Abbott Plans $8.5 Billion Nutrition Business Spinoff

Abbott announced plans to spin off its nutrition business into an independent publicly traded company by the end of 2027. The unit generates about $8.5 billion in annual sales and includes Similac, Ensure and Pedialyte. Daniel Salvadori will lead the new company. Shareholders will receive shares in both after separation. Abbott reported adjusted quarterly earnings of $1.42 per share, in line with expectations, and lowered its 2026 sales-growth outlook to about 6% from 6.5%-7.5%. Medical devices sales grew 6.9% to $5.83 billion. The nutrition business faced pressure from loss of a major U.S. government contract and weaker demand after price increases. Abbott has paid several multimillion-dollar settlements over baby-formula facility litigation. Separation leaves 2026 guidance and the 2027 guidance due in January unchanged; one-time charges will be quantified later. Shares closed at 102.45 USD, down 1.55%; the pre-market quote was 98.24, down 4.11%. Completion is targeted for the end of 2027 subject to customary approvals.