April 16 (Reuters) - Abbott cut its full-year profit forecast on Thursday due to a 20 cent-per-share hit from its recent $23 billion acquisition of cancer test maker Exact Sciences, sending its shares down more than 4% premarket.
The medical device maker now expects adjusted profit per share between $5.38 and $5.58 for 2026, compared with its previous forecast of $5.55 to $5.80 per share.
Despite the hit, CEO Robert Ford said the acquisition adds another high-growth business to the company's portfolio.
That contribution was evident in first-quarter results, where growth in cancer diagnostics and continued strength in medical device demand helped Abbott post a modest beat on both earnings and revenue.
The deal, one of Abbott's largest acquisitions, is a major push into the fast‑growing cancer diagnostics market. It gives the company access to Exact's flagship colorectal cancer test Cologuard and early-stage breast cancer test Oncotype DX, helping offset revenue declines from its COVID-19 testing kits.
The company said the first-quarter results "aligned with our expectations to start the year."
On an adjusted basis, the company reported profit per share of $1.15, compared with analysts' estimate of $1.14, according to data compiled by LSEG. Total revenue was $11.16 billion, compared with expectations of $11 billion.
Abbott and rival continuous glucose monitor (CGM) makers such as Dexcom and Medtronic are riding a surge in demand as diabetes awareness rises, insurance coverage expands, and patients embrace finger-prick-free technology.
Quarterly sales in Abbott's medical devices segment grew 13.2% to $5.54 billion, beating estimates of $5.29 billion, driven by demand for diabetes devices. Sales of its continuous glucose monitors grew 14.2%.
Sales in its diagnostics segment grew 6.1% to $2.18 billion, slightly beating the estimate of $2.1 billion.
Abbott expects second-quarter adjusted earnings per share of $1.25 to $1.31, compared with estimates of $1.37 per share.
(Reporting by Siddhi Mahatole and Puyaan Singh in Bengaluru; Editing by Devika Syamnath)
