Abbott Shares Plunge 10% on Q4 Revenue Miss, Guides 6.5–7.5% Growth

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Abbott Laboratories shares plunged nearly 10% after reporting Q4 revenue of $11.5 billion versus $11.8 billion expected, driven by higher nutrition segment costs despite a 12% adjusted EPS increase. The company projects 6.5–7.5% organic sales growth and $5.55–$5.80 EPS for 2026 and expects to close its Exact Sciences acquisition in Q2 2026.

1. Insider Purchase Underscores Confidence

Ford Robert B., Chairman and CEO of Abbott Laboratories, acquired 18,800 additional common shares in late January, raising his total ownership to 216,203 shares. This insider transaction represents a significant personal investment and reinforces management’s positive outlook on the company’s medium-term growth prospects, particularly as Abbott navigates near-term pressures in its Nutrition segment and seeks to capitalize on innovation in its core businesses.

2. Medical Devices Segment Delivers Robust Performance

Despite headwinds in nutrition and COVID-19 diagnostics, Abbott’s Medical Devices division reported strong double-digit revenue growth, led by its Continuous Glucose Monitoring (CGM) franchise. The segment’s performance offset declines elsewhere and highlights the success of recent product launches and distribution partnerships. High procedural volumes and ongoing investments in R&D have maintained momentum, positioning Medical Devices as a key driver of overall profitability and margin expansion.

3. Positive Guidance and Strategic Acquisition Positioning

Abbott has issued guidance for a mid-single-digit percentage increase in full-year sales and a high-single-digit rise in earnings per share for 2025, reflecting a projected rebound in nutrition and sustained momentum in diagnostics and devices. Looking ahead to 2026, management expects organic sales growth to accelerate toward the upper end of its range and EPS growth to approach double digits. Moreover, the planned acquisition of a leading molecular diagnostics firm in the second quarter is anticipated to add a new cancer-detection vertical, broadening Abbott’s portfolio and creating incremental long-term value for shareholders.

Sources

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