Abbott Laboratories (ABT) Acquires Exact Sciences, Forecasts 10% EPS Growth for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Should l Buy ABT?
Source: seekingalpha
- Innovation Leadership: Abbott showcased its leadership in innovation and strategic execution in 2025, with CEO Ford highlighting regulatory approvals for multiple products like Volt and TactiFlex Duo PFA, enhancing its competitive position in the market.
- Acquisition Expansion: Abbott's acquisition of Exact Sciences successfully enters the cancer diagnostics market, adding a high-growth vertical that is expected to provide strong revenue growth potential for the company in the future.
- Nutrition Business Challenges: While the Medical Devices segment achieved a 10.5% sales growth, Abbott's Nutrition business faced a sales decline due to market share loss, with Ford indicating a shift towards volume-driven growth through new pricing and promotional strategies.
- 2026 Outlook: Abbott forecasts adjusted earnings per share for 2026 between $5.55 and $5.80, reflecting a midpoint growth of 10%, alongside expected organic sales growth of 6.5% to 7.5%, demonstrating the company's confidence in future performance.
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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: 87.170
Low
136.00
Averages
148.11
High
169.00
Current: 87.170
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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- Core Growth Drivers for AbbVie: AbbVie's leadership in immunology led to $15 billion in revenue in Q1, a 12.4% year-over-year increase, with Skyrizi and Rinvoq contributing $6.6 billion, showcasing strong market performance, though it faces competitive risks.
- Dividend Growth History: Johnson & Johnson has raised its dividends for 64 consecutive years compared to AbbVie's 54 years, indicating stronger financial stability and long-term investment appeal, particularly in the current market environment, with its AAA credit rating further enhancing its attractiveness as a low-risk investment.
- Market Risks and Opportunities: While Johnson & Johnson faces litigation risks related to its talc products, its diversified portfolio enables it to navigate challenges like drug pricing negotiations, whereas AbbVie shows potential in new product launches, especially with its weight-loss treatment performing well in clinical trials.
See More
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- McDonald's Stable Income: McDonald's has extended its dividend growth streak to 49 years with a 5% increase last year, and its current yield of 2.6% significantly exceeds the S&P 500's 1.1%, making it an ideal choice for income investors, while its 60% payout ratio provides flexibility for reinvestment.
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- Abbott Laboratories' Growth Potential: Abbott has a 54-year dividend growth streak and has increased its payout by over 70% since 2020; despite a 30% drop in stock price this year, its acquisition of Exact Sciences positions it for leadership in oncology diagnostics, with a forecasted sales growth rate of at least 6.5%.
- Timing the Investment: With current economic conditions, McDonald's, Procter & Gamble, and Abbott are trading near their 52-week lows at 24 and 21 times earnings, indicating relatively cheap valuations and providing long-term investors with excellent buying opportunities.
See More
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- Significant Dividend Growth: Since its spin-off in 2013, AbbVie has increased its dividend by over 332%, with a 33% growth in the past five years, and a current dividend yield of 3.27%, which, although below historical averages, still reflects the company's robust profitability.
- Realty Income's Monthly Dividends: Realty Income, known as
See More
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- AbbVie Dividend Growth: AbbVie's board declared a quarterly cash dividend of $1.73 per share, payable on May 15, 2026, demonstrating the company's ability to increase dividends for 54 consecutive years, even amidst patent expiration challenges, while maintaining robust business growth.
- Dividend Yield Performance: AbbVie's forward dividend yield stands above 3.3%, although below its historical average, yet its solid stock price appreciation and 33% dividend growth over the past five years indicate effective inflation management.
- Realty Income Stability: Realty Income has paid dividends for 670 consecutive quarters since going public in 1994, with a forward dividend yield exceeding 5%, showcasing its ability to generate steady cash flow and maintain a high occupancy rate of 98.9% even during economic fluctuations.
- Market Growth Potential: Realty Income's total addressable market is estimated at $13 trillion, with $8.5 trillion in Europe, indicating significant growth potential in a highly fragmented market, which suggests the company can continue to provide substantial monthly dividends to investors.
See More
Abbott Laboratories Attracts Income Investors
- Yield Approaching 3%: Abbott Laboratories is currently offering a yield nearing 3%, attracting income-focused investors, and despite rising costs, its ongoing business growth remains noteworthy.
- Dividend King Status: As a Dividend King, Abbott has increased its dividends for over 50 consecutive years, a record that not only boosts investor confidence but also indicates the company's strong cash flow and profitability capabilities.
- Market Price Analysis: Market prices as of April 27, 2026, indicate that while the stock isn't a screaming bargain, its stable dividends and growth potential still render it a valuable investment in the healthcare sector.
- Long-Term Growth Potential: Despite current cost pressures, Abbott's business growth and dividend policy suggest strong long-term growth potential, making it a suitable focus for long-term investors.
See More
Abbott Laboratories Attracts Income Investors with 3% Yield
- Dividend Appeal: Abbott Laboratories offers an attractive yield nearing 3%, appealing to income-focused investors while navigating rising cost pressures amidst ongoing business growth.
- Dividend King Status: With over 50 consecutive years of dividend increases, Abbott's record as a Dividend King enhances investor confidence in its long-term value proposition within the healthcare sector.
- Market Performance Analysis: While Abbott's stock isn't considered a bargain, its performance remains noteworthy, particularly when compared to other high-return stocks, indicating robust investment potential.
- Investment Recommendations: Although Abbott was not included in The Motley Fool Stock Advisor's top stock picks, its established position in the healthcare industry and history of dividend growth still make it a noteworthy investment consideration.
See More
