Abbott shares plunge 9% on Q4 revenue miss driven by nutrition slump
Price actions weigh on nutrition sales while medical devices and diabetes care drive growth
Abbott Laboratories shares fell as much as 9% in volatile trading after the healthcare conglomerate reported fourth-quarter revenue that missed analyst expectations, with its nutrition business posting a double-digit decline driven by strategic pricing decisions. The stock dropped approximately 5.5% in after-hours trading and around 9.39% in pre-market trading following the earnings announcement. The worldwide sales of $11.459 billion missed the $11.8 billion consensus estimate by about $340 million, though the company met adjusted earnings per share expectations at $1.50. Management described the miss as overshadowed by a deliberate strategy in nutrition, noting that price actions contributed to lower volumes. Adjusted diluted EPS was $1.50, reflecting a 12 percent growth. Nutrition sales decreased by 8.9 percent on a reported basis and 9.1 percent organically, reaching $1.9 billion, attributed to lower sales volumes and new strategic price actions. Abbott plans to launch several new products in 2026 to increase volume growth. The Diagnostics segment reported a decrease of 2.5 percent on a reported basis and 3.6 percent on an organic basis. Excluding COVID-19 testing-related sales, organic sales decreased by 0.2 percent, with COVID-19 testing-related sales of $89 million, down from $176 million in the prior-year quarter. Core Laboratory Diagnostics sales increased by 5.3 percent on a reported basis and 3.6 percent organically. While nutrition and diagnostics faced headwinds, other divisions showed strength. Medical devices sales increased 12.3 percent on a reported basis and 10.4 percent on an organic basis, supported by double-digit increases in Electrophysiology, Heart Failure, Diabetes Care, and Rhythm Management. Diabetes Care, specifically continuous glucose monitors, reached $2.0 billion in sales, growing 15.0 percent on a reported basis and 12.2 percent organically. Established Pharmaceuticals sales increased 9.0 percent on a reported basis and 7.0 percent on an organic basis. For the full year 2025, Abbott reported sales of $44.328 billion, up 5.7 percent on a reported basis and 5.5 percent on an organic basis. Adjusted diluted EPS was $5.15, reflecting a 10 percent growth. Abbott provided a 2026 outlook, projecting organic sales growth of 6.5 percent to 7.5 percent and adjusted diluted EPS of $5.55 to $5.80, reflecting 10 percent growth at the midpoint. The company also announced plans to acquire Exact Sciences, expected to close in Q2 2026, positioning Abbott in the cancer diagnostics market. Additionally, Abbott declared a quarterly dividend of $0.63 per share, marking its 408th consecutive quarterly dividend.