New York, Jan 22, 2026, 10:14 EST — Regular session
- Abbott shares dropped roughly 7% after the company reported quarterly sales that fell short of estimates and issued a weaker-than-expected profit forecast for the current quarter.
- Nutrition and diagnostics fell, dragging down gains from medical devices and established pharmaceuticals.
- Investors are focused on whether pricing adjustments can boost nutrition volumes, while the Exact Sciences deal remains on track for a Q2 close.
Abbott Laboratories shares dropped 7.4%, hitting $111.74 in morning trading after falling as low as $106.13. The slide came on the back of a quarterly revenue miss and a cautious outlook on near-term profits.
The decline is significant because it brings back a familiar challenge for Abbott: stabilizing nutrition and preventing diagnostics from sliding as COVID-era testing wanes, all while relying on rapidly growing devices. The stock’s movement often hinges on that balance, not just on headline earnings.
This comes at a tricky time for the sector. Infant formula has faced intense scrutiny, and a slip in nutrition can quickly sour sentiment, even if it’s isolated to one company.
Abbott reported fourth-quarter revenue of $11.46 billion, missing analysts’ estimate of $11.80 billion. Adjusted earnings came in at $1.50 per share. Nutrition sales dropped 8.9% to $1.94 billion, while diagnostics revenue declined 2.5% to $2.46 billion, according to the company’s earnings release. (SEC)
The company attributed the drop in nutrition to lower volumes and “strategic price actions” designed to rebuild volume growth. It expects new products in 2026 to provide a boost. CEO Robert Ford said Abbott is “well positioned for accelerating growth in 2026.” (SEC)
Abbott’s first-quarter adjusted profit projection of $1.12 to $1.18 per share missed the consensus estimate of $1.20, according to LSEG data cited by Reuters. Bernstein analyst Christian Moore noted that Abbott hasn’t been directly affected by the recent contamination issues plaguing peers but cautioned that a “negative aura” surrounding formula use could deter parents. (Reuters)
The Reuters report also highlighted the strain on diagnostics caused by China’s volume-based procurement program — a government-driven bulk buying scheme that tends to push prices down — along with the decline in COVID-19 testing demand. (Reuters)
Abbott leaned on its electrophysiology and other medical device franchises again, but the market seemed to want firmer evidence that nutrition is actually improving—not just a forecast that it might.
The risk is straightforward: if price shifts don’t pull volume back in nutrition, or if lawsuits and tighter formula reviews ramp up, the segment could keep weighing on growth despite solid device performance. Another wave of pricing pressure in diagnostics, especially overseas, would only add to the strain.
Investors will be closely monitoring management’s comments on nutrition volumes and pricing next. They’ll also look for any updates on the timeline for Abbott’s planned acquisition of Exact Sciences, which the company continues to target for completion in the second quarter of 2026. (SEC)
