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Abbott Labs is trading sharply lower following its Q4 earnings report, mirroring the negative reaction seen in peer Johnson & Johnson (JNJ) after its Q4 results. Abbott delivered in-line EPS, consistent with its recent trend of modest beats or in-line prints, but revenue and near-term guidance disappointed.

• Q4 revenue increased 4.4% yr/yr (+3.0% organic) to $11.46 bln, falling short of analyst expectations. Q1 EPS guidance came in below Street estimates, though Abbott has a history of conservative outlooks. For FY26, Abbott guided to in-line EPS and organic revenue growth of +6.5-7.5%, an improvement from +5.5% organic growth in FY25.
• Medical Devices, Abbott's largest segment, delivered the strongest performance with revenue up 12.3% yr/yr (+10.4% organic) to $5.68 bln. Growth was driven by double-digit gains in Electrophysiology, Heart Failure, Diabetes Care, and Rhythm Management. Within Diabetes Care, continuous glucose monitor sales reached $2.0 bln, up 15% yr/yr.
• Nutrition segment revenue declined 8.9% yr/yr to $1.94 bln, pressured by lower volumes and strategic price actions aimed at driving future volume growth. Abbott expects new product launches in 2026 to help reaccelerate this segment.
• Diagnostics revenue fell 2.5% yr/yr to $2.46 bln; excluding COVID-19 testing, the decline was just 0.2%. COVID-19-related sales dropped to $89 mln, nearly half of prior-year levels. Core Laboratory Diagnostics grew 5.3%, though results were tempered by challenging market conditions in China.
• Established Pharmaceuticals, Abbott's smallest segment, posted revenue growth of 9.0% yr/yr to $1.38 bln, driven entirely by international markets. Organic growth for the segment was 7.0%, excluding FX impacts.

Briefing.com Analyst Insight:

Investor reaction appears driven by a combination of a Q4 revenue miss and downside Q1 EPS guidance, echoing the cautious response seen with peer JNJ. While Abbott's FY26 organic sales outlook shows a notable acceleration, near-term concerns are overshadowing that improvement. The stock had already been trending lower in the month leading up to the report, suggesting elevated caution into the print. For now, disappointment around near-term execution and visibility is outweighing confidence in the company's longer-term growth trajectory.