Abbott Laboratories Stock (ABT) Under Pressure Following Cautious 2026 Guidance

Abbott Laboratories stock (NYSE:ABT) is under pressure today, down 7.89% at $111.21 following a fourth-quarter earnings report that disappointed markets, with revenues falling short of expectations and forward guidance failing to inspire confidence.

The Chicago-based medical device and diagnostics manufacturer reported fourth-quarter revenues of $11.46 billion, missing the consensus estimate of $11.8 billion by nearly 3%. While the top-line figure represented a 4.4% year-over-year increase, the shortfall highlighted ongoing challenges in key business segments.

Adjusted earnings per share of $1.50 met analyst expectations, but markets reacted negatively to the revenue underperformance and the company's outlook for the year ahead.

The primary culprit behind the revenue miss was Abbott's Nutrition segment, which posted an 8.9% decline on a reported basis and a 9.1% drop organically during the quarter. Nutrition sales totaled $1.94 billion, reflecting lower sales volumes compared to the prior year and the impact of strategic pricing actions intended to stimulate future volume growth. Management indicated that nutrition sales would remain challenged through the first half of 2026, adding to investor concerns about the segment's near-term trajectory.

For the first quarter of 2026, Abbott guided adjusted EPS to a range of $1.12 to $1.18, below the consensus estimate of $1.20. Full-year 2026 adjusted EPS guidance of $5.55 to $5.80 also came in under the street's $5.68 expectation, despite representing approximately 10% growth at the midpoint. The company projected organic sales growth between 6.5% and 7.5% for the full year, with foreign exchange expected to provide a 1% tailwind to revenue and a 3% boost in the first quarter.

Chairman and Chief Executive Officer Robert Ford struck an optimistic tone despite the cautious guidance, noting that the company expanded margins and achieved double-digit earnings per share growth in 2025 while maintaining a productive new product pipeline. Abbott expects to launch eight new products over the next twelve months, which management believes will help offset current headwinds in the Nutrition business and drive accelerating growth in 2026.

Adding to investor unease is Abbott's pending $21 billion acquisition of Exact Sciences, announced in November 2025 and expected to close in the second quarter. While the deal aims to strengthen Abbott's position in precision oncology and cancer diagnostics, some institutional investors have expressed concerns about the high acquisition premium and potential near-term dilution to the company's balance sheet.

These apprehensions intensified following the earnings miss and conservative guidance, as markets questioned whether Abbott would have sufficient financial flexibility to execute the integration while maintaining its growth trajectory.

Bullish:

Today's decline pushed Abbott Labs' stock price into negative territory on a one-year basis, now down 5.55% over the period. The sharp selloff reflects markets reassessing the company's near-term growth prospects amid nutrition segment headwinds, modest guidance, and execution risks associated with the transformational Exact Sciences transaction.

With a tax rate expected between 15% and 16% for fiscal 2026 and multiple new product launches on the horizon, Abbott's ability to deliver on its growth promises while successfully integrating a major acquisition will be critical to restoring investor confidence in the quarters ahead.