Abbott cuts 2026 sales growth view, plans to spin off nutrition business
Abbott Laboratories announced plans to spin off its nutrition business, which includes baby formula, into an independent, publicly traded company by the end of 2027. Alongside the planned separation of the $8.5 billion nutrition arm, the company lowered its full-year 2026 sales growth outlook to 6 percent from a previous range of 6.5 percent to 7.5 percent. Following the earnings release and structural shakeup, Abbott stock fell as investors reacted to the lower projections and ongoing challenges within the unit.
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- ✓ Abbott Laboratories plans to separate its nutrition business into an independent, publicly traded company by the end of 2027.
- ✓ The company reduced its 2026 sales growth outlook to 6 percent from a previous range of 6.5 percent to 7.5 percent.
- ✓ The nutrition arm being spun off is valued at $8.5 billion.
- ✓ Abbott stock fell following the earnings report and the announcement of the nutrition unit separation.
What changed
Abbott Laboratories reduced its 2026 sales growth outlook and announced the creation of an independent, publicly traded nutrition company.
Live updates
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Abbott Cuts 2026 Sales Guidance and Plans Nutrition Spin-Off
Abbott Laboratories announced plans to spin off its nutrition business, which includes baby formula, into an independent, publicly traded company by the end of 2027. Alongside the planned separation of the $8.5 billion nutrition arm, the company lowered its full-year 2026 sales growth outlook to 6 percent from a previous range of 6.5 percent to 7.5 percent. Following the earnings release and structural shakeup, Abbott stock fell as investors reacted to the lower projections and ongoing challenges within the unit.
Why it matters
The strategic overhaul follows a $385 million settlement tied to a prior formula recall that created persistent legal and financial headwinds for the nutrition division. By shedding the embattled unit, Abbott aims to refocus corporate strategy on diagnostics and medical devices, projecting total post-separation sales of $42 billion.
What is confirmed
- Abbott Laboratories plans to separate its nutrition business into an independent, publicly traded company by the end of 2027.
- The company reduced its 2026 sales growth outlook to 6 percent from a previous range of 6.5 percent to 7.5 percent.
- The nutrition arm being spun off is valued at $8.5 billion.
- Abbott stock fell following the earnings report and the announcement of the nutrition unit separation.
What to watch next
- Finalization of the structural separation timeline leading toward the end of 2027
- Subsequent quarterly earnings reports reflecting the revised 6 percent sales growth outlook
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- WSJ — Abbott to Carve Out Nutrition Business Into Independent Company
- Reuters — Abbott cuts 2026 sales growth view, plans to spin off nutrition business
- Bloomberg.com — Abbott Spins Off Embattled Business That Sells Baby Formula
- Barron's — Abbott Stock Falls After Earnings. It’s Shedding Its Troubled Nutrition Unit.
- Yahoo Finance — Abbott Reports Third-Quarter 2026 Results and Reaffirms Full-Year EPS Guidance
- WWMT — Abbott to separate nutrition business after $385 million settlement tied to formula recall
- Food Business News — Abbott to spin off Nutrition business
- abbott.mediaroom.com — Abbott announces its intention to separate its global ...
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