Abbott Laboratories reported fourth-quarter revenues of $10.8 billion, up just 2.1% year-over-year, as growth in its medical devices and diagnostics segments was offset by a 4% decline in established pharmaceuticals. Organic sales growth of 1.8% fell short of consensus estimates, driven by slower uptake of its core cardiovascular and diabetes care products in North America. Adjusted EPS of $1.52 grew 3.4% year-over-year but missed analyst projections by $0.05, reflecting higher R&D and SG&A investments.

In its fastest-growing division, Abbott allocated $536 million to build a state-of-the-art infant nutrition facility in Bowling Green, Ohio, slated to produce 450 million cans annually by late 2026. This capex commitment responds to a global infant formula market projected to expand at a 10.3% CAGR through 2035, targeting hypoallergenic and medical-grade formulations that command 20–30% premium pricing. The new plant will support domestic supply chain resilience and is forecast to contribute $250 million in incremental free cash flow by 2028.

In January, Abbott completed its acquisition of BioNova Medical, a privately held specialist in remote cardiac monitoring devices, for $2.1 billion. This deal adds five cleared products and two Phase II candidates to Abbott’s pipeline, supporting a shift away from volume-based pharmaceutical sales. Management expects the integration to generate $150 million in annual synergies by 2027 and accelerate entry into the growing digital therapeutics market, where global spending is projected to exceed $50 billion by 2028.