Abbott Laboratories (NYSE:ABT) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.
Courtesy of Abbott Labs
On January 23, Evercore ISI trimmed its price target on Abbott Laboratories (NYSE:ABT) to $138 from $144. However, it kept an Outperform rating. The firm acknowledged the recent stumbles that led to a quarterly miss and a more cautious outlook for the second half, but said the bigger picture has not changed. Growth drivers are still in place, and the analyst pointed to “promising growth levers that could drive future performance.”
Abbott shares slid about 7% after the company missed Wall Street’s revenue expectations and guided current-quarter profit below estimates. The pressure came mainly from the nutrition and diagnostics businesses, which both underperformed.
The nutrition unit has been under strain for several quarters. The pediatric business was hit by increased competition after Abbott lost a major U.S. government supply contract last year. At the same time, manufacturing costs for consumer packaged goods moved higher, squeezing margins and complicating pricing decisions.
CEO Robert Ford said rising production costs forced the company to raise prices, which weighed on demand as consumers became more price-conscious. The slowdown showed up across the board. All four business segments came in below expectations for the quarter.
Sales in the nutrition segment fell 8.9% from a year earlier to $1.94 billion. Diagnostics revenue declined 2.5% to $2.46 billion, adding to concerns around near-term momentum.
Abbott Laboratories (NYSE:ABT) is a global healthcare company with a broad portfolio spanning diagnostics, medical devices, nutrition, and branded generic medicines.
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