Stock Markets April 16, 2026 07:40 AM

Abbott Posts Narrow Beat as Exact Sciences Buy Cuts 2026 Outlook

Quarterly results aided by device strength and new diagnostics unit; acquisition trims next year's adjusted earnings guidance

By Hana Yamamoto ABT
Abbott Posts Narrow Beat as Exact Sciences Buy Cuts 2026 Outlook
ABT

Abbott delivered a slight upside to Wall Street's first-quarter profit and revenue forecasts, helped in part by its recently acquired cancer diagnostics business. The company trimmed its 2026 adjusted EPS outlook by $0.20 to reflect the impact of the $23 billion Exact Sciences acquisition, and shares moved lower in premarket trading.

Key Points

  • Abbott marginally outperformed analyst estimates in Q1 with adjusted EPS of $1.15 and revenue of $11.16 billion.
  • The $23 billion acquisition of Exact Sciences reduces Abbott's 2026 adjusted EPS guidance by $0.20 to a range of $5.38 to $5.58.
  • Sectors impacted include healthcare services, medical devices, and diagnostics, with investor sentiment reflected in a roughly 2 percent premarket share decline.

Abbott reported a modest beat on both adjusted earnings and revenue for the first quarter, with performance partially supported by the cancer diagnostics business the company acquired earlier this year. Management also highlighted continued momentum in its medical device division, which remains the largest revenue contributor.

On an adjusted basis, Abbott posted first-quarter earnings per share of $1.15, narrowly exceeding the LSEG-compiled analyst consensus of $1.14. Total revenue for the period totaled $11.16 billion, ahead of the $11.0 billion that analysts had forecast.

Despite the quarterly beat, Abbott said its 2026 adjusted profit-per-share forecast will be reduced by $0.20 as a direct consequence of the company's recent acquisition of Exact Sciences, the cancer test maker bought for $23 billion. The company now anticipates adjusted EPS in the range of $5.38 to $5.58 for 2026, down from its prior guidance of $5.55 to $5.80.

Shares of the medical device maker were trading about 2 percent lower in premarket activity after the guidance adjustment was announced. Chief Executive Robert Ford described the Exact Sciences acquisition as adding another high-growth business to Abbott's portfolio, while the company continues to cite strength in its device operations.


Context and takeaways

  • First-quarter adjusted EPS: $1.15 versus $1.14 expected.
  • First-quarter revenue: $11.16 billion versus $11.0 billion expected.
  • 2026 adjusted EPS guidance: $5.38 to $5.58, down from $5.55 to $5.80, reflecting a $0.20 impact tied to the $23 billion Exact Sciences acquisition.

These results illustrate a combination of near-term operational resilience and the accounting or financial impact of a large acquisition. The newly acquired cancer diagnostics unit contributed to the quarter's results, while the core medical device business continued to perform well on a revenue basis.

Market reaction

Investors reacted to the guidance reduction, with shares falling roughly 2 percent before the market opened. The company framed the Exact Sciences purchase as strategic, emphasizing growth potential for the diagnostic business even as the transaction weighs on next year's adjusted profit outlook.

The information above reflects the company-provided figures and commentary regarding the acquisition and near-term guidance. No additional forward-looking inferences are offered beyond the statements reported by the company.

Risks

  • The 2026 adjusted profit forecast has been lowered by $0.20 due to the Exact Sciences acquisition, introducing earnings uncertainty for the healthcare and diagnostics sectors.
  • Near-term investor reaction to the guidance adjustment has driven a share price decline, reflecting market sensitivity in the medical device and diagnostics space.
  • Integration and financial impacts from a large acquisition may create variability in future results, affecting healthcare equipment and diagnostic testing markets.

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