Key Highlights

  • ABT shares fell 3.87% pre-market to $98.72 from a $102.70 prior close.
  • Adjusted EPS of $1.42 missed the $1.43 estimate, while sales of $13.01 billion beat.
  • Full-year organic sales growth guidance was cut to about 6% from 6.5% to 7.5%.
  • The nutrition business, with about $8.5 billion in sales, will be spun off.

Guidance Cut Outweighs an In-Line Quarter

Abbott Laboratories (NYSE:ABT) shares fell 3.87% pre-market today to $98.72, down $3.98 from the prior close of $102.70. Third-quarter results were essentially in line: adjusted EPS of $1.42 missed the $1.43 estimate by 0.70%, while sales of $13.01 billion edged past the roughly $12.99 billion estimate. Sales grew 7% and EPS grew 9%, an acceleration versus the first half of the year, and Diagnostics sales rose 6.5% on core laboratory performance.

The cut to full-year organic sales growth guidance, to about 6% from a prior 6.5% to 7.5%, appears to be weighing on sentiment. The health sector ETF XLV is down about 0.9% pre-market after the sector hit a record high on Tuesday.

Nutrition Spin-Off Plan

Abbott announced its intention to separate its nutrition business into an independent publicly traded company by the end of 2027, following a strategic review. The new company would have about $8.5 billion in annual sales, 16,000 employees and 14 manufacturing sites, with brands including Similac, Pediasure, Ensure, Glucerna and Pedialyte. It is expected to qualify for S&P 500 inclusion.

After the separation, Abbott expects a stronger mix of higher-growth, higher-margin businesses in MedTech, Diagnostics and Established Pharmaceuticals, with sales growth expected to accelerate and margin profiles to expand.

Outlook and Valuation

The company narrowed its 2026 EPS guidance to $5.50 to $5.55 and guided fourth-quarter EPS of $1.62 to $1.67, roughly in line with consensus. Medical Devices is the largest segment at roughly 45% of revenue, covering rhythm management, electrophysiology, structural heart, vascular, FreeStyle Libre glucose monitoring and neuromodulation.

The shares carry a forward P/E of 17.26 and a trailing P/E of 33.02, with a 2.45% dividend yield and a 52-week range of $81.97 to $132.03. Volume was 13.66 million shares in the last session.

Next Up: 9 AM ET Call

The earnings call begins at 9:00 a.m. ET today. Investors are weighing the growth shortfall against the strategic simplification toward devices and diagnostics.