Research · Sep 3, 2026
[ABT] Abbott Thesis 2026: FreeStyle Libre Compounds Beyond Diabetes as Lingo Tests Consumer Wellness Category
Abbott FY2025 revenue ~$43B (+5-7% ex-COVID) with adj. operating margin ~22.5% and adj. EPS ~$5.20. FreeStyle Libre CGM franchise reached ~$7.5B (~6.5M users globally, +18-22% growth) — largest single growth driver. COVID test revenue wound down to ~$1B (from $7B FY2021 peak). Medical Devices segment ($19B at 30% margin) generates ~60% of consolidated operating income on 45% of revenue. Nutrition segment recovering from FY2022 Similac Sturgis Cronobacter contamination crisis. FY2026 thesis: Libre revenue toward $9-9.5B (Type 2 non-insulin expansion + Lingo consumer wellness launch); structural heart (MitraClip + TriClip) sustained growth; Diagnostics core lab + molecular stabilizing post-COVID; key risks: Dexcom G8 launch FY2026 with extended wear claims competing for Type 2 patients, Lingo consumer adoption uncertainty, Diagnostics organic growth recovery pace.