Abbott Laboratories' $23 Billion Acquisition of Exact Sciences Enhances Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy ABT?
Source: Fool
- Revenue Growth: Abbott Laboratories reported a 5.7% increase in revenue for 2025, reaching $44.3 billion, with adjusted earnings per share (EPS) rising 10% to $5.15, indicating recovery potential in its medical devices and pharmaceuticals sectors, although total revenue has yet to return to pre-pandemic peaks.
- Acquisition Deal: Abbott is finalizing its $23 billion acquisition of Exact Sciences, which saw an 18% revenue increase to $3.2 billion in 2025, expected to enhance Abbott's diagnostics segment and strengthen its foothold in the rapidly growing oncology diagnostics market.
- Market Challenges: Despite strong growth in Abbott's medical devices and pharmaceuticals, sales in its nutrition and diagnostics segments have stagnated due to legal issues and FDA recalls related to FreeStyle Libre 3, leading to diminished investor interest in the stock.
- Future Outlook: Abbott anticipates adjusted EPS for 2026 to be in the range of $5.55 to $5.80, a 10% increase, while the cancer diagnostics market is projected to grow from $109.6 billion in 2024 to $155 billion by 2030, showcasing the company's long-term growth potential in the healthcare sector.
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Analyst Views on ABT
Wall Street analysts forecast ABT stock price to rise
19 Analyst Rating
17 Buy
2 Hold
0 Sell
Strong Buy
Current: 96.810
Low
136.00
Averages
148.11
High
169.00
Current: 96.810
Low
136.00
Averages
148.11
High
169.00
About ABT
Abbott Laboratories is a global healthcare company. The Company’s principal business is the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products. Its segments include Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products. Diagnostic Products segment is involved in the worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. Nutritional Products segment is engaged in the worldwide sales of a broad line of adult and pediatric nutritional products. Medical Devices segment is involved in the worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. It serves people in more than 160 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Multi-Biomarker Detection: Abbott's new data indicates that the multi-cancer early detection (MCED) approach, which combines methylation and protein biomarkers, significantly enhances cancer detection accuracy, particularly in early stages, supporting the commercial Cancerguard® test.
- DETECT-A Study Outcomes: The AACR will present the Cancer Prevention Research Award recognizing the multi-year outcomes from the DETECT-A study, which showed that after a median follow-up of approximately four years, all patients treated for stage I or II cancers remained alive and cancer-free, highlighting the clinical impact of MCED.
- Signal Analysis: In a prospectively collected case-control study, 47.1% of positive cancer signals were driven by methylation alone, 7.4% from protein-only, and 45.5% from combined biomarker signals, demonstrating the broad detection capabilities of MCED across various cancer types and stages.
- Future Screening Potential: Abbott's Chief Medical Officer Tom Beer stated that the long-term follow-up of MCED provides critical insights into the future of cancer screening, especially as nearly 70% of cancer types lack recommended screening, suggesting that MCED could significantly increase early detection rates and improve patient outcomes.
See More
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- Da Vinci Surgical Robot: Intuitive Surgical's Da Vinci surgical robot, priced over $1 million, offers hospitals various options and boasts 150 design innovations and 10,000 times the computing power of its predecessor, helping the company maintain market leadership with a 19% revenue growth in the last quarter.
- Abbott Laboratories Diversification: Abbott Laboratories achieves diversification through its four business units—medical devices, diagnostics, pharmaceuticals, and nutrition—ensuring that when one segment faces challenges, others can provide support, enhancing overall company safety.
- Attractive Dividend Growth: As a 'Dividend King' that has raised its dividend for 50 consecutive years, Abbott's current stock price at 17 times forward earnings, down from 22 times in early 2026, makes it a compelling healthcare stock to invest in following recent market turbulence.
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- Market Volatility Impact: The stock market has experienced volatility recently, with the S&P 500 shifting between gains and losses, leading to increased investor concerns about the economy, interest rates, and geopolitical conflicts, which have dampened stock demand.
- Intuitive Surgical Earnings Growth: Intuitive Surgical (NASDAQ: ISRG) reported a 19% revenue increase and a 17% rise in Da Vinci procedures in the latest quarter, demonstrating its market leadership in robotic surgery and a strong recurring revenue stream.
- Abbott Laboratories Diversification Advantage: Abbott (NYSE: ABT) benefits from its diversified business model across medical devices, diagnostics, pharmaceuticals, and nutrition, which has provided revenue stability, particularly during the pandemic when diagnostics surged to offset declines in medical devices.
- Dividend Growth Appeal: As a
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- Enbridge's Stability: Enbridge offers a robust 5.4% dividend yield and has increased its dividend for 31 consecutive years, operating over 18,000 miles of crude oil and 19,000 miles of natural gas pipelines, ensuring stability and visible growth opportunities in the energy sector.
- Realty Income's Growth Potential: Realty Income provides a 5% dividend yield and has also raised its dividend for 31 years, with a high occupancy rate of 98.9% and a diversified tenant base, positioning it well for growth, particularly in the European market.
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- Realty Income's Monthly Dividend Advantage: Realty Income offers a 5% dividend yield and has also increased its dividend for 31 consecutive years, with its unique monthly payment structure providing investors with more frequent cash flow, supported by a high occupancy rate of 98.9% that demonstrates resilience during economic downturns.
- Market Expansion and Competitive Edge: Realty Income's promising opportunities in Europe, with a total addressable market of $8.5 trillion and limited competition, are expected to drive sustained growth, while its diversified tenant base enhances its risk resilience.
See More
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- Signs of Market Recovery: The rise in healthcare stocks suggests that investors may be reassessing the growth potential of the healthcare industry while seeking safe-haven assets amid increasing economic uncertainty.
- Increased Investor Attention: The uptick in healthcare stocks could attract more investor interest, particularly as the healthcare sector is viewed as a relatively stable investment choice in the current economic climate, potentially leading to increased capital inflows.
- Optimistic Industry Outlook: The upward trend in the healthcare sector may reflect market optimism regarding future medical innovations and policy support, further driving stock price increases for related companies.
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