Abbott raises 2026 profit forecast on strength in diagnostics, heart devices

[WASHINGTON] Abbott beat estimates for quarterly results and raised its annual profit forecast on Thursday (Jul 16), banking on strong demand for its newly acquired cancer diagnostics business, sending its shares up nearly 4 per cent premarket.

Abbott said its cancer diagnostics business, which now includes recently acquired Exact Sciences’ flagship colorectal cancer screening test, Cologuard, and breast cancer assay Oncotype DX, is helping offset ongoing declines in revenue from Covid-19 testing products.

Analysts and investors are closely watching medical device makers as companies with elective procedure exposure are expected to face pressure due to weaker surgical volumes and rising uninsured patient levels.

However, companies like Abbott, which focus on electrophysiology and structural heart procedures, are expected to remain relatively resilient.

Abbott’s quarterly sales in its medical devices segment grew 9 per cent to US$5.85 billion, beating estimates of US$5.82 billion, according to LSEG data.

Abbott’s Diabetes Care segment, which includes its continuous glucose monitoring (CGM) products like the FreeStyle Libre and Lingo, reported an 11 per cent jump in sales to US$2.19 billion.

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The medical device maker reported quarterly adjusted profit per share of US$1.31, beating analysts’ estimate of US$1.28.

Total revenue came in at US$12.59 billion for the second quarter, compared with expectations of US$12.5 billion.

The company expects an adjusted profit in the range of US$5.45 to US$5.60 per share for 2026, compared with its previous forecast between US$5.38 and US$5.58 per share. REUTERS