ABBOTT LABORATORIES Q1 FY26 earnings call ABT

Abbott completed its acquisition of Exact Sciences on March 23, 2026, adding a cancer-diagnostics franchise expected to contribute ~$3 billion of incremental sales in 2026 and accelerate long-term growth. Q1 results include Exact from close through quarter-end, but Abbott restated both FY sales growth (6.5–7.5%) and Q1 growth (+3.7%) on a comparable basis that folds full-quarter Exact sales into prior and current year — the same approach used for St. Jude and COVID splits. FY adjusted EPS midpoint fell to $5.48 from $5.68, entirely the assumed $0.20 of deal dilution, worsened in Q1 by earlier-than-planned financing costs.

Diagnostics grew 2% comparable. Core Lab rose 3% on U.S., Europe and Latin America strength, with China Core Lab now flat versus 30–50% quarterly declines a year ago as VBP laps; management models China at a single-digit decline for the year and expects mid-single-digit core-lab growth overall. Rapid & Molecular fell 10% on a much weaker respiratory-virus testing season. U.S. core-lab win rates run 55%+ with 90%+ contract renewals. Cancer diagnostics grew 13% comparable on mid-teens Cologuard and high-teens international.

Medical Devices grew 8.5%, led by double-digit cardiovascular growth: electrophysiology +13% (U.S. +14% on Volt PFA launch; Europe mid-teens on the Duo catheter), Rhythm Management +13% (third straight double-digit quarter), and heart failure +12%. Abbott moved its left atrial appendage business out of structural heart into EP effective January 1, contributing to a Street-model disconnect in structural heart, which still faced mitral competitive intensity and U.S. execution issues. Both Volt and Duo are in limited-market-release; management targets EP growing faster than the mid-to-high-teens market by year-end.

CGM sales were $2 billion, up 7.5%, held back by an international tender-renewal delay and a tough 1H25 shelf-restocking comparison; management expects a return to double-digit growth in Q2. Ford reframed weak U.S. weekly TRx data as myopic, sizing the global CGM opportunity at 70–80 million people (vs ~10–12 million today) and a $30–35 billion TAM. Near-term catalysts include an anticipated type-2 non-insulin reimbursement decision (~10 million newly covered, not in guidance), a 2H26 dual-analyte (ketone) approval opening ~1 million pump patients and ~5 million SGLT2 users, and a Libre 5 in development.

Nutrition finished slightly ahead of expectations as the Q4-2025 strategic pricing reset — targeted by product and geography at price-elastic lines such as U.S. adult nutrition — began driving volume as lower prices reach consumers through the channel. Management uses 1H25 as the volume baseline and expects growth to improve over the year, aided by new product launches, while stressing near-term challenges won't drive long-term portfolio decisions. EPD (pharma) grew 9% on broad-based double-digit growth across Latin America and Asia Pacific, supported by five therapeutic areas and an expanding biosimilars portfolio including market-leading oncology therapies.

Ford framed Exact as a beachhead into the full cancer-diagnostics band (screening, therapy selection, MRD), not a one-product deal, with Jay Corbel leading a stand-alone unit reporting directly to him. Cologuard durability rests on ~50 million Americans not up to date on CRC screening, constrained U.S. colonoscopy capacity (~6 million/year, 3–9 month waits), a 2021 guideline age cut from 50 to 45 (possible future cut to 40 adding ~20 million), a 1,000-person primary-care sales force, ~200,000 HCPs prescribing quarterly, and a growing rescreen base (25% of tests, ~500,000 patients/year, eligible every 3 years). CRC screening's 3x star-rating weight for Cologuard vs FIT drives care-gap program demand; international expansion is being organized.

On Middle East conflict exposure, management sees no oil/resin or freight cost impact yet and no demand or reimbursement drop-off — only minor Q1 friction getting product into the region given lean inventory, being addressed with more local warehouse stock. Guidance philosophy is deliberately conservative: Ford declined to forecast a make-up respiratory season into Q4, and excluded the type-2 non-insulin CGM catalyst. Pipeline setup includes two PFA catheter launches, completed CATALYST LAAC enrollment, an extravascular ICD development start, a positive basal-insulin Libre RCT, and 2H26 enrollment starts for a balloon-expandable TAVR valve, leadless conduction-system pacing, a Cephea mitral replacement, a CSI-derived peripheral IVL device, and a wearable continuous lactate monitor.