By Siddhi Mahatole
July 16 (Reuters) – Abbott beat estimates for quarterly results and raised its annual profit forecast on Thursday, driven by strong demand for its newly acquired cancer diagnostics business and heart devices, sending its shares up nearly 4% premarket.
Abbott’s 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.
Cancer Diagnostics results were helped by mid-teens growth of Cologuard, which is benefiting from a growing base of both new and repeat users, Abbott said.
Analysts are watching medtech firms, as weaker surgical volumes and rising uninsured levels pressure elective procedures, though Abbott is expected to remain relatively resilient due to its electrophysiology and structural heart focus.
Abbott’s quarterly sales in its medical devices segment grew 9% to $5.85 billion, beating estimates of $5.82 billion, according to LSEG data.
Sales in its diagnostics segment in the second quarter grew 42% to $3.09 billion, beating the estimate of $3.02 billion.
Abbott’s Diabetes Care segment, which includes its continuous glucose monitoring (CGM) products like the FreeStyle Libre and Lingo, reported a 10.5% rise in sales to $2.19 billion.
“It appears the global CGM market has settled into an 8% to 12% growth range, and think Abbott will remain in the 8% to 10% growth range moving forward,” said J.P.Morgan analyst Robbie Marcus.
For the second quarter, the medical device maker reported adjusted profit per share of $1.31, beating analysts’ estimate of $1.28, while total revenue came in at $12.59 billion, slightly above estimates of $12.5 billion.
The company expects an adjusted profit in the range of $5.45 to $5.60 per share for 2026, compared with its previous forecast between $5.38 and $5.58 per share.
Abbott expects third-quarter adjusted profit per share between $1.38 and $1.46, compared with analysts’ estimate of $1.42.
(Reporting by Siddhi Mahatole and Christy Santhosh in Bengaluru; Editing by Maju Samuel)
