Abbott Laboratories plans to spin off nutrition business, following years of tumult over infant formulas

Abbott Laboratories reported Q3 2026 adjusted earnings of $1.42 per share, matching estimates, on revenue of $13.01 billion, slightly above forecasts. Sales rose 7% and adjusted EPS increased 9% year-over-year. The company cut full-year sales growth guidance to 6% and announced plans to spin off its nutrition business. Shares fell 2.69% in premarket trading.

Abbott Laboratories (ABT) fell 2.11% after announcing plans to spin off its nutrition unit, Abbott Nutrition, into a separate publicly traded company with $8.5B annual revenue. The spinoff, expected by 2027, will not impact 2026-2027 guidance. Abbott will retain $42B revenue, focusing on medical devices and diagnostics. Shareholders will receive Abbott Nutrition shares. Analysts rate ABT a Strong Buy with a $125.50 target.

Abbott Laboratories (ABT) lowered its full-year growth forecast and announced a spin-off of its nutrition business, causing a premarket decline. Despite this, the company reported Q3 revenues of $13.0 billion, a 14.5% YoY increase. ABT offers a 2.56% dividend yield, a payout ratio of 80%, and a GF Value of $135.69, suggesting modest undervaluation. Insider activity shows net selling, while 23 premium gurus hold ABT shares.

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.