Abbott Labs (ABT) Stock Tumbles 8% as Weak Nutrition Sales Offset Strong Device Growth

TLDR

• Abbott Laboratories shares fell 8% after Q4 revenue of $11.5 billion came in below the $11.8 billion analyst estimate
• Nutrition segment sales declined 8.9% as price increases dampened consumer demand and higher commodity costs persisted
• Medical devices grew 12% and established pharmaceuticals rose 9%, while diagnostics dropped 2.5%
• 2026 guidance calls for adjusted EPS of $5.55 to $5.80 with organic sales growth of 6.5% to 7.5%
• The pending $21 billion Exact Sciences acquisition remains on track for Q2 2026 closing

Abbott Laboratories posted fourth-quarter results Thursday that sent shares down 8% despite meeting earnings expectations. The healthcare company reported adjusted earnings of $1.50 per share, in line with analyst forecasts.

Abbott, $ABT, Q4-25. Results:

📊 Adj. EPS: $1.50 🟢
💰 Revenue: $11.46B 🔴
📈 Net Income: $1.78B
🔎 Strong margin expansion and double-digit EPS growth; medical devices and electrophysiology drove performance gains. pic.twitter.com/RLzzBJ6P2m

— EarningsTime (@Earnings_Time) January 22, 2026

Revenue painted a bleaker picture. Abbott recorded $11.5 billion in sales, falling short of the $11.8 billion Wall Street target. The company achieved 3% organic sales growth compared to the prior year.

The nutrition business continues its downward spiral. Sales in this division tanked 8.9% during the quarter. The segment includes popular brands like Similac baby formula and Ensure nutritional drinks.

Abbott Laboratories, ABT

CEO Robert Ford acknowledged the persistent problems during the earnings call. He pointed to manufacturing costs that have steadily increased over recent years. Commodity prices spiked during the pandemic and haven’t come back down.

Abbott tried raising prices to offset these expenses. But those price hikes are now hurting sales volume as shoppers become more selective with their spending. Ford noted