Abbott Plans Nutrition Spin-Off and Cuts Sales-Growth Forecast

Abbott plans to separate its nutrition business into an independent, listed company by the end of 2027, the healthcare group said on Wednesday. Abbott would retain its medical devices, diagnostics and established medicines businesses.

The nutrition operation has about $8.5 billion in annual sales and includes Similac, Ensure and Pedialyte. Abbott intends to distribute shares in the new company to its existing shareholders in a transaction designed to be tax-free for US federal income-tax purposes.

Completion remains subject to regulatory approvals, an effective registration statement and final board approval. Nutrition will remain part of Abbott during the process. The company expects one-time separation charges but has not yet quantified them.

Separately, Abbott cut its 2026 comparable sales-growth forecast to about 6%, from 6.5%–7.5%, Reuters reported. It held the midpoint of its adjusted earnings outlook while narrowing the range to $5.50–$5.55 a share.

Third-quarter sales were $13.01 billion, up 14.5% on a reported basis and 7% on a comparable basis. Adjusted earnings were $1.42 a share; reported diluted earnings were 53 cents. The distinction matters: adjusted results exclude specified items, and the two sales-growth measures use different bases.

Sources: Reuters report via KSL; Abbott nutrition separation announcement; Abbott third-quarter 2026 results.

Archival photo: Abbott office sign, 2015. Open Grid Scheduler / Grid Engine (Raysonho) / Wikimedia Commons, CC0. Cropped to 16:9 by Morval Universal.