Abbott revises downward its profit outlook and faces pressures on multiple fronts, including acquisitions, slowdowns in some divisions, and legal disputes. Despite quarterly results slightly above expectations, the group signals a short-term impact related to the acquisition of oncology testing company Exact Sciences, while challenges arise in nutrition and growth in some devices.
GUIDANCE CUT AFTER ACQUISITION
Abbott has cut its profit forecasts for 2026, incorporating the impact of the Exact Sciences deal, valued between $21 billion and $23 billion. The company, according to Reuters and Bloomberg, now expects adjusted earnings per share between $5.38 and $5.58, compared to the previous estimate of $5.55 to $5.80. The deal also resulted in a negative effect of 20 cents per share.
According to the information provided, the early closing of the acquisition required financing earlier than expected. Nevertheless, Abbott maintains a comparable sales growth forecast for 2026 between 6.5% and 7.5%.
The stock reacted negatively, with declines between 4.6% and 5% and a 19% loss year-to-date.
QUARTERLY RESULTS AND OPERATING DYNAMICS
In the quarter, Abbott reported adjusted earnings per share of $1.15, above or in line with analysts’ expectations, and revenues of $11.2 billion. Growth was supported by oncology diagnostics and medical devices, which remain the main business area with sales of $5.54 billion.
The diagnostics division benefited from the integration of tests such as Cologuard, with quarterly revenues of $2.18 billion, above estimates. However, the overall performance was described as “disappointing” by some analysts cited by Bloomberg, who highlighted a slowdown in diabetes devices and competitive pressures in the structural heart devices segment.
“The quarter reflects the impact of a delay in the renewal process related to an international tender,” said CEO Robert Ford, adding that he expects continuous glucose monitoring systems to return to double-digit growth in the second quarter.
PRESSURES ON NUTRITION AND GROWTH STRATEGIES
The nutrition segment, notes Bloomberg, showed signs of weakness, with sales of about $2.02 billion, in a context of price adjustments and promotions to attract more cost-sensitive consumers. The company also plans to launch six new nutritional products in 2026 to support growth.
At the same time, Abbott continues to rely on the acquisition of Exact Sciences as a long-term lever. The deal, writes Reuters, is expected to contribute about $3 billion in incremental sales and strengthen the position in diagnostics, offsetting the decline in revenues related to Covid-19 tests.
THE (SO FAR) LIMITED IMPACT OF THE WAR
On the operational front, according to the news agency, the conflict in the Middle East had limited effects during the quarter, mainly in the form of logistical difficulties and increased competition in transportation. The company, however, responded by increasing inventory in warehouses and local branches to avoid supply disruptions.
Ford also emphasized that it is still too early to assess the impact of rising oil prices on costs and that currently there are no significant increases in transportation rates.
THE SIMILAC LAWSUIT
On the legal front, yesterday Abbott obtained the dismissal of a class action related to Similac infant formula, accused of containing undeclared heavy metals. The judge ruled that the plaintiffs did not demonstrate a concrete risk of consumer deception.
“The statements about ingredients and health on the Similac packaging did not create, under these circumstances, a likelihood of deception,” he wrote. “The fact that Abbott could have provided ‘more specific’ information about heavy metals in Similac does not prove the existence of a real factual dispute over an alleged deceptive practice.”
The lawsuit concerned purchases made between 2019 and 2024 and alleged violations of state consumer protection laws. The case was a follow-up to a proceeding already dismissed in February 2025, with new claims for damages.
