New York, January 24, 2026, 17:34 EST — Market closed
Abbott Laboratories shares ended Friday at $107.42, slipping 1.1% after tumbling nearly 10% the previous day. Investors are reacting to a quarterly sales shortfall and a weaker 2026 forecast. When trading resumes Monday, the nutrition segment remains the primary concern for many analysts.
Abbott reported a 4.4% rise in fourth-quarter sales, reaching $11.46 billion. Organic growth, excluding currency effects, was 3.0%. The company projects organic sales growth between 6.5% and 7.5% for 2026, with adjusted earnings expected between $5.55 and $5.80 per share. For the first quarter, adjusted EPS is forecasted at $1.12 to $1.18.
Volume remains the key issue. CEO Robert Ford told investors the U.S. pediatric nutrition segment suffered market-share losses after Abbott lost a major WIC contract last year — the federal program for women, infants, and children. He added that price hikes, aimed at offsetting rising manufacturing costs, have “constrained volume growth.” To revive demand, Abbott is banking on promotions, pricing adjustments, and new product launches. Fierce Biotech
The numbers explain the market’s reaction. Nutrition sales tumbled 8.9% to $1.94 billion, diagnostics dropped 2.5% to $2.46 billion, and medical devices climbed 12.3% to $5.68 billion in the quarter, according to an SEC filing that included the company’s press release.
On the Street, initial reactions zeroed in less on the earnings miss and more on the drawn-out nutrition reset. Wells Fargo’s Larry Biegelsen cut his price target from $146 down to $122 but maintained an Overweight rating, citing ongoing nutrition challenges through the first half of 2026. BTIG’s Marie Thibault lowered her target to $140 and kept a Buy rating, warning the first half will remain weak despite promotions and new product launches.
Another headline is brewing. Reuters revealed that Abbott Healthcare, Abbott’s Indian arm, is facing scrutiny in Uttar Pradesh amid a wider probe into the misuse and diversion of codeine-based cough syrups like Phensedyl. Reuters noted Abbott is not listed as a suspect. The company confirmed it cooperated with an inspection at its facility on Jan. 14.
The tape hasn’t shown a broad sector selloff. Boston Scientific climbed roughly 1.3% Friday, but Abbott slid, and both Medtronic and Stryker also moved lower, MarketWatch reports.
Traders are keeping an eye on whether the selloff extends to Abbott’s diabetes segment, including FreeStyle Libre continuous glucose monitors, following a sensor replacement program launched late last year. Evercore ISI analyst Vijay Kumar told Investors Business Daily that roughly three-quarters of the revenue miss stemmed from nutrition pricing choices.
Bulls face the risk that the fix drags on beyond market patience. If lower prices fail to revive volume, or if diagnostic demand remains weak in China amid a mild flu season, the stock might struggle to bounce back swiftly.
Monday’s open could shape the week ahead. Investors will be keen on any further downgrades, clearer signals on when nutrition volume might pick up, and whether the India probe escalates into a larger regulatory headache.
Abbott is gearing up for a key shareholder date: its $0.63-per-share quarterly dividend will be paid out on Feb. 13.
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