Business · NEWS EXPLAINER
Abbott plans Nutrition spin-off as Q3 sales reach $13.01 billion
The healthcare group expects to separate its roughly $8.5 billion-a-year Nutrition business by the end of 2027, while lowering its 2026 comparable sales-growth view to about 6% and retaining the midpoint of adjusted EPS guidance.
Abbott paired its third-quarter results with a major portfolio decision: it intends to turn Nutrition into an independent public company. The separation is targeted for the end of 2027, but still depends on approvals and other conditions.
A separation plan arrives with the quarter
Abbott said it intends to separate its Nutrition business into an independent publicly traded company through a tax-free distribution to shareholders. The transaction is expected by the end of 2027, subject to final board approval, regulatory reviews, tax rulings and other conditions. Abbott said the new company would start with about $8.5 billion in annual sales, roughly 16,000 employees and 14 manufacturing sites. The plan is not completed, and Abbott explicitly cautioned that timing and completion are not assured.
What the third quarter showed
For the quarter ended September 30, Abbott reported net sales of $13.013 billion, up 14.5% as reported and 7.0% on a comparable basis. Adjusted diluted earnings were $1.42 a share, matching the figure cited by Reuters from LSEG estimates. Nutrition sales rose 5.1% as reported and 4.9% on a comparable basis, with nearly 9% growth in worldwide pediatric nutrition and a $118 million sequential increase from the second quarter.
The outlook changed, but EPS guidance held
Abbott now projects approximately 6.0% comparable sales growth for 2026, below the earlier 6.5%–7.5% range cited by Reuters. The company kept the midpoint of its adjusted diluted EPS outlook and narrowed the full-year range to $5.50–$5.55. That distinction matters: the sales-growth view moved lower, while adjusted EPS guidance did not receive a comparable midpoint cut.
Why Nutrition is being separated
Abbott argues that the Nutrition business will have more freedom to allocate capital across infant, pediatric, medical and adult nutrition as an independent company. The portfolio includes widely recognized brands, but the company’s statement framed the decision around operating focus rather than a sale. Reuters added that pediatric nutrition had faced the loss of a major U.S. government supply contract and higher manufacturing costs, which had led to price increases and softer demand among budget-conscious consumers.
What remains unresolved
Abbott has not yet provided the new company’s name, ticker, capital structure, board, exact distribution ratio or a precise completion date. It expects the transaction by the end of 2027, but shareholder, regulatory and tax conditions remain. The current announcement therefore establishes strategic intent and an approximate business scale; it is not a completed spin-off or a guarantee of future financial performance for either company.
