Zurich, Jan 24, 2026, 22:15 (CET) — Market closed.
Nestlé shares opened the week under pressure after French officials launched probes into two infant deaths connected to a baby formula recall from earlier this month.
Nestlé shares (NESN) closed Friday on the SIX Swiss Exchange at 72.47 Swiss francs, down 0.98% for the day. 1
The main issue has shifted: it’s no longer just about managing the recall logistics. Now, it’s moving into legal and political territory, where deadlines drag on and forecasts grow much murkier.
Investors are weighing Nestlé’s plan to sell a stake in its water business — a step that might either shed light on its strategy or add more uncertainty.
French health officials are probing the deaths of two infants who consumed baby formula now under precautionary recall, the health ministry announced Friday. One of the babies had been given Guigoz powdered milk, a Nestlé product. The ministry stressed: “To date, no causal link has been scientifically established,” adding that further testing is underway. Nestlé told Reuters that “at this stage nothing indicates any link” between its formula and the fatalities. 2
Danone has recalled a “very limited number” of infant formula batches in select markets after the contamination scare spread beyond Nestlé. Ireland’s Food Safety Authority identified a risk from cereulide, a bacterial toxin tied to nausea, vomiting, and in severe cases, death. The company said the affected formulas were produced in Ireland and exported internationally. 3
Nestlé shares have fallen about 3.7% over the past week, closing lower in four out of the last five sessions. 4
Deal chatter is picking up again. Bloomberg reported Thursday that Nestlé is moving ahead with plans to sell a stake in its water business, valuing the unit at about €5 billion. First-round bids are due this month. Rothschild is advising, with banks preparing €2–3 billion in buyout-style debt financing. Nestlé declined to comment, according to the report. 5
Barclays maintained its rating on Nestlé but cut the price target to 80 Swiss francs from 90, a sector note reported by Investing.com revealed. The unchanged rating masks a more cautious stance for the year ahead. 6
The risk is obvious: if investigators link the deaths to contaminated formula, or if more markets withdraw products, pressure could mount during earnings season. That could hit consumer confidence harder and drive up costs.
Swiss markets reopen Monday as traders await word from French prosecutors and health authorities. Attention also turns to the timing and appetite for offers on Nestlé’s water division. The next key date: Nestlé’s full-year 2025 results, set for Feb. 19. 7
