Abbott to Separate Nutrition Business as Quarterly Results, Along With Thermo Fisher, Danaher Rise Annually

11:06 AM EDT, 10/21/2026 (MT Newswires) -- Abbott Laboratories (ABT) disclosed plans on Wednesday to separate its nutrition business into a publicly traded entity as the company, along with Thermo Fisher Scientific (TMO) and Danaher (DHR), reported annual gains in their third-quarter results. The spinoff will allow the healthcare firm and the new independent company to pursue specific objectives to their distinct business models. The nutrition company is expected to have $8.5 billion in annual sales and will be led by Daniel Salvadori, currently president of established pharmaceuticals and nutritional products at Abbott, as chief executive. "This separation will benefit both companies, setting each one up for maximum success in its respective market," Abbott CEO Robert Ford said in a statement. "Our nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities." Abbott aims to separate the nutrition division through a distribution of the proposed independent company's shares to its shareholders. Abbott stockholders will own shares in both the company and the new nutrition entity. The spinoff, which requires approval from regulators, is expected to be completed by the end of next year. Abbott expects to incur one-time charges, which will be estimated at a later time, related to the deal during periods before the separation, it said. Separately, Abbott reported adjusted earnings of $1.42 per share for the quarter ended September, up from $1.30 a year earlier, in line with the consensus on FactSet. Sales climbed 15% to $13.01 billion, topping the Street's view for $12.99 billion. The nutrition division recorded a 5.1% annual gain in sales to $2.26 billion. For 2026, the company now expects adjusted EPS to come in between $5.50 and $5.55, compared with its prior projections of $5.45 to $5.60. For the ongoing three-month period, it sees the metric coming at $1.62 to $1.67. The Street is looking for non-GAAP EPS of $1.64 and $5.52 for the fourth quarter and full year, respectively. Thermo Fisher recorded a 15% year over year increase in its fiscal third-quarter adjusted EPS to $6.68, while revenue inclined 9% to $12.14 billion. Both metrics came in ahead of average analyst estimates on FactSet. The medical-device manufacturer now anticipates adjusted EPS to be in a range of $25.13 to $25.43 for fiscal 2026, representing annual growth of 10% to 11%, CEO Marc Casper said during an earnings call, according to a FactSet transcript. Revenue is pegged at $47.7 billion to $48.2 billion, reflecting a yearly gain of 7% to 8%, Casper said. The market's current view is for non-GAAP EPS of $25.14 and sales growth of 7.5%. Danaher's adjusted EPS increased to $2.11 for the three months through Sept. 25 from $1.89 the year before, ahead of the $1.92 consensus. Revenue improved 8.5% to $6.55 billion, but were just shy of expectations for $6.56 billion. The company forecasts adjusted EPS of $8.57 to $8.62 for the current fiscal year, up from its previous guidance of $8.45 to $8.60. The Street is looking for $8.50. For the ongoing quarter, it projects adjusted core revenue, excluding respiratory sales, to rise by 4% to 5%. Price: 99.76, Change: -2.69, Percent Change: -2.63