Abbott to Carve Out Nutrition Business Into Independent Company

Abbott Laboratories (ABT) plans to spin off its Nutrition division, generating $8.5B in annual revenue, into a separate publicly traded company by the end of 2027. The move, subject to approvals, will allow Abbott to focus on medical devices, diagnostics, and pharmaceuticals, with the new company led by Daniel Salvadori. Existing shareholders will receive shares in both entities, and the transaction is not expected to affect Abbott's 2026 or 2027 financial guidance.

Abbott Laboratories (ABT) shares dropped 4% after announcing plans to spin off its Nutrition business, including Similac, by 2027. The unit generates $8.5B annually but has shown minimal growth. The move leaves Abbott with a medical device and diagnostics business, with $42B in annual sales. The company expects to maintain its 2026 guidance and current dividend payouts. Daniel Salvadori will lead the new nutrition company.

Abbott Laboratories reported Q3 2026 sales of $13.01B (up from $11.37B YoY) and net income of $920M (down from $1.64B YoY). Nine-month sales reached $36.77B (up from $32.87B YoY), with net income of $2.93B (down from $4.75B YoY). The company's products include vascular devices, diagnostic systems, nutrition products, and medicines, with sales distributed globally.

ABBOTT LABORATORIES (ABT) filed an SEC Form 8-K — Other Events. Exhibit 99.1 Abbott announces its intention to separate its global Nutrition business into an independent, publicly traded company • Separation will unlock potential of both companies to pursue distinct growth and value-creation strategies • The new Nutrition company will be a gl

Abbott Laboratories plans to separate its nutrition business, with $8.5B in annual sales, into an independent company by 2027. The move aims to focus on higher-growth areas. Shares fell 4% premarket. Q3 sales rose 14% to $13.01B, but profit declined due to higher costs. Abbott faces ongoing litigation over its baby-formula facility and has agreed to multimillion-dollar settlements.

Abbott plans to spin off its nutrition business, which generates $8.5bn in annual revenue, into an independent publicly traded company by the end of 2027. The move aims to allow both entities to focus on their respective markets. Abbott's remaining business will have $42bn in revenue and focus on medical devices, diagnostics, and pharmaceuticals. The transaction is subject to regulatory approvals and will not impact Abbott's 2026 and 2027 guidance.