Abbott Laboratories (ABT.US) Q3 revenue beats expectations but full-year guidance lowered; nutrition business plans spin-off and listing

Abbott Laboratories (ABT.US) reported third-quarter 2026 results on Wednesday, showing sales rose 15% year-over-year to $13.01 billion, beating the market expectation of $12.99 billion; adjusted earnings per share were $1.42, up 9% year-over-year and in line with market expectations; gross margin rose to approximately 57% from about 56% in the prior-year period. The nutrition and diagnostics businesses offset weaker performance in the medical technology and established pharmaceuticals businesses. Data showed that sales in the nutrition and diagnostics businesses reached $2.26 billion and $3.31 billion, respectively, exceeding market expectations of $2.21 billion and $3.28 billion. However, sales in its medical technology and pharmaceutical businesses were $5.83 billion and $1.61 billion, respectively, versus market expectations of $5.88 billion and $1.62 billion. On guidance, Abbott Laboratories expects 2026 adjusted earnings per share of $5.50-$5.55 (midpoint of $5.275), compared with its previous forecast of $5.45-$5.60 (midpoint of $5.525), while the market expected $5.52. The company also set its full-year comparable sales growth forecast at about 6%, below its previous forecast of 6.5% to 7.5%. Meanwhile, Abbott Laboratories announced plans to spin off its nutrition business and establish a new independently listed company. Abbott Laboratories announced the spin-off plan before releasing its third-quarter 2026 financial results. The company said the spin-off is expected to be completed by the end of 2027, subject to customary closing conditions, including receipt of regulatory approvals. Abbott Laboratories' nutrition business owns well-known infant formula brands such as Similac. The business segment has approximately 16,000 employees and 14 manufacturing sites worldwide, with annual sales of about $8.5 billion. In addition to Similac, brands under the business also include Abbott Laboratories' Ensure, Abbott Laboratories' PediaSure and Abbott Laboratories' Glucerna. Abbott Laboratories plans to complete the spin-off by distributing shares of the new independent company to existing shareholders, and the transaction will be tax-free. After the spin-off is completed, Abbott Laboratories shareholders will hold shares in both listed companies. The company said the proposed transaction will not affect its 2026 guidance or its 2027 outlook, which it plans to release in January next year. In addition, Daniel Salvadori, currently executive vice president and group president of Abbott Laboratories' established pharmaceuticals and nutrition business, will become chief executive officer of the new company.