Stocks

Abbott Plans Nutrition Spinoff as Q3 Sales Rise 14.5%

Abbott said it intends to spin off its $8.5 billion Nutrition business by the end of 2027 and reported Q3 2026 sales of $13.01 billion, up 14.5%.

Oct 21, 2026 - 12:22

0 3

Abbott Laboratories (NYSE: ABT) said on Wednesday, October 21, 2026, that it intends to separate its global Nutrition business into an independent, publicly traded company, and on the same morning reported third-quarter sales of $13.01 billion, up 14.5% from a year earlier. Shares were down about 1.4% in premarket trading after the announcements, Investing.com reported.

The planned separation

According to Abbott's announcement, the new Nutrition company would have approximately $8.5 billion in annual sales, about 16,000 employees and 14 manufacturing sites. Its portfolio would include the Similac, PediaSure, Pedialyte, Glucerna and Ensure brands across infant, pediatric, medical and adult nutrition.

Abbott said it plans to carry out the separation by distributing shares of the new company to Abbott shareholders, a transaction intended to be tax-free for U.S. federal income tax purposes. The company expects to complete the deal by the end of 2027, subject to conditions that include regulatory approvals, the effectiveness of a Form 10 registration statement and final approval by Abbott's board. Abbott said it expects the combined dividend paid by the two companies to equal Abbott's dividend at the time of the separation.

Daniel Salvadori, currently executive vice president and group president for Established Pharmaceuticals and Nutritional Products, is slated to become chief executive of the Nutrition company. After the transaction, Abbott said it would have sales of roughly $42 billion and about 106,000 employees, with businesses in cardiovascular and neuromodulation devices, biowearables, diagnostics and established medicines.

Chairman and Chief Executive Robert B. Ford said in the release that the separation would set each company up "for maximum success in its respective market." Abbott said the plan does not change its 2026 guidance or the 2027 guidance it intends to issue in January, and that it expects to record one-time charges tied to the transaction, to be quantified later. Goldman Sachs is serving as financial adviser and Wachtell, Lipton, Rosen & Katz as legal counsel.

Third-quarter results

In its third-quarter earnings release, Abbott reported net sales of $13.013 billion for the quarter ended September 30, compared with $11.369 billion a year earlier. Comparable sales growth, a company measure that includes prior-year sales of Exact Sciences (acquired on March 23, 2026) and excludes foreign-exchange effects, was 7.0%.

GAAP diluted earnings per share were $0.53, down from $0.94, while adjusted diluted EPS, which excludes specified items, rose to $1.42 from $1.30. The specified items in the quarter included $841 million of intangible amortization and about $670 million related to agreements to resolve litigation, according to the release. Investing.com reported that adjusted EPS matched analyst estimates and that revenue edged past a consensus estimate of $12.99 billion.

Segment performance

Medical Devices: sales of $5.826 billion, up 6.9% reported and 7.8% on a comparable basis, led by double-digit growth in electrophysiology and rhythm management.
Diagnostics: sales of $3.305 billion, up 46.7% reported, largely reflecting the Exact Sciences acquisition; comparable growth was 6.4%.
Nutrition: sales of $2.262 billion, up 5.1% reported and 4.9% comparable, with Worldwide Pediatric sales growing nearly 9%.
Established Pharmaceuticals: sales of $1.614 billion, up 6.8% reported and 8.4% comparable.

Within diabetes care, continuous glucose monitor sales grew 7.3% on a reported basis, the company said.

Guidance and dividend

Abbott tightened its full-year 2026 adjusted EPS range to $5.50 to $5.55, keeping the midpoint of its earlier guidance, and projected full-year comparable sales growth of approximately 6.0%. For the fourth quarter, it forecast adjusted EPS of $1.62 to $1.67. The company also noted that its board declared a quarterly dividend of $0.63 per share in September, payable November 16, 2026, and that it has raised its dividend for 54 consecutive years.