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January 22, 2026
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Abbott Laboratories Shares Plunge; nutrition business drags down profits

Abbott Laboratories Shares Plunge; nutrition business drags down profits

Shares of the health products and devices company Abbott Laboratories fall on Wall Street on Thursday after the company reported fourth-quarter 2025 revenue that fell short of market expectations.

The actions of the pharmaceutical American stock fell more than 9% at $109.68, and is on track to close its worst day on the stock market since July 17 of last year when its prices fell 8.52 percent.

In addition, it is the company with the worst performance within the health component of the index S&P 500.

The company’s total revenue for the quarter ended December 31 was $11.46 billion, an increase of 4.4% from the fourth quarter of 2024, but the figure was below analysts’ expectation of $11.8 billion.

Sales of the four segments of Abbott They were below expectations. The sales of nutritional segment The pharmaceutical sector fell 8.9% compared to the previous year, to 1.94 billion dollars, while those in the diagnostic segment fell 2.5%, to 2.46 billion dollars.

He pediatric business The company’s performance has been hit in recent quarters due to competitive pressure from the loss of a U.S. government supply contract last year, along with rising manufacturing costs for consumer packaged goods.

“We’ll have a couple of quarters where growth in nutrition is challenged, and then in the second half we’ll get back to positive growth,” said Robert Ford, Abbott’s chief executive.

The business of pediatric nutrition has faced heavy scrutiny globally after companies including Nestlé, Danone and Lactalis recalled batches of its infant formula amid fears of contamination with a rare bacterial toxin.

“Abbott is not affected by the issues affecting Nestle and Danone, but there is potential for a negative aura around formula use to steer parents away from this, as we have seen in the past,” said Bernstein analyst Christian Moore.



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