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Abbott Laboratories (NYSE:ABT) agreed to acquire Exact Sciences for US$21b.
The deal is set to reshape Abbott’s diagnostics business by adding a broad cancer testing platform.
Management is also rolling out changes in the Nutrition segment in response to ongoing operational challenges.
For you as an investor, the Exact Sciences deal puts a spotlight on Abbott’s push deeper into cancer diagnostics, an area that continues to attract significant attention across healthcare. At the same time, the company is working through persistent issues in its Nutrition business, which has been a key part of its diversified model. Together, these developments mark a period of meaningful repositioning for NYSE:ABT across two major product areas.
This combination of a large acquisition and segment level changes may influence how Abbott’s revenue mix and risk profile develop over time. As details on integration plans and Nutrition actions emerge, you will likely have more information to assess how this transition phase fits with your own risk tolerance and time horizon.
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Why Abbott Laboratories could be great value
For investors, the Exact Sciences acquisition sits alongside a mixed Q4 2025 earnings picture, where sales of US$11,459m and diluted EPS of US$1.01 contrasted with a much higher prior year profit. The deal signals that Abbott is leaning harder into higher-complexity diagnostics, while Nutrition (affected by volume pressure, higher manufacturing costs and the loss of a U.S. WIC contract) remains a drag that management is actively trying to fix.
This news lines up with the existing narrative of Abbott as a diversified health-tech company using both product development and acquisitions to shape its earnings mix over time. The added cancer-testing platform from Exact Sciences reinforces diagnostics alongside diabetes and cardiovascular devices, while the Nutrition reset shows management is willing to rethink a long-standing business when returns do not stack up.
⚠️ Integration risk around Exact Sciences, especially given the US$21b price tag, could pressure returns if cost synergies or revenue benefits take longer than expected.
⚠️ Ongoing Nutrition headwinds from pricing, contract losses and higher costs may keep margins under pressure even as other segments perform better.
🎁 Stronger devices and diagnostics, including heart-rhythm products and continuous glucose monitoring, give Abbott multiple growth drivers alongside big peers such as Johnson & Johnson and Medtronic.
🎁 Analyst commentary still points to long-term growth potential, with several firms keeping positive ratings even as they trim price targets and build in more conservative near-term assumptions.
From here, you may want to watch how quickly Abbott closes the Exact Sciences deal in Q2, what management discloses about integration costs, and whether early Nutrition changes translate into steadier volumes and margins. If you want to see how other investors are framing these moving parts, you can check community narratives on the dedicated Abbott Laboratories page at see what other investors are saying about Abbott’s long term story.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ABT.
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