Abbott (ABT) Stock Sinks Despite EPS Match as Revenue Miss Sparks Selloff

Abbott Laboratories faced a sharp selloff on January 22, 2026, as shares plunged over 7% in premarket trading despite meeting fourth-quarter earnings expectations. The healthcare giant’s revenue miss and disappointing first-quarter guidance overshadowed its solid earnings performance, triggering investor concerns about near-term growth prospects.

The company reported adjusted earnings per share of $1.50, matching analyst estimates, but revenue of $11.46 billion fell short of the $11.8 billion consensus, marking a concerning gap that weighed heavily on market sentiment.

Abbott Delivers Solid EPS, But Revenue Miss Weighs on the Report

Abbott’s fourth-quarter results painted a picture of uneven performance across its business segments. While the company achieved adjusted EPS of $1.50, meeting analyst expectations, total sales of $11.46 billion came in roughly $340 million below consensus forecasts. The company posted total sales growth of 4.4% on a reported basis and 3.0% organically, though organic growth excluding COVID-19 testing-related sales reached 3.8% year-over-year.

The Medical Devices segment emerged as the standout performer, delivering sales of $5.68 billion with growth of 12.3% on a reported basis. Diabetes Care, which includes the company’s continuous glucose monitoring products, showed particular strength with sales climbing 14.5% to $2.13 billion. However, these gains were offset by significant weakness in other divisions.

Nutrition sales declined sharply by 8.9% to $1.94 billion, which Abbott attributed to lower sales volumes and strategic pricing actions designed to stimulate future demand. The Diagnostics segment also disappointed, with sales falling 2.5% to $2.46 billion, hampered by reduced demand for COVID-19 testing products that had previously boosted results.

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Investor Focus Shifts to 2026 Outlook After Post-Earnings Selloff

The market’s negative reaction intensified following Abbott’s first-quarter 2026 guidance, which came in materially below Street expectations. The company projected adjusted EPS of $1.12 to $1.18 for the first quarter, falling short of the analyst consensus of $1.20. This guidance miss suggested near-term headwinds that could persist beyond the fourth-quarter weakness.

Despite the disappointing near-term outlook, Abbott issued full-year 2026 guidance that exceeded expectations. The company forecasts organic sales growth of 6.5% to 7.5% and adjusted EPS of $5.55 to $5.80, surpassing the analyst consensus of $5.17 and representing approximately 10% growth at the midpoint. Chairman and CEO Robert B. Ford expressed confidence in the company’s positioning, stating that Abbott achieved double-digit earnings per share growth in 2025 while expanding margins and advancing its product pipeline.

At the market close on January 21, Abbott stock traded at $121.14, but plummeted to $112.01 in premarket trading on January 22 at 8:51 AM EST, representing a 7.27% decline. The stock has underperformed the broader market over the past year, gaining just 5.31% compared to the S&P 500’s 13.66% return. With a market capitalization of $210.13 billion and a forward P/E ratio of 21.28, Abbott faces the challenge of restoring investor confidence while executing on its longer-term growth strategy.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.