciences integration.

Frequently Asked Questions

Why did Abbott lower its 2026 profit forecast?

Abbott lowered its 2026 profit forecast specifically due to a 20-cent-per-share negative impact from its $23 billion acquisition of Exact Sciences, which closed in early 2026. The company stated this headwind is related to integration costs, amortization of intangible assets, and other expenses associated with the large-scale deal.

What is the strategic rationale behind Abbott’s acquisition of Exact Sciences?

Abbott acquired Exact Sciences to gain access to its market-leading cancer diagnostics portfolio, including the Cologuard non-invasive colorectal cancer screening test and the Oncotype DX breast cancer recurrence test. The move aims to diversify Abbott’s revenue streams beyond its traditional medical devices and nutrition businesses into the high-growth oncology diagnostics sector, while also helping to offset declining sales from pandemic-era COVID-19 testing products.

How did Abbott’s core businesses perform in the first quarter of 2026?

Abbott’s medical devices segment delivered strong performance in Q1 2026, with sales growing 13.2% to $5.54 billion, primarily driven by sustained demand for diabetes care products such as continuous glucose monitors, which saw sales increase 14.2%. The diagnostics segment also grew, with sales rising 6.1% to $2.0 billion, reflecting the initial contribution from Exact Sciences’ cancer testing portfolio following the acquisition.

What are the long-term expectations for the Exact Sciences integration?

While Abbott acknowledged near-term profitability pressure from the Exact Sciences acquisition, CEO Robert Ford characterized the deal as a strategic addition of a high-growth business to the portfolio. The company expects the integration to provide long-term revenue diversification and growth opportunities in the cancer diagnostics market, helping to counterbalance volatility in other segments like pandemic-related testing.

Abbott Trims 2026 Profit Forecast Following Exact Sciences Acquisition

Abbott Laboratories has revised its 2026 profit outlook downward due to the financial impact of its $23 billion acquisition of Exact Sciences, the company announced on April 16, 2026. The medical device maker now expects adjusted earnings per share to range between $5.38 and $5.58 for the full year 2026, down from its previous forecast of $5.55 to $5.80 per share.

The revision reflects a 20-cent-per-share headwind from the Exact Sciences deal, which closed earlier in 2026. Despite the near-term profit pressure, Abbott CEO Robert Ford emphasized that the acquisition adds a high-growth cancer diagnostics business to the company’s portfolio, citing contributions from Exact’s flagship Cologuard colorectal cancer test and Oncotype DX breast cancer test.

Abbott’s first-quarter 2026 results, released concurrently with the forecast revision, showed modest beats on both earnings and revenue. On an adjusted basis, the company reported profit per share of $1.15, surpassing the analysts’ estimate of $1.14. Total revenue reached $11.16 billion, exceeding the consensus forecast of $11 billion.

Strength in Abbott’s medical devices segment, particularly its diabetes care business, helped offset challenges elsewhere. Quarterly sales in the medical devices segment grew 13.2% to $5.54 billion, driven by demand for continuous glucose monitors, which saw sales increase 14.2% year-over-year. The diagnostics segment also posted growth, with sales rising 6.1% to $2.0 billion.

While the Exact Sciences acquisition represents one of Abbott’s largest deals to date, the company views it as a strategic move into the rapidly expanding cancer diagnostics market. The integration is expected to help offset revenue declines from legacy COVID-19 testing products and provide long-term growth opportunities.

Key Takeaways

• Abbott’s 2026 adjusted EPS forecast lowered to $5.38-$5.58 from $5.55-$5.80 due to Exact Sciences acquisition impact.
• The deal imposes a 20-cent-per-share headwind on 2026 profitability.
• First-quarter 2026 adjusted EPS came in at $1.15 vs. $1.14 estimate; revenue at $11.16B vs. $11B estimate.
• Medical devices segment sales grew 13.2% to $5.54B, with continuous glucose monitor sales up 14.2%.
• Diagnostics segment sales increased 6.1% to $2.0B, bolstered by Exact Sciences integration.

Frequently Asked Questions

Why did Abbott lower its 2026 profit forecast?

Abbott lowered its 2026 profit forecast specifically due to a 20-cent-per-share negative impact from its $23 billion acquisition of Exact Sciences, which closed in early 2026. The company stated this headwind is related to integration costs, amortization of intangible assets, and other expenses associated with the large-scale deal.

What is the strategic rationale behind Abbott’s acquisition of Exact Sciences?

Abbott acquired Exact Sciences to gain access to its market-leading cancer diagnostics portfolio, including the Cologuard non-invasive colorectal cancer screening test and the Oncotype DX breast cancer recurrence test. The move aims to diversify Abbott’s revenue streams beyond its traditional medical devices and nutrition businesses into the high-growth oncology diagnostics sector, while also helping to offset declining sales from pandemic-era COVID-19 testing products.

How did Abbott’s core businesses perform in the first quarter of 2026?

Abbott’s medical devices segment delivered strong performance in Q1 2026, with sales growing 13.2% to $5.54 billion, primarily driven by sustained demand for diabetes care products such as continuous glucose monitors, which saw sales increase 14.2%. The diagnostics segment also grew, with sales rising 6.1% to $2.0 billion, reflecting the initial contribution from Exact Sciences’ cancer testing portfolio following the acquisition.

What are the long-term expectations for the Exact Sciences integration?

While Abbott acknowledged near-term profitability pressure from the Exact Sciences acquisition, CEO Robert Ford characterized the deal as a strategic addition of a high-growth business to the portfolio. The company expects the integration to provide long-term revenue diversification and growth opportunities in the cancer diagnostics market, helping to counterbalance volatility in other segments like pandemic-related testing.