Shares of Abbott Laboratories (NYSE:ABT) fell 3.2% on Thursday morning after the healthcare conglomerate marginally beat Wall Street estimates for quarterly profit and revenue, but flagged a hit to its 2026 earnings outlook from its recently completed cancer diagnostics acquisition.
Investors weighed near-term earnings strength against dilution from the company’s roughly $23 billion acquisition of Exact Sciences.
The company reported first-quarter results for the period ended March 31, with sales rising 7.8% on a reported basis and 3.7% on a comparable basis. It said results slightly topped analyst expectations.
GAAP diluted earnings per share came in at $0.61, while adjusted diluted EPS was $1.15, up 6% and excluding specified items.
Abbott said the Exact Sciences acquisition, completed on March 23, establishes it as a leader in oncology diagnostics and expands its presence in a new high-growth segment, but will weigh on near-term earnings.
The company forecast 2026 adjusted diluted earnings per share of $5.38 to $5.58, compared with a prior outlook of $5.55 to $5.80, citing about $0.20 of dilution tied to the deal.
It also maintained expectations for full-year 2026 comparable sales growth of 6.5% to 7.5%.
Abbott had previously guided to steady growth entering the year, and reiterated confidence in its trajectory despite integration costs from the acquisition.
“Our first-quarter results were aligned with our expectations to start the year,” Chairman and CEO Robert Ford said. “The acquisition of Exact Sciences adds another high-growth business to the Abbott portfolio, further strengthening our confidence in delivering accelerating growth as we move through the year.”