Abbott Laboratories CGM Sales Jump 7.5% to $2B, Sees $3B from Exact Sciences Deal
ABT•Citigroup maintained a Buy rating on Abbott Laboratories, highlighting its CGM business’s 7.5% sales increase to $2.0 billion and management’s expectation of a return to double-digit growth. The $23 billion Exact Sciences acquisition is projected to add $3.0 billion in 2026 sales and underpinned a raised fiscal 2026 guidance with potential 21.8%–39.4% upside.
1. Citigroup Reiterates Buy Rating
Citigroup maintained its Buy rating on Abbott Laboratories, emphasizing the company’s strong healthcare market position and growth catalysts.
2. CGM Business Growth
Abbott’s continuous glucose monitoring segment delivered 7.5% year-over-year sales growth to $2.0 billion in the first quarter, with management forecasting a return to double-digit expansion as Libre usage exceeds eight million people.
3. Exact Sciences Acquisition Impact
The $23 billion acquisition of Exact Sciences in 2025 is expected to generate approximately $3.0 billion in incremental sales in 2026, significantly expanding Abbott’s cancer diagnostics portfolio with products like Cologuard.
4. Valuation and Guidance Update
Abbott trades at a 17.1% P/E discount and a 35.1% sales multiple discount versus peers, supporting potential upside of 21.8%–39.4%. The company has raised its fiscal 2026 sales and earnings guidance reflecting these outlooks.
