Adds CEO comment in paragraphs 3, 4, analyst comment in paragraph 9

By Siddhi Mahatole and Christy Santhosh

July 16 (Reuters) - Abbott ABT.N beat quarterly estimates and raised its annual profit forecast on Thursday, as strong demand for its cancer diagnostics business and medical devices eased procedure-volume concerns, sending its shares up 12%.

Wall Street is watching medtech firms after hospital operator HCA HCA.N flagged softer surgical volumes and rising uninsured levels, trends that could pressure elective procedures, as some Americans drop off Affordable Care Act plans following the end of pandemic-era subsidies.

Abbott CEO Robert Ford pushed back on those concerns, saying it is a "flawed assumption" that ACA-related enrollment declines would materially affect the medical technology and diagnostics industry.

Ford said the company is tied to a lot of major chronic conditions such as diabetes, cardiovascular disease and cancer, which are "less likely to forego insurance."

Shares of other medtech firms such as Boston Scientific BSX.N, Stryker SYK.N and Medtronic MDT.N were all up about 5% in morning trade.

BETTER-THAN-FEARED QUARTER

Abbott said its cancer diagnostics business, recently integrated through the Exact Sciences buyout, is benefiting from a growing base of both new and repeat users of the colorectal cancer screening test, Cologuard.

William Blair analyst Brandon Vazquez said Abbott's cancer diagnostics results should improve sentiment around the Exact Sciences acquisition, while growth in medical devices helps offset concerns about hospital procedure volumes.

Sales in Abbott's diagnostics segment in the second quarter grew 42% to $3.09 billion, beating the estimate of $3.02 billion.

Abbott's quarterly sales in its medical devices segment grew 9% to $5.85 billion, beating estimates of $5.82 billion, according to LSEG data.

For the second quarter, the medical device maker reported adjusted profit per share of $1.31, beating analysts' estimate of $1.28, while total revenue came in at $12.59 billion, slightly above estimates of $12.5 billion.

The company expects an adjusted profit in the range of $5.45 to $5.60 per share for 2026, compared with its previous forecast between $5.38 and $5.58 per share.