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Can Abbott (ABT) Turn Freenome Progress Into a Durable Diagnostics-Led Growth Story?

Simply Wall St · 2d ago
  • Abbott Laboratories is preparing to report its second-quarter 2026 results after a period of advances in diagnostics and medical devices, including its cancer-focused portfolio and diabetes technologies.
  • Recent progress in blood-based colorectal cancer screening through its Freenome collaboration and a global CGM partnership with Medtronic highlights Abbott’s expanding role in automated, data-driven healthcare solutions.
  • We’ll now examine how the Freenome colorectal cancer screening progress could reshape Abbott’s investment narrative around diagnostics-led growth.

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Abbott Laboratories Investment Narrative Recap

To own Abbott today, I think you need to believe in its ability to compound cash flows from a broad, innovation-led healthcare portfolio, particularly in diagnostics and medical devices, while managing pricing and reimbursement pressures. The latest Freenome blood-based colorectal cancer data is an incremental positive for diagnostics, but the near term story still looks most sensitive to execution in medical devices and any margin pressure from tariffs, FX and competitive pricing in diabetes and diagnostics.

Among recent announcements, the Freenome SimpleScreen CRC validation results stand out as most relevant here, because they directly support the idea that diagnostics, not just devices, can be a meaningful growth driver for Abbott’s mix. If commercialized successfully after FDA review, this kind of cancer screening portfolio could help offset headwinds from declining COVID testing and China procurement pressures, reinforcing the thesis that new, higher-value tests can partially counteract pricing and volume challenges elsewhere.

But while innovation helps, investors should also be aware of the mounting risks around CGM pricing and potential commoditization in diabetes, where...

Read the full narrative on Abbott Laboratories (it's free!)

Abbott Laboratories’ narrative projects $59.6 billion revenue and $9.5 billion earnings by 2029. This requires 9.7% yearly revenue growth and about a $3.2 billion earnings increase from $6.3 billion today.

Uncover how Abbott Laboratories' forecasts yield a $116.54 fair value, a 31% upside to its current price.

Exploring Other Perspectives

ABT 1-Year Stock Price Chart
ABT 1-Year Stock Price Chart

Five Simply Wall St Community fair value estimates cluster between US$116.54 and US$147.56, reflecting a wide spread in individual expectations. Against this, the recent focus on diagnostics-led growth and ongoing reimbursement and pricing risks gives you several different angles on how Abbott’s future performance could unfold.

Explore 5 other fair value estimates on Abbott Laboratories - why the stock might be worth as much as 66% more than the current price!

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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.