Abbott Laboratories

ABT · NYSE · USD

The debate turns on whether Abbott's new PFA catheters, Cologuard and a recovering nutrition business can lift growth, or whether slower CGM growth and price pressure keep it near 6%.

Last 4 earnings calls · through Q3 FY2026

Bull case

  • Pulsed field ablation portfolio

    Abbott now sells the whole electrophysiology procedure rather than one catheter, combining pulsed field ablation catheters, mapping systems and a left atrial appendage device, and expects to outgrow the market.

  • Nutrition recovery execution

    Nutrition has moved back to volume-led growth after targeted price cuts and new products, and management says the turnaround is running slightly ahead of the plan it set out.

  • Cancer screening franchise

    Exact Sciences gives Abbott stool- and blood-based colon cancer tests plus a large primary care sales force, a combination no competitor currently offers in the same portfolio.

  • Breadth of device pipeline

    Research spending keeps rising across devices and diagnostics, so growth does not rest on a single product, and management expects several new launches each year through the rest of the decade.

Bear case

  • CGM reimbursement timing

    Continuous glucose monitor growth now depends on coverage decisions that Abbott cannot control, and management has lowered its own growth expectation for that business more than once.

  • International pricing pressure

    In international glucose monitoring markets where Abbott holds most of the share, competitors are pushing prices down and Abbott is adjusting its own prices to defend contracts.

  • Sales guidance credibility

    Abbott has cut its full-year sales outlook and told analysts it will start next year at a lower bar, which weakens confidence in the growth rates it publishes.

  • Preterm formula litigation

    The infant formula litigation is unresolved, and Abbott has not said how the liability will be divided with the business it plans to spin off to shareholders.

Bull and bear points

Growth & Execution

In short: Device launches and nutrition recovery lift growth, while CGM and total sales guidance have been cut.

Bull · 2

  • PFA catheter launches accelerate electrophysiology growth

    Volt moved to full U.S. release in August and TactiFlex Duo was approved earlier than expected, so management expects Abbott to grow faster than the ablation market in the second half.

    Q3 FY2026 call

  • Nutrition returns to volume-led growth

    In January management expected nutrition to stay challenged through the first half and recover later; it now reports growth across all four nutrition categories and says the plan is running slightly ahead of expectations.

    Tone shiftQ4 FY2025 → Q3 FY2026
Bear · 2

  • CGM growth outlook cut to low single digits

    Management previously reported 17% annual growth in glucose monitors; it now expects low to mid single digit growth for several quarters while it adjusts international prices to defend share.

    Tone shiftQ4 FY2025 → Q3 FY2026

  • Full-year sales guidance lowered as 2027 starts conservative

    Abbott cut its full-year comparable sales outlook and said 2027 growth would start similar to this year, while its record of beating analyst estimates over the past two years has been uneven.

    Q3 FY2026 call

Profitability & Financial Strength

In short: Gross margin is expanding, while acquisition debt and separation costs weigh on reported profit.

Bull · 2

  • Gross margin rises on mix and cost programs

    Gross margin reached 57.1% in the third quarter, up 1.7 points on favorable business mix and cost programs, which lets Abbott fund margin expansion and higher research spending at the same time.

    Filed financials

  • Nutrition separation lifts Abbott's margin profile

    Nutrition, 17% of segment revenue in Q2 FY2026, is being spun off, and management expects the remaining Abbott to grow 50 to 100 basis points faster with gross margin more than 200 basis points higher.

    Q3 FY2026 call
Bear · 2

  • Reported operating margin falls on one-time charges

    Operating margin fell to 11.3% in the third quarter, hurt by Exact Sciences integration and separation costs that management excludes from the adjusted earnings it guides to.

    Q3 FY2026 call

  • Exact Sciences adds roughly $20 billion of debt

    Abbott plans to fund the Exact Sciences purchase with about $20 billion of borrowings, which raises consolidated indebtedness and, by the company's own account, reduces its flexibility to respond to changing conditions.

    10-K, filed 2026-02-20

Market Position

In short: Abbott leads in diagnostics and devices, while infant formula litigation and a dominant LAA rival pose risks.

Bull · 2

  • Core Lab renewals and new-business win rates stay high

    Diagnostics testing runs on Abbott's installed instruments, and management reports renewal rates above 90% and win rates above 55% on new business, which makes that revenue durable once contracts are in place.

    Q1 FY2026 call

  • Guidelines favor Cologuard over blood-only tests

    The American Cancer Society reaffirmed Cologuard as a preferred screening test, and Abbott is the only company offering both stool and blood colon cancer screening, which supports its pricing and volume.

    Q2 FY2026 call
Bear · 2

  • Preterm infant formula litigation remains unresolved

    Abbott settled claims with 2,000 claimants in August but has not resolved the litigation or said how the liability will be divided with the spun-off nutrition company, leaving an open-ended cost.

    Q3 FY2026 call

  • One competitor holds about 90% of LAA closure

    In left atrial appendage closure Abbott is the distant second, and a slowdown in that market is now offsetting its ablation growth until the Amulet 360 device reaches the United States.

    Q2 FY2026 call