Abbott (NYSE: ABT) today reported mixed third-quarter results, cut its guidance and joined the trend of medtech conglomerates spinning out businesses to focus.
ABT shares fell more than 2% to $99.50 apiece in morning trading. The S&P 500 was up slightly.
The Abbott Park, Illinois–based Life Sciences tech giant plans to spin out its Nutrition business as a standalone company by the end of 2027. Company officials say the new, independent company will have $8.5 billion in annual sales, 16,000 employees and 14 manufacturing sites — with a portfolio of well-known brands including nutrition supplement drink Ensure, pediatric nutrition supplement PediaSure, diabetes management nutrition brand Glucerna, and infant formula brand Similac. Daniel Salvadori, currently EVP and group president of Established Pharmaceuticals and Nutritional Products, will be CEO of the standalone company.
The separation plans involve Abbott distributing shares of the independent Nutrition company to Abbott shareholders. After the separation, Abbott shareholders will own shares in both Abbott and the independent Nutrition company.
“As we continue to shape Abbott for the future, this separation will benefit both companies, setting each one up for maximum success in its respective market,” Abbott CEO Robert B. Ford said in a news release.
“Our Nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities. At the same time, Abbott’s core higher-growth, innovation-driven portfolio of medical devices, diagnostics and established medicines has compelling growth opportunities to improve the health and lives of people around the world.”
The separation plans come after Abbott reached more than $1 billion in lawsuit settlement agreements — $670 million to settle 2,000 claims and nearly $385 million to resolve U.S. Department of Justice False Claims Act allegations — involving baby formula products.
Abbott results for Q3 were mixed
Abbott earned $920 million, or 53¢ per share, off of $13.013 billion in revenue for the quarter ended Sept. 30, 2026. The bottom line was half what it was in Q3 2025, while sales were up 14.5%.
Medical Devices sales rose 6.9% to $5.826 billion. There was double-digit growth in Electrophysiology and Rhythm Management. In Diabetes Care, CGM sales were up 7.3%.
Adjusted to exclude one-time items, Abbott EPS was $1.42. The result missed the Wall Street consensus of $1.43 by a penny, according to Zacks Equity Research, which also reported a slight beat on revenue.
Abbott cut its full-year guidance to 6.0% comparable sales growth and $5.50–5.55, down from its previous guidance of 6.5–7.5% sales growth and $5.45–5.60 EPS.
