New York, Jan 23, 2026, 04:59 (EST) — Premarket
- Abbott shares traded just below $109 in early premarket, following a steep drop after earnings.
- Weakness in nutrition and diagnostics led to a revenue miss in the fourth quarter and a cautious profit outlook for the first quarter
- Investors are closely monitoring whether the nutrition “reset” will hold up without jeopardizing 2026 targets
Abbott Laboratories shares held steady near $109 in early trading Friday, following a sharp 10% drop to $108.61 at Thursday’s close—a hefty post-earnings selloff. The stock swung between $105.78 and $114.00 during the session. The company is set to report next on April 22. (Investing)
The decline is significant since investors have relied on Abbott’s devices and branded nutrition lines to drive growth as COVID-19 testing winds down. The latest update indicated the nutrition segment is still grappling with steady demand at current price levels.
Friday’s regular session will reveal if the sell-off was just a quick shakeout or the beginning of a broader reset in 2026 outlooks. Traders are eyeing early volume closely, along with any ripple effects among other medical-device stocks.
Abbott reported fourth-quarter revenue of $11.46 billion, up 4.4%, but below analyst expectations. Adjusted earnings came in at $1.50 per share. Nutrition sales fell 8.9% to $1.94 billion, while diagnostics slipped 2.5% to $2.46 billion. Those declines were partially offset by a 12.3% rise in medical-device sales, which hit $5.68 billion. The company expects first-quarter adjusted earnings between $1.12 and $1.18 per share. For 2026, Abbott projects adjusted earnings of $5.55 to $5.80 and organic sales growth of 6.5% to 7.5%—excluding currency fluctuations. (Abbott MediaRoom)
Chief Executive Robert Ford highlighted rising manufacturing costs pushing up shelf prices, with consumers growing more price-sensitive. He added nutrition growth would remain “challenged” for a few quarters before improving in the second half. Bernstein analyst Christian Moore warned that increased scrutiny around infant formula might cast a “negative aura” even on brands not linked to recent contamination issues. Abbott’s pediatric nutrition segment has also faced stiff competition after losing a major U.S. government supply contract last year, Reuters reported. (Reuters)
William Blair analyst Andrew Brackman, quoted by Medical Device + Diagnostics Industry, described the update as “not a clean” one for investors used to more consistent results, highlighting the recent slip in nutrition and the looming Exact Sciences deal. BTIG’s Marie Thibault added that “nearly all segments underperformed” expectations, warning that management’s strategy to lower prices and lean on promotions might keep nutrition weak through the first half. (Medical Device and Diagnostic Industry)
Abbott expects to complete its acquisition of Exact Sciences in the second quarter. The company also pointed to recent regulatory wins in electrophysiology: U.S. approval for its Volt pulsed field ablation system and a CE Mark for the TactiFlex Duo catheter.
Thursday’s options action highlighted a rush to adjust risk. Nasdaq reported 44,710 ABT contracts changing hands, led by a surge in $105 strike puts set to expire Friday. Those puts typically gain value as the underlying stock declines. (Nasdaq)
The results and outlook were submitted to the SEC in an 8-K filing on Jan. 22. (SEC)
The selloff might continue if steeper price cuts in nutrition hit margins harder than investors anticipate, or if demand stays weak through the second half. Any new alerts on infant-formula safety from other regions could keep nerves high, and Abbott is also up against stiff competition in glucose monitoring and heart-rhythm devices.
Friday’s key question: will Abbott hold above Thursday’s low? Investors will also be watching for signs the nutrition reset is gaining traction. Ahead lies the April quarterly update, plus any word on the timeline for closing the Exact Sciences deal.
