Abbott Laboratories (NYSE:ABT) reported first-quarter 2026 results that management said were “aligned with our expectations for the start of the year,” as the company absorbed weaker respiratory testing demand and earlier-than-planned financing costs tied to its newly closed acquisition of Exact Sciences.
Chairman and CEO Robert Ford said Abbott delivered adjusted earnings per share of $1.15, consistent with guidance, despite “a weaker than expected respiratory season.” The quarter also marked “an important strategic milestone,” he said, with the completion of the Exact Sciences deal on March 23.
Exact Sciences acquisition reshapes portfolio and reporting
CFO Phil Boudreau said first-quarter reported results include Exact Sciences from the close date through quarter-end, but Abbott is now emphasizing comparable sales growth metrics that include Exact Sciences sales in both the prior and current-year periods. “To align with our reporting of comparable sales growth, our full year 2026 sales growth outlook of 6.5%–7.5% is now on a comparable basis as well,” Boudreau said.
Boudreau also updated earnings expectations to reflect the acquisition’s impact. Compared with the prior full-year adjusted EPS guidance midpoint of $5.68, the new midpoint of $5.48 reflects $0.20 of dilution related to the Exact Sciences deal, which he said was consistent with assumptions at the time the transaction was announced.
First-quarter performance: respiratory testing weakness offsets growth elsewhere
On a comparable basis, Abbott’s first-quarter sales increased 3.7%, and adjusted EPS rose 6% year over year, Boudreau said. Foreign exchange provided a favorable year-over-year impact of 4% on first-quarter sales, reflecting U.S. dollar weakness earlier in the quarter.
Ford outlined performance across major segments:
- Diagnostics: Core Lab Diagnostics sales increased 2% on a comparable basis, driven by 3% growth across the U.S., Europe, and Latin America. Core Lab test volumes (excluding capital equipment and digital solutions) increased year over year and sequentially, a trend Ford said he expects to continue and support higher growth in the second half. Rapid and molecular diagnostics sales declined 10% due to lower respiratory virus testing demand amid a “much weaker respiratory season.”
- Cancer diagnostics: Sales grew 13% on a comparable basis, driven by “mid-teens” growth of Cologuard and “high teens” growth in international markets, Ford said.
- Nutrition: Sales finished “slightly ahead” of expectations, with results reflecting lower volumes versus the prior year and the impact of strategic pricing actions taken in the fourth quarter of 2025 to re-accelerate volume growth. Ford said early data indicates the intended effect, with volume growth “beginning to follow our pricing actions.”
- Established Pharmaceuticals (EPD): Sales increased 9% with broad-based growth, including double-digit gains in several countries across Latin America and Asia Pacific.
- Medical devices: Sales grew 8.5%, led by cardiovascular devices, including double-digit growth in electrophysiology, heart failure, and rhythm management.
Devices and pipeline: PFA launches, trial progress, and upcoming studies
In electrophysiology, Ford said sales rose 13% with contributions from two pulsed field ablation (PFA) catheter launches. He highlighted 14% U.S. growth tied to the Volt PFA launch and mid-teens growth in Europe supported by the TactiFlex Duo catheter launch. Ford said Abbott expects electrophysiology growth to accelerate as both catheters broaden beyond limited market releases.
Rhythm management grew 13%, marking the third consecutive quarter of double-digit growth, while heart failure grew 12% driven by Abbott’s heart assist device portfolio.
In diabetes care, Ford said continuous glucose monitoring (CGM) sales were $2 billion and grew 7.5%, reflecting a delay in an international tender renewal process and a difficult comparison to the prior year tied to shelf-restocking dynamics in early 2025. He said Abbott expects CGM to return to double-digit growth in the second quarter.
Ford also pointed to several pipeline developments, including earlier-than-planned approval and launch of two new PFA catheters, completion of patient enrollment in the CATALYST left atrial appendage (LAA) device trial, and initiation of work on an implantable extravascular ICD. He also cited a randomized controlled trial indicating people with type 2 diabetes on basal insulin benefited from using Libre, including HbA1c reductions and increased time in healthy glucose range.
Guidance approach and key themes from Q&A
In response to questions on guidance philosophy, Ford said Abbott’s decision to move to comparable growth reporting is intended to provide “clear, transparent” disclosure of performance for the “new Abbott portfolio” after the Exact Sciences acquisition. He added that Abbott took a more conservative stance on respiratory testing assumptions after the season came in “even weaker” than anticipated, saying he did not think it was prudent to forecast making up the shortfall later in the year based on an uncertain flu season.
On CGM market concerns raised during Q&A, Ford cautioned against relying solely on U.S. weekly prescription data to assess the total market. He said Abbott estimates 70–80 million people globally “should be” on CGMs versus an estimated 10–12 million currently, arguing the market remains underpenetrated. He also said Abbott expects proposed language “coming soon” related to coverage expansion for type 2 non-insulin patients, though he did not provide a specific timeline, and reiterated Abbott’s expectation for approval of its dual analyte system in the second half of the year.
On Core Lab Diagnostics, Ford said China Core Lab sales were flat in the quarter after declines of 15%–30% in each quarter last year. He said Abbott is modeling China at a single-digit decline for the year, while noting the team performed better than that in the first quarter. In the U.S., Ford cited high single-digit growth, contract renewal rates “call it 90%+,” and win rates “55%+,” which he described as winning about one out of every two new business opportunities.
Abbott also discussed operational considerations tied to the Middle East conflict. Ford said Abbott has not seen oil-related cost impacts yet and described the quarter’s effect as primarily logistical—getting product into the region—rather than demand or reimbursement-related.
Looking ahead, Boudreau forecast second-quarter adjusted EPS of $1.25–$1.31, and said foreign exchange is expected to have a relatively neutral impact on second-quarter sales, with an estimated favorable impact of approximately 1% on full-year reported sales based on current rates.
Ford said Abbott remains confident in its expectation for an acceleration in growth in the second half of 2026, pointing to nutrition execution, accelerating electrophysiology and Core Lab diagnostics trends, continued strength in EPD and devices, and the ongoing integration of Exact Sciences.
About Abbott Laboratories (NYSE:ABT)
Abbott Laboratories is a global healthcare company headquartered in Abbott Park, Illinois, that develops, manufactures and markets a broad portfolio of medical products and services. Founded in 1888, Abbott operates through multiple business areas that focus on diagnostics, medical devices, nutritionals and established pharmaceuticals. The company supplies hospitals, clinics, laboratories, retailers and direct-to-consumer channels with products intended to diagnose, treat and manage a wide range of health conditions.
In diagnostics, Abbott provides laboratory and point-of-care testing platforms and assays used to detect infectious diseases, chronic conditions and biomarkers; its Alinity family of instruments and rapid-test solutions are examples of this capability.
