AIQ has quietly outperformed QQQ this year while charging triple the fee, an inversion of the usual thematic-ETF trap where investors pay up for a story and underperform the index. The Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) is one of the rare ones doing both. AIQ is up 20.6% year-to-date through June 10, and it pulled in $3.8 billion of inflows earlier this spring, which is what happens when a fund’s supercycle narrative actually shows up in the returns.
What you own when you buy AIQ The Global X pitch is straightforward. Own 95 companies building, supplying, or deploying AI, and let the index decide which layer of the stack matters most. The return engine is plain equity exposure, no options overlay or leverage, so the fund lives or dies by what its holdings do. And the holdings skew well past the Magnificent Seven concentration you might expect. AIQ’s largest position is SK Hynix, followed by Micron (NASDAQ:MU | MU Price Prediction) and Samsung. NVIDIA (NASDAQ:NVDA), the stock most retail investors think of as the AI trade, sits at just 2.8%.
That distribution matters. AIQ is structurally a bet that memory and foundry capacity in Korea and Taiwan count as much as hyperscaler capex in Redmond. Roughly 35% of the book sits in Asia-Pacific names, and that weighting is what differentiates it from a Nasdaq 100 tracker.
The strategy is beating its cheap alternative Now the test. Over the past year, AIQ returned 46%. Invesco QQQ Trust (NASDAQ:QQQ), the obvious lower-cost stand-in for big-cap tech, returned 31%. Over five years, both are tied at 112% each.
The thematic premium is earning its keep. Long-horizon snapshots show 10-year annualized returns near 21% to 23%. The honest read is that AIQ’s Korean and Taiwanese memory exposure caught the high-bandwidth memory cycle that QQQ underweights, and the broader basket has compounded faster than the megacap index. The 68 basis point expense ratio is roughly three times what you pay for QQQ, but the return spread has more than covered the drag.
The discomforts you sign up for Three real ones. Concentration in Asian fabs cuts both ways, so any escalation of US-China export controls, or a roll in HBM memory pricing, hits AIQ harder than a US-only tech index. The long tail of the portfolio also carries speculative names in software AI and quantum computing. Tiny weightings, but they exist because the index includes pure-play AI names regardless of profitability. You are buying some lottery tickets stapled to the back of the fund.
Volatility is the third tax. AIQ fell 9% in the past five days ending, while QQQ dropped 5.7%. Higher beta is the cost of the higher returns, and when AI sentiment wobbles, this fund wobbles harder.
Who AIQ fits This works as a 5% to 10% satellite for an investor who already owns broad US equity beta and wants targeted exposure to the global AI supply chain, especially the Asian memory and foundry layer that QQQ does not capture cleanly.
If you want one ticker that bundles NVIDIA, TSMC (NYSE:TSM), Samsung, and Palantir (NASDAQ:PLTR), AIQ does the job, and the performance has so far validated the 68 basis point fee. If your core tech exposure is already heavily Asian, or you want pure US megacap AI, QQQ at a fifth the expense covers most of what you need. And if you cannot stomach an AIQ that drops 7% in a week without flinching, the supercycle thesis is not your trade no matter how persuasive the slide deck.
CompaniesTAIPEI, June 12 (Reuters) - The head of Taiwan's TSMC (2330.TW), opens new tab, the world's largest contract chipmaker, said on Friday that what his company lacks most is talent, while also worrying about water shortages.
Taiwan produces most of the advanced chips powering the AI revolution, but the industry has long complained about what executives call the "five shortages" - water, power, labour, land and talent.
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Speaking at a rain-drenched ceremony for a new science park in southern Taiwan's Pingtung, TSMC CEO C.C. Wei said he was happy about the weather.
"Just last month, I was still wondering: What should we do about water? Should we start using water trucks?" he said in comments carried live on Taiwan television networks.
Wei said Taiwan President Lai Ching-te, who was present at the event, had told him of government plans to connect the island's reservoirs together.
"In that case, in the future I will no longer need to say that land, water or electricity may be in short supply," Wei said.
Reservoirs in much drier southern Taiwan generally drop over the winter, though heavy rain in the past week has helped replenish them. In 2021, Taiwan imposed widespread water controls after the worst drought in its history.
The logo of Taiwan Semiconductor Manufacturing Company (TSMC) is displayed at TSMC Museum of Innovation in Hsinchu, Taiwan April 9, 2026. REUTERS/Ann Wang/File Photo Purchase Licensing Rights, opens new tab
"We may face shortages, but what we still lack most is talent," Wei added, calling on efforts to train more workers and keep people in largely rural Pingtung.
Lai, speaking after Wei, said the government was close to completing its plans to link reservoirs.
"Our problem is how to retain water, how to distribute water, and how to use water efficiently," Lai added.
He also outlined how the government is trying to attract and retain foreign talent in particular to help the tech industry, including by easing work permit applications.
While TSMC, a major supplier to Nvidia (NVDA.O), opens new tab, is investing $165 billion to build factories in the U.S. state of Arizona, the company has repeatedly said most of its production, along with research and development, will remain in Taiwan.
Wei said semiconductors have become "inseparable" from everything, and demand will continue to grow.
"Regarding semiconductors, Taiwan will definitely be the most important place," he said.
Reporting by Ben Blanchard; Editing by Kevin Buckland
Our Standards: The Thomson Reuters Trust Principles., opens new tab
TSMC’s chief executive said Taiwan’s most urgent semiconductor shortage is no longer just water, power or land, but the people needed to sustain the island’s role at the centre of the global AI boom.
Speaking at a ceremony for a new science park in Pingtung, southern Taiwan, CC Wei said the world’s largest contract chipmaker still worries about water security, but talent remains the constraint that most concerns the company.
The comments highlight a deeper challenge for Taiwan.
The island produces most of the world’s most advanced chips, giving it a strategic role in artificial intelligence, smartphones, data centres and defence technology.
Yet the same success has intensified pressure on local infrastructure and the labour market.
Water remains a strategic riskWei’s remarks came during heavy rain, a welcome sight for an industry that consumes large volumes of ultra-clean water.
He joked that only recently he had been asking whether TSMC would need to rely on water trucks if supply conditions worsened.
Southern Taiwan is typically drier than the north, and reservoirs often fall during winter. The problem is not theoretical.
In 2021, Taiwan imposed broad water restrictions after its worst drought on record, exposing how climate volatility can affect a sector that global technology companies depend on.
President Lai Ching-te, who attended the event, said the government was close to completing plans to connect reservoirs across the island.
The aim is to improve water retention, distribution and efficiency, reducing the risk that regional shortages disrupt industrial output.
For TSMC, that would ease one of the so-called “five shortages” long cited by Taiwan’s chip industry: water, power, labour, land and talent.
Wei made clear that even if water, land and electricity pressures are reduced, Taiwan still needs more engineers, technicians and skilled manufacturing workers.
That is especially important as AI demand accelerates and chipmaking becomes more complex.
Advanced semiconductor production depends not only on expensive equipment and stable utilities, but also on a dense ecosystem of trained workers who can run fabs, develop processes and support research.
Lai said the government is also working to attract and retain foreign talent, including by easing work-permit procedures.
The challenge will be particularly sharp in more rural areas such as Pingtung, where officials want new science parks to create jobs without losing workers to larger urban technology hubs.
Taiwan remains the centre of gravityTSMC’s warning comes even as the company expands overseas.
Its Arizona investment has grown to $165 billion, covering six semiconductor fabs, two advanced packaging facilities and an R&D centre.
That expansion reflects pressure from customers and governments to diversify chip supply chains.
But TSMC has repeatedly said its most advanced production and core research will remain anchored in Taiwan.
The message from Wei was therefore clear: Taiwan may be able to build more fabs and strengthen water supply, but the country’s chip leadership will ultimately depend on whether it can train, attract and keep enough people to run them.
Taiwan manufacturing capacity Taiwan is the world’s most critical semiconductor manufacturing hub. In 2025 its economy grew by 8.68% and it exported around $550B, growing at a staggering rate of 34% YoY. Electronics traditionally represent around 33% of the total. With the increase in CAPEX by the American and Chinese AI industry, the Taiwanese exports are becoming critical for the whole supply chain.
This hyper specialized semiconductor ecosystem is what makes the island so strategically attractive for the leading-edge AI companies and investors alike. No other country combines Taiwan’s semiconductor expertise, equipment and talent on this scale. The evidence is in the numbers, with a 90% global market share for leading-edge chip production.
Taiwan´s industry is deeply integrated, and as the big manufacturers grow, so do the medium and small ones. TSMC ($TSM) might be the most well-known name, as it is also the largest company in Taiwan. The company provides advanced manufacturing services for the fabless chip companies. TSMC is the de facto manufacturing partner for Nvidia, Apple, Google, and leading chip designers. While the company operates fabs in the U.S., Japan, and China, the most advanced fabs with the largest capacity are located in Taiwan.
TSMC and the semiconductor ecosystem Rising demand for TSMC’s products is forcing its suppliers to scale up in parallel. This creates a multiplier effect across the broader Taiwanese supply chain. As TSMC scales to meet AI demand, hundreds of local suppliers, from wafer polishers to packaging firms like ASE, silicon providers like GlobalWafers, and substrate manufacturers like Unimicron, also do. Virtually all of the big suppliers sit inside EWT and FLTW, which is precisely what makes these ETFs a leveraged bet on Taiwan’s entire AI supply chain, not just its most famous chip maker.
The Taiwanese synergy Material Suppliers For foundries Taiwanese industry leaders are deeply intertwined. TSMC, for instance depends on GlobalWafers (6488.TWO), a key silicon wafer supplier, used for chips manufacturing. Globalwafers is the only silicon wafer Taiwanese supplier with a presence in the EWT ETF with a documented relationship with TSMC. In the period of 2018 to 2020, GlobalWafers was one of the 6 main silicon wafer providers used by TSMC to cover 92% of its needs. Moreover, in March 2025 the company further deepened this tie by announcing the co-location of a new manufacturing facility to support TSMC’s Arizona fab.
From Design to Manufacturing The relationship between MediaTek and TSMC illustrates how deeply intertwined Taiwan’s semiconductor leaders are. Mediatek (2454.TW), Taiwan’s leading fabless chip designer, uses TSMC as their primary foundry. In Q4 2025, Mediatek announced it had adopted TSMC’s 2nm for its next flagship system-on-a-chip (SoC). The chip is expected to enter mass production in the second half of 2026 for use in mobile devices.
The strategic depth of this partnership goes beyond manufacturing. In May 2026, Mediatek CEO Joe Chen reaffirmed TSMC as a key long-term partner. He noted collaboration across nodes from 12nm, down to the next generation of 1.4nm. Moreover, he added the joint work in advanced packaging, optical packaging and Co-packaged optics (CPO).
From Foundry to advanced packaging The synergy within Taiwan’s semiconductor industry is perhaps most visible between TSMC and ASE Technology Holdings (3711.TW), the world’s largest semiconductor assembler and tester. ASE provides assembly and packaging services, a critical step in delivering finished chips to market.
One of ASE’s highest-margin offerings is Chip-on-Wafer-on-Substrate (CoWoS). The demand for CoWoS is expected to exceed global capacity through 2026. As TSMC’s own packaging capacity runs constrained, OSAT partners like ASE absorb the excess in demand.
TSMC is tying the whole Taiwanese ecosystem. In 2018, TSMC identified that less than half of the spare parts and raw materials in its Taiwanese facilities were locally sourced. In response to that, TSMC launched the “Parts Localization and Innovation Program” in 2024. The program aims at increasing supply chain resilience and reducing dependence on overseas suppliers. The initiative plans to reach 68% of raw materials and 60% of locally sourced components by 2030.
Early results are already visible, In January 2026, TSMC assisted a Japanese supplier to locally produce electroplating additives to be used in Fab 2,3,5,6, and 8. The company expects that these efforts reduce the production cycle from 60 days to just 20.
TSMC is also deepening the semiconductor ecosystem through supplier development programs. As of February 2026, TSMC collaborated with 12 suppliers to develop 22 Continued Improvement Processes. This signals that the TSMC efforts are also raising the capabilities of Taiwan’s industrial base.
NVIDIA GTC 2026 and Taiwan’s moment NVIDIA’s CEO, Jensen Huang has expressed in several interviews the relevance of Taiwan for Nvidia and the whole AI ecosystem. At the GTC 2026 he declared ‘Taiwan is the epicenter of the AI revolution. This is where the chips come, packaging comes, this is where the systems are made, this is where AI supercomputers were created. The number of partners we work with here in Taiwan, incredible.’
The company plans to keep expanding its investments in Taiwan, with projections pointing toward $150B per year. That would mean a 10-fold increase since 2021. As those investments materialize, the capital is likely to flow from NVIDIA’s largest suppliers into the whole Taiwanese semiconductor industry.
ETFs to capture the momentum The Taiwanese industry is so deeply integrated that measuring the AI buildout impact on a single company is nearly impossible, and perhaps unnecessary. For investors seeking broad exposure to Taiwan’s AI momentum, two of the most relevant ETFs are EWT and FLTW.
EWT, launched by Blackrock in June 2000, tracks MSCI Taiwan 25/50 index. A market-cap-weighted index of Taiwanese companies representing approximately 85% of the country’s investable equity market.
FLTW, launched in November 2017, follows the FTSE Taiwan RIC Capped Index. The Index focuses on large- and mid-cap stocks while excluding small-cap firms.
Over the past year, both ETFs have delivered exceptional returns, averaging approximately 90%, due to Taiwan’s exposure to the AI buildout.
Key differences While both ETFs provide concentrated exposure to Taiwan’s largest companies, they differ on structure and cost. EWT, with $10.5B in AUM is larger than FLTW $2.8B. The gap directly translates to tighter spreads and higher daily trading volume. For EWT the volume is around 5.8M versus 1M for FLTW. For active traders the liquidity difference could be meaningful.
However, for long-term investors, FLTW makes a compelling case. Its expense ratio of 0.19% versus 0.59% may seem minor, but on a $100K investment over 20 years that 0.40% annual gap compounds to $30K. Not only that, the 5 year annualized return for FLTW is higher at 21.2%, versus 18.0% for EWT. On top of that, the broader diversification of FLTW with 135 positions compared to just 87 from EWT.
Despite the differences, both ETFs share the same top positions : TSMC, Mediatek, Delta Electronics, Hon Hai Precision and ASE technology. Moreover, both ETFs have delivered near-identical YTD returns in 2026, approximately 68%.
Risks These ETFs carry at least four key risks worth acknowledging: the geopolitical tension, the susceptibility to natural disasters on Taiwan, the heavy concentration in TSMC (20% of both funds) and dependence on the AI CapEx cycle .
Geopolitical risk remains the most difficult to quantify. Any conflict materialization would be catastrophic for both ETFs.
Taiwan is prone to natural disasters. The island experiences approximately 2000 earthquakes per year, 200 being perceptible. In April 2024 a 7.2 magnitude earthquake caused $92M in losses for TSMC alone, reducing Q2 2024 gross margins by 0.5 percentage points.
Finally a heavy concentration in TSMC and a potential slowdown in AI CapEx spending, would likely produce a selloff in both ETFs.
Valuation framework After one of the strongest rallies in either ETFs historic performance, the question is whether the market has already priced the best-case outcome. The following framework uses earnings data to estimate current valuations and identify what needs to happen before adding exposure.
AI revenue exposure, gross margin and total revenue Company
EWT weight
FLTW weight
Gross Margin Q1’26
AI revenue Share
Q1’26 revenue
AI revenue Q1’26
TSMC
20.7%
19.9%
66.2%
61%
$35.9B
$21.9B
Delta Electronics
5.1%
6.4%
37.0%
30%
$5.0B
$1.5B
Mediatek
6.3%
5.2%
46.0%
5%
$4.7B
$0.75B
ASE technology
2.6%
2.4%
20.1%
15%
$5.5B
$0.8B
Hon Hai
3.9%
5.5%
6.2%
48%
$66.6B
$32B
AI revenue exposure, gross margin & total revenue — top 5 shared holdings . Note: HonHai cloud & networking segment includes AI servers
TSMC guidance full-year 2026 revenue growth above 30%. The combined confirmed AI-related revenue across the largest five shared holdings yields an estimated $228B annualized. This represents just a fraction of the ETF’s total annualized revenue, and better captures the exposure to the AI Infrastructure buildout.
Valuation scenarios In December 2025, EWT traded at 20x earnings. By Q1 2026, the valuation expanded to 31.8x, 59% appreciation in just one quarter. The market is already pricing a revenue surge.
Case
Bull case
Base case
Bear case
Earnings growth
+35%
+25%
+15%
Implied fair P/E
28-32x
22-25x
16-18x
Hyperscaler CapEx
+$670B
+$600B
+$500B
PEG
0.91
1.27
2.12
At 31.8x earnings, the ETFs are already pricing in the bull case. Under the base case of 25% earnings growth, the PEG ratio climbs to 1.27. This implies that the ETFs are trading 20% above the fair value. A deceleration to just 15% growth would imply 35-40% downside. The key variable across all three scenarios is whether TSMC’s 30% growth guidance holds through the year, which is tied to the hyperscaler CapEx commitments above $670B holding true for the second half of 2026.
Conditions that would change the entry case The most direct input into the bull case is whether the four major hyperscalers maintain or raise their combined CapEx commitments above $670B. Delta electronics CFO cited the figure on Q1 2026 as the determining factor behind the company’s record margins. If the spending holds or increases, TSMC’s own 30% growth guidance embedded within the current P/E is plausible. If the spending is reduced, the base case of 1.27 becomes more probable.
Second, TSMC gross margin is a good indicator to hold the bull case intact. The company reported 66.2% in Q1’26 and guided for Q2 65.5%-67.5%. A result in that range would signal the narrative is maintained, while a result below 62%, Q4 ’25 level, would suggest guidance predictions are overestimating and the growth story might lag.
Third, a degradation of the P/E to historical range, from 22-25x would represent a materially better entry point. At 22x EWT would trade near $70, at 25x near $80. In that range, with the bull case intact, the PEG would drop to 0.72-0.83, making the entry case compelling.
A fourth condition is less predictable but worth monitoring. In March 2026, Elon Musk announced Terafab. An ambitious project to build Tesla and SpaceX’s own chip fabrication facility. Musk chose Intel’s 14A process over TSMC. If Terafab struggles to execute, the most likely scenario would reinforce TSMC’s irreplaceability and drive additional demand back to Taiwan’s ecosystem.
The Takeaway At current levels, both ETFs are priced for perfect execution. For investors already holding positions, the framework suggests monitoring TSMC gross margin and revenue during Q2 2026. For investors considering initiating a position, the $70-80 range on EWT represents an attractive level.
Authors opinion Taiwan is the world’s most critical semiconductor manufacturing hub and indispensable for the AI supply chains. Last year its economy grew at a staggering rate of 8.68% and its exports surged 34%. The momentum shows no signs of slowing as hyperscalers deepen their commitments to the island. Nvidia alone has announced plans to spend $150B per year in Taiwan.
TSMC’s initiatives aim to further integrate the ecosystem, to reduce costs, environmental impact and increase resilience to geopolitical factors.
For investors, EWT and FLTW offer two efficient entry points into Taiwan’s semiconductor manufacturing momentum. The thesis is intact, as the AI buildout continues, Taiwan’s ecosystem is structurally positioned to capture a disproportionate share of that growth. Nonetheless, At 31.8x earnings, both ETFs are pricing in perfect execution. Watch TSMC’s Q2 gross margin and hyperscaler CapEx guidance: if either disappoints, the $70–80 range on EWT becomes the entry point where conviction and price finally align.
State Street SPDR Portfolio Developed World ex-US ETF (SPDW +0.29%) provides low-cost exposure to mature international economies, while Schwab Emerging Markets Equity ETF (SCHE +0.84%) focuses on faster-growing but often more volatile emerging markets.
Investors seeking to diversify away from domestic stocks often look to international funds to balance their portfolios. Here, we’re evaluating two distinct approaches to global investing: the SPDR fund, which tracks developed economies like Japan and the United Kingdom, and the Schwab fund, which targets developing nations such as China and India. Both ETFs serve as foundational building blocks, yet they provide access to very different economic cycles and geopolitical risks.
Snapshot (cost & size)MetricSCHESPDWIssuerSchwabSPDRExpense ratio0.07%0.03%1-yr return (as of June 8, 2026)24%27.9%Dividend yield2.7%2.2%Beta0.871.03AUM$12.4 billion$40.1 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The SPDR fund is cheaper, featuring an expense ratio that is less than half that of its Schwab counterpart. That said, the Schwab ETF’s ratio is still in the single digits; I think it’s hard to argue it’s expensive. Plus, SCHE has a higher dividend yield, which may appeal to income-focused investors.
Performance & risk comparisonMetricSCHESPDWMax drawdown (5 yr)(33.30%)(30.20%)Growth of $1,000 over 5 years (total return)$1,246$1,532What's insideThe SPDR ETF focuses on established international markets outside of the United States. Its portfolio is led by financial services at 22%, followed by industrials at 18%, and technology at 17%. With 2,453 holdings, its largest positions include Samsung Electronics at 3.05%, SK Hynix at 2.08%, and ASML (ASML 1.70%) at 2.07%. Although it holds thousands of stocks, SPDW’s top 10 holdings make up 13.1% of the portfolio. This fund was launched in 2007 and has paid $1.47 per share in dividends over the trailing 12 months.
In contrast, the Schwab ETF focuses on developing economies, leading to a much higher concentration in technology at 34%, with financial services at 20%, and consumer cyclicals at 10%. It holds 2,207 stocks, and its top positions include Taiwan Semiconductor Manufacturing (TSM +0.46%) at 17.05%, Tencent (TCEHY 0.20%) at 3.34%, and Alibaba Group Holding Ltd. (BABA +0.02%) at 2.61%. SCHE’s top 10 positions make up roughly 30% of the portfolio. Launched in 2010, the Schwab fund has a trailing-12-month dividend payout of $0.94 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsThe Schwab and SPDR ETFs both take a global approach to investing, but Schwab notably focuses on emerging markets, while SPDR invests in established international markets. They hold a few thousand stocks each, so investors probably won't be too concerned about diversification. But in SCHE's case, I think they should be.
The Schwab ETF's top 10 holdings account for nearly one-third of the portfolio, for starters. That's pretty concentrated. But far more concerning from a diversification standpoint is that Taiwan Semi is a 17% position. This may be a simple case of "letting winners run," which is fine, but most investors purchase ETFs because they want a basket of stocks, not a huge piece of some chipmaker and a handful of Chinese companies. (I pity the 2,000-some stocks that will never be relevant to this ETF's performance.) Taiwan Semi has definitely been a great investment over the past five years, but if you're interested in the chipmaker, why not just buy its stock?
For that reason alone, I wouldn't buy shares of SCHE.
Abbott (ABT - Free Report) closed the most recent trading day at $85.68, moving -1.14% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.02%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.07%.
Prior to today's trading, shares of the maker of infant formula, medical devices and drugs had lost 7.66% lagged the Medical sector's gain of 2.02% and the S&P 500's gain of 5.12%.
The investment community will be closely monitoring the performance of Abbott in its forthcoming earnings report. The company is predicted to post an EPS of $1.28, indicating a 1.59% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $12.53 billion, reflecting a 12.43% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.48 per share and revenue of $50.49 billion, indicating changes of +6.41% and +13.9%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Abbott. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.42% lower. Abbott is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Abbott has a Forward P/E ratio of 15.82 right now. This valuation marks a discount compared to its industry average Forward P/E of 18.69.
We can also see that ABT currently has a PEG ratio of 1.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. ABT's industry had an average PEG ratio of 1.5 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Abbott (ABT - Free Report) .
Abbott currently has an average brokerage recommendation (ABR) of 1.57, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.57 approximates between Strong Buy and Buy.
Of the 28 recommendations that derive the current ABR, 19 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 67.9% and 7.1% of all recommendations.
Brokerage Recommendation Trends for ABT
Check price target & stock forecast for Abbott here>>>
The ABR suggests buying Abbott, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ABT a Good Investment?Looking at the earnings estimate revisions for Abbott, the Zacks Consensus Estimate for the current year has declined 0.1% over the past month to $5.48.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Abbott. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Abbott with a grain of salt.
Abbott (ABT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of infant formula, medical devices and drugs have returned -5%, compared to the Zacks S&P 500 composite's +6% change. During this period, the Zacks Medical - Products industry, which Abbott falls in, has lost 6.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Abbott is expected to post earnings of $1.28 per share, indicating a change of +1.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $5.48 for the current fiscal year indicates a year-over-year change of +6.4%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $6.06 indicates a change of +10.6% from what Abbott is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Abbott, the consensus sales estimate of $12.53 billion for the current quarter points to a year-over-year change of +12.4%. The $50.49 billion and $55.02 billion estimates for the current and next fiscal years indicate changes of +13.9% and +9%, respectively.
Last Reported Results and Surprise HistoryAbbott reported revenues of $11.16 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.15 for the same period compares with $1.09 a year ago.
Compared to the Zacks Consensus Estimate of $11.02 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +0.88%.
Over the last four quarters, Abbott surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Key Takeaways ABT received CE Mark for Libre Duo systems, the first dual glucose-ketone sensing technology.Abbott's new sensors track glucose and ketones every minute to help identify rising DKA risk.Libre Duo links to Abbott's digital ecosystem and may connect with automated insulin systems. Abbott (ABT - Free Report) recently announced that it has obtained CE Mark for Libre Duo and Libre Duo 10 Day, the world's first dual glucose-ketone sensing technology for people with diabetes. The two-in-one biowearables continuously measure glucose and ketone levels every minute, enabling real-time visibility into both glucose levels needed for daily diabetes management and rising ketones that can lead to a diabetic ketoacidosis (DKA) emergency.
With Libre Duo systems, people with diabetes will be able to monitor ketones without traditional blood or urine tests for the first time. Abbott said that it plans to begin their commercial rollouts in select European countries later this year.
ABT Stock’s Likely Trend Following the NewsSince the May 27 announcement, Abbott shares moved down 0.1%, finishing at $85.60 on Friday. On a positive note, the latest development reflects the company’s long-standing focus on health tech innovation. Given the risk of serious complications being a daily concern for people living with diabetes, the new Libre Duo systems are intended to provide clearer and earlier information about what is happening inside their bodies, allowing them to take action sooner when needed. We expect the news to help support a rebound in ABT stock’s performance.
Abbott holds a market capitalization of $149.10 billion. The company’s earnings yield of 6.4% favorably compares with the industry’s yield of 2.7%. ABT delivered an average earnings beat of 0.42% in the trailing four quarters.
Relevance of Abbott’s New Libre Duo SystemsIn people with diabetes, DKA occurs when insufficient insulin prompts the body to break down fat for energy, causing ketones in the blood to rise to dangerous levels. According to the American Diabetes Association, elevated ketones can progress to DKA within hours and, if left untreated, may result in coma or death.Despite clinical guidance recommending ketone testing during illness or periods of high glucose levels, early detection remains a significant challenge.
Image Source: Zacks Investment Research
Abbott’s Libre Duo delivers up to 15 days of wear and will be offered to adults aged 18 and older. Meanwhile, Libre Duo 10 Day offers up to 10 days of wear and is intended for people aged two and older. Clinical data indicate that a 10-day sensor can help active youth complete the full wear period. Both sensors deliver consistent, strong accuracy.
The systems will integrate with Abbott's Libre digital health ecosystem, enabling users to share glucose and ketone data with caregivers and healthcare providers. Abbott is also working with leading pump companies to allow automated insulin delivery (AID) systems to connect with the sensors.
According to the company, the Libre Duo systems align with recommendations outlined in a recent international expert consensus paper from Breakthrough T1D, a global organization focused on Type 1 diabetes research and advocacy, which describes the safe and effective use of continuous ketone monitoring as part of diabetes management.
Industry Prospects Favor ABTAccording to Grand View Research, the global blood ketone meter market was valued at $488 million in 2024 and is projected to expand at a CAGR of 6.96% through 2025-2030. Some of the major factors driving the market’s growth include the increasing prevalence of diabetes, rising adoption of ketogenic and low-carbohydrate diets, and growing health awareness among consumers.
More Updates From AbbottIn April, Abbott secured FDA clearance and CE Mark for its next-generation Ultreon 3.0 Software. This marks a pivotal step in bringing coronary imaging and AI-automated insights together in one system to support better patient outcomes and help reduce risks.
ABT Stock Price PerformanceOver the past year, Abbott shares have dropped 35.9%, well below the industry’s 30.6% fall.
ABT’s Zacks Rank and Key PicksAbbott currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) . While GMED sports a Zacks Rank #1 (Strong Buy), ALGN and IART each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical shares have risen 38.9% over the past year. Estimates for the company’s 2026 earnings per share (EPS) have jumped 6.3% to $4.74 in the past 30 days. GMED’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.26%. In the last reported quarter, it posted an earnings surprise of 21.74%.
Estimates for Align Technology’s 2026 EPS have increased 1% to $11.36 in the past 30 days. Shares of the company have fallen 2% over the past year against the industry’s growth of 4.4%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.80%. In the last reported quarter, it delivered an earnings surprise of 14.16%.
Estimates for Integra LifeSciences’ 2026 EPS have increased 4.3% to $2.42 in the past 30 days. Shares of the company have rallied 30.2% over the past year compared with the industry’s 3.7% rise. IART’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.75%. In the last reported quarter, it delivered an earnings surprise of 31.71%.
On June 02, 2026, we take a closer look at the DCF analysis for Abbott Laboratories ABT . The stock has experienced notable price performance, with a year-to-date decline of 29.1% and a one-year drop of 32.9%. Below are some key points from our analysis:
DCF Earnings-based intrinsic value of $92.77 compared to the current price of $87.78, indicating a margin of safety of 5.4%. DCF Free Cash Flow (FCF)-based intrinsic value stands at $74.67, providing a contrasting perspective. GF Score™ of 76/100 suggests a reliable foundation for the DCF inputs. What Is ABT Worth? DCF Earnings-Based Model The DCF earnings-based model for Abbott Laboratories incorporates a two-stage growth approach. In the first stage, we project earnings growth for the next ten years, followed by a terminal growth phase. The assumptions used in this model are outlined in the table below:
Parameter Value Current EPS (TTM, excl. non-recurring) $5.21 10-Year Growth Rate 11.6% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we expect the EPS to grow at 11.6% per year for the next ten years, which is then discounted at a rate of 11%. The growth stage value is calculated to be $53.67 per share. In the second stage, we apply a terminal growth rate of 4% for the subsequent ten years, discounted at the same rate, yielding a terminal stage value of $39.10 per share. The summary of these calculations is presented below:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 11.6%, discounted at 11% $53.67 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $39.10 Intrinsic Value Growth + Terminal $92.77 Comparing the current price of $87.78 with the intrinsic value of $92.77 indicates that Abbott Laboratories is fairly valued, with a margin of safety of 5.4%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the ABT DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also evaluate Abbott Laboratories using a Free Cash Flow (FCF)-based approach. The intrinsic value derived from this model is $74.67. When comparing this with the earnings-based intrinsic value of $92.77, we observe a divergence in perspectives. The FCF model suggests that the stock is fairly valued with a margin of safety of -17.6%, indicating a potential cautionary note for investors.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Abbott Laboratories stands at $128.46, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure, calculated based on historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based model suggests fair valuation, the GF Value™ indicates that the stock is undervalued by approximately 31.7%. This discrepancy highlights the importance of considering multiple valuation methods. For more insights, visit the GF Value™ page.
What Does ABT's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). Below is a summary of Abbott Laboratories' GF Score™ metrics:
Metric Rating GF Score™ 76/100 Financial Strength 6/10 Profitability 8/10 Growth 8/10 Valuation 4/10 Momentum 2/10 With a predictability rating of 0/5 stars, it is essential to recognize that higher predictability typically correlates with more reliable DCF model outputs. For more details, visit the ABT stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Abbott Laboratories, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that Abbott Laboratories is fairly valued according to the earnings-based DCF model, while the FCF model suggests caution. The GF Value™ indicates that the stock is undervalued. Overall, the consensus points towards a fair valuation status. For the full DCF analysis, visit the ABT DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ABT's intrinsic value based on DCF?
[Answer: earnings-based $92.78, FCF-based $74.67]
Is ABT overvalued or undervalued?
[Answer using DCF + GF Value™ consensus]
How reliable is the DCF model for ABT?
[Answer using predictability rank 0/5]
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways Abbott secured CE Mark for Libre Duo and Libre Duo 10 Day dual glucose-ketone sensors.ABT's systems track glucose and ketones every minute and alert users to rising ketone levels.Abbott plans Libre ecosystem integration and expanded MiniMed sensor commercialization. Illinois-based Abbott (ABT - Free Report) extended its solid track record in health-tech innovation by securing the CE Mark for the first-ever dual glucose-ketone sensing technology for people with diabetes. The systems, named Libre Duo and Libre Duo 10 Day, are designed to measure glucose and ketone levels every minute, giving real-time visibility into glucose levels needed for daily diabetes management.
The devices also alert users when ketone levels continue to rise, leading to a diabetic ketoacidosis (DKA) emergency. The phenomenon occurs when the body does not have enough insulin and begins breaking down fat for energy. Abbott says the systems also reduce reliance on traditional blood or urine tests that capture only a single moment in time.
DKA remains a growing gap in diabetes care since ketones are not routinely monitored, allowing warning signs to go unnoticed and increasing the risk of delayed intervention. Several recent studies, including research published in the peer-reviewed journal Diabetes Care, illustrate the extent of these challenges.
Libre Duo delivers up to 15 days of wear and will be offered to adults aged 18 and older. Libre Duo 10 Day offers up to 10 days of wear and is intended for people aged two and older. The systems align with recommendations from a recent international expert consensus paper from Breakthrough T1D. Abbott plans to integrate the systems with its Libre digital health ecosystem, enabling users to share glucose and ketone data with caregivers and healthcare providers.
The company is also working with major pump companies to allow automated insulin delivery (AID) systems to connect with the sensors. Recently, Medtronic’s Diabetes operating unit, MiniMed (MMED - Free Report) , has expanded its agreement with Abbott to commercialize these dual glucose-ketone sensors. The agreement builds on the companies' existing partnership around Abbott’s Instinct sensor and will offer MiniMed users a broader choice across its AID and Smart Multiple Daily Injections systems.
What Is ABT’s Major Diabetes Rival Up To?At the Investor Day 2026, Dexcom’s (DXCM - Free Report) CEO has outlined three drivers that are going to define the next phase of its journey: an advanced product portfolio, expanding global access for people to CGM at a rate faster than penetration and durable double-digit growth combined with strong cash flow generation.
The company also introduced its next-generation G8 platform, nearly 50% smaller than the G7 sensor, with advanced sensing capabilities and enhanced accuracy, connectivity and system design. Dexcom teams are gearing toward submission of this product next year to facilitate a launch either at the end of 2027 or early 2028.
The Zacks Rundown for ABT StockOver the past 12 months, Abbott shares have plunged 35.1%, wider than the industry’s 32.4% decline.
Image Source: Zacks Investment Research
In terms of valuation, ABT trades at a forward, five-year Price/Sales (P/S) of 2.89X, lower than its 4.64X median but higher than the industry average of 1.99X.
Image Source: Zacks Investment Research
Take a look at how estimates for Abbott’s FY 2026 and 2027 earnings are shaping up.
Image Source: Zacks Investment Research
Abbott currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
People stand next to a logo of Abbott at the company’s booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 6, 2025.REUTERS/Maxim Shemetov Purchase Licensing Rights, opens new tab
CompaniesNEW YORK, June 4 (Reuters) - Abbott Laboratories (ABT.N), opens new tab must defend against a proposed class-action lawsuit claiming it misled consumers into believing its PediaSure Grow & Gain nutrition drinks were "clinically proven" to help children grow taller, a federal judge ruled on Thursday.
U.S. District Judge Paul Engelmayer said that while Abbott's claim that PediaSure was "clinically proven to help kids grow" didn't specify the type of growth, its use on labels of a cartoon giraffe and ruler-like marks that climbed to the giraffe's head could readily support a belief that "grow" referred to height growth and "gain" referred to weight gain.
Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
In a 75-page decision, the Manhattan judge also said jurors could find that Abbott's commercials reinforced the message that PediaSure promoted height growth, including an ad showing a boy playing basketball with taller boys and saying he has "a lot to look up to."
Abbott in a statement called PediaSure's labeling "appropriate" and supported by the evidence.
"PediaSure is a scientifically designed complete and balanced nutrition solution for children to help support growth and development," it said. "We’re confident the evidence will ultimately show the plaintiff’s allegations are unfounded."
James Denlea, a lawyer for the consumers, said he was pleased with the decision.
PediaSure is part of the Abbott Park, Illinois-based company's nutritional segment, whose brands also include Pedialyte and Similac.
The lawsuit was filed in May 2023 by Joanne Noriega, a Bronx, New York, grandmother who said she bought PediaSure Grow & Gain vanilla and strawberry drinks for her 8-year-old grandson.
Noriega said that after a year of drinking two PediaSure drinks per day, her grandson was still short for his age but had become "so overweight" that she stopped buying the drinks.
Abbott has said that PediaSure is intended for children, opens new tab ages 2 to 13, and helps them "grow out of at-risk weight-for-height percentiles (5th-25th percentiles)" within eight weeks.
Engelmayer also excluded some testimony by expert witnesses for both sides.
He rejected Abbott's bid to dismiss testimony by a Columbia Business School professor who said Abbott's marketing made clear that "grow" referred to height, and consumers would not see or understand disclaimers that PediaSure was studied in children "at risk" of malnutrition.
Reporting by Jonathan Stempel in New York; Editing by Mark Porter and Aurora Ellis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Diabetic ketoacidosis (DKA) can develop quickly and is not always easy to detect early Ketone monitoring is not yet routine in diabetes care, which may contribute to missed warning signs of DKA and delays in intervention Nearly 60% of pediatric hospitalizations for Type 1 diabetes in the U.S. are associated with DKA1 , /PRNewswire/ -- Abbott (NYSE: ABT), the global healthcare leader, announced new data revealing diabetic ketoacidosis (DKA) remains an important, yet often undetected health concern for people living with both Type 1 and Type 2 diabetes. Findings from multiple Abbott studies shared at the American Diabetes Association's (ADA) June 2026 86th Scientific Sessions show sharp increases in DKA-related hospitalizations across all age groups nationwide. The data reinforces that while diabetes technology has advanced significantly, there are opportunities to better detect rising ketones before DKA develops.
Diabetic Ketoacidosis: Often Misunderstood and Difficult to Recognize
DKA develops in people with diabetes when the body does not have enough insulin and begins breaking down fat for energy, causing ketones to rise to dangerous levels in the blood.2 While traditionally associated with Type 1 diabetes, DKA is increasingly affecting people with Type 2 diabetes. The American Diabetes Association notes that high ketone levels can escalate to DKA within hours and, if left untreated, can lead to coma or death.2 Many people living with diabetes aren't familiar with DKA or its symptoms, despite clinical guidance recommending ketone testing during periods of elevated glucose, making it a challenge to detect early.
New DKA Data from Abbott Presented at ADA's Scientific Sessions
At the ADA's Scientific Sessions, Abbott presented findings from multiple studies analyzing hospitalization, admission diagnosis and insurance claims data to better understand how DKA may be challenging to identify, its rising impact among young people, and a growing prevalence in adults with Type 2 diabetes.
DKA may be hard to identify early at hospital admissions: A study of over 100,000 people across the U.S. found that DKA can be difficult to recognize when a person first arrives at the hospital, as early symptoms – such as nausea, fatigue, or stomach pain – overlap with many common illnesses.3 A confirmed diagnosis of DKA depends on blood tests that measure blood sugar, blood pH and/or bicarbonate levels, and ketones, which may not be immediately available at admission.2 These delays highlight the need for approaches to recognize DKA earlier to provide timely care. Better awareness of DKA may help curb hospitalizations: A second study of over 200,000 people showed that between 2017-2024, DKA hospitalization rates among people with Type 1 diabetes increased approximately 24%, rising from 50 to 62 cases per 1,000 individuals. The increase was more pronounced in children than adults.4 Most DKA events led to hospitalization for both children and adults, while severe hypoglycemia rates stayed low and stable, likely due to greater recognition of hypoglycemia and less awareness of DKA risk.4 Reducing DKA hospitalizations may improve health outcomes across all ages: One analysis of close to 40,000 pediatric hospitalizations showed DKA now drives nearly 60% of all diabetes-related hospitalizations among youth with Type 1 or Type 2 diabetes.1 Most U.S. hospitalizations among children with diabetes are related to DKA, with the majority requiring inpatient care lasting up to one week and costing up to $38,000 per stay.1 Findings from a separate study with data from millions of people indicate DKA is likely underreported in adults with Type 2 diabetes, and when diagnosed after admission as a secondary condition, is associated with longer hospital stays, higher costs, and increased rates of death.5 "These findings from Abbott show that diabetic ketoacidosis remains a growing challenge to identify, as DKA can develop quickly and mimic common illnesses," said Kurt Midyett, M.D., pediatric endocrinologist at Saint Luke's Endocrinology Specialists in Kansas City, Mo. "When early symptoms are misattributed, delays in diagnosis are common and often result in lengthy and costly hospitalization. This data underscores the importance of addressing gaps in recognition to help detect rising ketones before DKA develops."
The Role of Ketone Monitoring in Diabetes Care
Continuous glucose monitors (CGMs) play an essential role in helping people manage their diabetes by providing real-time glucose insights. However, they do not currently measure ketones and DKA can still develop even when glucose levels appear stable.6 Insights from adults living with Type 1 diabetes show that while some people understand the importance of monitoring ketones, testing is often underused. Rising ketones can progress to DKA within hours, so earlier visibility has the potential to prompt action sooner and reduce risk.6
"These new data make clear that preventing diabetic ketoacidosis starts with recognizing risk earlier," said Mahmood Kazemi, M.D., chief medical officer for Abbott's diabetes care business. "DKA remains one of the most preventable emergencies in diabetes care, yet too many people still miss early warning signs when ketones levels begin to rise. These findings underscore the need for better ways to recognize risk sooner and help reduce avoidable hospitalizations."
As an alternative to existing ketone monitoring options, Abbott has developed dual glucose-ketone sensing technology, which combines continuous glucose and ketone monitoring in a single sensor designed to support both daily diabetes management and help to detect rising ketone levels for people living with diabetes. Abbott announced CE Mark for the systems, called Libre Duo and Libre Duo 10 Day, in May 2026. The company has also filed a regulatory submission with the U.S. Food & Drug Administration (FDA). Libre Duo and Libre Duo 10 Day systems are not yet cleared by the FDA or available for sale in the United States.
Frequently Asked Questions
What is diabetic ketoacidosis?
Diabetic ketoacidosis (DKA) occurs when the body doesn't have enough insulin. To get energy, the body starts breaking down fat, which releases acids called ketones into the blood. People in DKA can experience severe dehydration, dangerous changes to potassium and other electrolytes, and coma. Without prompt treatment, DKA can lead to coma or death.
Can people use urine and blood ketone monitors to test ketones?
Urine and blood ketone monitors are available, but they only offer a snapshot in time and depend on individuals or caregivers recognizing symptoms and deciding to test. Many do not check ketones regularly or lack testing supplies, which can delay action. In a study published in the British Medical Journal Open Diabetes Research & Care, 64% of participants do not test for ketones at all, which can lead to rising ketones that may go unnoticed until a medical emergency develops.7
Can a continuous glucose monitor (CGM) provide information that helps prevent diabetic ketoacidosis?
A CGM, like the FreeStyle Libre 3 Plus sensor, can play an important role in diabetes management, but they are not designed to measure ketones. Because rising ketones are a key driver of diabetic ketoacidosis, relying on glucose data alone may not always provide an early warning before diabetic ketoacidosis (DKA) develops. Abbott has developed a dual glucose-ketone sensing technology in the U.S. that is pending FDA clearance.
About Libre:
Abbott continues to pioneer groundbreaking technology to support people living with diabetes. The company revolutionized diabetes care more than 10 years ago with its world-leading Libre continuous glucose monitoring portfolio8, which today is used by more than 8 million people across over 60 countries. People use Libre technology to see their glucose numbers in real-time, providing insights into how food, activity, or insulin impacts their glucose to help them make progress on their health goals. There is full or partial reimbursement for Libre systems in more than 40 countries.8
About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X, and YouTube.
Important Safety Information: FreeStyle Libre 3 system is for prescription only, for Important Safety Information, please visit https://www.freestyle.abbott/us-en/safety-information.html.
1 Sherr et al. Burden Of Diabetic Ketoacidosis Among Youth With Diabetes: A Hospital Claims Analysis.
2 American Diabetes Association. "Planning for Sick Days." Accessed February 6, 2026. https://diabetes.org/getting-sick-with-diabetes/sick-days.
3 Miller et al. Characterizing the Clinical Presentation of Diabetic Ketoacidosis Hospitalizations in People with Diabetes using Admitting Diagnoses.
4 Trends in the Prevalence of Diabetic Ketoacidosis and Severe Hypoglycemia in Type 1 Diabetes.
5 Galindo et al. Mortality And Costs of Diabetic Ketoacidosis Hospitalizations in People with Type 2 Diabetes: Differences Between Primary Vs. Secondary Diagnosis.
6 Dhatariya, et al. Lancet Diabetes & Endocrinology (2025): https://pubmed.ncbi.nlm.nih.gov/41381175/
7 Hepprich, M., Roser, P., Stiebitz, S., Felix, B., Schultes, B., Schmitz, D., Rutishauser, J., Schubert, S., Aberle, J., & Rudofsky, G. (2023). Awareness and knowledge of diabetic ketoacidosis in people with type 1 diabetes: a cross-sectional, multicenter survey. BMJ open diabetes research & care, 11(6), e003662. https://doi.org/10.1136/bmjdrc-2023-003662
8 Data on File, Abbott Diabetes Care. Data based on the number of patients assigned to each manufacturer.
Diabetic ketoacidosis (DKA) can develop quickly and is not always easy to detect earlyKetone monitoring is not yet routine in diabetes care, which may contribute to missed warning signs of DKA and delays in interventionNearly 60% of pediatric hospitalizations for Type 1 diabetes in the U.S. are associated with DKA1, /PRNewswire/ -- Abbott (NYSE: ABT), the global healthcare leader, announced new data revealing diabetic ketoacidosis (DKA) remains an important, yet often undetected health concern for people living with both Type 1 and Type 2 diabetes. Findings from multiple Abbott studies shared at the American Diabetes Association's (ADA) June 2026 86th Scientific Sessions show sharp increases in DKA-related hospitalizations across all age groups nationwide. The data reinforces that while diabetes technology has advanced significantly, there are opportunities to better detect rising ketones before DKA develops.
Diabetic Ketoacidosis: Often Misunderstood and Difficult to Recognize
DKA develops in people with diabetes when the body does not have enough insulin and begins breaking down fat for energy, causing ketones to rise to dangerous levels in the blood.2 While traditionally associated with Type 1 diabetes, DKA is increasingly affecting people with Type 2 diabetes. The American Diabetes Association notes that high ketone levels can escalate to DKA within hours and, if left untreated, can lead to coma or death.2 Many people living with diabetes aren't familiar with DKA or its symptoms, despite clinical guidance recommending ketone testing during periods of elevated glucose, making it a challenge to detect early.
New DKA Data from Abbott Presented at ADA's Scientific Sessions
At the ADA's Scientific Sessions, Abbott presented findings from multiple studies analyzing hospitalization, admission diagnosis and insurance claims data to better understand how DKA may be challenging to identify, its rising impact among young people, and a growing prevalence in adults with Type 2 diabetes.
DKA may be hard to identify early at hospital admissions: A study of over 100,000 people across the U.S. found that DKA can be difficult to recognize when a person first arrives at the hospital, as early symptoms – such as nausea, fatigue, or stomach pain – overlap with many common illnesses.3 A confirmed diagnosis of DKA depends on blood tests that measure blood sugar, blood pH and/or bicarbonate levels, and ketones, which may not be immediately available at admission.2 These delays highlight the need for approaches to recognize DKA earlier to provide timely care.Better awareness of DKA may help curb hospitalizations: A second study of over 200,000 people showed that between 2017-2024, DKA hospitalization rates among people with Type 1 diabetes increased approximately 24%, rising from 50 to 62 cases per 1,000 individuals. The increase was more pronounced in children than adults.4 Most DKA events led to hospitalization for both children and adults, while severe hypoglycemia rates stayed low and stable, likely due to greater recognition of hypoglycemia and less awareness of DKA risk.4Reducing DKA hospitalizations may improve health outcomes across all ages: One analysis of close to 40,000 pediatric hospitalizations showed DKA now drives nearly 60% of all diabetes-related hospitalizations among youth with Type 1 or Type 2 diabetes.1 Most U.S. hospitalizations among children with diabetes are related to DKA, with the majority requiring inpatient care lasting up to one week and costing up to $38,000 per stay.1 Findings from a separate study with data from millions of people indicate DKA is likely underreported in adults with Type 2 diabetes, and when diagnosed after admission as a secondary condition, is associated with longer hospital stays, higher costs, and increased rates of death.5"These findings from Abbott show that diabetic ketoacidosis remains a growing challenge to identify, as DKA can develop quickly and mimic common illnesses," said Kurt Midyett, M.D., pediatric endocrinologist at Saint Luke's Endocrinology Specialists in Kansas City, Mo. "When early symptoms are misattributed, delays in diagnosis are common and often result in lengthy and costly hospitalization. This data underscores the importance of addressing gaps in recognition to help detect rising ketones before DKA develops."
The Role of Ketone Monitoring in Diabetes Care
Continuous glucose monitors (CGMs) play an essential role in helping people manage their diabetes by providing real-time glucose insights. However, they do not currently measure ketones and DKA can still develop even when glucose levels appear stable.6 Insights from adults living with Type 1 diabetes show that while some people understand the importance of monitoring ketones, testing is often underused. Rising ketones can progress to DKA within hours, so earlier visibility has the potential to prompt action sooner and reduce risk.6
"These new data make clear that preventing diabetic ketoacidosis starts with recognizing risk earlier," said Mahmood Kazemi, M.D., chief medical officer for Abbott's diabetes care business. "DKA remains one of the most preventable emergencies in diabetes care, yet too many people still miss early warning signs when ketones levels begin to rise. These findings underscore the need for better ways to recognize risk sooner and help reduce avoidable hospitalizations."
As an alternative to existing ketone monitoring options, Abbott has developed dual glucose-ketone sensing technology, which combines continuous glucose and ketone monitoring in a single sensor designed to support both daily diabetes management and help to detect rising ketone levels for people living with diabetes. Abbott announced CE Mark for the systems, called Libre Duo and Libre Duo 10 Day, in May 2026. The company has also filed a regulatory submission with the U.S. Food & Drug Administration (FDA). Libre Duo and Libre Duo 10 Day systems are not yet cleared by the FDA or available for sale in the United States.
Frequently Asked Questions
What is diabetic ketoacidosis?
Diabetic ketoacidosis (DKA) occurs when the body doesn't have enough insulin. To get energy, the body starts breaking down fat, which releases acids called ketones into the blood. People in DKA can experience severe dehydration, dangerous changes to potassium and other electrolytes, and coma. Without prompt treatment, DKA can lead to coma or death.
Can people use urine and blood ketone monitors to test ketones?
Urine and blood ketone monitors are available, but they only offer a snapshot in time and depend on individuals or caregivers recognizing symptoms and deciding to test. Many do not check ketones regularly or lack testing supplies, which can delay action. In a study published in the British Medical Journal Open Diabetes Research & Care, 64% of participants do not test for ketones at all, which can lead to rising ketones that may go unnoticed until a medical emergency develops.7
Can a continuous glucose monitor (CGM) provide information that helps prevent diabetic ketoacidosis?
A CGM, like the FreeStyle Libre 3 Plus sensor, can play an important role in diabetes management, but they are not designed to measure ketones. Because rising ketones are a key driver of diabetic ketoacidosis, relying on glucose data alone may not always provide an early warning before diabetic ketoacidosis (DKA) develops. Abbott has developed a dual glucose-ketone sensing technology in the U.S. that is pending FDA clearance.
About Libre:
Abbott continues to pioneer groundbreaking technology to support people living with diabetes. The company revolutionized diabetes care more than 10 years ago with its world-leading Libre continuous glucose monitoring portfolio8, which today is used by more than 8 million people across over 60 countries. People use Libre technology to see their glucose numbers in real-time, providing insights into how food, activity, or insulin impacts their glucose to help them make progress on their health goals. There is full or partial reimbursement for Libre systems in more than 40 countries.8
About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X, and YouTube.
Important Safety Information: FreeStyle Libre 3 system is for prescription only, for Important Safety Information, please visit https://www.freestyle.abbott/us-en/safety-information.html.
1 Sherr et al. Burden Of Diabetic Ketoacidosis Among Youth With Diabetes: A Hospital Claims Analysis.
2 American Diabetes Association. "Planning for Sick Days." Accessed February 6, 2026. https://diabetes.org/getting-sick-with-diabetes/sick-days.
3 Miller et al. Characterizing the Clinical Presentation of Diabetic Ketoacidosis Hospitalizations in People with Diabetes using Admitting Diagnoses.
4 Trends in the Prevalence of Diabetic Ketoacidosis and Severe Hypoglycemia in Type 1 Diabetes.
5 Galindo et al. Mortality And Costs of Diabetic Ketoacidosis Hospitalizations in People with Type 2 Diabetes: Differences Between Primary Vs. Secondary Diagnosis.
6 Dhatariya, et al. Lancet Diabetes & Endocrinology (2025): https://pubmed.ncbi.nlm.nih.gov/41381175/
7 Hepprich, M., Roser, P., Stiebitz, S., Felix, B., Schultes, B., Schmitz, D., Rutishauser, J., Schubert, S., Aberle, J., & Rudofsky, G. (2023). Awareness and knowledge of diabetic ketoacidosis in people with type 1 diabetes: a cross-sectional, multicenter survey. BMJ open diabetes research & care, 11(6), e003662. https://doi.org/10.1136/bmjdrc-2023-003662
8 Data on File, Abbott Diabetes Care. Data based on the number of patients assigned to each manufacturer.
View original content:https://www.prnewswire.com/news-releases/new-abbott-data-show-many-people-with-diabetes-may-not-recognize-symptoms-of-diabetic-ketoacidosis-302793024.html
Study at ADA's Scientific Sessions shows participants in Abbott's Healthy Food Rx program combined with health coaching had significant health improvements Abbott's Healthy Food Rx program is a Food is Medicine initiative delivering recipe-based food boxes and nutrition education to people living with diabetes , /PRNewswire/ -- New research presented at the American Diabetes Association's 86th Scientific Sessions showed that adults living with type 2 diabetes participating in Abbott's (NYSE: ABT) Healthy Food Rx "Food is Medicine" program, paired with community health worker–led coaching, experienced major improvements in healthy eating, physical activity, diabetes self-management, food insecurity and self-reported physical and mental health.
Conducted with the Public Health Institute Center for Wellness and Nutrition (PHI CWN), the Asian Pacific Self-Development and Residential Association (APSARA) and the Emergency Food Bank of Stockton/San Joaquin (EFB), and with funding from Abbott's philanthropic foundation Abbott Fund, the study assessed 284 participants living with type 2 diabetes who received Healthy Food Rx food boxes alongside community health worker–led coaching over a six-month period.
Key findings from the study revealed:
Improved diet quality: Participants doubled daily vegetable intake (from 1.2 to 2.4 times per day) and nearly doubled daily fruit intake (from 1.2 to 2.3 times per day). Water intake also increased from 2.8 to 4.1 times per day. Increased physical activity: Participants significantly increased the frequency of exercise sessions lasting 10 or more minutes from 2.8 to 4.4 times per week. Stronger diabetes self-management: Participants significantly improved glucose monitoring, medication adherence and clinic attendance. Notably, the percentage of participants who reported they usually or always monitored their glucose increased from 28% to 62%, and individuals who usually or always took their diabetes medication as prescribed increased from 57% to 94%. Better physical and mental health: Those reporting good, very good or excellent physical health more than tripled from 21% to 77%, and those reporting good, very good or excellent mental health more than doubled from 34% to 88%. Reduced food insecurity: Food insecurity decreased significantly from 91% to 76% for program participants. "This research adds to the evidence supporting Food is Medicine and adds new insight on the significant impact that community-centered approaches can have on diabetes care," said Maggie Wilkin, director of research and evaluation, Public Health Institute Center for Wellness and Nutrition. "These findings show that pairing healthy food access with culturally responsive, patient-centered coaching can help people feel better physically and mentally."
"Abbott's Healthy Food Rx program shows what's possible when people receive not only healthy food, but also encouragement and coaching from someone they trust who understands their daily realities," said Melissa Brotz, senior vice president, Global Marketing and External Affairs, Abbott and president of Abbott Fund. "Food is Medicine is most powerful when it combines healthy food access with the knowledge, confidence and support people need to manage their health."
"Many people with diabetes face real-world challenges in getting the care and support they need to live healthy. Community health workers can play a powerful role in helping people manage chronic illness because they bring trust, understanding and consistency to the work," said David Daraseng, project coordinator, APSARA.
About the study
Study participants received home-delivered, family-sized healthy food boxes every other week for six months from EFB, along with health coaching in their preferred language from APSARA. Each Healthy Food Rx box included ingredients for healthy family meals such as pantry staples, proteins, fruits and vegetables, along with a recipe card and access to optional online cooking classes with diabetes education. Community health workers co-created and delivered monthly lessons and conducted twice-monthly follow-ups to support goal setting, motivation and diabetes self-management.
The study evaluation was conducted over two six-month rounds, examining changes in diet, physical activity, food security, diabetes self-management and self-reported health before and after participation. Full study results can be found here.
About Abbott's Healthy Food Rx
These findings build on results from other Healthy Food Rx studies. An earlier 12-month study showed clinically significant improvements for participants, with lower A1C levels and improved diabetes self-management, overall diet quality and food security, and a randomized controlled trial demonstrated improved diet and self-reported health among participants.
Abbott's Healthy Food Rx is one of the largest community-focused Food is Medicine programs in the U.S., reaching 2,100 participants to date. Abbott partnered with PHI CWN and Stockton-based organizations to launch Healthy Food Rx with funding from Abbott Fund.
Healthy Food Rx is part of Abbott's Future Well™ Communities program, a multi-year effort launched in 2019 to advance health access and address chronic disease by removing barriers that prevent people from living fuller lives through better health.
About the Public Health Institute and the Center for Wellness and Nutrition
The Public Health Institute, an independent nonprofit organization, advances wellbeing and health equity with communities around the world. PHI develops research, leadership and partnerships to build strong public health policy, programs, systems and practices. For more information, visit phi.org. The Center for Wellness and Nutrition (CWN, centerforwellnessandnutrition.org), a program of the Public Health Institute, is a national leader in developing campaigns, programs and partnerships to promote wellness and equitable practices in the most vulnerable communities in California and across the country.
About APSARA
The Asian Pacific Self-Development and Residential Association (APSARA) is a grassroots nonprofit community-based organization serving Stockton, CA communities, with a focus on Southeast Asian populations as well as African American and Latino residents. APSARA provides community-based education, case management and support services that help individuals and families improve health and wellbeing.
About the Emergency Food Bank of Stockton/San Joaquin
The Emergency Food Bank Stockton/San Joaquin (EFB), founded in 1968, is the largest direct provider of emergency food in San Joaquin County. The mission of the Emergency Food Bank is to build a stronger community by providing a safety net of healthy food, nutrition education and hope to residents of San Joaquin County who find themselves in need. For more information, visit stocktonfoodbank.org.
About Abbott and Abbott Fund
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries. Together with our foundation, Abbott Fund, we partner with trusted organizations to build programs that strengthen care, improve access and help families and communities thrive. We're committed to building a healthier future by inspiring lifelong habits that support well-being and help to prevent chronic disease for generations to come. Connect with us at Abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.
If you're a new investor who's just getting started with investing, it can seem overwhelming trying to determine which stocks to buy. You may be tempted to go with what's hot right now and focus on the latest trends, but that can be risky. Meanwhile, being too conservative and avoiding risk entirely could result in limited returns and may not seem all that worthwhile.
Three stocks that I think can be ideal ones to build up a portfolio around are Visa (V +0.93%), Home Depot (HD +0.73%), and Abbott Laboratories (ABT 1.64%). With this mix of stocks, you'll get three reasonably valued investments that have strong fundamentals and that also pay dividends. Here's a closer look at each one of them.
Image source: Getty Images.
Visa Credit card giant Visa is a no-brainer for long-term investors given its important role in the economy. Its credit cards are accepted worldwide and are used not only by people who may be short of cash, but also by those who want to collect points and benefit from rewards, as well as those who simply prefer not to use cash.
The business is robust and serves a wide range of customers with varying needs. This is also a highly profitable business, with Visa reporting $22 billion in profit over the trailing 12 months, on revenue totaling $43 billion. That translates into an impressive profit margin of 51%.
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Visa's business isn't going anywhere, and with strong financials, it can be an excellent investment to build your portfolio around. It offers a modest dividend that yields 0.8%, which can pad your returns. It trades at a price-to-earnings (P/E) multiple of just under 28, which isn't terribly cheap but is arguably fair given the growth it continues to generate.
Home Depot Another solid business that provides consumers with necessary products and services is Home Depot, an iconic home improvement retailer. This is a store that many people frequent when they're taking on renovations and other projects around the house. It's helpful to not only get the tools you need to do the job, but also to get advice and suggestions on how to go about doing so.
While the retailer has been facing challenges in recent years due to a slowdown in the housing market, its future remains bright given the strong position it has in retail. It also generates some strong margins, with its profits totaling $14 billion over the past four quarters on revenue of $167 billion, which means its profit margin is about 8%. Although that's nowhere near the profitability that Visa generates, it's a solid rate nonetheless.
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At 3%, you're also getting a terrific dividend yield from Home Depot stock that's close to three times the S&P 500 average of just over 1%. Home Depot has also been increasing its dividend over the years, giving investors an incentive to simply buy and hold. The retail stock currently trades at 22 times earnings.
Abbott Laboratories Rounding out this list is a top healthcare company, Abbott Laboratories. The business generates revenue from multiple segments, including diagnostics, medical devices, nutrition, and established pharmaceuticals, with each one on its own bringing in billions of revenue each quarter. That diversification can help provide you with a solid, all-around healthcare stock.
In the trailing 12 months, Abbott has generated $45 billion in sales with profits totaling about $6.3 billion, which means its net margin is approximately 14%. With many ways to grow its business, it can be a valuable stock to hold given its varying growth opportunities and potential. The company recently acquired Exact Sciences, which develops products that can help with cancer screening and testing.
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One of the main reasons investors buy shares of Abbott Laboratories is for its dividend, which currently yields 2.8%. Abbott is also a Dividend King, having raised its payout consistently for more than 50 consecutive years. It's a great buy-and-hold investment that you can simply hang on to and forget about. Its P/E ratio currently sits at 25, which is in line with the S&P 500 average.
Abbott (ABT - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this maker of infant formula, medical devices and drugs have returned +8.2%, compared to the Zacks S&P 500 composite's no change. During this period, the Zacks Medical - Products industry, which Abbott falls in, has gained 4.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Abbott is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of +1.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $5.48 points to a change of +6.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $6.06 indicates a change of +10.6% from what Abbott is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Abbott is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Abbott, the consensus sales estimate for the current quarter of $12.53 billion indicates a year-over-year change of +12.4%. For the current and next fiscal years, $50.49 billion and $55.02 billion estimates indicate +13.9% and +9% changes, respectively.
Last Reported Results and Surprise HistoryAbbott reported revenues of $11.16 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.15 for the same period compares with $1.09 a year ago.
Compared to the Zacks Consensus Estimate of $11.02 billion, the reported revenues represent a surprise of +1.31%. The EPS surprise was +0.88%.
Over the last four quarters, Abbott surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Abbott is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Abbott. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Key Takeaways Abbott added Cologuard, Oncotype DX, Oncodetect and Cancerguard via the Exact Sciences deal.Abbott presented new cancer detection data and CRC screening findings at major 2026 meetings.Abbott expects about $3 billion in incremental 2026 sales from the Exact Sciences acquisition. Abbott’s (ABT - Free Report) $23 billion acquisition of Exact Sciences was among the headline MedTech M&A deals of 2025, according to a J.P Morgan report. Following the close, the company gained a broad portfolio and differentiated pipeline aimed at early detection of cancer and personalized treatment decisions. This includes Cologuard, a non-invasive colorectal cancer screening (CRC) option, Oncotype DX for early-stage breast cancer planning, the Oncodetect tumor-informed molecular residual disease (MRD) test and the Cancerguard multi-cancer early detection (MCED) blood test.
The transaction also added a new growth vertical to Abbott's already high-single-digit growth profile, positioning it at the forefront of the fast-growing $60 billion U.S. cancer screening and precision oncology diagnostics segments. In recent months, Abbott has continued to showcase the expanding evidence base of its Cancer Diagnostics portfolio, supporting its strength and potential.
During the Digestive Disease Week (“DDW”) 2026 in Chicago, the company shared new data highlighting the potential of emerging liver and esophageal tests. CRC screening data presented at DDW further bolsters the effectiveness of Cologuard in driving better outcomes and getting more people screened.
At the American Association for Cancer Research Annual Meeting 2026, the company reported advancements in its multi-biomarker, MCED program supporting the commercially available Cancerguard test. Data showed that combining methylation and protein biomarkers improves cancer detection across stages, with each biomarker independently contributing to overall performance.
Another positive development came when the American Cancer Society updated its CRC screening guidelines, reaffirming Cologuardand Cologuard Plusas preferred non-invasive screening options for average-risk adults aged 45 and older. Both tests are used at a three-year interval.
From a financial standpoint, Abbott projects the Exact Sciences deal to add roughly $3 billion of incremental sales in 2026. That said, the adjusted EPS guidance of $5.38-$5.58 incorporates about $0.20 of dilution tied to the transaction.
M&A Activity Among Abbott’s PeersMedtronic (MDT - Free Report) recently announced its intent to acquire SPR Therapeutics, Inc., a privately held company specializing in temporary, percutaneous peripheral nerve stimulation therapies for chronic pain management. The planned acquisition will enhance Medtronic's Neuromodulation portfolio, increasing its ability to reach more people with complementary, minimally invasive pain relief options earlier in their care continuum. In April 2026, the company acquired CathWorks, significantly boosting its interventional cardiology portfolio.
In May 2026, Stryker (SYK - Free Report) completed the acquisition of Amplitude Vascular Systems, Inc., a privately held company developing a next-generation intravascular lithotripsy (IVL) platform to treat complex peripheral arterial disease. The addition of an IVL platform is expected to bolster Stryker’s impact on peripheral vascular solutions.
The Zacks Rundown for ABT StockOver the past six months, ABT shares have plunged 26% compared with the industry’s 28.1% decline.
Image Source: Zacks Investment Research
Abbott is trading at a forward, three-year Price/Sales (P/S) of 3.03X, lower than its 4.54X median but above the industry average of 2.06X.
Image Source: Zacks Investment Research
Take a look at how estimates for Abbott’s 2026 and 2027 earnings are shaping up.
Image Source: Zacks Investment Research
Abbott currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, Abbott (ABT - Free Report) was down 2.28% at $89.17. The stock trailed the S&P 500, which registered a daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
The stock of maker of infant formula, medical devices and drugs has risen by 8.18% in the past month, leading the Medical sector's gain of 5.04% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Abbott in its upcoming release. The company's upcoming EPS is projected at $1.28, signifying a 1.59% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $12.53 billion, reflecting a 12.43% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.48 per share and a revenue of $50.49 billion, signifying shifts of +6.41% and +13.9%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Abbott. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Abbott currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Abbott currently has a Forward P/E ratio of 16.66. This denotes a discount relative to the industry average Forward P/E of 17.7.
It's also important to note that ABT currently trades at a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Medical - Products industry held an average PEG ratio of 1.58.
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Abbott Laboratories is rated a strong buy due to structural undervaluation and resilient fundamentals despite recent negative price action. ABT trades at a 17.1% P/E and 35.1% sales multiple discount to peers, with DCF fair value estimates implying 21.8–39.4% upside. Growth is underpinned by the Exact Sciences acquisition, diagnostics megatrends, and global expansion in CGM, with FY26 guidance raised for both sales and EPS.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The board of directors of Abbott (NYSE: ABT) today declared a quarterly common dividend of 63 cents per share.
This marks the 410th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable Aug. 17, 2026, to shareholders of record at the close of business on July 15, 2026.
Abbott has increased its dividend payout for 54 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.
, /PRNewswire/ -- The board of directors of Abbott (NYSE: ABT) today declared a quarterly common dividend of 63 cents per share.
This marks the 410th consecutive quarterly dividend to be paid by Abbott since 1924. The cash dividend is payable Aug. 17, 2026, to shareholders of record at the close of business on July 15, 2026.
Abbott has increased its dividend payout for 54 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years.
About Abbott:
Abbott is a global healthcare leader that helps people live more fully at all stages of life. Our portfolio of life-changing technologies spans the spectrum of healthcare, with leading businesses and products in diagnostics, medical devices, nutritionals and branded generic medicines. Our 122,000 colleagues serve people in more than 160 countries.
Connect with us at www.abbott.com and on LinkedIn, Facebook, Instagram, X and YouTube.
View original content:https://www.prnewswire.com/news-releases/abbott-declares-410th-consecutive-quarterly-dividend-302799345.html
WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, will hold its 2026 Investor Day on Wednesday, May 20, 2026, starting at 9:00 a.m. ET in New York City.
The format will feature presentations by members of Thermo Fisher Scientific’s senior management team and conclude with a Q&A session.
The live webcast of the presentation can be accessed via the Investors section of our website, https://ir.thermofisher.com. A replay of the webcast will be available following the presentation.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
Expansion of Plainville, Mass., facility offers bioprocessing expertise, advanced technologies and customized support
WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc., the world leader in serving science, today announced the opening of its flagship U.S. Bioprocess Design Center (BDC) at the company’s Plainville, Mass., site, expanding the facility to support customers in developing and scaling biologics. The new center brings together advanced bioproduction capabilities and hands-on collaboration to help customers accelerate process development and bring transformative therapies to patients faster. The facility demonstrates Thermo Fisher’s continued commitment to empowering customers as a trusted innovation partner.
The new U.S. Bioprocess Design Center (BDC) brings together advanced bioproduction capabilities and hands-on collaboration to help customers accelerate process development and bring transformative therapies to patients faster.
Share The BDC features 4,000 square feet of laboratory and training space to support customers in developing biologics, including vaccines and cell and gene therapies. Customers will experience Thermo Fisher’s complete, end-to-end bioproduction workflow of integrated, scalable solutions – including media, cell line development, single-use systems, chromatography, filtration, purification and analytics – that can unlock productivity gains and reduce time to market.
Onsite bioprocess specialists provide hands-on demonstrations, training and technical consulting. Experts work directly with customers to test and refine processes, validate concepts and address complex challenges to help them move from development to scalable production with greater speed and confidence.
“Our new Bioprocess Design Center brings together Thermo Fisher’s experts and customers to tackle some of the most complex challenges in bioprocessing, demonstrating how collaboration and shared innovation can accelerate therapeutic development and help deliver life-changing therapies to patients faster,” said Daniella Cramp, senior vice president and president, BioProduction and Customer Excellence at Thermo Fisher Scientific. “By creating a space where customers can work side by side with our scientists and engineers, we can help translate innovative ideas into scalable solutions that advance biologics development and manufacturing for customers across the United States.”
“Companies like Thermo Fisher Scientific are choosing Massachusetts because of our world-renowned life sciences sector, and we are proud to partner with them as they continue to grow and invest in our state,” said Governor Maura Healey. “This new Bioprocess Design Center will accelerate cutting-edge research, strengthen our economy, and create new jobs for workers across our state. Massachusetts continues to lead the nation in life sciences because we invest in innovation, support our workforce, and partner with companies that are delivering the next generation of life-saving therapies.”
Customers gain a critical advantage in later stages of drug development when they optimize their bioproduction workflows to reduce risk and improve scalability. With Thermo Fisher as a partner, they can carry that momentum forward through preclinical development, clinical research, clinical trials, manufacturing and commercialization. Thermo Fisher’s Accelerator™ Drug Development offers end-to-end Contract Development and Manufacturing Organization (CDMO) and Contract Research Organization (CRO) services across all major drug modalities and therapeutic areas.
The strategic addition of the BDC to Thermo Fisher’s 290,000-square-foot Plainville facility introduces bioproduction capabilities that complement its existing integrated sterile fill-finish and viral vector services and demonstrates the company’s comprehensive expertise across the drug development continuum. Located in the greater Massachusetts life science ecosystem, the center is well-positioned for customer collaboration across the U.S., with a shared goal of bringing innovative treatments and hope to patients.
“This new Bioprocess Design Center is a strong example of why Massachusetts continues to lead in life sciences,” said Massachusetts Economic Development Secretary Eric Paley. “We are fortunate to have an ecosystem where companies like Thermo Fisher can bring together cutting-edge technology, world-class talent, and close collaboration to move breakthrough therapies from concept to production. Investments like this strengthen our position as a global hub for biomanufacturing and help ensure that the next generation of treatments is developed and delivered faster, right here in Massachusetts.”
For more information on Thermo Fisher's global Bioprocess Design Centers, visit https://www.thermofisher.com/us/en/home/bioprocessing/about/bioprocess-design-centers.html.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
On May 04, 2026, we present a detailed DCF analysis for Thermo Fisher Scientific Inc TMO , a company that has experienced a price decline of 18.9% year-to-date, despite a 12.2% increase over the past year. This analysis will explore the intrinsic value of TMO based on both earnings and free cash flow models, providing insights into its current valuation status.
DCF Earnings-based intrinsic value of $477.60 vs current price of $469.21 (margin of safety: 1.8%) DCF FCF-based intrinsic value of $333.59 vs current price (second opinion: modestly overvalued) GF Score™ of 87/100 indicates high reliability of the DCF inputs What Is TMO Worth? DCF Earnings-Based Model The DCF earnings-based model for TMO utilizes a two-stage approach to estimate the intrinsic value of the stock. The first stage considers a high growth phase over the next ten years, while the second stage accounts for a terminal growth phase. Below are the assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $23.16 10-Year Growth Rate 13.8% 10-Year Treasury Rate 4.37% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The growth phase (Years 1-10) assumes an annual EPS growth of 13.8%, which is then discounted at a rate of 11%. The terminal phase (Years 11-20) assumes a slowdown to a 4% growth rate, also discounted at 11%. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.8%, discounted at 11% $266.29 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $211.31 Intrinsic Value Growth + Terminal $477.60 Comparing the current price of $469.21 with the intrinsic value of $477.60 indicates that TMO is fairly valued, with a margin of safety of 1.8%. It's important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further calculations, visit the TMO DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for TMO is calculated at $333.59. When comparing this to the earnings-based intrinsic value of $477.60, there is a significant discrepancy. The FCF model suggests that TMO is modestly overvalued, with a margin of safety of -40.6%. This divergence highlights the importance of considering multiple valuation perspectives when assessing a stock's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for TMO is calculated at $577.76, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure that takes into account historical trading multiples, past business growth, and future performance estimates. While the earnings-based DCF suggests fair valuation, the FCF model indicates modest overvaluation, and the GF Value™ suggests that TMO is undervalued. This divergence among the three models underscores the complexity of valuation assessments. For more information, visit the GF Value™ page.
What Does TMO's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). Below is the breakdown of TMO's GF Score™:
Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 8/10 Momentum 7/10 With a predictability rank of 0/5 stars, TMO's DCF model is less reliable, indicating that investors should exercise caution when relying solely on this analysis. For more details, visit the TMO stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as TMO, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that TMO is fairly valued based on the earnings model, modestly overvalued according to the FCF model, and undervalued from the GF Value™ perspective. Overall, investors should consider these varied insights before making investment decisions. For the full DCF analysis, visit the TMO DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is TMO's intrinsic value based on DCF?
According to the DCF analysis, the earnings-based intrinsic value is $477.60, while the FCF-based intrinsic value is $333.59.
Is TMO overvalued or undervalued?
The DCF earnings model suggests TMO is fairly valued, while the FCF model indicates it is modestly overvalued. The GF Value™ suggests it is undervalued.
How reliable is the DCF model for TMO?
The predictability rank for TMO is 0/5 stars, indicating that the DCF model may not be very reliable for this stock.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New Gibco™ CTS™ DynaXS™ Single Use Bioreactor supports flexible, cGMP-ready cell expansion from process development to clinical production to support the development of cell therapies for cancer, autoimmune, and other treatments
WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc., the world leader in serving science, today introduced the Gibco™ CTS™ DynaXS™ Single Use Bioreactor, a purpose-built expansion platform designed to help cell therapy developers scale manufacturing with precise control, flexibility, and regulatory readiness.
As cell therapies move from early research into clinical development and commercialization, manufacturers face increasing pressure to transition from static culture systems to scalable, automation-ready platforms that can support consistent quality, cost control, and cGMP compliance. Developers must balance process flexibility with the operational demands of clinical manufacturing, often within limited facility space and tight development timelines.
At the same time, the cell therapy landscape continues to evolve beyond oncology into a broader range of indications, including autoimmune and other emerging areas. This shift is driving the development of new cell modalities and diverse manufacturing approaches. These emerging applications often require different process configurations and production scales, adding complexity to manufacturing strategies across all stages of development and commercialization.
The CTS DynaXS Single Use Bioreactor was designed specifically to address these evolving needs. The stirred-tank, single-use system supports cell expansion across development and early clinical volumes, offering a scalable platform from small process development batches to larger cGMP manufacturing runs.
“Cell therapy manufacturers are navigating a rapidly expanding pipeline and increasing regulatory expectations,” said Sara Henneman, vice president and general manager of Thermo Fisher Scientific’s cell culture and cell therapy business. “The CTS DynaXS bioreactor reflects our commitment to help deliver end-to-end, integrated solutions that enable customers to simplify scale-up, strengthen process control, and support the development of therapies intended for patient use.”
Integrated Within the CTS Cell Therapy Ecosystem
The CTS DynaXS bioreactor extends Thermo Fisher’s Cell Therapy Systems (CTS) portfolio, supporting workflows from cell isolation and activation through expansion and downstream processing. This integration enables customers to build modular, scalable manufacturing strategies with unified technical support and regulatory documentation.
“Manufacturers want platforms that grow with them,” said Andy Campbell, senior director of research and development at Thermo Fisher Scientific. “With CTS DynaXS, we are providing a solution designed specifically for cell expansion that aligns with the broader cell therapy manufacturing journey. The single-use bioreactor offers a broad operating range and flexible design, enabling customers to efficiently scale from small to large production across a wide variety of volumes, applications, and cell types.”
Thermo Fisher’s Commitment to Cell Therapy Innovation Spans Over 20 Years
As demand for scalable, reproducible cell therapy manufacturing solutions accelerates, Thermo Fisher remains committed to supporting customers with technologies designed to reduce complexity, enhance control, and support progress toward clinical development.
For more information, visit www.thermofisher.com/dynaxs.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue of more than $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
Have you evaluated the performance of Thermo Fisher Scientific's (TMO - Free Report) international operations during the quarter that concluded in March 2026? Considering the extensive worldwide presence of this maker of scientific instrument and laboratory supplies, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For investors, the key is to grasp how reliant a company is on overseas markets, as this provides insights into the durability of its earnings, its ability to exploit different economic cycles, and its overall growth capabilities.
Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While delving into TMO's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter amounted to $11.01 billion, showing rise of 6.2%. We will now explore the breakdown of TMO's overseas revenue to assess the impact of its international operations.
Unveiling Trends in TMO's International RevenuesOther regions generated $372 million in revenues for the company in the last quarter, constituting 3.4% of the total. This represented a surprise of -1.48% compared to the $377.57 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other regions accounted for $462 million (3.8%), and in the year-ago quarter, it contributed $337 million (3.3%) to the total revenue.
During the quarter, Asia-Pacific contributed $1.97 billion in revenue, making up 17.9% of the total revenue. When compared to the consensus estimate of $1.94 billion, this meant a surprise of +1.44%. Looking back, Asia-Pacific contributed $2.28 billion, or 18.6%, in the previous quarter, and $1.89 billion, or 18.3%, in the same quarter of the previous year.
Of the total revenue, $2.96 billion came from Europe during the last fiscal quarter, accounting for 26.9%. This represented a surprise of +4.76% as analysts had expected the region to contribute $2.82 billion to the total revenue. In comparison, the region contributed $3.37 billion, or 27.6%, and $2.62 billion, or 25.3%, to total revenue in the previous and year-ago quarters, respectively.
International Market Revenue ProjectionsWall Street analysts expect Thermo Fisher to report $11.61 billion in total revenue for the current fiscal quarter, indicating an increase of 7% from the year-ago quarter. Other regions, Asia-Pacific and Europe are expected to contribute 3.5% (translating to $405.2 million), 18% ($2.08 billion), and 26.1% ($3.03 billion) to the total revenue, respectively.
For the full year, the company is expected to generate $47.5 billion in total revenue, up 6.6% from the previous year. Revenues from Other regions, Asia-Pacific and Europe are expected to constitute 3.4% ($1.63 billion), 17.6% ($8.36 billion) and 25.6% ($12.15 billion) of the total, respectively.
Concluding RemarksThermo Fisher's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.
Thermo Fisher, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock PriceOver the preceding four weeks, the stock's value has diminished by 4.5%, against an upturn of 10% in the Zacks S&P 500 composite. In parallel, the Zacks Medical sector, which counts Thermo Fisher among its entities, has depreciated by 0.9%. Over the past three months, the company's shares have seen a decline of 13.6% versus the S&P 500's 4.4% increase. The sector overall has witnessed a decline of 8.1% over the same period.
PPD™ clinical research business recognized for leadership in clinical development, patient engagement and AI-driven pharmacovigilance
Summary:
Thermo Fisher named a Leader CRO in the 2026 ISG Provider Lens™ Life Sciences Digital Services report AI-enabled clinical development helps sponsors accelerate trials and bring therapies to patients faster Data-driven patient engagement and analytics improve enrollment efficiency, access and study outcomes WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc., the world leader in serving science, earned a Leader designation among contract research organizations (CROs) in the 2026 ISG Provider Lens™ Life Sciences Digital Services report, underscoring the company’s continued investment in digital innovation across the clinical development continuum.
The recognition highlights the strength of Thermo Fisher’s PPD™ clinical research business, which is recognized for its capabilities in clinical development, patient engagement, and digital evolution in pharmacovigilance and regulatory affairs. The independent study, conducted by Information Services Group (ISG), evaluates leading providers based on technology innovation, portfolio strength and competitive positioning.
ISG cited Thermo Fisher’s end-to-end approach to clinical development, including its ability to integrate decentralized and hybrid trial models with advanced data and analytics. By embedding digital technologies and AI-driven insights throughout the clinical trial lifecycle, the company helps customers reduce operational complexity and improve the predictability of global development programs.
In patient engagement, the report highlighted Thermo Fisher’s data-driven strategies to support recruitment and retention, along with digital platforms designed to expand access to clinical trials. These approaches aim to accelerate enrollment timelines while ensuring study designs are optimized to include all clinically relevant populations.
The company was also recognized for its progress in pharmacovigilance and regulatory affairs, where it continues to advance the use of artificial intelligence and machine learning to support safety case processing, signal detection and regulatory intelligence. These capabilities enable more proactive risk management and support compliance across global markets.
“This recognition affirms our leadership as a global CRO advancing digital clinical trials through AI and data-driven innovation across every stage of development,” said Krishna Cheriath, vice president, head of clinical research digital and AI, biopharma services, Thermo Fisher Scientific. “We are focused on building a more connected, patient-centric and AI-enabled future for clinical research that helps our customers accelerate the delivery of safe and effective therapies to patients worldwide.”
“The PPD clinical research business exemplifies the next-generation CRO model, where operational scale is enhanced by data, AI and patient-centric design to deliver predictable, high-quality clinical outcomes at global scale,” said ISG Lead Analyst Sneha Jayanth.
The ISG Provider Lens™ report evaluates leading contract research organizations and digital service providers based on innovation, technology capabilities and market impact. For 2026, ISG conducted an independent evaluation of leading life sciences service providers, assessing technology innovation, portfolio strength and competitive positioning across defined service categories.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific™, Applied Biosystems™, Invitrogen™, Fisher Scientific™, Unity Lab Services™, Patheon™ and PPD™. For more information, please visit www.thermofisher.com.
On May 11, 2026, we present a discounted cash flow (DCF) analysis for Thermo Fisher Scientific Inc TMO . The company has experienced a challenging price performance recently, with a year-to-date decline of 19.7%, despite a 13.6% increase over the past year. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $477.60 compared to the current price of $465.00 (margin of safety: 2.6%) DCF Free Cash Flow (FCF)-based intrinsic value of $333.59, suggesting a second opinion on valuation GF Score™ of 87/100 indicates a strong reliability of the DCF inputs What Is TMO Worth? DCF Earnings-Based Model In our DCF earnings-based model, we assume a current earnings per share (EPS) of $23.16, with a projected growth rate of 13.8% over the next ten years. The discount rate is set at 11%, which is derived from the risk-free rate and equity risk premium. After the growth phase, we apply a terminal growth rate of 4% for the following ten years. Below is a summary of the key assumptions:
Parameter Value Current EPS (TTM, excl. non-recurring) $23.16 10-Year Growth Rate 13.8% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage model consists of a growth phase for the first ten years, followed by a terminal phase. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.8%, discounted at 11% $266.29 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $211.31 Intrinsic Value Growth + Terminal $477.60 The current price of $465.00 is compared to the intrinsic value of $477.60, indicating that the stock is fairly valued with a margin of safety of 2.6%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, visit the TMO DCF Calculator.
What Does the Free Cash Flow DCF Say? The intrinsic value based on the Free Cash Flow (FCF) model is calculated at $333.59. When comparing this with the earnings-based intrinsic value of $477.60, we see a significant discrepancy. The FCF model suggests that TMO is modestly overvalued, with a margin of safety of -39.4%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Thermo Fisher Scientific Inc is calculated at $576.75, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure that considers historical trading multiples, past business growth, and future performance estimates. The three models present differing views: the earnings-based DCF suggests fair valuation, the FCF-based model indicates modest overvaluation, while GF Value™ suggests that the stock is undervalued. For more insights, visit the GF Value™ page.
What Does TMO's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested from 2006 to 2021). Below is a summary of TMO's GF Score™ metrics:
Metric Rating GF Score™ 87/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 8/10 Momentum 8/10 With a predictability rating of 0/5 stars, it is important to note that higher predictability ratings generally lead to more reliable DCF estimates for stocks. For additional information, visit the TMO stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to assumptions regarding growth rates and discount rates. Stocks with low predictability ratings, such as TMO's 0/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect actual future performance.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that TMO presents a mixed picture. While the earnings-based DCF suggests fair valuation, the FCF model indicates modest overvaluation, and the GF Value™ suggests undervaluation. Overall, the consensus leans towards TMO being fairly valued at this time. For the full DCF analysis, visit the TMO DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is TMO's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Sip from a Straw, Drink from a Spout, or Change Up the Cap with Other Nalgene Bottles
ROCHESTER, N.Y.--(BUSINESS WIRE)--Nalgene Outdoor today introduces the Fresh Flow™ straw bottle, a new addition to its reusable bottle collection designed to give fans more ways to hydrate without sacrificing the simplicity, durability, and approachable price points they expect from a Nalgene bottle.
“The Fresh Flow bottle is about giving people the flexibility to hydrate in the way that fits their day.”
Share The result is a slim 24-oz bottle paired with a new interchangeable Fresh Flow cap that lets fans sip from a straw, chug from a spout, or swap the cap onto other Nalgene bottles they already own.
The new Fresh Flow design also avoids many of the frustrations common in straw bottles today, such as complicated internal parts, difficult cleaning, and hidden moisture trapped inside lids.
Designed for Simplicity, Cleanability, and Flexibility
Exceptionally Easy to Clean
The two-piece straw removes easily and is dishwasher safe. With no small crevices or hard to reach spots, the simple design helps prevent mold and mildew buildup. Drink From It Your Way
Sip through the straw, remove it to chug from the wide mouth opening, or drink from the chute style spout for a quick sip on the move, whether it’s the gym or car (fits both holders!) Interchangeable by Design
The Fresh Flow cap is compatible with all 24-oz and 32-oz wide-mouth Nalgene bottles—aka the “classic OG bottle”— instantly expanding how fans can use bottles they already own. Built by Nalgene Outdoor Standards
Lightweight, dependable, and made for everyday use. The bottle is BPA/BPS-free and both sourced and manufactured in the United States using Tritan™ Renew. “The Fresh Flow bottle is about giving people the flexibility to hydrate in the way that fits their day,” said Eric Hansen, Marketing Director, Nalgene Outdoor. “We took the time to design a straw bottle the Nalgene way, keeping it simple, easy to clean, and affordable so people can focus on what they love doing.”
Available Nationwide in Three Colors
Fresh Flow straw bottles will be sold nationwide and at www.nalgene.com with an MSRP of $19.99 with an initial offering of three colors: clear, gray and aqua.
Download high-res photos here. To request samples, or more information, contact Marcia Gray at [email protected]. Follow @Nalgene on Instagram, TikTok and Facebook for updates. Tag #FreshFlow to share the imaginative ways this collection elevates your everyday adventures.
About NALGENE Outdoor
NALGENE® Outdoor Products is based in Rochester, New York and part of Thermo Fisher Scientific. Founded in 1949 as a manufacturer of the first plastic pipette holder, the company soon expanded its product line to include state-of-the-art polyethylene labware under the NALGENE brand. By the mid-1970s, outdoor enthusiasts had discovered the taste and odor-resistant, leak-proof and rugged properties of NALGENE's large selection of plastic containers. In response to this emerging demand, NALGENE Outdoor Products was formed and today the consumer-oriented business offers its customers a wide choice of safe, environmentally friendly, BPA- and BPS- free products that meet their lifestyle needs. For more information, contact NALGENE Consumer Products or visit www.nalgene.com.
The state-of-the-art facility enhances support for complex modalities across all phases of drug development
Key facts
Thermo Fisher opens new bioanalytical and biomarker laboratory in Gothenburg, Sweden Designed to deliver comprehensive, full-service bioanalytical and biomarker solutions Supports pharmaceutical and biotechnology customers across all phases of drug development Helps customers globally accelerate innovation and bring new therapies to patients faster WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific, the world leader in serving science, today announced the opening of a new bioanalytical and biomarker laboratory in Gothenburg, Sweden, located within GoCo Health Innovation City. This new facility expands the company’s global bioanalytical capabilities to support pharmaceutical and biotechnology customers across all phases of drug development.
With state-of-the-art instrumentation and Good Laboratory Practice (GLP) capabilities, the laboratory provides rapid, reliable bioanalytical and biomarker services across the full drug development lifecycle, from preclinical studies through post-approval. Its advanced technology suite includes cell-based assays, immunochemistry, liquid chromatography-mass spectrometry, molecular genomics, flow cytometry and proteomics, supporting both small molecules and complex therapeutic modalities such as peptides, antibodies, oligonucleotides, and cell and gene therapies.
“Our new Gothenburg laboratory is purpose-built to address the evolving needs of modern drug development, particularly as therapies become more complex and data requirements increase,” said Leon Wyszkowski, president, analytical services, clinical research, Thermo Fisher Scientific. “By investing in advanced capabilities and strategic locations, such as Gothenburg, we are helping our customers in Europe and globally accelerate innovation and bring new therapies to patients faster.”
Thermo Fisher Scientific's PPD™ Laboratory services support clinical trials at all levels and offers integrated support through its network of bioanalytical, biomarker, GMP, vaccine sciences and central labs to enhance clinical trial and drug development efficiency. The new lab in Gothenburg complements the business’ other bioanalytical labs in Richmond, Virginia, and Suzhou, China, and it reinforces the company’s long-term commitment to the Swedish life sciences ecosystem and continued growth as a major employer and investor in the region.
Frequently Asked Questions
What does the new lab add to the life sciences industry?
The lab in Gothenburg, Sweden, expands the company’s global bioanalytical capabilities to support global pharmaceutical and biotechnology customers across all phases of drug development. Who is it designed for?
The new lab strengthens support for pharmaceutical and biotechnology customers across all phases of drug development. What problem does it solve?
The facility enhances Thermo Fisher Scientific’s ability to deliver rapid, reliable bioanalytical services from preclinical development through post-approval studies, helping customers accelerate innovation and bring new therapies to patients faster. Why does it matter?
The lab complements Thermo Fisher's existing bioanalytical laboratories in the U.S. and China while reinforcing Thermo Fisher Scientific’s long-term commitment to the Swedish life sciences ecosystem, supporting regional growth, employment, and investment. About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services, Patheon and PPD.
WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, hosted its Investor Day today. Chairman and Chief Executive Officer Marc N. Casper and members of the senior leadership team highlighted the company’s industry leadership and the essential role of its best-in-class products and services to customers around the world.
"Our customers value Thermo Fisher as their trusted partner,” said Marc N. Casper, chairman and chief executive officer, Thermo Fisher Scientific. “Our unique scale and depth of capabilities advance scientific discovery and position us incredibly well in an increasingly AI-enabled world.”
Casper continued, “We have a track record of delivering share gain through our proven growth strategy, operational excellence through our PPI Business System and creating value through disciplined capital deployment. We are incredibly well positioned in attractive and improving end markets to create value for our stakeholders and build a very bright future for our company. We are actively managing the company to deliver outstanding financial performance in the short- and long-term.”
At today’s event, Thermo Fisher Scientific highlighted:
Attractive end markets that are fueled by enduring long-term trends Thermo Fisher serves an attractive $255 billion market with improving demand trends and strong long-term growth fundamentals. Incredibly well-positioned industry leadership Our industry-leading businesses enable our customers’ success and benefit from the scale and depth of our combined capabilities. Proven growth strategy drives share gain Innovation: Our cutting-edge technologies accelerate our customers’ innovation and enhance their productivity. Trusted Partner: Our expertise, scale, and depth of capabilities make us the partner of choice to solve customers’ most important challenges. Commercial engine: Our exceptional reach and depth of engagement create a competitive advantage. Practical Process Improvement Business System (PPI) enables outstanding execution PPI is the core of Thermo Fisher’s culture, with a focus on continuous improvement that drives quality, productivity and customer allegiance and engages every colleague to find a better way, every day. AI is a powerful accelerator for the company’s future AI will accelerate scientific breakthroughs and improve productivity and returns on drug discovery – fueling additional investment into our customers’ drug pipelines and driving additional demand for our capabilities. We are uniquely positioned to capture AI-driven growth through our presence across the full drug development value chain. AI and automation are accelerating the impact of PPI across the company as we deploy the capabilities at scale. Disciplined approach to capital deployment creates tremendous value A disciplined combination of strategic M&A and returning capital to shareholders enables us to further strengthen the company’s industry leadership and creates significant value for our shareholders. Outstanding track record of financial performance and an exceptional long-term outlook Thermo Fisher’s proven growth strategy and disciplined approach to capital deployment position the company to deliver 7% organic revenue CAGR and low-teens adjusted EPS growth over the long term. Webcast Replay
To access the presentation materials from today’s investor event, visit the Company’s investor relations website.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of applicable securities laws, including those relating to the growth of our end markets, our growth strategy and our business generally. Each of the forward-looking statements we make in this press release involves risks and uncertainties, many of which relate to matters beyond our control and could cause actual results to differ materially from these forward-looking statements. A discussion of such factors and other risks that affect our business is contained in our most recent reports on Form 10-K and Form 10-Q under the heading “Risk Factors.” These filings are on file with the SEC and available in the “Investors” section of our website under the heading “SEC Filings.” These forward-looking statements are based on our current expectations and speak only as of the date of this press release. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, in the event of new information, future developments or otherwise.
Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), Thermo Fisher uses certain non-GAAP financial measures, including adjusted earnings per share which excludes certain transaction-related costs, including charges for the sale of inventories revalued at the date of acquisition and significant transaction-related third-party costs; restructuring and other costs/income; amortization of acquisition-related intangible assets; certain other gains and losses that are either isolated or cannot be expected to occur again with any regularity or predictability, tax provisions/benefits related to the previous items, benefits from tax credit carryforwards, the impact of significant tax audits or events, equity in earnings of unconsolidated entities and the results of discontinued operations, as applicable. Thermo Fisher excludes the above items because they are outside of the company's normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. We also use organic revenue growth, which is reported revenue growth, excluding the impacts of acquisitions/divestitures and the effects of currency translation. Thermo Fisher reports this measure because its management believes that in order to understand the company’s short-term and long-term financial trends, investors may wish to consider the impact of acquisitions/divestitures and/or foreign currency translation on revenues. Thermo Fisher management uses this measure to forecast and evaluate the operational performance of the company as well as to compare revenues of current periods to prior periods. Thermo Fisher believes that the use of non-GAAP measures helps investors to gain a better understanding of the company's core operating results and future prospects, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. Thermo Fisher does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort items such as the timing and amount of future restructuring actions and acquisition-related charges as well as gains or losses from sales of real estate and businesses, the early retirement of debt and the outcome of legal proceedings. The timing and amount of these items are uncertain and could be material to Thermo Fisher’s results computed in accordance with GAAP.
WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced that its Board of Directors authorized a quarterly cash dividend of $0.47 per common share, payable on July 15, 2026, to shareholders of record as of June 15, 2026.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
On May 26, 2026, we present a DCF analysis for Thermo Fisher Scientific Inc TMO . The stock has experienced a mixed performance recently, with a year-to-date decline of 22.6%, while showing a 12.3% increase over the past year.
DCF Earnings-based intrinsic value of $477.60 vs current price of $448.28 (margin of safety: 6.1%) DCF FCF-based intrinsic value of $333.59 vs current price (second opinion: modestly overvalued) GF Score™ of 85/100 indicates strong reliability of the DCF inputs What Is TMO Worth? DCF Earnings-Based Model To determine the intrinsic value of Thermo Fisher Scientific Inc, we utilize a two-stage DCF model. The first stage considers a growth phase where earnings per share (EPS) is expected to grow at a rate of 13.8% annually for the next 10 years. The second stage accounts for a terminal growth rate of 4% for the subsequent 10 years. The discount rate applied is 11%, which is derived from the risk-free rate and equity risk premium.
Parameter Value Current EPS (TTM, excl. non-recurring) $23.16 10-Year Growth Rate 13.8% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.8%, discounted at 11% $266.29 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $211.31 Intrinsic Value Growth + Terminal $477.60 The current price of TMO is $448.28, which indicates that the stock is fairly valued with a margin of safety of 6.1%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For more details, visit the TMO DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also consider the free cash flow (FCF) DCF model, which yields an intrinsic value of $333.59. This valuation is significantly lower than the earnings-based intrinsic value of $477.60, suggesting a divergence in the two models. The FCF-based model indicates that TMO is modestly overvalued with a margin of safety of -34.4%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Thermo Fisher Scientific Inc is $578.87, which suggests that the stock is undervalued by 22.6%. GF Value™ is GuruFocus' proprietary measure calculated from historical trading multiples, past business growth, and future performance estimates. While the earnings-based DCF model suggests fair valuation, the FCF model indicates modest overvaluation, and the GF Value™ presents a third perspective of undervaluation. For further insights, visit the GF Value™ page.
What Does TMO's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).
Metric Rating GF Score™ 85/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 8/10 Momentum 7/10 With a predictability rank of 0/5 stars, it indicates that the DCF model may be less reliable for this stock. For more information, visit the TMO stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as TMO, produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In summary, the DCF earnings model suggests that TMO is fairly valued at $477.60, while the FCF model indicates it is modestly overvalued at $333.59. The GF Value™ further suggests that the stock is undervalued at $578.87. Overall, the consensus points towards a fair valuation of TMO. For the full DCF analysis, visit the TMO DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is TMO's intrinsic value based on DCF?
Answer: earnings-based $477.60, FCF-based $333.59
Is TMO overvalued or undervalued?
Answer: The earnings-based DCF suggests fair valuation, while the FCF model indicates modest overvaluation; GF Value™ suggests undervaluation.
How reliable is the DCF model for TMO?
Answer: The predictability rank is 0/5, indicating less reliability of the DCF model for this stock.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
New mass spectrometry platforms, combined with AI-driven analytics and scalable proteomics solutions, help scientists turn complex biology into actionable insights across research and drug development
WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced the Thermo Scientific™ Orbitrap™ Tribrid™ Apex and Thermo Scientific™ Orbitrap™ Excedion™ mass spectrometers will be showcased at the American Society for Mass Spectrometry (ASMS) Conference. As scientific discovery expands into more complex applications—from advanced proteomics and multiomics to biologics and genetic medicines—researchers and drug developers face increasing pressure to generate high-quality data earlier and make confident decisions faster. Thermo Fisher’s latest innovations address these needs by combining high-performance instrumentation with AI-enabled software for scalable multiomics and biopharmaceutical solutions to expedite both discovery and development. Together, these capabilities help scientists identify and validate disease mechanisms more efficiently, advancing targeted treatments.
“Innovation in molecular analysis technologies is helping our customers advance scientific discovery and generate deeper biological insights at an unprecedented pace,” said Marc N. Casper, chairman and chief executive officer of Thermo Fisher Scientific. “By combining next-generation Orbitrap platforms with AI-driven analytics, we are now helping scientists transform increasingly complex data into actionable insights to further accelerate the path from discovery to precision therapies.”
Advancing Early Discovery with Greater Depth and Versatility
Building on the proven Thermo Scientific™ Orbitrap™ Tribrid™ Technology, the Thermo Scientific Orbitrap Tribrid Apex Mass Spectrometer enables researchers to study complex biology across multiomics, structural biology, biopharma characterization and small-molecule analysis on a single system.
With five times greater sensitivity, up to 100% sequence coverage in a single experiment and results up to four times faster than previous-generation instruments, the Orbitrap Tribrid Apex allows scientists to better understand challenging samples without requiring multiple systems. Researchers can uncover underlying disease mechanisms earlier and identify therapeutic targets sooner across conditions like cancer and neurodegeneration. Supporting more than 300 areas of research, the Orbitrap Tribrid Apex MS helps translate these discoveries into faster progress across drug discovery and development.
“The Orbitrap Tribrid Apex mass spectrometer is the best proteoform sequencer I’ve seen in my 25 years of translational research,” said Neil Kelleher, Ph.D., director of the Proteomics Center of Excellence at Northwestern University. “It opens an exciting frontier for obtaining deep sequence coverage of proteoforms with unparalleled sensitivity, and these capabilities will enable us to understand complex diseases like never before.”
Enabling More Confident Decisions in Drug Development
As discoveries progress closer to development, the challenge shifts from understanding biology to generating the robust data needed to meet regulatory requirements and advance medicines with confidence. The Thermo Scientific Orbitrap Excedion Mass Spectrometer is designed to help pharmaceutical scientists reduce risk in increasingly complex drug development pipelines. As new modalities such as GLP-1 therapies, oligonucleotides and antibody-drug conjugates introduce greater analytical complexities, identifying and validating key molecular signals early is essential.
With the ability to detect three to five times more compounds in complex samples, the Orbitrap Excedion mass spectrometer provides more complete, regulatory-ready data to support decisions around safety, efficacy and dosing. By enabling earlier detection of low-abundance or previously undetectable molecules, the platform supports earlier identification of critical signals, helping reduce downstream risk, improve regulatory readiness and accelerate time to market.
Connecting Discovery to Population-Scale Insight
Together, these Orbitrap innovations are part of Thermo Fisher’s broader strategy to connect biological discovery with large-scale validation and real-world research. At ASMS, the company is also showcasing its Olink® proteomics platform, which enables high-specificity protein analysis at population scale and complements Orbitrap-based discovery workflows. This combined approach is already being applied in initiatives such as PRECISE, one of Asia’s most ambitious and diverse biobank programs to uncover biomarkers linked to aging and metabolic disease. Recent software acquisitions, MSAID and Proteinaceous, strengthen Thermo Fisher’s proteomics ecosystem by adding AI, machine learning and proteoform analysis capabilities that help scientists interpret complex population-scale datasets faster and with greater confidence.
Thermo Fisher Scientific will showcase all innovations at the ASMS 2026 annual conference in San Diego at booth 801 from June 1-4, 2026. For more information, please visit www.thermofisher.com/ASMS.
Instruments are for general lab use only. Not for diagnostic purposes.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
On May 28, 2026, Thermo Fisher Scientific Inc TMO shares rose 6.8% today, now trading at $487.22. The stock's performance remains volatile with a 52-week range between $385.46 and $643.99.
GF Value™ verdict: Current price of $487.22 is 15.9% below GF Value™ of $579.15. GF Score™ of 83/100 indicates a strong overall rating. Notable signal: Insiders sold $8.1M worth of shares in the last 3 months, indicating potential caution. Is TMO Overvalued or Undervalued? With a current price of $487.22 and a GF Value™ of $579.15, Thermo Fisher Scientific Inc is considered 15.9% undervalued, suggesting a potential opportunity for investors. The GF Valuation label indicates that the stock is modestly undervalued, presenting a margin of safety for those considering entry. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation may present an attractive entry point, the recent trend of insider selling could be a signal of caution. It’s essential for investors to weigh this against the favorable GF Value™ assessment, as it suggests there may be underlying factors influencing the stock's performance that could impact future growth or stability.
How Does TMO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 26.8x 31.3x Forward P/E 19.6x N/A The current P/E ratio of 26.8x is significantly below its 5-year median P/E of 31.3x, implying that the stock is trading at a discount relative to its historical valuation. This aligns with the GF Value™ verdict that suggests the stock is undervalued, reinforcing the opportunity indicated by the current price.
What Does TMO's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 83/100 highlights Thermo Fisher Scientific Inc’s strong performance in profitability and valuation, both rated at 8/10. However, the financial strength rating of 5/10 suggests some caution regarding the company’s balance sheet. Overall, the scores indicate a solid investment prospect, but the weaker financial strength may warrant a closer examination of the company's operational stability.
What Are Insiders Doing with TMO Stock? In recent months, insiders have sold $8.1 million worth of Thermo Fisher shares, with no reported buying activity. This pattern of insider selling might imply that those closest to the company are cautious about its near-term prospects, which can be a red flag for potential investors. However, it is important to consider that insider activity can be influenced by various personal financial strategies and not necessarily reflect the company's overall performance.
What This Means for Investors Based on the analysis of GF Value™, Thermo Fisher Scientific Inc appears to be undervalued at the current price of $487.22. While the stock presents an attractive entry point given its undervaluation, the insider selling may indicate some caution, prompting a careful approach moving forward.
For the complete analysis, visit the Thermo Fisher Scientific Inc TMO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is TMO's GF Score™?
TMO's GF Score™ is 83/100, indicating a strong overall rating based on multiple financial metrics.
Is TMO overvalued or undervalued?
TMO is currently undervalued with a GF Value™ of $579.15, suggesting a potential upside based on its intrinsic value.
What is TMO's P/E ratio?
The current P/E ratio is 26.8x, which is below its 5-year median P/E of 31.3x, indicating that the stock is trading at a discount compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Thermo Fisher (TMO) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions could translate into further price increase in the near term.
New Orbitrap platforms, AI-enabled software and integrated workflows deliver deeper insight, more confident development decisions and stronger results across complex scientific markets
New Orbitrap Mass Spectrometer Platforms: Thermo Fisher Scientific is introducing three new Thermo Scientific™ Orbitrap™ platforms at ASMS 2026, bringing high-resolution mass spectrometry and end-to-end solutions to more decision points across research, biopharmaceutical and applied markets. AI-Enabled Technology for Faster Interpretation: New software capabilities, including Thermo Scientific™ Proteoform Studio, Thermo Scientific™ Proteome Discoverer™ 3.4, Thermo Scientific™ BioPharma Finder™ 5.5 and the acquisitions of MSAID and Proteinaceous, help laboratories speed proteomics analysis, spectral interpretation and advanced protein characterization. More Reliable Results for Regulated Contaminant Testing: New Orbitrap and targeted mass spectrometry workflows support environmental, water and food safety laboratories with high-resolution screening and reliable quantitation for dioxins, persistent organic pollutants (POPs) and emerging contaminants. WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc., the world leader in serving science, today expanded its suite of Thermo Scientific™ Orbitrap™ mass spectrometry platforms, AI-enabled software and integrated workflows at the American Society for Mass Spectrometry (ASMS) Conference.
Across research, biopharma and applied testing, scientists face increasingly complex samples, expanding data sets and greater pressure to deliver confident answers faster. Thermo Fisher helps solve that challenge by bringing its flagship Orbitrap technology to more scientific decision points. The company’s expanded portfolio combines the depth of high-resolution accurate-mass technology with end-to-end solutions, enabling laboratories to advance discoveries, accelerate the development of new medicines and ensure more confident testing for food, air and water.
“Orbitrap technology has long set the standard for breakthrough discovery, and customers now want that same confidence across applied scientific markets,” said Ronald Tabaksblat, president, chromatography and mass spectrometry, Thermo Fisher Scientific. “At ASMS 2026, we are showcasing how Thermo Fisher is scaling Orbitrap innovation through connected platforms, software and workflows that support advanced research, drug development and applied testing with decision-ready results.”
Clearer Disease Insights in Research
The new Thermo Scientific™ Orbitrap™ Tribrid™ Apex Mass Spectrometer (MS) gives researchers a more powerful way to study challenging samples on a single platform. As Thermo Fisher’s most versatile and highest-performing Orbitrap Tribrid, the Orbitrap Tribrid Apex MS brings multiple capabilities together in one system, including three mass analyzers, a new infrared laser option for alternative fragmentation and Thermo Scientific™ Direct Mass Technology™ Mode. Together, these features help researchers get clearer answers from complex biology earlier in the discovery process. Thermo Fisher also expanded its software capabilities across proteomics, spectral analysis and advanced protein characterization:
MSAID and Proteinaceous, Thermo Fisher’s recent software acquisitions, deliver smarter proteomics workflows that speed analysis and streamline connectivity. MSAID brings AI-driven proteomics and machine learning expertise, while Proteinaceous adds top-down and native mass spectrometry bioinformatics. Thermo Scientific™ Proteoform Studio Software provides researchers with a streamlined proteomics workflow from acquisition through reporting, including Direct Mass Technology analysis for deeper characterization. Thermo Scientific™ Proteome Discoverer™ 3.4 Software helps scientists manage more proteomics workflows in one place, making it easier to analyze additional data with greater flexibility, speed and coverage. Greater Confidence in Biopharma and Pharma Drug Development
Thermo Fisher unveiled the Thermo Scientific™ Orbitrap™ Excedion™ Mass Spectrometer an Orbitrap platform designed to reduce performance tradeoffs in drug development. Built for applications ranging from drug metabolism studies to oligonucleotide and peptide analysis, the Orbitrap Excedion MS offers enhanced dynamic range (eDR) that detects three to five times more compounds in complex samples and delivers more reproducible results across larger studies. For the first time, laboratories can upgrade to Orbitrap Excedion Pro MS without replacing their instrument, which expands their analytical power while minimizing cost and disruption to ongoing work.
Thermo Fisher also introduced complementary innovations that provide biopharmaceutical development labs with a ready-made, end-to-end workflow:
Thermo Scientific™ Vanquish™ Amplify UHPLC Systems use an inert, metal-free sample flow path engineered to minimize adsorption and secondary interactions, helping scientists analyze sensitive biological molecules, such as short oligos, with less sample loss, better reproducibility and greater confidence in results from method development through QC. Thermo Scientific™ SurePac™ RP MDi™ Columns are purpose-built for oligonucleotide, mRNA and protein therapeutic analysis, helping improve recovery, separation and reproducibility under demanding conditions. Thermo Scientific™ SMART Digest™ OligoSelect™ Kit simplifies sample preparation for oligonucleotide bioanalysis with a single, streamlined workflow that reduces time and cost. Thermo Scientific™ BioPharma Finder™ 5.5 Software helps scientists process complex top-down mass spectrometry data from the latest Thermo Fisher instruments faster while maintaining consistent results. As drugs move further through development, laboratories need robust workflows for regulated bioanalysis and QA/QC. For these later-stage needs, Thermo Fisher will also showcase the Thermo Scientific™ TSQ Certis™ Triple Quadrupole Mass Spectrometer. It helps scientists accelerate drug development by measuring samples 15% faster and running more than twice as long between maintenance events for complex matrices like plasma.
Regulatory-ready Results for Food and Environmental Safety
The Thermo Scientific™ Orbitrap Exploris™ GC S Mass Spectrometer is a high-resolution gas chromatography-mass spectrometry platform designed to modernize dioxin and persistent organic pollutants (POPs) analysis for environmental and food safety laboratories. As regulations evolve and contaminant lists expand, the Orbitrap Exploris GC S MS delivers regulatory-ready, ultra-trace results with the sensitivity and resolving power needed for confident, reliable testing. With more than twice the resolution of many existing systems, it also helps laboratories identify emerging contaminants without additional instruments, saving time and reducing complexity in high-stakes public health or environmental testing.
Thermo Fisher will also showcase the Thermo Scientific™ Orbitrap Exploris™ EFOX Mass Detector for high-resolution screening of PFAS, pesticides and related contaminants, alongside the Thermo Scientific™ TSQ Altis™ Plus EFOX Triple Quadrupole Mass Spectrometer for reliable, high-throughput quantitation. Together with application expertise and service, these systems help environmental, water and food safety laboratories detect known and emerging contaminants faster, respond to potential risks sooner and make more confident public health decisions.
For more information about the newest end-to-end mass spectrometry solutions available at ASMS, please visit www.thermofisher.com/ASMS.
Instruments are for general lab use only. Not for diagnostic purposes.
FAQs
What is Thermo Fisher Scientific announcing at ASMS 2026?
Thermo Fisher Scientific announced new Orbitrap mass spectrometry platforms, AI-enabled software and end-to-end workflows for research, biopharma and applied market scientists. The portfolio includes new solutions for complex biology research, drug development and environmental and food safety testing.
What are the key Orbitrap innovations highlighted at ASMS 2026?
The key Orbitrap innovations highlighted at ASMS 2026 are the Thermo Scientific™ Orbitrap Tribrid™ Apex Mass Spectrometer, the Thermo Scientific™ Orbitrap Excedion™ Mass Spectrometer and the Thermo Scientific™ Orbitrap Exploris™ GC S Mass Spectrometer. Thermo Fisher also showcased the Thermo Scientific™ TSQ Certis™ Triple Quadrupole Mass Spectrometer, Thermo Scientific™ Orbitrap Exploris™ EFOX Mass Detector and Thermo Scientific™ TSQ Altis™ Plus EFOX Triple Quadrupole Mass Spectrometer along with AI-enabled software and supporting workflow solutions for research, biopharma and applied testing.
How do these innovations help customers accelerate science and decision-making?
These innovations help customers reduce tradeoffs, simplify complex analysis and deliver clearer, more actionable results across research, drug development and environmental testing. They enable scientists to generate deeper biological insight, make more confident development decisions and deliver faster, regulatory-ready contaminant testing.
About Thermo Fisher Scientific
Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.
Key Takeaways Eli Lilly reported phase III data highlighting advances across its diabetes and obesity portfolio.LLY's Foundayo beat oral semaglutide and Farxiga on A1C reduction and weight-loss measures in studies.Retatrutide showed up to 28.3% weight loss and improved obesity-related conditions in studies. Eli Lilly (LLY - Free Report) stock continues to hit new all-time highs as the drugmaker keeps delivering a steady stream of positive clinical updates across its diabetes and obesity portfolio.
LLY shares reached a record high of $1,149.15 on Monday following encouraging clinical results from late-stage studies of Foundayo (orforglipron), its oral GLP-1 therapy, and retatrutide, its investigational triple-hormone receptor agonist that targets the GIP, GLP-1 and glucagon pathways. The latest data presented at the American Diabetes Association Scientific Sessions further reinforced confidence in the company’s cardiometabolic franchise.
Per data from the phase III ACHIEVE-3 head-to-head study, Foundayo outperformed Novo Nordisk’s (NVO - Free Report) oral semaglutide across both blood sugar control and weight-loss measures in adults with type II diabetes (T2D). Patients receiving the highest Foundayo dose achieved greater A1C reductions and significantly higher weight loss than those taking oral semaglutide, while a larger proportion reached normal blood sugar levels.
Foundayo also produced strong results in two additional late-stage studies. In ACHIEVE-2, the drug delivered superior A1C reduction and weight loss compared with AstraZeneca’s Farxiga (dapagliflozin). In ACHIEVE-5, Foundayo significantly improved glycemic control and body weight when added to insulin therapy. Collectively, the data strengthen Lilly’s case for expanding Foundayo into the T2D market, with a regulatory filing planned by the end of the second quarter.
Lilly is also investing heavily in next-generation candidates to maintain continued future profitability. The company recently reported additional phase III results for retatrutide. In the TRIUMPH-1 study, patients receiving the highest dose lost an average of 28.3% of their body weight over 80 weeks, with nearly two-thirds no longer meeting the clinical definition of obesity. Beyond weight reduction, retatrutide demonstrated meaningful improvements in obesity-related conditions, including knee osteoarthritis pain and moderate-to-severe obstructive sleep apnea. In the TRANSCEND-T2D-1 study, the candidate reduced A1C by up to 2% and delivered weight loss of up to 16.8%, with nearly half of the participants achieving normal blood sugar levels.
The latest findings build on positive top-line data Lilly had already reported from both the TRIUMPH-1 and TRANSCEND-T2D-1 studies earlier this year. Those earlier results established retatrutide’s ability to drive substantial weight loss and glycemic control. At the same time, the newly released detailed analyses further highlighted benefits across multiple obesity-related complications and cardiovascular risk factors. Together, the data continue to strengthen expectations that retatrutide could become one of Lilly’s most important future growth drivers.
Investors remain encouraged by Lilly’s ability to expand its leadership beyond blockbuster products like Mounjaro (T2D) and Zepbound (obesity), while simultaneously advancing next-generation therapies that could support long-term growth.
Lilly's Clinical Edge Continues to Pressure Novo NordiskNovo Nordisk remains Lilly’s fiercest rival in the obesity and diabetes markets. Novo Nordisk is also expanding its portfolio through higher-dose semaglutide products, label expansions and pipeline candidates such as CagriSema and amycretin.
However, Lilly’s recent string of clinical wins appears to be shifting competitive momentum in its favor. Foundayo’s superiority over Rybelsus in a direct phase III comparison and retatrutide’s impressive efficacy profile suggest Lilly could continue capturing market share across both diabetes and obesity. LLY now possesses a broad portfolio spanning injectable and oral therapies while also advancing next-generation treatments that may offer greater efficacy than currently available options.
LLY Faces Rising Pressure From Next-Generation GLP-1 RivalsThe obesity space has garnered much of the spotlight over the past year due to the sizeable and still underpenetrated market opportunity.
Smaller biotech firms, like Viking Therapeutics (VKTX - Free Report) and Structure Therapeutics (GPCR - Free Report) , are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed both as oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Structure Therapeutics expects to initiate the late-stage program of aleniglipron in obesity in the second half of 2026.
LLY’s Stock Price, Valuation and EstimatesShares of Eli Lilly have gained 6.9% year to date compared with the industry’s 4.4% growth. During the same time frame, the company has also outperformed the sector but underperformed the S&P 500, as seen in the chart below.
LLY Stock Price MovementImage Source: Zacks Investment Research
From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 29.05 forward earnings, higher than 17.68 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock ValuationImage Source: Zacks Investment Research
Estimates for Eli Lilly’s 2026 earnings have improved from $35.47 to $35.67 per share in the past 30 days, and estimates for 2027 earnings have improved from $44.50 to $44.56 per share over the same time frame.
LLY Estimate MovementImage Source: Zacks Investment Research
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Eli Lilly LLY is adding another Alzheimer's bet, striking a collaboration and licensing deal with Swedish biotech AlzeCure Pharma that could be worth more than $1 billion.
Under the agreement, Lilly gets global rights to AlzeCure's preclinical Alzheimer's project, Alzstatin ACD680. The therapy is designed to target Aβ42, a harmful amyloid beta protein tied to the formation of amyloid plaques, which are widely linked to Alzheimer's disease pathology.
AlzeCure will receive $10 million upfront, along with potential development and commercial milestone payments. The total deal value could exceed $1 billion, excluding royalties, and AlzeCure is also eligible for tiered mid single digit royalties on future product sales.
the deal shows Lilly is still willing to build around Alzheimer's despite the clinical and regulatory risks in the space. The company already has major exposure to neuroscience, and ACD680 gives it another early stage shot at changing the amyloid pathway. The next thing to watch is whether the drug can move from preclinical testing into human studies.
Eli Lilly (NYSE:LLY | LLY Price Prediction) is finally acting like a trillion-dollar drugmaker again. After a brutal stretch in late 2025 and a wobbly start to this year, the stock punched through fresh 52-week highs on retatrutide Phase 3 data that analysts call potentially first-line for obesity. The stock trades at $1,149.15 with a one-year gain of 50.31%, yet YTD is only 7.29%. Can LLY hit $1,500 within 12 months?
What’s Holding Eli Lilly Back in 2026 Shares rose 21.37% in the last month and 6.19% in the last week, but YTD trails the one-year number because investors spent Q1 worrying about China NRDL pricing pressure, $584M in IPR&D charges from four acquisitions, and 340B restrictions.
AstraZeneca (NASDAQ:AZN)’s elecoglipron entering Phase 3 added competitive pressure, though it showed only 11.8% weight loss versus retatrutide’s roughly 19%. Beta is a placid 0.517, so earlier volatility reflected earnings noise rather than broad market moves. That explains why patient capital is pushing the stock back toward $1,500.
Wall Street Sees 6% Upside. That’s Too Cautious Consensus target is $1,215.10, with 6 Strong Buys, 18 Buys, 5 Holds, 1 Sell and 1 Strong Sell. That works out to 77% bullish, yet implied upside is only single digits. Our base case sits at $1,295.73 (12.76% upside) with 90% confidence, optimistic case $1,499.61, conservative $1,074.25. Analysts have chased this stock for four straight quarters of earnings beats.
Q1 2026 EPS of $8.55 versus $6.79 estimated was a 25.9% surprise. Earnings growth drove meaningful tailwind in our 247Factor, and bullishness keeps building. Targets are stale.
The Path to $1,500 Per Share Reaching $1,500 from $1,149.15 requires a 30.5% gain. With forward EPS of $35.46, $1,500 implies a forward P/E of 42x. Our base case embeds an implied multiple of 39x, so the target needs only about 3 turns of additional multiple expansion. That is achievable.
Catalysts already in play: Reuters reported “Eli Lilly’s shares rose 4% after presenting compelling new data for its next-generation obesity drug, retatrutide”; TD Cowen projects LLY captures roughly 62% of the $150 billion 2030 GLP-1 market; and CEO David Ricks said “2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion”.
Four directors also bought stock in March, April, and May 2026 at prices between $919.90 and $989.12. The primary risk is a Supreme Court ruling or aggressive Medicare pricing action that compresses GLP-1 margins.
Where Lilly Trades Today vs Its Earnings Power At $1,149.15 against forward EPS of $35.46, LLY trades at a forward P/E of 32x. For a company growing revenue 55.5% YoY with raised FY2026 guidance of $82B to $85B in revenue and $35.5 to $37 in non-GAAP EPS, that is reasonable.
Shares sit at the 52-week high of $1,166.29, well above the 52-week low of $619.40. The 10-year return of 1,725.98% shows what compounding earnings power looks like when the pipeline works.
Is $1,500 Realistic? A 30.5% gain in a year is a stretch for a mega-cap with a 0.52 beta, but not a long shot.
Three things need to happen: retatrutide must keep impressing through regulatory filings; Foundayo, the new oral GLP-1, needs real script momentum after the CVS Caremark coverage expansion; and Lilly needs another guidance raise into Q3 2026. A reset of GLP-1 reimbursement would derail it. We’ve outlined the blueprint for how Eli Lilly could reach $1,500 in 2027.
A Mounjaro KwikPen injection pen is seen in front of the Eli Lilly logo displayed on a screen in this illustration photo in Athens, Greece, on March 1, 2026. (Photo by Nikos Pekiaridis/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written and reviewed by Doug Nathman and his team at Trefis. For questions, email [email protected].
More than just a simple rise, the pharmaceutical company's stock has been re-evaluated due to a growth narrative that continues to expand.
Let us clarify what a 54% stock increase over nine months truly signifies for a corporation of Eli Lilly's (LLY) scale. This is not a mere rebound; it is a fundamental revaluation. While the S&P 500 achieved a commendable 15% return, LLY investors found themselves in an entirely different category, witnessing the company add hundreds of billions in market capitalization to reach a valuation exceeding $1 trillion.
Wall Street doubters have scrutinized this dramatic increase and deemed the stock’s valuation “irrational.” At first glance, it does seem excessive for a 148-year-old pharmaceutical behemoth to value itself like a trendy tech company from Silicon Valley.
But is it really irrational?
When a corporation of Lilly's magnitude demonstrates a 56% year-over-year revenue growth and converts that into a remarkable 47% operating margin, it is not an outlier. It represents a fundamental revaluation. Here's why the market's calculations may indeed be valid.
A Growth Rate From Another WorldIn its latest quarter, Lilly's revenue increased by 56% compared to the previous year. This number is impressive on its own, but the context enhances its significance. This is not merely a one-time spike. The company’s revenue growth has reached 47.4% over the past twelve months, a substantial acceleration from its impressive three-year average of 37.9%. One might question how a company of this size can report increasing speeds rather than slowing ones. The driving force is its incretin franchise, with combined sales of Mounjaro and Zepbound reaching $12.8 billion in a single quarter.
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This expansion is also significantly profitable. Lilly’s operating margin now stands at 47.3%, a dramatic rise from its three-year average of 35.3%. The company is efficiently transforming its historical sales surge into profit at an extraordinary rate. This focus on high-quality, high-margin growth is the same disciplined engine that drives our High Quality (HQ) Portfolio, a 30-stock strategy built to capture such performance across the broader market.
The Upcoming Wave ArrivesWas this nine-month increase merely a reward for previous achievements? Wall Street was also looking ahead, and Lilly continuously provided more reasons for optimism. During this period, the company received a significant FDA approval for Foundayo, an oral medication for weight management. As CEO David Ricks pointed out, this marked “the first time a new incretin medication has been introduced with obesity as its primary indication.” It opens up a vast market opportunity, and Lilly is poised to lead with a convenient pill.
The company also engaged in a series of acquisitions, announcing deals to purchase several clinical-stage biotechs such as Orna Therapeutics and Centessa Pharmaceuticals to enhance its product pipeline for the future. The message was unmistakable: the ongoing influx of cash would be utilized to construct the next phase.
Yet, as the company launches new initiatives like Lilly Employer Connect to deliver its products to patients, it raises a critical question that looms over this narrative. The scientific advancements are impressive; however, the logistics present a different challenge.
Having demonstrated its ability to develop groundbreaking medications, can Lilly craft a business model that ensures widespread availability?
Over the last three trading days, tech stocks, especially semiconductors and AI-adjacent names, have been crushed as investors rotated aggressively out of the sector. The Mag 7, the memory names and the broader semiconductor complex are all down sharply.
But this is not the first time. Since the AI boom kicked off in 2023, we have seen this story play out repeatedly. Each episode arrived with its own distinct headline scare, and each one, at least so far, was eventually bought.
Image Source: TradingView
Before getting into what's driving today's move, it's worth walking through the prior scares, because the pattern is instructive.
July–August 2024 — the monetization scare. This was the first real wobble. Google kicked off Big Tech earnings season with capital expenditures climbing sharply, and management struggled to give a clean answer on when that spending would translate into returns. Microsoft, for its part, framed AI monetization as something that would play out "over the next 15 years and beyond," not the near-term payback some investors were hoping for. The Nasdaq 100 fell more than 3% on July 24, its worst session since October 2022, and the anxiety bled into the violent early-August unwind of the yen carry trade. The core worry: the spending was unmistakably real, but the returns were not yet visible.
January 2025 — the DeepSeek shock. A Chinese startup claimed it had trained a model competitive with the leading US systems for under $6 million, using less advanced hardware. The read-through was that if frontier-level AI could be built far more cheaply, the case for hundreds of billions in GPU spending might be overstated. Nvidia lost roughly $593 billion in market value in a single session and the Philadelphia Semiconductor Index fell more than 9%, its steepest drop since the early-2020 COVID crash. Unlike the prior episode, this scare wasn't about slow returns, it was the fear that cheaper training would undercut the entire capex thesis. The selloff reversed quickly once the major hyperscalers reaffirmed their spending plans.
November 2025 — "AI bubble" fears. This one was a slower grind lower rather than a single-day crash, driven by stretched valuations and a growing chorus of skeptics. Michael Burry, of "The Big Short," argued that the hyperscalers were flattering their earnings by understating depreciation, extending the assumed useful life of AI chips and servers that, in his view, become obsolete far faster. The Nasdaq logged its worst week in months as institutional surveys showed a majority of investors believed AI stocks had become a bubble. The accounting angle made this a more sophisticated version of the bear case than earlier rounds.
Late January–February 2026 — the capex-guidance rout. This was the largest aggregate wipeout. A cluster of mega-caps shed well over $1 trillion in combined market value in a single week as fourth-quarter earnings revealed staggering capex plans, as Amazon alone guided to roughly $200 billion in infrastructure spending, a 56% jump and the highest commitment among the hyperscalers. A new fear joined the familiar one: not only was capex outrunning the cash flow funding it, but investors began to worry that AI itself was beginning to cannibalize the established software companies, the very names that had been considered safe AI winners.
An observation of my own: after years of watching markets, you'll notice these narratives often get assigned to the price action after the fact. Nothing in global markets happens in a vacuum, and prescribing a single tidy story to a selloff, while helpful for simplification, can be unhelpful for understanding the broader setup. Look closely and each of the four episodes above was triggered by a different worry, but each time an extended market that snaps its streak reaches for whichever AI-skeptic story best fits the tape that week.
Consider what else was happening underneath each "AI" selloff. The July–August 2024 drawdown is remembered as the "AI fatigue" trade, but the real violence came from the Bank of Japan's surprise rate hike unwinding the yen carry trade and a weak jobs report that tripped a recession indicator. The January 2025 DeepSeek shock hit a tape already on edge over a hawkish Fed, a 10-year yield near 4.7%, and fresh tariff threats. And the November 2025 "bubble" scare, while more genuinely valuation-driven, still rode on an unsettled Fed path and stretched positioning after a long summer melt-up. The AI story was the most quotable explanation each time, but it was hardly the only one.
That observation deserves its own deeper treatment, which we won't attempt here, but it's worth keeping in mind whenever a clean explanation gets attached to a messy move. Ultimately, markets move lower because there are more sellers than buyers, which is often an unsatisfactory explanation.
Other Factors Moving the Stock MarketIn the current case, several variables are at play beyond the AI-spending headline.
Equities, tech and AI especially have been on a powerful run since the March lows that followed the onset of the US–Iran conflict. That rally pushed sentiment to heavily bullish extremes, and stretched positioning is precisely what leaves a market vulnerable to a sharp, fast reversal. When nearly everyone is already long and leaning the same way, there are few buyers left to absorb selling once it starts.
At the same time, interest rates have been grinding higher, pressured from two directions. Higher oil prices, a byproduct of the geopolitical backdrop have revived inflation concerns, while consistently robust labor market data has reduced the case for near-term rate cuts. Together, those forces put upward pressure on yields and raise the prospect of a less accommodative Federal Reserve.
As far as I can tell, last Friday's strong employment report was the initial catalyst, by pushing rate expectations higher, while the renewed AI-spending fears added fuel to the fire. Overextended positioning then did the rest, leaving the tape vulnerable to a negative feedback loop of selling, which is what we are seeing today.
The Bear Case for AI Stocks Isn't UnreasonableWhile I doubt this marks the end of the AI boom, it would be a mistake to dismiss the bears. They are raising legitimate points.
The sheer scale of the spending. More than $1 trillion has been poured into AI through data-center infrastructure and capital raised for the model labs — OpenAI, Anthropic, and others. For 2026 alone, the major hyperscalers have collectively guided to somewhere in the range of $600–700 billion in capital expenditures.
The opacity around returns. There is real uncertainty about the return on investment in these data centers, and the economics of actually running the models are murkier than they appear. When you pay a monthly subscription to an AI provider, the cost of serving your prompts may well exceed what you're paying, meaning the usage is being subsidized by an unknown amount. Loss-leading is not a new strategy, as several of the Mag 7 built their dominance by absorbing losses to capture markets first. But it has never been attempted at anything close to this scale, and the path to sustainable margins remains undefined.
The circularity. A growing concern is how interlinked the major players have become. Nvidia has invested in "neocloud" providers, companies that rent out GPU computing power, which in turn use that capital to buy more Nvidia chips. Nvidia has also committed to invest heavily in OpenAI, which has pledged to spend enormous sums on the very compute that flows back through the ecosystem. Supporters frame this as a "virtuous circle" that locks in scarce supply and critics see it as a web of interdependent commitments where a stumble at one node could cascade through the whole structure.
The coming mega-IPOs. A wave of richly valued, deeply unprofitable companies, the likes of SpaceX, Anthropic, and OpenAI are coming to public markets. By entering the major indexes while still burning cash on opaque business models, they could introduce fresh vulnerability for passive investors who hold them by default. Viewed cynically, the whole sequence can look like an opportunity for venture capital and other early backers to cash out at the top before any unraveling.
These are all reasonable concerns, but it's worth being precise about what they rest on: the assumption that data-center investment is structurally unprofitable. That is largely true today. It is far less clear that it will remain true. The margins on AI infrastructure are still being discovered, and history with prior technology buildouts suggests that early-stage unprofitability is not the same thing as permanent unprofitability. The honest position is that the verdict is genuinely unknown, which is exactly why the tape whipsaws on every new data point.
Which Stocks are Capturing the FlowsAs money has come out of tech, it has been finding a home in the more defensive and beaten-down corners of the market. Today we're seeing real estate, consumer staples, healthcare, and some left-for-dead retail names catch a bid. Among the more interesting movers are Eli Lilly ((LLY - Free Report) ), Home Depot ((HD - Free Report) ), Procter & Gamble ((PG - Free Report) ) and Starbucks ((SBUX - Free Report) ), among many other established, cash-generative businesses that had been largely ignored while capital chased AI.
I'm not prepared to call this the start of a durable resurgence in these names, but the logic tracks. Most data points to a broadly healthy US economy even as investor attention has been monopolized by AI. If the economy continues to hold up, these unloved areas \could absorb a meaningful share of the flows rotating out of crowded tech.
This may raise more questions than it answers, and that's fine. Identifying the current environment is a more tractable task than predicting the future, and good portfolio management sometimes simply requires being appropriately defensive for the conditions in front of you today.
EBGLYSS is now the only approved option that offers as few as six maintenance injections per year with no required topicals from the start
, /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) announced today that the U.S. Food and Drug Administration (FDA) approved a regimen of one maintenance dose every eight weeks of a single injection (250 mg/2 mL) of EBGLYSS (lebrikizumab-lbkz) for subcutaneous use in adults and children 12 years of age and older who weigh at least 88 pounds (40 kg) with moderate-to-severe atopic dermatitis. EBGLYSS is already approved for a once-monthly maintenance dose, with long-term data showing durable disease control. Now, EBGLYSS gives patients with moderate-to-severe atopic dermatitis the option to manage their condition with as few as six maintenance injections per year.1
"Today's approval builds on EBGLYSS' established long-term durability, with a new option for one maintenance dose every eight weeks. For people living with moderate-to-severe atopic dermatitis, that means a treatment they only need to take as few as six times a year—without prescription topicals from the start," said Adrienne Brown, executive vice president and president of Lilly Immunology. "EBGLYSS now gives patients the opportunity to flare less and live their lives with fewer interruptions from atopic dermatitis."
The approval is based on longitudinal exposure-response modeling data and supported by every-eight-week clinical data from an extension to the Phase 3 ADjoin long-term trial, which evaluated EBGLYSS maintenance dosing every four weeks or every eight weeks over 32 weeks.2
"The option to extend EBGLYSS maintenance dosing to every eight weeks represents an important moment for patients living with moderate-to-severe atopic dermatitis," said Peter Lio, M.D., author of the ADjoin study and clinical assistant professor of dermatology and pediatrics, Northwestern University. "This new dosing regimen without mandatory topicals gives patients a new option to manage their condition based on individual needs. It's about meeting patients where they are in their lives."
No new safety signals were noted in the EBGLYSS safety data in the 32-week ADjoin Q8W extension. No patients discontinued due to adverse events through 32 weeks. The most common (≥1%) adverse reactions reported with EBGLYSS are conjunctivitis, injection site reactions and herpes zoster.1
"Living with moderate-to-severe atopic dermatitis often means dealing with a cycle of symptoms and time-intensive treatment routines during and in-between flares," said Kristin Belleson, president and CEO of the National Eczema Association. "Patients living with moderate-to-severe atopic dermatitis seek treatments that can offer durable disease control and fewer injections. This new option can ease the burden, allowing patients to spend less time thinking about managing their condition on a daily basis."
Lilly has exclusive rights for development and commercialization of EBGLYSS in the U.S. and the rest of the world outside Europe. Almirall has licensed the rights to develop and commercialize EBGLYSS for the treatment of dermatology indications, including atopic dermatitis, in Europe.
About the Q8W ADjoin Extension
The Q8W ADjoin extension (NCT04392154) evaluated EBGLYSS administered once every eight weeks (Q8W) and once every four weeks (Q4W), assessing its long-term safety and efficacy over 32 weeks in patients with moderate-to-severe atopic dermatitis across select countries. Adult and adolescent patients (ages 12–17, weighing ≥40 kg) who completed the 100-week ADjoin long-term study, including participants from the Phase 3 ADvocate 1 and 2 trials (52 weeks), ADore trial (52 weeks) and the ADopt-VA (16 weeks) trial, were eligible to enroll. Patients in this analysis received open-label EBGLYSS 250 mg, Q8W or Q4W, regardless of their previous treatment in ADjoin (Q2W or Q4W dose) or response at extension baseline. The approved maintenance dose of EBGLYSS is 250 mg every four weeks or 250 mg every eight weeks, after taking EBGLYSS 250 mg every two weeks for 16 weeks or later when adequate clinical response is achieved.
About EBGLYSS
EBGLYSS is a monoclonal antibody that selectively targets and neutralizes IL-13 with high binding affinity and a slow dissociation rate.1,3,4 EBGLYSS binds to the IL-13 cytokine at an area that overlaps with the binding site of the IL-4Rα subunit of the IL-13Rα1/IL-4Rα heterodimer, preventing formation of this receptor complex and inhibiting IL-13 signaling. IL-13 is implicated as a primary cytokine tied to the pathophysiology of atopic dermatitis, driving the type-2 inflammatory loop in the skin, and EBGLYSS selectively targets IL-13.1
The EBGLYSS Phase 3 program in atopic dermatitis consists of seven key global studies evaluating more than 1,600 patients, including two monotherapy studies (ADvocate 1 and 2), a combination study with topical corticosteroids (ADhere), long-term extension (ADjoin) and adolescent open-label (ADore) studies. The program also includes a study assessing the impact of EBGLYSS on vaccine immune response in adults (ADopt-VA). EBGLYSS has been studied in patients with skin of color (ADmirable) and in dupilumab-experienced patients (ADapt).
EBGLYSS was approved in the U.S., Japan and Canada in 2024 and in the European Union in 2023. EBGLYSS is a first-line biologic treatment, administered with or without topical corticosteroids, that offers every-four-week or every-eight-week maintenance dosing for adults and children 12 years of age and older who weigh at least 88 pounds (40 kg) with moderate-to-severe atopic dermatitis that is not well-controlled with topical prescription therapies.1 In the U.S., the recommended initial starting dose of EBGLYSS is 500 mg (two 250 mg injections) at Week 0 and Week 2, followed by 250 mg every two weeks until Week 16 or later when adequate clinical response is achieved; after this, maintenance dosing is 250 mg every four weeks or every eight weeks.1
Lilly is committed to serving patients living with moderate-to-severe atopic dermatitis and is working to enable broad first-line biologic access to EBGLYSS for patients not well-controlled with topical prescription therapy through commercial insurance. Lilly has coverage with all three major national pharmacy benefit managers and 94% of commercially insured patients have coverage through national health plans. We have expanded Medicaid coverage and are pursuing similarly broad Medicare coverage as part of Lilly's health equity and affordability initiative. Through Lilly Support Services™ for EBGLYSS®, Lilly offers a patient support program including co-pay assistance for eligible, commercially insured patients.
INDICATION AND SAFETY SUMMARY
EBGLYSS® (EHB-glihs) is an injectable medicine used to treat adults and children 12 years of age and older who weigh at least 88 pounds (40 kg) with moderate-to-severe eczema (atopic dermatitis) that is not well-controlled with prescription therapies used on the skin (topical), or who cannot use topical therapies. EBGLYSS can be used with or without topical corticosteroids.
It is not known if EBGLYSS is safe and effective in children less than 12 years of age or in children 12 years to less than 18 years of age who weigh less than 88 pounds (40 kg).
Warnings - Do not use EBGLYSS if you are allergic to lebrikizumab-lbkz or to any of the ingredients in EBGLYSS. See the Patient Information leaflet that comes with EBGLYSS for a complete list of ingredients.
Before using
Before using EBGLYSS, tell your healthcare provider about all your medical conditions, including if you:
Have a parasitic (helminth) infection. Are scheduled to receive any vaccinations. You should not receive a "live vaccine" if you are treated with EBGLYSS. Are pregnant or plan to become pregnant. It is not known if EBGLYSS will harm your unborn baby. If you become pregnant during treatment with EBGLYSS, you or your healthcare provider can call Eli Lilly and Company at 1-800-LillyRx (1-800-545-5979) to report the pregnancy. Are breastfeeding or plan to breastfeed. It is not known if EBGLYSS passes into your breast milk. Tell your healthcare provider about all the medicines you take, including prescription and over-the-counter medicines, vitamins, and herbal supplements.
Possible side effects
EBGLYSS can cause serious side effects, including:
Allergic reactions. EBGLYSS can cause allergic reactions that may sometimes be severe. Stop using EBGLYSS and tell your healthcare provider or get emergency help right away if you get any of the following signs or symptoms: breathing problems or wheezing swelling of the face, lips, mouth, tongue or throat hives itching fainting, dizziness, feeling lightheaded skin rash cramps in your stomach area (abdomen) Eye problems. Tell your healthcare provider if you have any new or worsening eye problems, including eye pain or changes in vision, such as blurred vision. The most common side effects of EBGLYSS include:
eye and eyelid inflammation, including redness, swelling, and itching injection site reactions shingles (herpes zoster) These are not all of the possible side effects of EBGLYSS. Call your doctor for medical advice about side effects. You may report side effects to FDA at 1-800-FDA-1088 or www.fda.gov/medwatch.
How to take
See the detailed "Instructions for Use" that comes with EBGLYSS for information about how to prepare and inject EBGLYSS and how to properly store and throw away (dispose of) used EBGLYSS prefilled pens and prefilled syringes. Use EBGLYSS exactly as prescribed by your healthcare provider. EBGLYSS is given as an injection under the skin (subcutaneous injection). If your healthcare provider decides that you or a caregiver can give the injections of EBGLYSS, you or a caregiver should receive training on the right way to prepare and inject EBGLYSS. Do not try to inject EBGLYSS until you have been shown the right way by your healthcare provider. In children 12 years of age and older, EBGLYSS should be given by a caregiver. If you miss a dose of EBGLYSS, inject the missed dose as soon as possible, then inject your next dose at your regular scheduled time. Learn more
EBGLYSS is a prescription medicine available as a 250 mg/2 mL injection prefilled pen or prefilled syringe. For more information, call 1-800-545-5979 or go to ebglyss.lilly.com
This summary provides basic information about EBGLYSS but does not include all information known about this medicine. Read the information that comes with your prescription each time your prescription is filled. This information does not take the place of talking to your doctor. Be sure to talk to your doctor or other healthcare provider about EBGLYSS and how to take it. Your doctor is the best person to help you decide if EBGLYSS is right for you.
LK CON BS AD APP
EBGLYSS®, its delivery device base, and Lilly Support Services™ are trademarks owned or licensed by Eli Lilly and Company, its subsidiaries, or affiliates.
About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for nearly 150 years, and today our medicines help people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news, or follow us on Facebook, Instagram and LinkedIn. P-LLY
Trademarks and Trade Names
All trademarks or trade names referred to in this press release are the property of the company, or, to the extent trademarks or trade names belonging to other companies are referenced in this press release, they are the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release are referred to without the ® and ™ symbols, but such references should not be construed as any indicator that the company or, to the extent applicable, their respective owners will not assert, to the fullest extent under applicable law, the company's or their rights thereto. We do not intend the use or display of other companies' trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) about EBGLYSS (lebrikizumab-lbkz) as a treatment for patients with moderate-to-severe atopic dermatitis and the timeline for future readouts, presentations, and other milestones relating to EBGLYSS and its clinical trials and reflects Lilly's current beliefs and expectations. However, as with any pharmaceutical product, there are substantial risks and uncertainties in the process of drug research, development, and commercialization. Among other things, there is no guarantee that future study results will be consistent with the results to date or that EBGLYSS will receive additional regulatory approvals, or that it will be commercially successful. For further discussion of these and other risks and uncertainties that could cause actual results to differ from Lilly's expectations, see Lilly's Form 10-K and Form 10-Q filings with the United States Securities and Exchange Commission. Except as required by law, Lilly undertakes no duty to update forward-looking statements to reflect events after the date of this release.
1 EBGLYSS. Prescribing Information. Lilly USA, LLC.
2 Silverberg J, et al. Lebrikizumab every 8 weeks as maintenance dose provides long-lasting response in patients with moderate-to-severe atopic dermatitis. Presented at: Fall Clinical Dermatology Conference; 2025.
3 Okragly A, et al. Binding, neutralization and internalization of the interleukin-13 antibody, lebrikizumab. Dermatology and Therapy. Published online June 13, 2023. doi:10.1007/s13555-023-00947-7
4 Ultsch M, et al. Structural basis of signaling blockade by an interleukin-13 antibody lebrikizumab. Journal of Molecular Biology. 2013;425(8):1330-1339. doi:10.1016/j.jmb.2013.01.024
SummaryCompaniesTolerability remains key challenge, with most GLP-1 drugs causing significant side effectsLilly's retatrutide trial data confirms highest weight loss among current and pipeline drugsShares of Lilly rose after ADA conference, while Novo, Roche, Pfizer and Zealand fellNEW YORK/LONDON, June 10 (Reuters) - Eli Lilly (LLY.N), opens new tab has solidified its leading position in the booming market for obesity drugs ahead of a wave of possible new entrants to the space.
Lilly last weekend presented more detailed data from trials of its once-weekly injection retatrutide, confirming to investors and clinicians that its experimental drug is likely to offer the greatest weight loss prospects of any medicines currently on the market or in the pipeline.
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Roche (ROPC.S), opens new tab, AstraZeneca (AZN.L), opens new tab, Pfizer (PFE.N), opens new tab and others also presented fresh data that turned the American Diabetes Association meeting in New Orleans into more of a weight-loss conference, and raised the prospect of greater choice in a fast-growing market so far dominated by Indianapolis-based Lilly and Denmark's Novo Nordisk (NOVOb.CO), opens new tab.
Drugs presented by Novo, Roche and others are "on par" with current ones in terms of weight loss and side effects but cannot compete with Lilly's next-generation products, said RBC analyst Trung Huynh.
"The bar is just moving higher and higher," he said in a phone interview.
Eli Lilly shares closed 1.6% higher on Monday, the first trading day following the ADA conference. Shares of Novo fell 4.2% and Roche, Pfizer and Zealand Pharma (ZELA.CO), opens new tab, which is developing obesity injection petrelintide with Roche, all lost ground.
DOMINATING MARKET SEGMENTSWith prices falling and a growing number of weight-loss options on the horizon, some companies may set their sights on certain segments of the patient population.
Roche says patients seeking maximum weight loss may choose more potent therapies such as its experimental dual-acting enicepatide, while others may choose a trade off of more modest weight loss and fewer side effects that could be easier to stay on longer term.
"We have to look at the entire gamut of people living with obesity because it's so heterogeneous, it's complex, and there is going to be segmentation," said Manu Chakravarthy, who oversees cardiovascular, renal and metabolism product development at Roche.
In data presented at ADA, Roche said patients lost 22.7% of their bodyweight in a mid-stage trial of enicepatide with a gastrointestinal side effect profile similar to existing GLP-1s.
Chakravarthy said once-weekly injection petrelintide, an amylin-based drug, has a "placebo-like" tolerability profile that could give it an edge.
AstraZeneca said it sees its oral GLP-1 elecoglipron as the foundation of a broader obesity strategy that could include combinations with its medicines for type 2 diabetes and kidney and heart disease.
For both Novo and Lilly, the strategy remains to cover the waterfront with multiple options for a large, diverse market.
"Rather than taking a one-size-fits-all approach, we aim to match the right medicine to the right patient," said Novo Chief Medical Officer Filip Knop.
Lilly also says it expects to provide the broadest set of options for people living with overweight and obesity. Kenneth Custer, president of Lilly Cardiometabolic Health, said patients "may even choose to start on one Lilly medicine and move to another Lilly medicine."
FEWER SIDE EFFECTS HARD TO COME BYWhile companies push weight-loss boundaries, the area with the greatest room for improvement is the daunting side effect profile of some of these medicines. The therapies that rely on the GLP-1 and GIP hormones tend to cause stomach issues such as nausea and vomiting.
Discontinuation rates in clinical trials due to side effects has become a closely watched data point by Wall Street. Studies put the percentage of patients who experience nausea at about 40% for some drugs.
Pfizer said its experimental drug berobenatide has a similar side effect profile to Novo's Wegovy. The drug could become the first GLP-1 to be offered as a monthly shot.
"Tolerability really is the unmet medical need at the moment," said HSBC analyst Rajesh Kumar.
"As long as you're getting over 12%, 15% weight loss, most people don't need more than 20%. You want something that is competitive on efficacy, good tolerability, and people can take on a regular basis."
Therapies that don't prompt GI side effects are likely a ways off. Lilly, Pfizer, AbbVie (ABBV.N), opens new tab, Astrazeneca and Roche with Zealand are all working on amylin-based drugs.
Novo's Cagrisema, which combines semaglutide with an amylin drug and was seen as a potential Wegovy successor, fell short on weight-loss expectations.
Lilly's experimental eloralintide also aims to fill that improved tolerability need.
"What we've seen with the amylin class so far is that it seems to really stand out" on tolerability, Custer said. "We want to make sure for the 5% to 10% of patients who would like something else, that we have an option to give them."
Reporting by Chris Prentice and Michael Erman in New York and Maggie Fick and Bhanvi Satija in London; Editing by Caroline Humer and Bill Berkrot
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Chris Prentice is on assignment with the U.S. Healthcare and Pharma team. She has also reported on financial crime, commodities markets and trade policy. Her work, solo and in collaboration with colleagues, has been honored with Gerald Loeb, Society for Advancing Business Editing and Writing, and New York Newswomen's Club awards.
Maggie is a Britain-based reporter covering the European pharmaceuticals industry with a global perspective. In 2023, Maggie's coverage of Danish drugmaker Novo Nordisk and its race to increase production of its new weight-loss drug helped the Health & Pharma team win a Reuters Journalists of the Year award in the Beat Coverage of the Year category. Since November 2023, she has also been participating in Reuters coverage related to the Israel-Hamas war. Previously based in Nairobi and Cairo for Reuters and in Lagos for the Financial Times, Maggie got her start in journalism in 2010 as a freelancer for The Associated Press in South Sudan.
Key Takeaways LLY won FDA approval for every-8-week Ebglyss maintenance dosing in eczema, reducing yearly injection count.Ebglyss extension-study data showed durable disease control and no new safety signals with Q8W dosing.LLY expanded Ebglyss access via major PBM agreements, reaching 94% of commercially insured patients. Eli Lilly (LLY - Free Report) announced that the FDA has approved a new maintenance dosing regimen for Ebglyss (lebrikizumab-lbkz) for adults and adolescents aged 12 years and older weighing at least 40 kg with moderate-to-severe atopic dermatitis (also called eczema). The drug is indicated for patients whose disease is not adequately controlled with topical prescription therapies or who cannot use such treatments.
Ebglyss is already approved in the United States and the EU for the treatment of moderate-to-severe atopic dermatitis in eligible adults and adolescents. The therapy can be used with or without topical corticosteroids and is positioned as a first-line biologic option for patients whose disease remains inadequately controlled despite topical treatment.
The latest FDA approval introduces a maintenance regimen of one 250 mg injection every eight weeks after an initial induction period and achievement of an adequate clinical response. Previously, approved maintenance treatment was administered once every four weeks.
By reducing the number of maintenance injections to as few as six per year, the new schedule offers patients greater convenience while maintaining long-term disease control. The less frequent dosing approach may also help reduce treatment burden and improve adherence among patients managing a chronic skin condition.
Shares of Eli Lilly have gained 6.5% year to date compared with the industry’s 4% growth.
Image Source: Zacks Investment Research
Rationale Behind FDA Approval of LLY's Ebglyss Q8W DosingThe FDA approval was supported by longitudinal exposure-response modeling and data from the phase III ADjoin extension study, which evaluated whether patients with eczema who had achieved disease control with Ebglyss could maintain efficacy and safety on a less frequent every-eight-week (Q8W) maintenance regimen.
The 32-week extension study enrolled adults and adolescents aged 12 years and older weighing at least 40 kg with moderate-to-severe atopic dermatitis who had completed the long-term ADjoin study and other late-stage studies. The enrolled patients received Ebglyss 250 mg either every eight weeks (Q8W) or every four weeks, regardless of their prior dosing schedule or treatment response.
The extension study results showed durable disease control with Q8W dosing while preserving the therapy's established safety profile. No new safety signals emerged during the extension period and no patients discontinued treatment because of adverse events. The findings demonstrated that a reduced-frequency maintenance regimen could deliver durable efficacy without compromising safety, supporting the FDA's approval decision.
Lilly holds exclusive development and commercialization rights for Ebglyss in the United States and all markets outside Europe. In Europe, rights to develop and market Ebglyss for dermatology indications, including atopic dermatitis, have been licensed to Almirall.
Lilly has expanded access to Ebglyss in the United States through coverage agreements with all three major U.S. pharmacy benefit managers, giving 94% of commercially insured patients access through national health plans. LLY has also broadened Medicaid coverage, while pursuing wider Medicare access and provides co-pay assistance and support services for eligible, commercially insured patients.
LLY’s Zacks Rank & Stocks to ConsiderEli Lilly currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) , Indivior Pharmaceuticals (INDV - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Liquidia Corporation’s 2026 EPS have increased from $1.50 to $2.97. Over the same period, EPS estimates for 2027 have also increased from $2.91 to $4.81. LQDA shares have rallied 85.6% year to date.
Liquidia Corporation’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.
Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen to $4.27 from $3.66. INDV shares have gained 6.6% year to date.
Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.
The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents. In the past 60 days, the estimates for its 2027 EPS have increased from 24 cents to 87 cents. IMCR shares have lost 17.8% year to date.
Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.
I keep buying NVIDIA, Eli Lilly, and Johnson & Johnson, and if a fire took my brokerage statement to zero tomorrow, those are the three tickers I would start typing in again on day one. They each do something I cannot replicate by being clever.
Why the buy button stays active on NVIDIA NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is the one position where I have stopped pretending I can time it. Q1 FY27 revenue came in at $81.61 billion, up 85.23% year over year, with non-GAAP EPS of $1.87 against a $1.7738 estimate. Free cash flow alone was $48.55 billion in a single quarter. Full year FY26 free cash flow reached $96.58 billion. That is the cash machine I am buying.
The capital return shift sealed it for me. The quarterly dividend went from $0.01 to $0.25, a fresh $80 billion buyback authorization landed on top of $38.5 billion remaining, and roughly $20 billion came back to shareholders in Q1.
Jensen Huang framed the cycle plainly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Supply commitments of $119 billion tell me management sees the demand the same way I do.
The honest risk is China. The Q2 guide assumes zero Data Center compute revenue from China, and no H20 shipped last quarter. I respect it. I also note that the company is guiding $91 billion for Q2 anyway. The shares are up 12.01% year to date and 47.42% over one year, and the earnings power is growing faster than the multiple.
Eli Lilly is the franchise I keep underestimating Eli Lilly (NYSE:LLY) keeps proving me too cautious. Q1 2026 revenue was $19.80 billion, up 55.5% YoY, with EPS of $8.55 against a $6.79 estimate. Mounjaro alone delivered $8.66 billion (125% YoY growth) and Zepbound added $4.16 billion (80% YoY). Full year guidance was raised to $82 to $85 billion in revenue and $35.5 to $37 in non-GAAP EPS.
Foundayo, the first oral GLP-1 that can be taken any time of day without food or water restrictions, is the catalyst I keep coming back to. CEO David Ricks said “Foundayo will meaningfully expand the number of people who can benefit from GLP-1s.”
The honest risk is pricing: realized prices fell 13% in the quarter, with China’s NRDL inclusion adding pressure. Volume grew 65%, which is the answer to that risk.
Johnson & Johnson is the ballast Johnson & Johnson (NYSE:JNJ) is the one I would buy first, because it is the position that lets me sleep. The quarterly dividend was raised 3.1% to $1.34 per share, the 64th consecutive year of increases.
Q1 2026 revenue rose 9.9% YoY to $24.062 billion, adjusted EPS was $2.70, and full year 2026 guidance was lifted to $100.3 to $101.3 billion in revenue and $11.45 to $11.65 in adjusted EPS. DARZALEX grew 22.5%, TREMFYA grew 68.3%, and 2025 free cash flow was $19.7 billion.
The honest risk is STELARA, which fell 59.7% to $656 million on biosimilar erosion. TREMFYA and the oncology stack are absorbing that hit in real time, and the dividend record speaks louder to me than the biosimilar headline.
The forward conviction Compounding cash flow at NVIDIA, a generational franchise at Lilly, and 64 years of paid dividends at Johnson & Johnson: that is how I would rebuild a portfolio, and that is why my buy button is still warm.
