Abbott Laboratories Reports First-Quarter 2026 Results and Updates Guidance Following Exact Sciences Acquisition

Key Financial Highlights

• First-quarter 2026 GAAP diluted EPS: \$0.61
• Adjusted diluted EPS (non-GAAP): \$1.15
• Total Company sales: \$11.164 billion
• Net earnings (GAAP): \$1.077 billion
• Net earnings excluding specified items (non-GAAP): \$2.022 billion
• Year-over-year net sales growth: Up 7.8% (reported), up 3.8% (excluding FX impact), up 3.7% (comparable growth)
• Significant events: Completion of the acquisition of Exact Sciences

Key Segmental Performance

• Nutrition: Revenue declined in the U.S. by 3.6% year-over-year, with total reported sales down 7.7% (excluding FX), and comparable sales also down 7.7%.
• Diagnostics: Total reported sales grew 6.1% year-over-year, with Core Laboratory up 8.1%. Excluding FX, total diagnostics grew 2.5%. The acquisition of Exact Sciences is expected to impact diagnostics growth going forward.
• Established Pharmaceuticals: No U.S. sales reported (business is mainly ex-U.S.), but key emerging markets delivered 9.4% growth year-over-year, with comparable sales up 9.0%.
• Medical Devices: Medical devices saw robust growth, with total reported sales up 13.2% and comparable sales up 8.5%. Several sub-segments recorded double-digit growth, including Diabetes Care, Structural Heart, and Electrophysiology.

Acquisition of Exact Sciences

Abbott completed the acquisition of Exact Sciences during the quarter. This is a significant, potentially price-sensitive event, as Exact Sciences is a leader in cancer diagnostics, particularly non-invasive colorectal cancer screening. The acquisition is expected to strengthen Abbott’s Diagnostics portfolio, drive future revenue growth, and expand the company’s footprint in the fast-growing molecular diagnostics market.

Investors should note that Abbott updated its 2026 guidance to reflect the integration of Exact Sciences. Management expects the acquisition to be accretive to adjusted diluted EPS and to contribute positively to revenue growth in subsequent quarters.

Non-GAAP Adjustments and Items Affecting Comparability

• Abbott provided adjusted (non-GAAP) results that exclude several items:
  • Intangible amortization expense of \$422 million
  • Charges related to restructuring, acquisitions, and other net expenses totaling \$514 million

  The total after-tax impact of these items was \$945 million (\$0.54 per share).

• Comparable sales and earnings exclude the impact of the Exact Sciences acquisition, a new multi-year agreement, and foreign exchange fluctuations to provide a clearer picture of underlying business trends.

Operational and Market Considerations

• Nutrition: The decline in U.S. nutrition sales may be attributed to ongoing market competition and shifting consumer dynamics, which could warrant investor attention if the trend persists.
• Diagnostics: The integration of Exact Sciences positions Abbott for leadership in molecular diagnostics and cancer screening, both considered high-growth markets.
• Medical Devices: Strong growth in Diabetes Care and Structural Heart reflects continued innovation and market adoption of Abbott’s FreeStyle Libre technology and MitraClip for mitral regurgitation.
• Foreign Exchange Impact: FX had a noticeable impact on reported results, particularly in international segments. Excluding FX, growth rates are lower, which is important for investors to consider in evaluating underlying performance.

Forward-Looking Statements and Risks

Abbott has cautioned investors that forward-looking statements, including guidance and expected benefits from the Exact Sciences acquisition, are subject to risks and uncertainties. Key risks include integration challenges, regulatory changes, competitive pressures, and macroeconomic factors. Investors are encouraged to review the company’s latest Form 10-K risk factors for additional details.

Conclusion: Shareholder Considerations

• The completion of the Exact Sciences acquisition and the strong performance in Medical Devices are likely to be viewed positively by the market and could be share price drivers.
• The decline in Nutrition and the impact of foreign exchange are areas of watchfulness for potential future headwinds.
• Investors should monitor management commentary for updates on integration progress, margin improvements, and guidance revisions in upcoming quarters.

Disclaimer: This article is based on publicly available information from Abbott Laboratories’ Q1 2026 SEC filings and earnings releases. It is intended for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties. Investors should consult official regulatory filings and their financial advisor before making investment decisions.

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