How Abbott's Largest Segment Is Preparing for the Next Growth Phase

Abbott ABT generates the largest share of its revenues from the Medical Devices unit. Sales in 2025 reached $21.39 billion, up 11.9% from the prior-year levels. That strength continued into the first quarter of 2026, with revenues rising 8.5% on a comparable basis, led by the strong performance of…

Abbott ABT generates the largest share of its revenues from the Medical Devices unit. Sales in 2025 reached $21.39 billion, up 11.9% from the prior-year levels. That strength continued into the first quarter of 2026, with revenues rising 8.5% on a comparable basis, led by the strong performance of its cardiovascular device businesses. Abbott believes its investments in the foundational businesses like Rhythm Management and Vascular continue to pay off, even as the traditionally higher-growth segments draw most of the attention. With the July 16 second-quarter 2026 earnings approaching, several recent developments and pipeline progress are expected to help sustain this momentum, with some expected to have a greater impact as the year progresses and beyond.

In Diabetes Care, continuous glucose monitoring (CGM) sales will likely return to the double-digit growth in the second quarter, after temporary headwinds from delays in the renewal process related to an international tender and difficult prior-year comparisons. Abbott expanded the portfolio by recently securing CE Mark for Libre Duo and Libre Duo 10 Day, the world's first-ever dual glucose-ketone sensing technology designed to continuously measure glucose and ketone levels every minute.

Further, Rhythm Management could continue outperforming the broader market, supported by the strong adoption of the AVEIR leadless pacemaker. Together with ongoing investments in conduction system pacing and other novel technologies, Abbott believes the $10 billion Rhythm Management market offers substantial room to expand share and drive sustainable long-term growth.

Meanwhile, the Heart Assist Devices portfolio for the treatment of chronic and temporary conditions is expected to remain a strong contributor to the Heart Failure business. In Electrphysiology, Abbott expects growth to accelerate as it broadens the rollout of Volt and TactiFlex Duo Pulsed Field Ablation (PFA) catheters.

ABT’s Peer Activity in Focus

Medtronic MDT recently completed the acquisition of Scientia Vascular, a privately held medical device company in Salt Lake City. The deal is valued at $550 million, subject to customary adjustments, with potential undisclosed earn-out and milestone payments post-acquisition. The addition of Scientia's access technologies is expected to boost Medtronic’s Neuroscience Portfolio.Financially, the deal is expected to be minimally dilutive to the company’s adjusted EPS in FY 2027 and accretive thereafter.

Quest Diagnostics’ DGX Haystack MRD test has been approved by the New York State Department of Health's Clinical Laboratory Evaluation Program. The circulating tumor DNA liquid biopsy test is meant for use in identifying residual or recurring disease in patients with a range of solid tumor cancers. Quest Diagnostics developed the test under CLIA regulations and has been available for clinician ordering since late 2024 in 49 states and the District of Columbia.

ABT’s Price Performance, Valuation & Estimates

Over the past year, ABT shares have plunged 30.8% compared with the industry’s 28% decline.

In terms of valuation, Abbott is trading at a forward, five-year Price/Sales (P/S) of 3.11X, lower than its 4.63X median but above its industry average of 2.16X.

Here’s how consensus estimates for Abbott’s 2026 and 2027 earnings have been shaping up.

Abbott currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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