Here's How ABT Broadens Diagnostics Growth Base With Oncology Expansion

Abbott Laboratories’ ABT Diagnostics business manufactures and markets diagnostic systems and tests. The segment is transitioning from a pandemic-driven profile to a broader portfolio supported by routine testing and oncology.

In the second quarter of 2026, Diagnostics sales increased 42.3% on a reported basis and 2.9% on a comparable basis. Core Laboratory sales grew 3.2% on a comparable basis, including 7.5% growth in the United States. Testing demand remained resilient across hospitals and other laboratories. Rapid and Molecular Diagnostics sales declined 8% as respiratory testing normalized. However, the company expects easier comparisons in China and sustained demand outside China to support an improved growth trajectory in the second half.

Following the March 2026 acquisition of Exact Sciences, Diagnostics now includes the Cancer Diagnostics business. Cancer Diagnostics sales grew 13.3%, driven by mid-teens growth in Cologuard and a colorectal cancer screening test, along with contributions from precision oncology and international operations. Abbott expects Cancer Diagnostics’ growth to accelerate in the second half. This growth is expected to benefit from care gap programs, repeat screenings, newer tests and increased international adoption. 

Peer Update

Danaher Corporation DHR Diagnostics segment continued to perform strong in the second quarter, with core revenues increasing 2% year over year. Clinical diagnostics revenues grew at a mid-single-digit rate, supported by solid performance at Beckman Coulter Diagnostics and high-single-digit growth at Leica Biosystems and Radiometer. Cepheid’s non-respiratory revenues increased at a low-double-digit rate, driven by strength in hospital-acquired infection and sexual-health assays, while lower seasonal infection rates continued to pressure respiratory testing revenues. In China, declines at Beckman began to moderate as pricing stabilized and volumes improved, easing some of the pressure from volume-based procurement and reimbursement changes. 

QuidelOrtho Corporation QDEL continues to benefit from its focus on the diagnostics business, supported by healthy growth across several key areas during the second quarter. Labs revenues increased 4% as reported driven by strength in the core business, although slower sales in China related to changes in In Vitro Diagnostics pricing partially offset growth. Immunohematology revenues increased 1% with growth improving to 5% outside China. Meanwhile, Point of Care remained a notable growth driver, with revenues advancing 16%, including a 10% increase in Triage revenues, highlighting solid momentum across the company’s diagnostics portfolio.

ABT Price Performance

In the past year, Abbott shares have plunged 19.6% compared with the industry’s 25.9% decline. 

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Expensive Valuation

ABT currently trades at a forward 12-month Price-to-Sales (P/S) of 3.54X compared with the industry median of 2.81X.

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ABT Stock Estimate Trend

In the past 30 days, ABT’s EPS estimate for 2026 has moved north 0.2%.

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ABT stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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