Abbott Laboratories raised its profit forecast for 2026, attributing the increase to robust performance in its diagnostics and heart devices segments. The announcement came after the company reported quarterly sales of $12.59 billion, surpassing analysts' expectations of $12.5 billion, on Thursday.
Key Details
Abbott's medical devices segment saw a 9% growth, reaching $5.85 billion, exceeding estimates of $5.82 billion, according to LSEG data. The company's Diabetes Care segment, which includes continuous glucose monitoring products like FreeStyle Libre, reported an 11% increase in sales to $2.19 billion. Adjusted profit per share for the quarter was $1.31, above the estimated $1.28.
The company now expects adjusted profit for 2026 to range between $5.45 and $5.60 per share, up from its previous forecast of $5.38 to $5.58 per share. Abbott's cancer diagnostics business, which includes the recently acquired Exact Sciences' colorectal cancer screening test Cologuard and breast cancer assay Oncotype DX, is helping to offset declines in revenue from Covid-19 testing products.
Background
Analysts noted that while medical device companies face challenges due to weaker surgical volumes and rising uninsured patient levels, Abbott's focus on electrophysiology and structural heart procedures positions it to remain resilient. Investors are monitoring the impacts of these trends on the broader medical device market.
Abbott's updated profit forecast could positively influence investor sentiment in the medical devices sector, particularly for companies focused on diagnostics and heart procedures. The strong sales figures may lead to increased interest in Abbott's shares and those of similar firms. Watch for the upcoming earnings reports from other medical device makers for further insights into sector performance.