New York, Jan 22, 2026, 17:07 EST — After-hours
- Abbott shares dropped roughly 10% in after-hours trading following a revenue shortfall and a weaker-than-anticipated profit forecast for the first quarter.
- Nutrition and diagnostics lagged, putting the spotlight on demand and pricing concerns among investors.
- Next up is the pace at which nutrition volume stabilizes and if other growth drivers can sustain momentum into 2026.
Abbott Laboratories (ABT) shares slipped roughly 10% to $108.61 in after-hours trading Thursday, deepening a sharp decline sparked by the company’s recent outlook and quarterly results, which rattled investors.
This move is significant since Abbott is seen as a defensive healthcare stock, and its guidance offers the first concrete insight into whether its post-pandemic growth mix is stabilizing or still evolving. Nutrition and diagnostics have driven the shifts, but the company is cautioning investors against expecting a rapid rebound.
The timing is tricky for the group. Investors have been counting on medical devices to carry the load, but consumer-facing segments face sharper price sensitivity. A slip in that area could easily overshadow a strong quarter in other divisions.
Abbott projected first-quarter adjusted earnings between $1.12 and $1.18 per share, falling short of the $1.20 average estimate from analysts, per LSEG data. Its fourth-quarter revenue came in at $11.46 billion, missing the expected $11.80 billion. Nutrition sales dropped 8.9% to $1.94 billion, while diagnostics revenue declined 2.5% to $2.46 billion. CEO Robert Ford flagged that nutrition growth would be “challenged” for a few quarters before picking up in the latter half of the year. Bernstein’s Christian Moore cautioned that ongoing scrutiny around infant formula could cast a “negative aura” over the sector, even if Abbott itself isn’t directly implicated. (Reuters)
Abbott reported adjusted earnings of $1.50 per share for the fourth quarter, with organic sales up 3.0%, excluding currency effects and certain items. Stripping out COVID-19 testing-related sales, organic growth rose to 3.8%. For full-year 2026, the company forecasts adjusted earnings between $5.55 and $5.80 per share, alongside organic sales growth of 6.5% to 7.5%. Abbott also confirmed it still expects to complete its acquisition of Exact Sciences in Q2 2026. (Abbott MediaRoom)
A regulatory filing revealed Abbott released the results in a Form 8-K on Thursday. (SEC)
During the earnings call, Ford acknowledged that higher prices were weighing on demand, noting that the price increases had been “kind of suppressing demand and lowering the volume growth.” (The Motley Fool)
Traders now eye whether revisions come swiftly. When revenue falls short and first-quarter profit guidance trails consensus, near-term forecasts usually take a hit, even if full-year targets remain relatively stable on paper.
The risk is that the “couple of quarters” stretches out further. If nutrition volumes remain weak and price and promotion continue to shift, margins could tighten. Plus, a wider blow to infant-formula sentiment would make the recovery even tougher.
Friday’s regular session will put the stock to the test, as investors assess how much of the reset is baked in. In the weeks ahead, analysts will revise estimates while the company pushes toward its Q2 2026 goal of completing the Exact Sciences acquisition.
