Abbott (ABT.US) Q3 revenue beats expectations but lowers full-year guidance; plans to spin off its nutrition business for listing

According to news from Zhihu Finance APP, Abbott (ABT.US) announced its third quarter 2026 results on Wednesday, showing that sales for the period increased by 15% year-on-year to $13.01 billion, higher than the market expectation of $12.99 billion. Adjusted earnings per share were $1.42, up 9% year-on-year, in line with market expectations. Gross margin rose from about 56% in the same period last year to about 57%.

The nutrition and diagnostics businesses offset the weaker performance in medical technology and established pharmaceuticals. Data shows nutrition and diagnostics sales reached $2.26 billion and $3.31 billion respectively, surpassing 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, compared to market expectations of $5.88 billion and $1.62 billion.

Regarding guidance, Abbott expects adjusted earnings per share in 2026 to be between $5.50 and $5.55 (median $5.275), compared to its previous forecast of $5.45 to $5.60 (median $5.525), while the market expects $5.52. The company also set its annual comparable sales growth forecast at about 6%, lower than its previous estimate of 6.5% to 7.5%.

Meanwhile, Abbott announced plans to spin off its nutrition business to create a new independent, publicly listed company. Abbott revealed this spin-off plan before announcing its third quarter 2026 financial results. The company stated that, subject to customary closing conditions including obtaining regulatory approvals, the separation is expected to be completed by the end of 2027.

Abbott's nutrition business owns well-known infant formula brands such as Similac. This business segment has around 16,000 employees worldwide and 14 manufacturing facilities, with annual sales of approximately $8.5 billion. In addition to Similac, its brands also include Ensure, PediaSure, and Glucerna.

Abbott plans to complete the spin-off by distributing shares in the new independent company to its existing shareholders, and the transaction will be conducted tax-free. After the spin-off, Abbott shareholders will hold shares in two publicly listed companies. The company stated that the proposed transaction will not affect its 2026 performance guidance or its 2027 outlook scheduled for release in January next year.

In addition, Daniel Salvadori, Abbott's current executive vice president and group president of the established pharmaceuticals and nutrition businesses, will serve as the CEO of the new company.