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How Abbott's Diagnostics Unit Is Shaping Up Through the Rest of 2026
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Key Takeaways
Abbott Diagnostics sales rose 2.5% in Q1, led by 3% Core Lab growth across key regions.
ABT saw China Diagnostics sales stabilize, though it still forecasts a single-digit decline for 2026.
Abbott's Cancer Diagnostics sales grew 13% after completing the $21B Exact Sciences acquisition.
In the first quarter of 2026, Abbott (ABT - Free Report) reported sales of $2.18 billion in its Diagnostics segment, up 2.5% year over year, excluding foreign exchange impact. However, results were mixed within the division. Core Lab diagnostics grew 3%, reflecting strength across the United States, Europe and Latin America. Sales of Core Lab diagnostic tests, which exclude capital equipment and digital health solutions, increased both on a year-over-year and sequential basis. Management expects higher growth in the second half of the year compared with the first half.
However, Core Lab growth was partially offset by lower sales in China. The region has been a source of uncertainty, particularly within Diagnostics, where government procurement policies have affected pricing and volumes. That said, management noted it is lapping some of the price and volume headwinds, as sales in China were flat in the quarter, compared with declines of 15% to 30% in every quarter last year. Despite this, Abbott has modeled a single-digit decline in China for the full year.
In the Rapid and Molecular Diagnostics business, sales declined 10%, reflecting lower demand for respiratory virus testing due to a much softer respiratory season compared to last year. According to management, making up for that weakness would require an above-average respiratory season in the fourth quarter, which it has not yet incorporated in its forecast for the year.
Meanwhile, Abbott completed the $21 billion acquisition of Exact Sciences in the quarter, adding a new high-growth vertical to the portfolio. In the first quarter, Cancer Diagnostics sales grew 13% on a comparable basis, driven by mid-teens growth of Cologuard and high-teens growth in international markets. Abbott continues to forecast the addition to generate roughly $3 billion of incremental sales in 2026 and accelerate its long-term sales growth rate.
ABT’s Peer Updates
Roche Holdings (RHHBY - Free Report) announced the launch of its comprehensive Liver Disease Panel, a suite of certified algorithms designed to better identify and manage chronic liver disease. The Panel brings together biomarker-based diagnostics and advanced digital algorithms, including the CE-marked algorithm LiverPRO. Roche also received CE Mark for the Elecsys phosphorylated Tau (pTau) 217 blood test, developed in collaboration with Eli Lilly and Company, to detect Alzheimer’s pathology.
Becton, Dickinson and Company (BDX - Free Report) , or BD, introduced the Elyra Thulium Fiber Laser System, an advanced laser platform developed to complete BD’s kidney stone care portfolio for urology teams. The system is designed to enhance efficiency, versatility and procedural workflow across urologic stone management and soft tissue procedures, supporting consistent performance in a demanding clinical environment.
ABT’s Price Performance, Valuation & Estimates
Year to date, ABT shares have plunged 30.8% compared with the industry’s 22.1% decline.
Image Source: Zacks Investment Research
In terms of valuation, Abbott is trading at a forward, five-year Price/Earnings (P/E) of 15.18X, lower than its 23.41X median and the industry average of 15.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Abbott’s 2026 and 2027 earnings has shown a downward trend for the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
How Abbott's Diagnostics Unit Is Shaping Up Through the Rest of 2026
Key Takeaways
In the first quarter of 2026, Abbott (ABT - Free Report) reported sales of $2.18 billion in its Diagnostics segment, up 2.5% year over year, excluding foreign exchange impact. However, results were mixed within the division. Core Lab diagnostics grew 3%, reflecting strength across the United States, Europe and Latin America. Sales of Core Lab diagnostic tests, which exclude capital equipment and digital health solutions, increased both on a year-over-year and sequential basis. Management expects higher growth in the second half of the year compared with the first half.
However, Core Lab growth was partially offset by lower sales in China. The region has been a source of uncertainty, particularly within Diagnostics, where government procurement policies have affected pricing and volumes. That said, management noted it is lapping some of the price and volume headwinds, as sales in China were flat in the quarter, compared with declines of 15% to 30% in every quarter last year. Despite this, Abbott has modeled a single-digit decline in China for the full year.
In the Rapid and Molecular Diagnostics business, sales declined 10%, reflecting lower demand for respiratory virus testing due to a much softer respiratory season compared to last year. According to management, making up for that weakness would require an above-average respiratory season in the fourth quarter, which it has not yet incorporated in its forecast for the year.
Meanwhile, Abbott completed the $21 billion acquisition of Exact Sciences in the quarter, adding a new high-growth vertical to the portfolio. In the first quarter, Cancer Diagnostics sales grew 13% on a comparable basis, driven by mid-teens growth of Cologuard and high-teens growth in international markets. Abbott continues to forecast the addition to generate roughly $3 billion of incremental sales in 2026 and accelerate its long-term sales growth rate.
ABT’s Peer Updates
Roche Holdings (RHHBY - Free Report) announced the launch of its comprehensive Liver Disease Panel, a suite of certified algorithms designed to better identify and manage chronic liver disease. The Panel brings together biomarker-based diagnostics and advanced digital algorithms, including the CE-marked algorithm LiverPRO. Roche also received CE Mark for the Elecsys phosphorylated Tau (pTau) 217 blood test, developed in collaboration with Eli Lilly and Company, to detect Alzheimer’s pathology.
Becton, Dickinson and Company (BDX - Free Report) , or BD, introduced the Elyra Thulium Fiber Laser System, an advanced laser platform developed to complete BD’s kidney stone care portfolio for urology teams. The system is designed to enhance efficiency, versatility and procedural workflow across urologic stone management and soft tissue procedures, supporting consistent performance in a demanding clinical environment.
ABT’s Price Performance, Valuation & Estimates
Year to date, ABT shares have plunged 30.8% compared with the industry’s 22.1% decline.
Image Source: Zacks Investment Research
In terms of valuation, Abbott is trading at a forward, five-year Price/Earnings (P/E) of 15.18X, lower than its 23.41X median and the industry average of 15.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Abbott’s 2026 and 2027 earnings has shown a downward trend for the past 60 days.
Image Source: Zacks Investment Research
Abbott currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.