Abbott Plans Nutrition Spinoff as Q3 Revenue Grows
Abbott Laboratories plans to separate its Nutrition division to focus on diagnostics, medical devices, and established pharmaceuticals. Third-quarter revenue rose 14.5% to $13.01 billion, helped by diagnostics and medical devices, while 2026 adjusted EPS guidance was narrowed to $5.50-$5.55. The article says the stock fell on the update but remains bullish long term.
Abbott, based in Illinois, reported third-quarter sales of $13.01 billion, up 14.5% from a year earlier. Diagnostics, aided by its Exact Sciences purchase, and medical devices supplied the main growth momentum.
The company narrowed its 2026 adjusted earnings-per-share outlook to $5.50–$5.55 and said it expects the separation to support faster growth and better profitability. Its shares slipped more than 4% early in the session as investors weighed the planned Nutrition separation and the updated forecast.
The planned separation could affect patients and caregivers who rely on Abbott’s nutrition products, as a standalone business may face different priorities and resources. Employees in the division may see organizational changes, while hospitals and clinicians could encounter shifts in how diagnostics and devices are prioritized. Investors may also reassess risk as the company narrows its earnings outlook and refocuses its portfolio.