New York, January 25, 2026, 15:23 EST — Market closed
- Abbott shares enter the new week grappling with a steep post-earnings adjustment.
- Price targets are being cut by analysts as investors zero in on nutrition trends and guidance for early 2026.
- Markets are now focused on the Federal Reserve’s decision set for January 28.
Abbott Laboratories shares head into Monday weighed down, following last week’s selloff and another wave of broker price-target downgrades.
Timing is crucial. Abbott, known as a defensive healthcare stock, suddenly saw its volatility spike, pushing portfolio managers to rethink their “steady compounder” stance just as the market prepares for a packed schedule of macro updates and earnings reports.
Traders are now focused less on pinpointing a bottom in one session and more on whether the stock can stay above recent lows without facing another round of estimate cuts.
Abbott closed Friday down 1.10% at $107.42, after dropping 10.04% the previous day. On Thursday, the stock hit an intraday low of $105.78, with volume spiking to roughly 37.1 million shares.
Abbott reported fourth-quarter adjusted earnings of $1.50 per share on $11.459 billion in sales. The company projects full-year 2026 adjusted earnings between $5.55 and $5.80, with organic sales growth of 6.5% to 7.5%—a figure that excludes currency fluctuations and certain items. For the first quarter, Abbott expects adjusted EPS to land between $1.12 and $1.18. The company also reiterated that its planned acquisition of Exact Sciences should close in Q2 2026. Its $0.63 quarterly dividend is set for payment on Feb. 13.
Chief Executive Robert Ford told investors the company anticipates “a couple quarters” of challenged nutrition growth before it bounces back in the second half. He added that roughly $1 billion in diagnostics headwinds from last year is “mostly going to be behind us.” Abbott’s nutrition sales dropped 8.9% to $1.94 billion, while diagnostics sales slipped 2.5% to $2.46 billion in the quarter, Reuters reported. Bernstein analyst Christian Moore pointed to a broader risk in infant formula sentiment, noting Abbott hasn’t been hit by contamination issues affecting rivals but may still face a lingering “negative aura” around formula use. Reuters
RBC Capital lowered its price target on Abbott to $135 from $147 but stuck with an “Outperform” rating. Analyst Shagun Singh described the challenges as “transitory” but expects them to drag into the first half of 2026. The report also noted several other target cuts after the quarter: Wells Fargo dropped to $122, Raymond James to $130, while Jefferies held firm at $145 and kept a Buy rating. Investing.com
Abbott’s 10% plunge on Thursday marked its steepest single-day decline since June 2002, Dow Jones Market Data shows, as reported by Barron’s. This kind of volatility is rare for a stock usually viewed as a steady, low-drama play.
The weakness stood out against a mixed Friday for major medtech players. Boston Scientific climbed 1.34%, but Abbott slipped 1.10%. Medtronic dipped 0.45%, and Stryker dropped 1.01%, according to MarketWatch data.
That said, the next phase isn’t set in stone. If nutrition volumes remain weak longer than management anticipates—or if pricing pressure intensifies—the market may push for an even lower multiple. On top of that, the upcoming Exact Sciences acquisition introduces another variable for investors attempting to forecast 2026 and beyond.
U.S. markets reopen Monday, with the spotlight shifting to the Federal Reserve’s meeting on Jan. 27-28. The key moment arrives Wednesday, Jan. 28, when the Fed announces its rate decision and holds a press conference—moves that could shake up risk sentiment, even for defensive names like Abbott.
